This study uses three components of quality of work life and three components of organizational commitment to investigate the impacts of quality of work life and organizational commitmen
INTRODUCTION
Research background
Human resource management (HRM) plays a pivotal role in today’s business environment by improving organizational performance and employee retention As an empathy-based driver, HRM shapes employees’ attitudes, which directly influence customer satisfaction and perceived service quality—factors that in turn foster stronger customer loyalty and commitment Supported by classic insights from Parasuraman, Zeithaml and Berry (1985), the link between how employees feel and how customers respond underscores HR’s position as a key determinant of service quality and overall customer experience.
Job performance drives the success of any organization, including banks Employee performance depends on motivation, which promotes regular attendance, diligent work, and flexibility, and also motivates employees to complete essential tasks When employees experience low job satisfaction, their performance declines Therefore, boosting the job performance of human resources in the banking sector is essential for sustained productivity and competitive advantage.
Extensive research shows that job performance is shaped by several key factors, notably the quality of work life (QWL) and organizational commitment Across diverse studies, the impact of these factors on performance has been investigated, with contributions from researchers such as Nguyen and colleagues illustrating how higher QWL and stronger commitment are linked to improved productivity, greater employee engagement, and reduced turnover These findings highlight the interconnected relationship between employee well‑being, loyalty, and performance, and point to organizational practices that cultivate supportive work conditions, ongoing development, and a culture of commitment as effective levers for enhancing performance outcomes.
Nguyen(2012),Sirgy, Efraty, Siegel and Dong(2001),Fu and Deshpande (2014)
Research by Mohan and Kanta (2013) shows that quality of work life directly influences efficiency and productivity, while also enhancing employee satisfaction; thus, quality of work life is a key driver for attracting and retaining talented staff May, Lau, and Johnson (1999) likewise demonstrate that organizations offering higher quality of work life gain advantages in hiring and retaining good employees Organizational commitment—a psychological attachment of individuals to their organization (Murthy, 2013; Lamba & Choudhary, 2013)—further supports attracting and retaining staff and promoting longer tenure.
Research Problems
Banking and finance industries have existed for centuries and form the backbone of the modern economy As Vietnam’s banking system has developed, demand for a skilled workforce has risen, while banks face ongoing challenges in workforce competency Consequently, building high-quality personnel has become a priority for banks To assess workforce quality, job performance stands out as a key indicator of employee outcomes and success (Campbell, McCloy, Oppler, Sager, Schmitt, & Borman, 1993) Therefore, bank managers should examine the factors that influence job performance among employees in the Vietnamese banking sector.
This research focuses on explaining job performance by examing the effects oftwo factors which are quality of work life and organizational commitment on job performance
Work occupies a large portion of our lives—roughly one-third of each day—and workplace events can significantly influence personal well-being, making quality of work life (QoWL) a key driver of overall life quality Although extensive research on QoWL has concentrated in North America, attention to the concept in Asia remains comparatively limited (Chan, 2007) In Vietnam, only a few studies have examined QoWL and job performance, and those that exist have focused solely on the marketing sector (Nguyen & Nguyen, 2010; Nguyen & Nguyen, 2012) This gap highlights the need to investigate the relationship between quality of work life and job performance among employees in Vietnam’s banking sector.
Maintaining a skilled workforce while addressing the transition of talent from banking to higher-growth industries is a key challenge for banks During downturns, banks seek to retain experienced and talented employees who can endure difficulties, deliver high-quality customer service, and contribute to business continuity, making committed staff a vital form of human capital Building on Harter, Schmidt, and Hayes (2002), organizational commitment is linked to meaningful business results, and in today’s highly competitive environment, a committed workforce can be a survival factor for organizations Consequently, it is essential to examine how organizational commitment affects job performance in the Vietnamese banking sector.
Research Objectives
The objective of this study is to examine the impact of quality of work life and organizational commitment on job performance among employees in the Vietnamese banking sector
More specifically, three research questions are given as follows:
Question 1: Doesquality of work life affect job performance of employees in the Vietnamese banking sector?
