![Sample our Economics, Finance,Business & Industry journals, sign in here to start your access, latest two full volumes FREE to you for 14 days]({"type":"image" , "src" : "/sda/5931/TOC-Subject-Sample-2021-Economics-Finance-Business-Industry.jpg"})
Abstract
In this study, we examine the role of individuals' commitment in small and medium‐sized firms. More specifically, we argue that employees will commit themselves to their firm based on their current work status in the firm, their perception of the organizational climate, and the firm's entrepreneurial orientation. We also examine how individuals' commitment affect the actual effort they exert vis‐à‐vis their firm. The study's hypotheses are tested by applying quantitative analyses to survey data collected from 863 Mexican small and medium‐sized businesses. We found that individuals' position and tenure in the firm, their perception of psychological safety and meaningfulness, and the firm's entrepreneurial orientation all are positively related to organizational commitment. We also found a positive relationship between organizational commitment and effort. Finally, our findings show that organizational commitment mediates the relationship between many of the predictor variables and effort. We discuss the limitations and implications of our findings and provide directions for future research.
* We acknowledge the research assistance of Juana Patlán in the preparation of this manuscript.
* We acknowledge the research assistance of Juana Patlán in the preparation of this manuscript.
Notes
* We acknowledge the research assistance of Juana Patlán in the preparation of this manuscript.
1 The notion of continuance commitment is different in that it refers to employees' understanding of the price related to leaving their organization, that is, this type of commitment pertains to the “need” to continue employment.
2 For the AGFI the suggested minimum value equals 0.80 and for the CFI the suggested minimum equals 0.90 (Taylor and Todd Citation1995). The lowest AGFI value was found for “psychological safety” (0.86) and the lowest CFI value was found for “effort” (0.87). The AGFI was higher than 0.90 for “commitment,”“psychological meaningfulness,” and “entrepreneurial orientation,” and the CFI was higher than 0.90 for “psychological meaningfulness,” and “entrepreneurial orientation.”
3 The respondents were assigned to six age categories. A value ranking from 1 to 6 was assigned to the categories.
4 The respondents were also assigned to six size categories. A value ranking from 1 to 6 was assigned to the categories.
5 As can be seen from , the correlations among many of the independent variables and control variables are relatively high. However, we checked for multicollinarity in the regression models shown in and found no threat to interpretation, that is, all variation inflation factors were much lower than 10, the limit suggested by Neter et al. (Citation1996).
6 As we did not find a direct effect of psychological safety on effort (Model IV), it did not make sense to check for a mediation effect of organizational commitment between psychological safety and effort (that is, H7c was not supported).
7 The significance level remained the same (p < .001), but the standardized regression coefficient slightly decreased after organizational commitment was added to the model.
Additional information
Notes on contributors
Dirk De clercq
Dirk De Clercq is associate professor of management at Brock University, Canada.
Imanol Belausteguigoitia Rius
Imanol Belausteguigoitia Rius is director of the Family Business Center at Instituto Tecnológico Autónomo de México, Mexico.