Does corporatisation improve organisational commitment? Evidence from public hospitals in Indonesia

Abstract

This study aims to investigate the consequences of corporatisation on organisational commitment and to explain the relationship between work values, job satisfaction and organisational commitment. The research was carried out in 54 public hospitals in East Java, Indonesia, applying a multilevel structural equation model to survey data on 1282 workers in those hospitals. Analysis suggests that the longer a hospital has been corporatised, the greater the organisational commitment of its employees. Incentives have positive and substantive association with organisational commitment, while training and resource availability do not. We found that employees in larger hospitals are more committed than those in smaller hospitals and that work values and job satisfaction have a positive and significant relationship with organisational commitment. Our findings shed light on the debate on corporatisation as a lever for improving organisational commitment in public hospitals in developing countries.

Keywords:

• Corporatisation
• organisational commitment
• job satisfaction
• work values
• public hospital
• Indonesia

Acknowledgements

We are indebted to Professor Rohan Jayasuriyafor his valuable comments and suggestions on an earlier draft of this paper.