Adopting Consistent PLS in Assessing the Influence of Internal Corporate Social Responsibility among Small Medium Sized Enterprises Employees
DOI:
https://doi.org/10.37134/mrj.vol7.5.2018Keywords:
PLSc, Internal CSR, Affective commitment, Job satisfaction, Turnover intention, SMEs employeesAbstract
The research paper uses Consistent Partial Least Square (PLSc) which emerges as a more robust statistical approach recently, in assessing the influence of Internal Corporate Social Responsibility (CSR) among Small Medium Sized Enterprises (SMEs) employees. A total of 383 responses were collected from SMEs employees located in the state of Selangor, Malaysia. The results for Standardized Root Mean Square Residual (SRMR = 0.040) was lower than 0.08 and the Normed Fit Index (NFI = 0.929) was higher than 0.90. Thus, it was deemed that the data fits the model well. The results indicate that Internal CSR could enhance employees’ affective commitment, increase job satisfaction and thereby reduce turnover intention with R2 recorded at 0.439, 0.410 and 0.275 respectively. Job satisfaction was found to be mediating the relationship between Internal CSR and turnover intention. The findings offer insights to SMEs in the manifestation of Internal CSR among employees’ attitude and behaviour; as well as showcase the predictive utility of PLSc.
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References
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Diamantopoulos, A., and Siguaw, J. A. (2006). ‘Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration’, British Journal of Management, Vol. 17, No. 4, pp. 263–282.
Dijkstra, T.K. and Henseler, J., (2015a). ‘Consistent and asymptotically normal PLS estimators for linear structural equations’, Computational statistics & data analysis, Vol. 81, pp.10-23.
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Edmans A. (2012). ‘The link between job satisfaction and firm value, with implications for of corporate social responsibility’, Academy of Management Perspectives, Vol. 26, pp. 1–19.
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., and Rhoades, L. (2001). ‘Reciprocation of perceived organizational support’, Journal of applied psychology, Vol. 86, No. 1, pp. 42.
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European Commission. (2001). Employment and social affairs, promoting a European framework for corporate social responsibility, Brussels: Green Book.
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Goodhue, D.L., Lewis, W. and Thompson, R., (2012). ‘Comparing PLS to regression and LISREL: A response to Marcoulides, Chin, and Saunders’, Mis Quarterly, pp.703-716.
Gold, A. H., Malhotra, A., and Segars, A. H. (2001). ‘Knowledge management: an organizational capabilities perspective’, Journal of Management Information Systems, Vol. 18, No. 1, pp. 185–214.
Gouldner, A. (1960). ‘The norm of reciprocity’, American Sociological Review, Vol. 25, No. 2, pp. 161-178.
Gruen, T. W., Summers, J. O., and Acito, F. (2000). ‘Relationship marketing activities, commitment, and membership behaviors in professional associations’, Journal of marketing, Vol. 64, No. 3, pp. 34-49.
Hair, J. F., Hult, G. T. M., Ringle, C. M., and Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling. 2nd Edition. Thousand Oaks: Sage.
Hayes, A.F., (2009). ‘Beyond Baron and Kenny: Statistical mediation analysis in the new millennium’, Communication monographs, Vol. 76, No. 4, pp.408-420.
Henseler, J., (2010). ‘On the convergence of the partial least squares path modeling algorithm’, Computational statistics, Vol. 25, No. 1, pp.107-120.
Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., and Calantone, R. J. (2014). ‘Common beliefs and reality about PLS: Comments on Rönkkö and Evermann (2013)’, Organizational Research Methods, Vol. 17, No. 2, pp. 182-209.
Homans, G. C. (1961). Social behavior. New York: Harcourt, Brace, and World.
Hu, L.-T., and Bentler, P. M. (1998). ‘Fit Indices in Covariance Structure Modeling: Sensitivity to Underparameterized Model Misspecification’, Psychological Methods, Vol. 3, No. 4, pp. 424-453.
Jones, T.M., Felps, W., and Bigley, G.A. (2007). ‘Ethical theory and stakeholder-related decisions: The role of stakeholder culture’, Academy of Management Review, Vol. 32, pp. 137–155.
Kim, H. L., Rhou, Y., Uysal, M., and Kwon, N. (2017). ‘An examination of the links between corporate social responsibility (CSR) and its internal consequences’, International Journal of Hospitality Management, Vol. 61, pp. 26-34.
Kline, R. B. (2011). Principles and practice of structural equation modeling. New York: Guilford Press.
