VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY VU NGUYEN VAN ANH THE JOB SATISFACTION OF EMPLOYEES AT THE FOREIGN COMPANIES THE CASE OF VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY VU NGUYEN VAN ANH THE JOB SATISFACTION OF EMPLOYEES AT THE FOREIGN COMPANIES THE CASE OF VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Prof. HIROSHI MORITA Assoc. PHAN CHI ANH Hanoi, May 2023 COMMITMENT I, Vu Nguyen Van Anh, hereby declare that the present study, titled "The Job Satisfaction of Employees at Foreign Companies: The Case of Vietnam," is an original research endeavor conducted under the guidance of Prof. Hiroshi MORITA and Assoc.
Phan Chi Anh. I assure that this study utilizes reliable data and ensures that the quantitative analysis and findings presented in this thesis are entirely original and have not been previously published in any other research work. Proper citation and acknowledgment have been duly provided in this MBA thesis. I assume full responsibility for the accuracy, authenticity, and originality of this research project.
I am fully aware of the consequences that may arise from any breach of academic integrity or ethical standards. Therefore, I express my unwavering commitment and preparedness to be held accountable for this research project and its associated outcomes. Hanoi, 30 May 2023 Master student Vu Nguyen Van Anh ii ACKNOWLEDGMENT I would like to express my sincere gratitude to Prof. Hiroshi MORITA and Assoc.
Phan Chi Anh, who personally mentored, counseled, and encouraged me during my master's thesis research. I would like to thank Vietnam Japan University, Yokohama National University, and JICA for providing us with favorable learning conditions. Besides, I would like to convey my gratitude to Ms. Huong, the coordinator of the Master of Business and Administration program at Vietnam Japan University, for her invaluable assistance from I apply study this program and to the completion of this thesis.
I am also grateful to all of the MBA-06 class members, which many colors and memories with them in my two years at Vietnam Japan University. Lastly, I am extremely appreciative to my family, especially my children for their unwavering love, care, support, and inspiration throughout my life. Sincerely, Vu Nguyen Van Anh Hanoi, May 2023 iii ABSTRACT This study provided a paradigm for examining the role of contextual factor (i., supervisor’s developmental feedback) on the relationships between personal traits (i., core self-evaluations and work engagement) and work outcome (i., job satisfaction) among employees in FDI companies in Vietnam. Using data from 237 respondents who are working in FDI companies in Vietnam, SPSS and the Process tool were used to evaluate the data and describe the measurement and structure of the proposed models.
By empirical evidence of this study in the high-context cultures such as Vietnam among employees working in FDI companies, the findings result suggested that (a) core self-evaluations positively effect on job satisfaction; (b) negatively significant role of work engagement such as a mediator on relationships between core self- evaluations and job satisfaction; (c) significant role of supervisor developmental feedback such as a moderator on the relationships between personal traits (i., core self-evaluations and work engagement) and job satisfaction. This present study has substantial implications for FDI companies in Vietnam can use as a tool to enhance employee job satisfaction, that can lead to improved organizational outcomes (e., lower turnover rates, increased productivity, and improved performance). Organizations should recognize the importance of providing employees with high levels of developmental feedback from their supervisor to foster a positive feedback environment and promote job satisfaction among highly engaged employees. Keywords: Job Satisfaction, Core Self-evaluations, Work engagement, Supervisor’s developmental feedback, FDI company iv TABLE OF CONTENTS COMMITMENT.
iv LIST OF FIGURES. viii LIST OF ABBREVIATION. ix CHAPTER 1: INTRODUCTION. Background of research.
Study Objective, Questions. Data collection method. Data analysis method. Core self-evaluations (CSE).
Supervisor’s developmental feedback (SDF). Core self-evaluations satisfaction positively related to job satisfaction. Work engagement positively mediates the relationship between core self- evaluations and job satisfaction .3 Potential the role of Supervisor’s developmental feedback as a mediator variable. Data analysis approach.
Pearson’s correlation analysis. DISCUSSION AND CONCLUSION. 34 Discussion and conclusion. 37 Limitations and Perspectives for Future Research.
53 APPENDIX B: ANALYSIS RESULT. 66 vi LIST OF TABLES Table 2. Summary of link between of Core self-evaluations and Job satisfaction. Variables description and supporting literature.
Source of Questionnaire. The scale items' descriptive statistics for the independent, mediator, moderator, and dependent variable. Result of Cronbach’s alpha value after rejection removing items. Exploratory factor analysis (EFA) results of variables.
Pearson’s correlation matrix analysis result. Results of Regression Analysis Examining the relationship between CSE and WEG. Results of Regression Analysis Examining the of the Effect on JS. Result of the hypothesis testing from the structural models.
32 vii LIST OF FIGURES Figure 2. Present study's proposed conceptual model. Research development process. A statistical diagram of proposed model.
Final structural model. 33 viii LIST OF ABBREVIATION JS Job satisfaction CSE Core Self-evaluations WEG Work engagement SDF Supervisor developmental feedback FDI Foreign direct investment EFA Exploratory factor analysis KMO Kaiser-Meyer-Olkin ix CHAPTER 1: INTRODUCTION The aim of this chapter is to express the stage for the present research and provide readers with a clear understanding of the purpose and significance. Background of research Foreign direct investment (FDI) is a crucial factor in stimulating economic growth by providing additional domestic sources of capital, modern technologies, and transferring technology to the recipient country (Asiedu, E. Furthermore, Zhang (2001) redirected FDI may increase host-country economic growth, and both are advantageous.