Question 2: Does organizational commitment affect job performance of employees in the Vietnamese banking sector?
Question 3: Doesquality of work life affect organizational commitment of employees in the Vietnamese banking sector?
Scopes of the study
This study examines bank employees in Ho Chi Minh City, Vietnam's largest economic hub Conducted in Ho Chi Minh City, the research targets banking professionals within this dynamic Vietnamese metropolis, widely recognized as one of the country's major economic centers.
This study focuses on factors related to organizational commitment and quality of working life and their relationship to job performance Other factors that influence job performance are outside the scope of this research.
The significane of the study
This research contributes to the understanding of quality of work life and organizational commitment, and their impact on job performance within the context of
Vietnamese business organizations in generally and within Vietnamese banking sector in particularly
These findings reveal a significant opportunity for managers to recognize that aspects of employees' quality of work life can positively impact both job performance and organizational commitment Accordingly, organizational leadership should emphasize thoughtful work design and policy development aimed at enhancing quality of work life, so that employees are more engaged, committed, and capable of delivering higher performance for the organization.
Structure of the study
The structure of the study consists five chapters:
This chapter presents research background of the study, as well as, research problems, research objectives, research methodology and scopes
Chapter 2: Literature Review, Hypotheses, and Research model
This chapter provides the literature review and outlines the fundamental ideas behind two core constructs: quality of work life and organizational commitment It also introduces the study's conceptual model and clearly states the hypotheses to guide the research.
Research process, measurement scales, questionnaire design, data collection method, sampling design, and data analysis method are presented more details in this chapter
All data collected from the survey were analyzed, and the study's final model was built from these analyses Based on the analysis results, the relationships among the factors described in the study model will be examined to understand how they interact.
Chapter 5: Conclusions, Implication, and Limitation
These conclusions synthesize the study's key findings and translate them into practical managerial implications based on the results presented in the preceding chapters They provide actionable recommendations for managers, while acknowledging study limitations that affect the interpretation of the findings and outlining directions for future research to address gaps and extend the work.
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Theoretical foundations
Sirgy et al (2001) identify two main theoretical approaches in the Quality of Work Life (QWL) literature: the need-satisfaction approach and the spillover approach The need-satisfaction perspective, grounded in the need-satisfaction models developed by Maslow, Frager, and Cox (1970), holds that people have basic needs that can be met by their jobs, and employees derive job satisfaction to the extent that their work fulfills these needs Porter (1961) extended this idea by developing a QWL measure based on Maslow's hierarchy to assess employees’ levels of needs in relation to their jobs, the level of organizational resources supporting those experiences, and the congruence between an individual’s needs and the organization’s resources, which reflects overall organizational needs fulfillment.
Maslow’s hierarchy were covered by the Porter (1961) measure, namely survival needs, social needs, ego needs, and self-actualization needs
Another approach to quality of work life is the spillover effect Sirgy et al (2001) proposed that spillover occurs when satisfaction in one area of life influences satisfaction in other domains For instance, high job satisfaction can enhance satisfaction with family, leisure, social relationships, health, and finances, illustrating how workplace well-being can spill over into broader life domains and vice versa.
Organizational commitment refers, in general terms, to an employee’s sense of attachment and loyalty to the organization with which they are affiliated This section surveys the dominant theories of organizational commitment from the 1960s to the present day, tracing how these perspectives explain why employees align with their organizations and how commitment develops over time.
Becker's side-bet theory (1960) holds that employees accumulate investments—such as time, effort, money, and other valued resources—that would be lost or devalued if they left the organization, creating a personal cost to changing jobs Side-bets, as Meyer and Allen (1990) note, are these important investments that would be forfeited or devalued upon exit from the organization or occupation Over time, the accumulation of such costs makes job change increasingly difficult, as individuals face financial losses tied to pension funds, the forfeiture of seniority, and the disruption of existing relationships within their current company, which helps explain why some hesitate to pursue new opportunities.
