Thi Viet Nga NGUYEN, Thanh Quang DO, Cong Hoang DINH / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 413–421 413 413
Print ISSN: 2288-4637 / Online ISSN 2288-4645
doi:10.13106/jafeb.2020.vol7.no10.413
1
First Author and Corresponding Author. Department of Economics,
Academy of Finance, Hanoi, Vietnam [Postal Address: 58 Le Van
Hien, Bac Tu Liem District, Hanoi, 100000, Vietnam]
Email: ngahvtc1605@gmail.com
2
Department of Ho Chi Minh City Customs, Ho Chi Minh City,
Vietnam. Email: stevedo456789@gmail.com
3
Insitude for Africa and Middle East, Vietnam Academy of Social
Sciences (VASS), Vietnam. Email: hoang0108@gmail.com.
© Copyright: The Author(s)
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Factors Affecting Employees’ Organizational Commitment in Foreign
Direct Investment Enterprises
Thi Viet Nga NGUYEN
1
, Thanh Quang DO
2
, Cong Hoang DINH
3
Received: July 18, 2020 Revised: August 23, 2020 Accepted: August 28, 2020
Abstract
This study aims to develop a research framework to investigate the factors afecting organizational commitment among employees who
are working in Foreign Direct Investment (FDI) enterprises in Vietnam. The authors designed an online survey distributed to employees in
FDI enterprises, collecting the data from 312 employees. All scales in this study are adopted from previous studies; tools employed include
Cronbach’s Alpha, Exploratory Factor Analysis, and Confrmatory Factor Analysis (CFA) to examine the internal consistency, reliability, di-
mensionality, and validity of each variable. Then, the structural equation modelling (SEM) was utilized in order to estimate path correlations
between variables. Results indicate that the leadership style has the strongest efect on organizational commitment, followed by job satisfac-
tion and working performance. Moreover, working performance and job satisfaction are also infuenced by leadership style. However, there
is no statistical evidence to show that job satisfaction has an impact on working performance. In addition, bootstrapping method is used to
show the indirect efect of variables; results reveal that leadership style, though, does not have indirect efect on working performance via
job satisfaction, but it indirectly afects organizational commitment throughout working performance. In other words, the study fnds that
working performance mediates the link between leadership style and organizational commitment.
Keywords: Job Satisfaction, Organizational Commitment, Leadership Style, Working Performance, FDI Enterprises
JEL Classification Code: M10, M52, M54
the organization. Organizational commitment serves as
an important factor impacting several outcome variables
including job satisfaction, work performance, turnover
rate, leading to the higher level of achievement in many
organizations. Organizations try to encourage commitment
in their employees in order to achieve stability and improve
the efficiency of its human capital. With the increasing
speed and scale of changes in organizations, managers are
constantly seeking ways to generate greater employees’
commitment and competitive advantage (Lok & Crawford,
2001). Furthermore, Schuster (1998, p. 51) contends “in an
era in which organizations frequently confront the necessity
of massive change, committed employees can be extremely
valuable organizational resource in facilitating rapid
adaptation to changing conditions”. Thus, for organizations
that want to retain their employees, it is important to recognize
factors leading to higher organizational commitment.
Moreover, most of the research on organizational
commitment (OC) has been conducted in Western countries
and the models on this subject have often been developed
and investigated in Western countries too (Meyer & Allen,
1991). In Vietnam, organizational commitment is a topic that
has not been studied much and there is a lack of academic
1. Introduction
Organizational commitment is considered to be one of
the most important work attitudes that gives direction to
behavior and binds a person to a course of action. When
employees are committed, they do not tempt to look for
other opportunities (Lok & Crawford, 2001). Mowday et
al. (1979) states that organizational commitment is obtained
when employees strongly believe in and accept the goals
and values of an organization, when they are willing to do
their utmost on behalf of the organization and to stay with