UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Hoang Van ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR IN THE SERVICE INDUSTRY MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Hoang Van ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR IN THE SERVICE INDUSTRY ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr. Nguyen Huu Lam Ho Chi Minh City – Year 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS This thesis could not have been completed without the support, guidance and encouragement of many people. First of all, I would like to express my genuine appreciation to my supervisor, Dr. Nguyen Huu Lam, for the precious time of countless advice and sharing his wisdom of knowledge and experience in every stage of my study.
I could not have completed this research without his teaching, support and assistance. I would also like to thank the committee members, Dr. Nguyen Dinh Tho, Dr. Nguyen Dong Phong, Dr.
Tran Ha Minh Quan, Dr. Nguyen Thi Mai Trang and Dr. Nguyen Thi Nguyet Que. Thanks for their advice, willingness to help and insightful comments.
I am thankful to all staffs of International School of Business for their support and help during the last two years as well as their experience sharing. There are also a lot of other professors, classmates, colleagues and friends who supported me in the long journey of my graduate study. Lastly, I owe a great gratitude to my family. I could not have completed this achievement without their continued support and encouragement.
Ho Chi Minh City, December 31st, 2012 Nguyen Hoang Van Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Research on organizational citizenship behavior (OCB) has received considerable attention over the past several decades. OCB is defined as the discretionary contributions of employees that beyond a job description and do not formally result in reward. Previous research have identified a wide range of antecedents of OCB, including attitudinal variables (e., satisfaction, perceptions of justice, organizational commitment), individual characteristics (e., conscientiousness, agreeableness, positive affectivity) and elements within the organization (e., leadership, organizational supportiveness, task characteristics). The purpose of current study is finding out the correlation between organizational culture and OCB.
The research was done by quantitative approach. Data was collected from 342 respondents who are employees from service companies in Ho Chi Minh City. A two-step approach in SEM was employed to analyze the data. Confirmatory factor analysis (CFA) was used to validate the measurement scale of organizational culture and organizational citizenship behavior.
And structural equation model (SEM) was used to measure the influence of organizational culture on OCB as well as measure the impact of each dimensions of organizational culture on OCB. The statistical result identified that organizational culture has a positive impact on OCB. Among seven dimensions of organizational culture, three dimensions affected positively on OCB: Competitiveness, Performance Orientation and Stability; four remain dimensions Social Responsibility, Innovation, Supportiveness and Emphasis on Reward did not impact on OCB. Based on result of data analysis, managerial implications have been discussed; limitations and further research directions have also been indicated.
Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER I: INTRODUCTION .4 SCOPE OF THE STUDY. 5 CHAPTER II: LITERATURE REVIEW.1 ORGANIZATIONAL CITIZENSHIP BEHAVIOR (OCB) .1 Definition of Organizational citizenship behavior (OCB) .2 The roots of OCB within organizational theory .3 The development of the concept of OCB .5 Antecedents and Consequences of OCB .1 Definition and the importance of organizational culture.2 Levels of organizational culture .3 Dimensions and types of organizational culture. 19 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. 25 CHAPTER III: RESEARCH METHODOLOGY .1 CONSTRUCT MEASUREMENT AND QUESTIONNAIRE .2 DATA COLLECTION AND SAMPLING.
30 CHAPTER IV: DATA ANALYSIS .3 CHECK THE RELIABILITY OF MEASUREMENT SCALE BY CRONBACH’S ALPHA .4 CONFIRMATORY FACTOR ANALYSIS (CFA).5 STRUCTURAL EQUATION MODEL ANALYSIS .1 Estimate the casual relationship between OC and OCB.2 Measure the impact of each dimension of OC on OCB. 47 CHAPTER V: DISCUSSION, IMPLICATION, LIMITATION AND SUGGESTION FOR FUTURE RESEARCH .1 DISCUSSION AND IMPLICATION .2 CONTRIBUTION, LIMITATION AND SUGGESTIONS FOR FURTHER RESEARCH .1 Contribution of the study .2 Limitations and further research directions. 56 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com REFERENCES APPENDICES Appendix A: Questionnaire. i Appendix B: Regression Weights and Standardized Regression Weights of Model (Standardized Estimates).
ix Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 3.1: Organizational Culture measurement scale .2: Organizational Citizenship Behavior measurement scale .3: Key goodness-of-fit indices (Byrne, 2001 and Kline, 2005) .1: Descriptive Analysis of respondents.2: Cronbach’s alpha of measurement scale .3: Goodness-of-fit Indices of CFA with Organizational Culture construct .4: Standardized Confirmatory Factor Analysis Coefficients, Construct Reliability and Average Variance Extracted (Organizational Culture) .5: Regression Weight and Standardized Regression Weight – CFA with OCB construct.6: Goodness-of-fit Indices of CFA with OCB construct .7: Standardized Confirmatory Factor Analysis Coefficients, Construct Reliability and Average Variance Extracted (Organizational Citizenship Behavior) .8: OC and OCB scale .9: Regression Weight and Standardized Regression Weight – SEM 1 .10: Regression Weight and Standardized Regression Weight – SEM 2 .11: Regression Weight and Standardized Regression Weight – SEM 3. 50 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1: There levels of organizational culture. Adapted from Organizational Culture and Leadership by Schein, E.), 2004, San Francisco, CA: Josses-Bass, Inc.2: The Competing Values Framework Quadrant. Adapted from Diagnosing and changing organizational culture by Cameron, K.