Becker's 1960 framework linked organizational commitment to employees’ voluntary turnover by proposing that commitment should be measured through the reasons an individual might leave the organization, and this perspective and its scales were subsequently adopted by later research to conceptualize and examine commitment to the organization and/or the occupation The influence of the side-bet approach is evident in Meyer and Allen's 1991 scale, which is commonly described as continuance commitment; this instrument was developed to test the side-bet model and represents one of the three dimensions of organizational commitment outlined by Meyer and Allen.
Meyer and Allen (1984) challenged the side-bet approach, arguing that it was inappropriately operationalized and that Becker’s (1960) scales do not actually measure side-bets but instead capture attitudinal commitment They proposed a more direct measurement of side-bets by assessing individuals’ perceptions of the number and magnitude of the side-bets they have made To test this idea, they compared the interrelationships among several common commitment scales with two scales they developed—one representing affective commitment and the other continuance commitment Meyer and Allen suggested that the continuance dimension offers a better representation of Becker’s side-bet concept, designed to gauge the extent to which employees feel committed to their organizations due to the costs they associate with leaving.
A few years later, a third dimension was added, the normative commitment (Allen
Normative commitment, defined by Meyer and Allen (1990), is the feeling of obligation to continue employment with an organization Employees who exhibit high normative commitment feel that they ought to remain within the organization, not merely because they want to but because of a sense of duty This form of commitment is primarily shaped by socialization processes and cultural factors encountered before entering the organization, which influence an individual’s obligation to stay.
Overview on job performance, quality of work life and organizational commitment
Borman and Motowidlo (1993) define job performance as the collection of work-related behaviors that can be measured by an individual’s level of contribution toward meeting organizational goals In this view, job performance is gauged by how effectively a person carries out their duties and whether they perform the job well, as reflected in their impact on organizational success.
Job performance is a central indicator of organizational success, linking the pursuit of goals with the methods used to achieve them It reflects both the expert efficiency expected within the organization and the achievement standards the company sets In practice, it represents the effort an employee puts forth to reach a specific objective, with the resulting outcomes serving as objective metrics that organizations use to evaluate performance.
Daniel and Harris (2000) define job performance as the extent to which employees' behaviors contribute to organizational goals Put differently, job performance is an employee’s ability to accomplish the tasks assigned to them within an organizational context (Arverty & Murphy, 1998).
Briefly, job performance indicates the effectiveness of employee’s specific actions that contribute to attain organizational goals
Ever since the concept of quality of work life (QWL) was first used over 30 years ago there are some different definitions of QWL (Martel &Dupuis, 2006) Feldman
Quality of Work Life (QWL) refers to the quality of the relationship between employees and the overall working environment The concept, traced back to the 1960s, has been described by scholars such as Bowditch and Buono as the organization’s focus on employees’ health and general well-being to ensure that workers feel happy at work and experience high-quality on-the-job experiences A 1993 definition reinforces that QWL encompasses the overall quality of interaction between staff and their work setting, linking workplace conditions to employee well-being and job satisfaction.
Kashani (2012) notes that many organizations today study the quality of work life (QWL) and involve employees in the evaluation process This involvement provides essential input on how employers can refine human resource management policies to improve employees’ quality of work life The approach also highlights how the working environment affects staff, how employee participation in problem-solving enhances outcomes, and how effective rewards mechanisms can motivate employees.
Quality of work life (QoWL), as defined by Mohan and Kanta (2013), involves providing favorable working conditions that enable employees to perform at their best A motivating workplace fosters a positive attitude toward both the job and the organization.
According to Sirgy et al (2001), quality of work life refers to employees' well-being and satisfaction across a spectrum of needs, supported by available resources, meaningful activities, and the positive outcomes that stem from active participation in the workplace.
Quality of life in this study is developed from need-based theories, incorporating Maslow’s hierarchy as well as the perspectives of Frager and Cox (1970) and spillover theory Porter (1961) identifies four need categories that cover seven needs aligned with Maslow’s hierarchy, including survival needs, social needs, ego needs, and self-actualization needs.