According to Global Investment Report (2021) by UNCTAD FDI in Vietnam attractiveness rating has significantly risedronate from almost nil in 1987, in 216 nations in terms of FDI attractiveness in 2000 Vietnam ranked 45th. The FDI has had a crucial impact in Vietnam's economic growth in 2022, contributing to nearly 20% of the country's GDP and generating over 42% of the entire corporate sector's profit (Foreign Investment Agency, Ministry of Planning and Investment). However, due to the intense labor market rivalry, the Vietnamese workforce has also seen an increase in turnover (Barbour-Lacey and Hoang, 2014). Job satisfaction has been hypothesized to influence other factors, including an employee's desire the to leave the organization (Porter et al.
In any company, a high level of personal satisfaction is substantially related to a low level of staff leave the organization. Thus, it is crucial to gather empirical evidence to enhance employees' satisfaction with their jobs and encourage their long-term commitment, as this is vital for the success and sustainability of the company such as FDI company in Vietnam. Recently, research on the factors effect on employee job satisfaction in FDI companies in Vietnam have include Tri, H., (2020), Nguyen et al., (2019) have been approached in the direction of indicators of employee satisfaction such as salary, relationship in the company. However, there has not been any research approaching the direction of individual traits of employees.
The concept of core self-evaluations (CSE) which refers to an individual's fundamental, bottom-line evaluation. Judge, Locke, et al., 1998 identified four personality traits that met the criteria for core self-evaluations (CSE): self-esteem, generalized self-efficacy, internal locus of control, and emotional stability. These traits are broad in scope and carry a fundamental evaluation or judgment about oneself, making them fundamental to defining a person traits. Empirical research has validated the core self-evaluation (CSE) idea and connected it to job satisfaction (Judge, Locke, et al.
Furthermore, according to Anwar (2015), employee work engagement is crucial for any company, because any company should prioritize employee work engagement since it increases job satisfaction. Orgambídez-Ramos, A. (2017) discovered on individual level significant relationship between work engagement and job satisfaction. Eva et al., (2019) shown that supervisor developmental feedback can significantly increasing proactive behavior, job engagement, and creativity can foster an environment that is conducive to continuous learning and growth.
Accordingly, it may be expected that contextual factors such as supervisor developmental feedback would contribute to the organizational environment and would increase job satisfaction. Thus, the role of Core self-evaluations (CSE) and job satisfaction (JS), work engagement (WEG) and supervisor developmental feedback (SDF) has important implications for FDI companies in Vietnam. Understanding the roles and links of those factors can inform human practices to help FDI companies in Vietnam increase employee loyalty and create a positive work environment. Theoretical necessity Limited research has been conducted on the link between core self-evaluations (CSE) and job satisfaction (JS) in non-Western cultures such as Vietnam.
Although core self- evaluations (CSE) had been proven to be a trustworthy indicator of job satisfaction (JS) (Judge, T. 1997; Gurbuz et al. 3 Hofstede (2001) characterizes Vietnamese culture as high context, exhibiting high collectivism, high power distance, and medium uncertainty avoidance. While, in low- context cultures, particularly Western culture, there is a strong emphasis on individualism.
Individuals in such cultures place value on personal initiative and self- assertion as means to achieve personal success. Hence, the study aims to explore the theoretical necessity of understanding the relationship between core self-evaluations (CSE) and job satisfaction (JS) in foreign direct investment (FDI) companies in Vietnam, where cross-culture, different leadership style. Additionally, the role of work engagement (WEG) and supervisor developmental feedback (SDF) to the link between core self-evaluations (CSE) and job satisfaction (JS) remains largely unexplored. While past studies have identified these factors as having an influence on employee job satisfaction, their interaction with CSE in this context requires further investigation.
To address this gap, it is necessary to understand relationships between CSE, work engagement, supervisor developmental feedback, and job satisfaction among foreign direct investment (FDI) employees in Vietnam. Practical necessity FDI has been crucial to Vietnam's economic growth, contributing to nearly 20% of country’s GDP and generating over 42% of the entire corporate sector's profit (Foreign Investment Agency, Ministry of Planning and Investment). However, The Vietnamese labor force has undergone a rise in turnover due to intense labor competitiveness. FDI companies in Vietnam also face several challenges, including high staff turnover rates.
Hence, the link between core self-evaluations (CSE) and job satisfaction (JS) has significant consequences for FDI companies in Vietnam. Individuals with high core self-evaluations (CSE) may be more likely to feel content in their job despite these challenges. Understanding the relationship between CSE and job satisfaction can inform hiring practices and help FDI companies in Vietnam in retaining staff and fostering a productive workplace. Research significance Based on both the theoretical necessity and the practical necessity, the study makes an effort to close the research gap on both necessary problems.
To address this gap, it is necessary to examining the links between CSE, work engagement, supervisor developmental feedback, and job satisfaction among foreign direct investment (FDI) employees in Vietnam. Study Objective, Questions In order to better understand how personal traits (i., core self-evaluations and work engagement) and contextual factors (i., supervisor developmental feedback) affect employee job satisfaction among employee in FDI companies in Vietnam, this research will look at all of these variables. This study's theoretical contribution stems from its comprehensive methodology, which includes both personal and environmental elements. The aim of this study will be presented as follow: 1.
To identify the personal traits (such as core self-evaluations and work engagement) and contextual factors (i., supervisor developmental feedback) that affect employees job satisfaction among employees in FDI companies in Vietnam. To identify relationships between those identified factors with employee job satisfaction among employees in FDI companies in Vietnam. Base on the objectives two research questions were developed as follow: 1. Does core self-evaluations (CSE) significantly on job satisfaction among employees in FDI companies in Vietnam? 2.
Do the significantly of work engagement on core self-evaluations (CSE) and employee job satisfaction and differ depending through supervisor developmental feedback among employees in FDI companies in Vietnam? 1.