Reading, MA: Addison-Wesley .3: Dimensions of Organizational Culture Profile (OCP). Adapted from People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit by O’Reilly, Charles A. Academy of Management Journal 34, 487-516 .1: CFA with Organizational Culture construct .2: Revised CFA – CFA with organizational culture construct .3: CFA with Organizational Culture construct .4: Revised CFA – CFA with OCB construct .5: Structural Equation Model (SEM 1).6: Structural Equation Model (SEM 2).7: Structural Equation Model (SEM 3). 50 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter I: Introduction CHAPTER I INTRODUCTION This chapter presents general information about organizational citizenship behavior and the importance of developing organizational citizenship behavior in the organization.
The research objective, research questions and scope of the study are also discussed in this chapter.1 BACKGROUND Utilizing current resources is one of the factors for the success in any organization. In order to achieve the highest utilization, managers should understand the different types of individual behavior inside the organization. McShane and Von Glinow (2008) discussed types of work-related behaviors. They are: - Task performance - Exhibiting Organizational Citizenship - Counterproductive Work Behavior - Joining and Staying in the Organization - Maintaining Work Attendance While other positive behaviors are related directly to the employee’s productivity within his role, organizational citizenship behavior (OCB) focuses on extra activities performed by the employee beyond his formal duties.
OCB as definition is a type of organizational behavior that goes beyond existing role expectations (Organ, Podsakoff & MacKenzie, 2006). OCB includes positive and constructive behaviors that employees do by their own volition, which supports co-workers and benefits the company. Typically, employees who frequently engage in OCB may not always be the top performers but they are the ones who are known to “go the extra mile” or “go above and beyond” the minimum efforts required to do a merely satisfactory job. The study of OCB dates back several decades.
Since 1980s, with the introduction of the term Organizational Citizenship Behavior by Organ and his Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter I: Introduction colleagues, interest in this type of activity has increased. There are a variety of labels have been used to describe behaviors that in general fit the definition of OCB such as: citizenship performance, citizenship behavior, contextual performance, prosocial organizational behavior, organizational spontaneity and extra role behavior, etc. Most of OCB concepts suggest two dimensions distinguished by the intended target of the behavior: Organizational citizenship behavior aimed at individuals (OCBI): These are behaviors that immediately benefit specific individuals and indirectly contribute to the organization. The help can be work-related, for example assisting a workmate with a specific task or help them with a personal problem.
Organizational citizenship behavior aimed at the organization (OCBO): These are behaviors that benefit the organization in general; for example offering ideas to improve the functioning of the organization, take action to protect the organization from potential problems or demonstrate concern about the image of the company, etc. OCB is important for effective functioning of an organization because its ultimate goal is to make all employees work toward achieving the organization goals rather than accomplishing their duties. The organization will benefit from encouraging employees to engage in OCB, because it has been shown to increase productivity, efficiency, employee satisfaction and customer satisfaction, reduce cost, rate of turnover and absenteeism. OCB can be extremely valuable to the organization; it can contribute to individual performance, organization performance and competitive advantage.
OCB is crucial to the survivor of an organization (Podsakoff, Whiting, Podsakoff & Blume, 2009). A rapidly changing economic environment, characterized by such phenomena as globalization and deregulation of markets, changing customer, investor’s demand and ever-increasing product-market competition, has become the norm for most Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter I: Introduction organizations. To compete, organizations must continually improve their performance by reducing costs, innovating products and processes, improving quality, productivity and speed to market. Almost organizations evaluate human as the most important and valuable asset, especially employee who have OCB.
According to Podsakoff, MacKenzie, Paine & Bachrach (2000), employees provide organizations with unique human resource capabilities that can create a competitive advantage, and OCB is one type of behavior that may contribute to that advantage. Organizations have to find ways to benefit from human resources and subsequently have to make sure their employees contribute to their competitive advantage. OCB can be an important factor that might distinguish the employees from one organization and those of another one. Nowadays, many organizations have to cope with a decrease in revenues and the competition among similar organizations is growing harsher.
Wouldn’t it be desirable to find a competitive advantage that contributes to an increase in performance without requiring any financial investment? The answer for this question is OCB. Obviously, in order to get the high performance, organizational citizenship behavior is one of the important issues the organization should pay attention to. In other words, companies need to research factors which may impact on OCB so that they can apply them to develop OCB in their organization.2 RESEARCH OBJECTIVE Organizational citizenship behavior (OCB) has been of increasing interest to both scholars and managers, because it suits the changing competitive environment of the market. There are two directions in research about OCB.
The first direction focuses to identify factors affect to OCB and the second direction measures the impact of OCB on performance. Ancetedents OCB Performance Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter I: Introduction In the first direction, there are a lot of researches define factors influence on OCB. Podsakoff et al.