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Abstract
This study addresses a possible moderating effect of cultural values on the relationship between employee beliefs in human resource management (HRM) practices and employee outcomes. Although employee belief regarding internal labor market (ILM) operation within their firms could be positively related to employee commitment and negatively related to their turnover intention, employee cultural values may act as a contextual variable that strengthens or weakens such relationships. We test the moderating effects of two cultural values, traditionality and modernity in the context of Kenya where the blend of these cultural values is an emerging reality, given the rapid pace of urbanization in recent years coupled with effects of globalization and the digital era. Our study indeed found support for the moderating effects of these cultural values. The association between ILM beliefs and employee affective commitment was found to be greater for employees with more traditional values. In contrast, the relationship was weaker for employees with more modern cultural values. These moderating patterns were also found in the relationship between ILM beliefs and turnover intention. Implications for management research, theory, and practice are discussed.
Notes
1. Willamson and his colleagues argue further that the success of ILM in the long run will be hampered by the passive nature of commitment (continuance commitment in the lack of alternative opportunities) because workers can stay within the organization while doing only minimum requirements rather than fully expending their efforts. Because the passive and potentially dangerous continuance commitment can give workers bargaining power, they view that the abusive nature of ILM is unlikely.