The Journal of Industrial Distribution & Business (산경연구논집)

Korea Distribution Science Association (한국유통과학회)
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The Impact of Value Inclination of SME Members on Organizational Citizenship Behavior: Focusing on the Role of Job Satisfaction and Perceived Organizational Support

  • Received : 2019.05.30
  • Accepted : 2019.07.05
  • Published : 2019.07.30
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Abstract

Purpose - The purpose of this paper is to find out a range of cues that trigger employees to willingly make efforts for corporate development in small and medium enterprises. This was determined by assessing the effects of employees' value inclination on their job satisfaction and organizational citizenship behavior as well as how they perceived their organizational support. Research design, data, and methodology - A total of 126 valid questionnaire sheets collected from SME employees were analyzed with SPSS 24.0 and AMOS 24.0 involving simple regression analysis, multiple regression analysis, hierarchical moderated regression analysis and 3-step mediated regression analysis. Results - The analyses highlighted employees' personal value inclination had positive effects on their job satisfaction, which in turn enhanced their organizational citizenship behavior. Meanwhile, individualist and collectivist inclination exerted greater effects on job satisfaction and organizational citizenship behavior, respectively. The study also revealed that perceived organizational support moderated the relationship between job satisfaction and organizational citizenship behavior. Conclusion - Hence, CEOs in SMEs should avert any dichotomous analysis of their employees' value inclination, respect their personal value inclinations and also apply factors that could raise their job satisfaction. Likewise, it was shown that SME employees need to make personal efforts for organizational development.

Keywords

1. Introduction

Job seekers can hardly choose whether to work for large or small-and-medium-sized enterprises. That does not mean they are not eligible to choose where to work but those unfit for the criteria specified by companies encounter certain entry barriers. Similarly, humans are subject to diverse factors that influence their life and behavior patterns following their life cycles.

This paper focuses on the value inclination of employees in SMEs among other factors influencing human life and behavior patterns, given the fact that as of 2016 SMEs accounted for 99.9% (n=3,672) of all business entities in Korea and hired 90.3% (n=15.392 million) of all employees working for Korean companies, standing as a significant pillar of Korean economy and an important component of the country. Therefore, employees in SMEs are as much important human resources. Yet, Korean SMEs are faced with difficulties due to a range of structural issues(Yang & Cho, 2015) and relatively insensitive to policy changes including the minimum wage rise. Hence, the present findings will illuminate some cues for SMEs to address their challenges by understanding their employees’ value inclination.

Value is defined as one’s belief in ideal behavior patterns free from the influence of certain persons or contexts (Rokeach, 1968). People are known to rely on their own value system to maintain their self-esteem or consistency (Rokeach, 1973). From that perspective, SME employees’ value inclination is highly likely to have significant effects on their job satisfaction and efforts for organizational development. Also, based on the leader-member exchange (LMX) theory, when CEOs’ preference for value inclination is not aligned with their employees’, their selective preference substantially affecting their employees and organizations will go against the person-organization fit, having negative effects on performance improvement.

The purpose of this paper is to shed light on the cues conducive to SME employees’ commitment to their organizational development. To that end, we designed a structured model concerning the effects of employees’ individualism/collectivism value inclination as suggested by Triandis(1995, 2018) on their job satisfaction and organizational citizenship behavior. Also, to determine how employees in SMEs perceive their organizational support in spite of challenging business environment, this paper delves into the effects of SME employees’ perceived organizational support on the relationships between their value inclination and job satisfaction and between their job satisfaction and organizational citizenship behavior.

The present findings will help CEOs of SMEs better understand their employees’ value inclination for the benefit of organizational development and provide some insight into diverse HRM (Human Resource Management) approaches including recruitment, development and training programs. Furthermore, the empirical evidence relevant to how SME employees perceive their organizational support will help identify some effective ways of organizational support. At the same time, the findings will help induce organizational members in SMEs to understand how their value inclination contribute to their organizational development and to make voluntary efforts to reinforce their person-organization fit.

