The significant role of Chinese employees' organizational commitment : implications for managing employees in Chinese societies

The high rate of turnover has been a substantial problem in managing Chinese employees in joint ventures in the People's Republic of China. Organizations operating in the PRC face a dilemma of whether it is worthwhile to invest in better compensation packages and training and development programs if their employees will leave the organizations anyway. This study argues that because traditional Chinese culture values loyalty, guanxi and pao, organizations will benefit in the long run if they cultivate employees' organizational commitment. Data from two samples from the PRC and Hong Kong were analyzed to understand the role of organizational commitment in affecting other attitudinal antecedents (i.e., job satisfaction and turnover intention) to turnover. Results indicate that organizational commitment among Chinese employees has a much stronger effect on job satisfaction and turnover intention than results from studies conducted in the West. Our analysis provides strong support for the effect of Chinese traditional values in the modern Chinese work place. Practical implications for organizations operating in China are discussed.