Quality of work life has expanded to seven major needs: health and safety, economic and family needs, social needs, esteem needs, actualization needs, knowledge needs, and aesthetics needs According to Nguyen, this holistic model reveals that employee well-being at work hinges on more than compensation; it includes safety and health, financial security for the family, meaningful social interactions, opportunities for esteem and achievement, ongoing learning and personal growth, and an appreciation of aesthetics in the workplace.
Nguyen and Nguyen (2010) frame human needs using three distinct concepts: “Survival needs” to account for health and safety as well as economic and family needs; “Belonging needs” to cover social needs and esteem; and “Knowledge needs” to encompass actualization, knowledge, and aesthetics Together, these terms—Survival needs, Belonging needs, and Knowledge needs—constitute their holistic model of motivation and well-being.
“knowledge needs” are accepted by several researchers including Nguyen and Nguyen
Quality of working life, reflected by employee satisfaction, positively influences job performance Yet satisfaction depends on the level of the job and how well the role meets employees’ human needs.
In the Vietnamese market, Nguyen and Nguyen (2012) define quality of work life as marketers’ satisfaction with a set of human needs encountered in the workplace This needs set includes health and safety, economic and family, social, esteem, actualization, knowledge, and aesthetics needs Their findings show that only three variables clearly explain these workplace demands: survival needs, belonging needs, and knowledge needs.
In short, quality of work life also refers to the satisfaction of employees with survival needs, belonging needs, and knowledge needs based on the definition of Nguyen and Nguyen (2012)
Organizational commitment, as defined by Mowday, Steers, and Porter (1979), is the relative strength of an individual's identification with and involvement in a particular organization Building on this foundation, O’Reilly and Chatman (1986) offered an expanded view, portraying organizational commitment as a psychological state that binds an individual to the organization, integrating alignment with its goals and values and a willingness to exert effort on its behalf.
“individual's psychological attachment to an organization - the psychological bond linking the individual and the organization.”
Although numerous differences in the approach to organizational commitment research exist, definition of organizational commitment of Meyer and Allen (1991) was being used in popular Accordingly, they stated that“a psychological state characterizes an employee’s relationship with an organization and has implications for the decision to continue membership of the organization” Meyer and Allen (1991) also proposedthree- component model of commitment including: affective commitment, continuance commitment, and normative commitment In fact, people who have a high level of organizational commitment show a higher level of adaptability, satisfaction, productivity, greater accountability, and a strong sense of loyalty to the organization and they are less expensive as well
Affective commitment refers to the employee’s emotional attachment to, identification with and involvement in the organization and its goals The attachment is reflected in one’s role, task management and social interaction in relation to the organizational goals and values (Lee, Allen, Meyer & Rhee, 2001) According to
Hypothesis development
2.3.1 Quality of work life and job performance
Quality of work life and job performance both are organizationally based (Beh
Beh and Rose (2007) examined the relationship between quality of work life and job performance in Malaysia’s manufacturing sector, surveying 475 managers with questionnaires, and found a positive relationship between quality of work life and job performance.
In the paper ofKorunka, Christian, Peter Hoonakker, and Pascale Carayon
(2008),Regoand Cunha(2008), quality of work life has a positive impact on employee’s productivity, loyalty and performance In Vietnamese market, Nguyen and Nguyen
Building on the 2010 findings that identify survival needs, belonging needs, and knowledge needs as core human demands in the workplace, this study notes that those studies did not explain the relationship between quality of work life and job performance in the Vietnamese banking sector To address this gap, the study proposes a positive relationship between quality of work life and job performance, presenting it as the hypothesis to be tested in Vietnamese banks.
H1: Quality of work lifeimpacts positively on job performance among employees in the Vietnamese banking sector
2.3.2 Organizational commitment and job performance
Extensive literature documents a positive relationship between organizational commitment and job performance Jaramillo, Mulki, and Solomon (2005) report that organizational commitment is a significant predictor of job performance Khan, Ziauddin, Jam, and Ramay (2010) examine this relationship in Pakistan’s oil and gas sector and find a positive link between organizational commitment and employees’ job performance A comparative analysis of the three dimensions of organizational commitment shows that normative commitment has a positive and significant correlation with employees’ job performance.