2. Theoretical Background

2.1. Value Inclination

Value has been well-documented as a factor that substantially impacts on people’s life and behavior patterns across multiple disciplines including business management, sociology, economics and psychology. Value is an important psychological inclination toward decision making (Carmen, 1978), known to trigger people’s behavior or decision making in multiple contexts and to serve as a reference point that meets internal human needs and interests (Burcu & Seda, 2013; Porter & Kremer, 2019).

In organizations, personal value inclination is known to exert effects on diverse areas. The individualist-collectivist value inclination of interest has been widely explored by many domestic and overseas scholars (Cho & Cho, 2004; Cho, Cho, & Yang, 2005; Hwang & Francesco, 2010; Kim, 2017; Triandis, 2018) as the value inclination on the personal level. According to Cho et al(2005), as individualist inclination emphasizes individuals more than organizations, it considers personal goals more important than organizational goals, forming an independent self-image enlivening one’s characteristics. By contrast, collectivist inclination tends to cooperate with and depend on organizations instead of one’s capabilities, prioritizing collective goals while pursuing the interdependence and harmony among members (Cho et al., 2005; Hwang & Francesco, 2010; Kim, 2017; Triandis, 2018).

Individualism and collectivism function as the media that connect and integrate many organization theories including ego theory and social exchange theory (Cho et al., 2005). In particular, in Korean culture categorized as a high-context culture influenced by the Confucian culture, collectivism is known to contribute more to organizational development than individualism. However, Cho et al.(2005) asserted that the sophistication and complexification of wider society including economic advancement affected the shift of social value from the unique collectivist to pluralist culture. Thus, when CEOs of SMEs apply a dichotomous individualism/ collectivism value inclination to their members, they are likely to have negative effects on leader-member exchange (LMX) and other aspects.

2.2 Job Satisfaction

In dictionaries, a job is defined as a set of similar tasks or duties, particularly referring to work assigned to a person in charge of particular occupational duties or responsibilities (KSLP, 2010). That is, a job is the whole work including missions and responsibilities carried out by a person. Thus, referring to organizational members’ personal attitude toward work environment or work levels, job satisfaction may be defined as one’s affective state determined by evaluating the person’s experience of different components (e.g. wage, job per se, colleagues and promotion opportunities)(Bhave & Glomb, 2016; Judge, Weiss, Kammeyer-Mueller, & Hulin, 2017; Kampkötter, 2017). Organizational members’ job satisfaction is important because job satisfaction is the extent to which positive needs are met via job experience (McCormick & Ilgen, 1985; Kampkötter, 2017) and because job satisfaction leads one to become psychologically mature and to play positive roles for organizational development (Gagné & Deci, 2005). This implies job dissatisfaction increases the turnover intention (Yang, Ju, & Lee, 2016) and leads to some deviant organizational behavior such as sabotage.

2.3. Perceived Organizational Support

The perceived organizational support based on social exchange theory (Blau, 1964) is defined as a general reliability grounded on organizational attitude of valuing members’ contribution and increasing members’ welfare (Kim, Eisenberger, & Baik, 2016; Kurtessis, Eisengerger, & Ford, 2017; Yang, Cho, & Lee, 2015). Therefore, in that organizational commitment is referred to as members’ organization-oriented behavioral process, the perceived organizational support may be defined as members’ evaluation of organizations’ member-oriented behavior. Many researchers (Kirkland, Eisenberger, Lewis, & Wen, 2017; Palmer, Komarraju, Carter, & Karau, 2017; Shantz, Alfes, & Latham, 2016) argued perceived organizational support increased when members perceived their organization provided them with rewards of its own volition rather than in compliance with laws or organizational needs.