Koonmee, K., Singhapakdi, A., Virakul, B., and Lee, D. J. (2010). ‘Ethics institutionalization, quality of work life, and employee job-related outcomes: A survey of human resource managers in Thailand’, Journal of Business Research, Vol. 63, No. 1, pp. 20-26.
Leite, N. R. P., Rodrigues, A. C. D. A., and Albuquerque, L. G. D. (2014). ‘Organizational commitment and job satisfaction: what are the potential relationships?’, BAR-Brazilian Administration Review, Vol. 11, No. 4, pp. 476-495.
Low, M. P. (2015). ‘Corporate Social Responsibility and the Evolution of Internal Corporate Social Responsibility in 21st Century’, Asian Journal Of Social Sciences And Management Studies, Vol. 3, No. 1, pp. 56-74.
Malhotra, N.K. (1996). Marketing Research: An Applied Orientation, 2nd ed., Prentice-Hall, Upper Saddle River, NJ.
Margolis, J. D., and Walsh, J. P. (2003). ‘Misery loves companies: Rethinking social initiatives by business’, Administrative science quarterly, Vol. 48, No. 2, pp. 268-305.
Mathieu, J. E., and Zajac, D. M. (1990). ‘A review and meta-analysis of the antecedents, correlates and consequences of organizational commitment’, Psychological Bulletin, Vol, 108, No. 2, pp. 171-194.
McDonald, R.P., (1996). ‘Path analysis with composite variables’, Multivariate Behavioral Research, Vol. 31, No. 2, pp.239-270.
Meyer, J. P., and Smith, C. A. (2000). ‘HRM practices and organizational commitment: Test of a mediation model’, Canadian Journal of Administrative Sciences/Revue canadienne des sciences de l'administration, Vol. 17, No. 4, pp. 319-331.
Meyer, J. P., Stanley, J. D., Herscovitch, L., and Topolnytsky, L. (2002). ‘Affective, continuance, and normative commitment to the organization: a meta-analysis of antecedents, correlates, and consequences’, Journal of Vocational Behavior, Vol. 61, No. 1, pp. 20-52.
Mishra, S. and Suar, D. (2010). ‘Does corporate social responsibility influence firm performance of Indian companies?’, Journal of business ethics, Vol. 95, No. 4, pp.571-601.
Mitchell, T.R., Holtom, B.C., Lee, T.W., Sablynski, C.J., and Erez, M. (2001). ‘Why people stay: Using job embeddedness to predict voluntary turnover’, Academy of Management Journal, Vol. 44, pp. 1102-1121.
Mobley, W.H. (1977). ‘Intermediate linkages in the relationship between job satisfaction and employee turnover’, Journal of applied psychology, Vol. 62, No. 2, pp. 237.
Morgeson, F. P., Aguinis, H., Waldman, D. A., and Siegel, D. S. (2013). ‘Extending corporate social responsibility research to the human resource management and organizational behaviour domains: A look to the future’, Personnel Psychology, Vol. 66, No. 4, pp. 805-824.
Mory, L., Wirtz, B. W., and Göttel, V. (2016). ‘Factors of internal corporate social responsibility and the effect on organizational commitment’, The International Journal of Human Resource Management, Vol. 27, No. 13, pp. 1393-1425.
Namasivayam, K., and Zhao, X. (2007). ‘An investigation of the moderating effects of organizational commitment on the relationships between work–family conflict and job satisfaction among hospitality employees in India’, Tourism Management, Vol. 28, No. 5, pp. 1212-1223.
O'Reilly, C. A., and Chatman, J. (1986). ‘Organizational commitment and psychological attachment: The effects of compliance, identification, and internalization on prosocial behavior’, Journal of applied psychology, Vol. 71, No. 3, pp. 492.
Park, B. I., and Ghauri, P. N. (2015). ‘Determinants influencing CSR practices in small and medium sized MNE subsidiaries: A stakeholder perspective’, Journal of World Business, Vol. 50, No. 1, pp. 192-204.
Peterson, D. K. (2004). ‘The relationship between perceptions of corporate citizenship and organizational commitment’, Business & Society, Vol. 43, No. 3, pp. 296-319.
Preacher, K. J., and Hayes, A. F. (2008). ‘Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models’, Behavior research methods, Vol. 40, No. 3, pp. 879-891.
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Published
2018-10-23
How to Cite
Peng Low, M., & T., R. (2018). Adopting Consistent PLS in Assessing the Influence of Internal Corporate Social Responsibility among Small Medium Sized Enterprises Employees. Management Research Journal, 7, 44–58. https://doi.org/10.37134/mrj.vol7.5.2018
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