The Vietnamese banking sector has developed significantly in recent years, with international banks opening branches and mergers reshaping the landscape This study concentrates on bank employees, examining how committed they are to their work and the level of performance they deliver in their designated roles By identifying the drivers of higher performance and the factors that foster greater organizational commitment, the research aims to provide actionable insights for banks seeking to enhance productivity, retention, and service quality in Vietnam's evolving financial market.
A 2013 study by Memari, Mahdieh, and Marnani found a positive relationship between organizational commitment and employees' job performance The research examined the three dimensions of organizational commitment—affective commitment, continuance commitment, and normative commitment—among employees at Bank Melli Iran, revealing several positive associations between organizational commitment and job performance.
Observation on previous studies (Fu & Deshpande, 2014) showed that organizational commitment had a significant direct impact on job performance
Therefore, the second hypothesis is proposed as follows:
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector
2.3.3 Quality of work life and organizational commitment
Gupta (2013) showed that employees who experience favorable quality of work life are more committed and tend to develop longer-term relationships with their organizations than those who experience unfavorable quality of work life A higher quality of work life is associated with stronger organizational commitment Likewise, Fattahi, Kazemian, Damirchi, Kani, and Hafezian (2014) provide evidence of a positive relationship between quality of work life and organizational commitment.
Research consistently shows a positive link between quality of work life (QWL) and organizational commitment across different contexts Normala (2010) found a meaningful relationship between QWL and organizational commitment among employees in Malaysian firms Birjandi, Birjandi, and Ataei (2013) reported a positive and significant association between QWL components and employees’ organizational commitment Farid (2015) also demonstrated a strong, statistically significant relationship, indicating that higher quality of work life among bank employees corresponds to greater organizational commitment Sirgy et al (2001) concluded that QWL positively influences organizational commitment.
In the Vietnamese banking sector, higher organizational commitment among employees is associated with a greater attachment to certain aspects of their work; consequently, a hypothesis is proposed.
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
Research model
Based on the preceding discussion, we propose a model that delineates how quality of work life and organizational commitment influence job performance among employees in the Vietnamese banking sector The model posits that higher quality of work life directly enhances job performance and also boosts organizational commitment, which in turn elevates performance; organizational commitment may also mediate the effect of work-life quality on performance By identifying these relationships, the framework guides banks to improve work-life conditions, cultivate commitment through supportive leadership and fair HR practices, and thereby drive higher job performance across the Vietnamese banking sector.
Figure 2.1 Conceptual framework of the study
H1: Quality of work life impacts positively on job performance among employees in the Vietnamese banking sector
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
Chapter summary
This chapter synthesizes diverse definitions of quality of work life (QWL), organizational commitment, and job performance from prior scholars to articulate the three-component models of QWL and the three-component model of organizational commitment By weaving these perspectives, it offers a coherent framework for understanding how these constructs interact to influence work outcomes A conceptual model for the study is proposed to guide empirical investigation of the relationships among QWL, organizational commitment, and job performance.
RESEARCH METHODOLOGY
Research process
This study investigates how quality of work life and organizational commitment affect the job performance of employees in Vietnam's banking sector To achieve this objective, the research follows a multi-stage methodology that includes a thorough literature review, careful research design, a qualitative phase, the main survey, and rigorous data analysis, as illustrated in the process diagram.
Development of hypothesis, Research question
Research Design Questionnaire design, measurement scale
Data Analysis Reliability analysis Exploratory Factor Analysis Hypothesis Testing Model SEM analysis
Research design
The questionnaire comprises eight sections: personal information, survival needs, belonging needs, knowledge needs, affective commitment, continuance commitment, normative commitment, and job performance, and it uses a 5-point Likert scale (1 = strongly disagree to 5 = strongly agree) to measure respondents’ attitudes toward the effects of quality of work life and organizational commitment on job performance It was initially drafted in English and then translated into Vietnamese by a bilingual academic to ensure accessibility for Vietnamese banking officers who may have limited English proficiency Before the main survey, the instrument was pre-tested through face-to-face interviews with about five seasoned bank employees to verify clarity and to adjust the measurement items to fit the Vietnamese research context The final version was then launched for the main data collection.