2.4. Organizational Citizenship Behavior

Defined as one’s voluntary extra-role behavior beneficial for organizations, organizational citizenship behavior (Bolino, Hsiung, Harvey, & LePine, 2015; Ng, Lam, & Feldman, 2016; Vilela, González, & Ferrín, 2008) was suggested by Organ(1988). Thus, organizational citizenship behavior contributes to building a positive organizational environment in favor of performance, and as an extra-role behavior the organizational citizenship behavior is not subject to differences of jobs, but motivates voluntary altruism (Matta, Scott, Koopman, & Conlon, 2015; Motowidlo & Van Scotter, 1994). Organizational citizenship behavior may be categorized into an organization-oriented organizational citizenship behavior which allows a whole organization to share resultant benefits, and a person-oriented organizational citizenship behavior which brings short-term personal benefits followed by long-term indirect organization-wide benefits (Sendjaya, Pekerti, Cooper, & Zhu, 2019). Therefore, active organizational citizenship behavior by organizational members in SMEs will substantially facilitate a positive atmosphere among colleagues and corporate development.

3. Research Design

3.1. Research Model & Hypotheses

Since organizational members who are strongly inclined to individualism put personal interests before organizational needs, they are highly likely to prioritize personal interest if any conflict arises between organizational and personal interests (Cho et al., 2005). In contrast, since organizational members who are strongly inclined to collectivism put organizational interest first (Gurbuz, Costigan, & Teke, 2018; Triandis, 2018), they consider organizational goals more important than their own (Cho et al., 2005). Thus, compared to those with a strong individualist inclination, those with a strong collectivist inclination are highly likely to pursue cooperation than competition (Baeza & Wang, 2016; Triandis, 2018).

The reason why this study is interested in individualismcollectivism of members in SMEs is that not only members’ but also CEOs’ dichotomous typology of value inclination can cause substantial misunderstandings in organizations, which will disintegrate organizations or hinder any effective creation of performance. Therefore, investigating the effects of employees’ individualism- collectivism inclination on their job satisfaction and organizational citizenship behavior will indicate some cues relevant to some important perspectives on personal value inclination.

Regarding the factors influencing the job satisfaction, self-esteem and positive affect (Yang & Cho, 2016: Yang et al., 2016), perceived organizational support (Yang et al., 2015), and resilience, positive affect and psychological well being (Yang et al., 2015) had positive effects on job satisfaction, whereas job stress had negative effects (Yang et al., 2016). McCormick and Ilgen(1985) reported job satisfaction could vary with personal value system. Meanwhile, research on States (Kim & Coleman, 2015) and on Mexico (Baeza & Wang, 2016) reported both individualist and collectivist inclination had positive effects on job satisfaction. The foregoing results underlie the following hypotheses.

Hypothesis 1: Individualism inclination will have positive effects on job satisfaction in SME employees.

Hypothesis 2: Collectivism inclination will have positive effects on job satisfaction in SME employees.

Nevertheless, as the job satisfaction factor is perceived and evaluated on the personal level (Kim & Coleman, 2015), it is more likely to be affected by the individualist inclination than the collectivist inclination. Meanwhile, given that the organizational citizenship behavior is defined as one’s extra-role behavior for organizational development (Matta et al., 2015; Ng et al., 2016; Somech & Drach-Zahavey, 2000; Vilela et al., 2008), when the organizational citizenship behavior is perceived as the behavior of prioritizing organizational goals and interest, the collectivist inclination may have more positive effects than the individualist inclination. Therefore, the following hypotheses were developed.

Hypothesis 3: When it comes to the value inclination of employees in SMEs, individualism inclination will have greater effects on job satisfaction than collectivism inclination.

Hypothesis 4: When it comes to the value inclination of employees in SMEs, collectivism inclination will have greater effects on job satisfaction than individualism inclination.

Job satisfaction is known as a factor that deters the turnover intention (Yang et al., 2016) whilst the organizational citizenship behavior by dint of such experiences as job satisfaction and affective commitment is known to facilitate organizational members’ willing engagement (Bolino & Turnley, 2003; Hoffman, Blair, Meriac, & Woehr, 2007). Also, self-leadership and organizational commitment (Eom & Yang, 2014), friendly organizational climate(Mamman, Kamoche, & Bakuwa, 2012) and psychological stability (Singh & Selvarajan, 2013) are known to exert positive effects on the organizational citizenship behavior. Thus, the following hypotheses were set up.

Hypothesis 5: Job satisfaction of employees in SMEs will have positive effects on their organizational citizenship behavior.

Perceived organizational support increased organizational members’ positive behavior and played important roles in reducing the negative effects of colleagues’ turnover (Eder & Eisenberger, 2008). In the same vein, higher levels of perceived organizational support led to more active organizational citizenship behavior (Gupta, Agarwal, & Khatri, 2016). As personal value inclination does not change easily, it is hard to expect the perceived organizational support will play certain roles between value inclination and job satisfaction. Still, based on previous findings that the perceived organizational support moderated the relationships between personality and professional performance (Uppal, 2017), emotional labor and job-related outcomes (Hur, Ham, Yoo, & Moon, 2015), work engagement and behavioral outcomes (Shantz et al., 2016) and leaders’ job crafting and job outcomes (Cheng, Chen, Teng, & Yen, 2016), the following were hypothesized.

Hypothesis 6: Perceived organizational support will moderate the relationship between individualism inclination and job satisfaction in SME employees.

Hypothesis 7: Perceived organizational support will moderate the relationship between collectivism inclination and job satisfaction in SME employees.

Hypothesis 8: Perceived organizational support will moderate the relationship between job satisfaction and organizational citizenship behavior in SME employees.

The mediating effects of job satisfaction on the relationship between value inclination and organizational citizenship behavior have not been well-documented. Yet, the literature review indicates the positive effects between value inclination and job satisfaction (Kim & Coleman, 2015; Saad, Cleveland, & Ho, 2015), and job satisfaction and organizational citizenship behavior (Bolino & Turnley, 2003; Hoffman et al., 2007; Yang et al., 2016). Also, research on the definitions of organizational citizenship behavior (Bolino et al., 2015; Ng et al., 2016; Vilela et al., 2008) suggested organizational members’ value inclination and job satisfaction played certain roles for their organizational citizenship behavior. Hence, the following hypotheses were established.

Hypothesis 9: Job satisfaction will mediate the relationship between individualism inclination and organizational citizenship behavior.

Hypothesis 10: Job satisfaction will mediate the relationship between collectivism inclination and organizational citizenship behavior.

Figure 1 shows the model involving the aforementioned hypotheses.

OTGHCA_2019_v10n7_29_f0001.png 이미지

Figure 1: Research Model & Hypotheses

Note) [H3], [H4], and the mediating effects hypothesis (H9.H10) were not presented.

3.2 Data Collection & Measurement Scales

Employees working for SMEs in Banwol and Siwha Industrial Complexes responded to the questionnaire designed to collect the data. A total of 126 valid sheets were analyzed.

The following measures were used. To measure the individualism/collectivism, three individualism items including “Compared to others, I am unique and special” and five collectivism items including “I work hard for the goals of the group I belong to” were used based on McCarty and Shrum (2001), with each item rated on a 5-point Likert scale. To measure the job satisfaction, five items including “I am satisfied with my job” adapted from Diener, Emmons, Larsen, and Griffin (1985) were used with each rated on a 5-point Likert scale. To measure the organizational citizenship behavior, eight items including “I often help those whose work loads are heavy” were used based on Podsakoff, Mackenzie, Moorman, and Fetter (1990), with each rated on a 5-point Likert scale. To measure the perceived organizational support, 8 items including “My company cares about my welfare” were used based on Eisenberger, Huntington, Hutchison, and Sowa (1986), with each rated on a 5-point Likert scale.

3.3. Demographic Characteristics

Respondents’ demographics is as follows. 93 respondents (74.4%) were males, and 32(25.6%) were females. Respondents’ age groups consisted of 35 or under (n=54, 44.2%), 36~45 (n=26, 21.4%), 46~55 (n=36, 29.5%), and 55 or older (n=6, 4.9%). As for marital status, 73(61.9%) respondents were married, whereas 45(38.1%) were single. As for education, 71(56.8%) respondents were college graduates or bachelor’s/master’s/PhD degree holders while 54(43.2%) respondents were high school graduates or less educated. Respondents’ income levels were KRW 3M or less (n=61, 48.8%) and KRW 3M or more (n=64, 51,2%). The missing data in demographics was caused by 1 respondent in gender, 4 in age, 8 in marital status and 1 in education and income, respectively.

3.4. Reliability and Validity

To determine the extent to which each question item converges on the variables, the confirmatory factor analysis was used. To verify the reliability, the internal consistency with Cronbach’s α was used. The confirmatory factor analysis found one question item of the organizational citizenship behavior had a low standardized loading. Therefore, we eliminated the item and conducted the confirmatory factor analysis again. The analysis indicated the construct reliability and the AVE exceeded the acceptance criteria supporting the convergent validity. Also, the Cronbach’s α was above 0.7 that the reliability was secured.

Table 1: Results of Reliability & Validity

OTGHCA_2019_v10n7_29_t0001.png 이미지

4. Empirical Analysis

4.1 Results of Correlation Analysis

To determine the discriminant validity, relationship and directionality among variables, we conducted the correlation analysis. The coefficient of determination(r2), or the square of correlation coefficient, was compared with the average variance extracted (AVE). As a result, AVE was greater, supporting the discriminant validity. Each variable had statistically significant positive (+) relationship.

Table 2: Results of Correlation Analysis(Pearson Correlation, n=126)

OTGHCA_2019_v10n7_29_t0002.png 이미지

Note) ** p<.01, AVE marked in ( ).

4.2 Results of Hypothesis Verification

To test [Hypothesis 1], [Hypothesis 2] and [Hypothesis 5], the demographic variables were controlled for such as gender, age, education level and monthly income that were assumed to be relevant to principal variables based on the correlation analysis. Then, the simple linear regression analysis highlighted the following. First, individualism (β= .592, p<.001) and collectivism (β= .525, p<.001) had statistically significant positive effects on job satisfaction, respectively. Hence, [Hypothesis 1] and [Hypothesis 2] were accepted. Also, job satisfaction (β= .560, p<.001) exerted positive effects on organizational citizenship behavior. Thus, [Hypothesis 5] was accepted.

To test [Hypothesis 3] and [Hypothesis 4], the multiple regression analysis was performed with demographic variables controlled for. The analysis found individualism (β= .443, p<.001) had more statistically significant positive effects on job satisfaction in comparison to collectivism (β= .333, p<.001). Meanwhile, compared to individualism (β= .310, p<.001), collectivism (β= .530, p<.001) had more statistically significant effects on organizational citizenship behavior. Therefore, [Hypothesis 3] and [Hypothesis 4] were accepted.

To verify the moderating effects, the variables were converted to z-scores for the hierarchical moderated regression analysis with demographic variables controlled for. The analysis elucidated the interaction term (β= .048, p=.461) between individualism and perceived organizational support and the interaction term (β= -.112, p=.119) between collectivism and perceived organizational support did not have statistically significant effects on job satisfaction. Thus, [Hypothesis 6] and [Hypothesis 7] were rejected. Nonetheless, as shown in [Table 3], the perceived organizational support had statistically significant positive effects on the relationship between job satisfaction and organizational citizenship behavior. Hence, [Hypothesis 8] was accepted.

Table 3: Result of Hierarchical Moderated Regression Analysis

OTGHCA_2019_v10n7_29_t0003.png 이미지

Note) * p<.05, ** p<.01, ***p<.001, n.s: non-significant. Dependent variable: OCB

To verify the mediating effects of job satisfaction on the relationships between individualism/collectivism, which are sub-factors of value inclination, and organizational citizenship behavior, respectively, Baron and Kenny(1986)’s 3-step mediated regression analysis was used. As shown in [Table 4], the analysis found the partial mediation of job satisfaction in each relationship. Hence, [Hypothesis 9] and [Hypothesis 10] were accepted.

Table 4: Mediation effect of job satisfaction between value orientation and POS

OTGHCA_2019_v10n7_29_t0004.png 이미지

Note) * p<.05, ** p<.01, ***p<.001, n.s: non-significant.

It presented results of three-step R2 & F-value.

5. Summary and Discussions

To shed light on a range of cues that prompt employees in SMEs willingly to be committed to the development of their companies, this paper analyzed the effects of employees' value inclination on their job satisfaction and organizational citizenship behavior and how they perceived their organizational support.

The analysis highlighted the following findings and implications. First, the personal value inclination exerted positive effects on the job satisfaction, which in turn increased the organizational citizenship behavior. This finding supports McCormick and Ilgen(1985) and others (e.g. Kim & Coleman, 2015) that asserted job satisfaction varied with personal value system. Thus, CEOs of SMEs need to diversify their strategies to facilitate employees’ job satisfaction and organizational citizenship behavior. Second, the individualist and collectivist inclination had positive effects on the job satisfaction and the organizational citizenship behavior, respectively. This finding parallels previous reports that job satisfaction was perceived and evaluated on the personal level (Baeza & Wang, 2016; Sendjaya et al., 2019) and that organizational citizenship behavior was one’s extra-role behavior for organizational development (Bolino et al., 2015; Ng et al., 2016; Somech & Drach-Zahavey, 2000; Vilela et al., 2008). Therefore, CEOs of SMEs need to support their organizational members by opting against any dichotomous analysis of their value inclination, by respecting their personal value inclination and by leveraging information sharing and authentic leadership in pursuit of transparent management, so that even individualist employees will lend themselves to organizational development. Likewise, employees inclined to individualism should not be committed to their value inclination but endeavor to increase their organizational competitiveness with the willingness to sacrifice themselves for their organizations in practice. Third, the relatively fixed value inclination is less influenced by the perceived organizational support, whereas high job satisfaction was a factor that raised the organizational citizenship behavior via the positive perceived organizational support.

As shown in [Figure 2], members whose perceived organizational support is low hardly engage in further extra-role behavior for organizational development regardless of their job satisfaction levels, whereas those whose perceived organizational support is high show a statistically significantly more engagement in organizational citizenship behavior in proportion to their job satisfaction levels. Thus, companies need to invest in the predisposing factors that are conducive to increasing their employees’ job satisfaction, and make sure their employees trust such factors as the positive perceived organizational support leading to effective organizational development. Meanwhile, employees need to make efforts to accept the organizational support as positive efforts instead of analyzing it from a distorted perspective. Fourth, job satisfaction served as an important factor between personal value inclination and organizational citizenship behavior. Therefore, as previous studies reported, it is necessary to formulate a range of corporate measures to raise employees’ self-esteem and positive affect (Yang & Cho, 2016; Yang et al., 2016), perceived organizational support (Yang et al., 2015), and resilience, positive affect and psychological well being (Yang et al., 2015) while reducing their job stress (Yang et al., 2016). Also, companies need to develop some remedies to increase their members’ job satisfaction through communication. Still, since companies alone can hardly enhance the effects of their efforts, it is desirable for both companies and their employees to share the efforts.

OTGHCA_2019_v10n7_29_f0002.png 이미지

Figure 2: Result of moderation effect of POS between job satisfaction and OCB

Although this paper derived diverse ways of strengthening SMEs’ competitiveness in terms of HRM, it has limitations, which warrant further studies. First, since the respondents were from several SMEs and industries, the differences in their job satisfaction or perceived organizational support could not be controlled for. Thus, future studies need to select their samples by taking into account the sizes of SMEs that allow company-based or industry-based analyses. Second, the self-report bias and cross-sectional approach have limitations. Hence, future studies need to apply a wider range of methodologies.

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