The questionnaire of quality of work life is mentioned into three dimensions: survival needs, belonging needs, and knowledge needs
To measure these items, the study adapts the measurement given by Nguyen and Nguyen (2012) who suggest several questions The questions are as follows:
Construct Coding of variables Item
QS1 My job provides good health benefits QS2 I am satisfied with what I’m getting paid for my work QS3 My job does well for my family
QB1 I have good friends at work
QB2 I have enough time away from work to enjoy other things in life QB3 I feel appreciated at work
QK1 I feel that my job allows me to realize my full potential QK2 My job allows me to sharpen my professional skills
QK3 My job helps me develop my creativity
The questionnaire of organizational commitment is mentioned into three dimensions: affective commitment, continuance commitment, and normative
To measure the affective commitment, the study adapted the measurement given
Fu and Deshpande (2014) who suggest several questions The questions are as follows:
Construct Coding of variables Item
AC1 I would be very happy to spend the rest of my career with this organization AC2 I really feel as if this organization’s problems are my own
AC3 I feel a strong sense of belonging to my organization;
AC4 I feel like ‘‘part of the family’’ at my organization AC5 I feel ‘‘emotionally attached’’ to this organization
AC6 This organization has a great deal of personal meaning for me
CC1 It would be very hard for me to leave my organization right now, even if I wanted to;
CC2 Too much in my life would be disrupted if I decided I wanted to leave my organization now;
CC3 Right now, staying with my organization is a matter of necessity as much as desire CC4 I feel that I have too few options to consider leaving this organization
CC5 One of the few serious consequences of leaving this organization would be the scarcity of available alternatives
CC6 If I had not put so much of myself into this organization, I might consider working elsewhere
NC1 I would feel guilty if I left the organization now
NC2 I do not feel any obligation to stay with my current employer
NC3 Even if it were to my advantage, I do not feel it would be right to leave my organization NC4 This organization deserves my loyalty;
NC5 I would not leave my organization right now because I have a sense of obligation to the people in it;
NC6 I owe a great deal to my organization
This study revised two questions in two variables in to negative questions to avoid bias The questions were revised as below:
Construct Coding of variables Item
AC4 I do not feel like organization
‘‘part of the family’’ at my
AC5 I do not organization feel ‘‘emotionally attached’’ to this
To measure job performance, this study use the four items Nguyen and Nguyen
(2012) Four questions are designed as below:
Construct Coding of variables Item
As an effective employee, I consistently deliver high-quality work I am pleased with the quality of my output and confident in its standards My manager views me as an efficient worker My colleagues see me as a very productive employee.
Qualitative method
The researcher conducted in-depth interviews with five employees to determine whether they clearly understood the questionnaires During the interviews, the researcher also explored the suitability of the scale for conducting the study in Vietnam Additionally, the researcher sought suggestions from the interviewees to improve the questionnaires All comments were collected to inform modifications to the questionnaire Based on respondents' feedback, the questionnaire was slightly revised to enhance clarity and understandability (see Appendix E).
Main survey
According to Hair, Anderson, Tatham and Black (2009), the minimum sample size for statistical analysis should be at least five times the number of independent variables, and not less than the minimum required to produce reliable results (n > 0 and n ≥ 5k, where k is the number of variables) In a study with 31 items, the required sampling size is n = 5 × 31 = 155.
Tabachnick (1996) states that the minimum sample size for a standard multiple regression should be n > 50 + 8m, where m is the number of independent variables With six predictors, this means more than 98 observations are required Therefore, the study requires more than 98 samples To strengthen reliability and validity in a quantitative design, the initial target sample size was set at approximately 200 employees in the banking sector.
A total of 300 questionnaires were distributed to bank employees in Ho Chi Minh City by mail survey to standardize question wording and minimize interpretation bias Mail and online surveys were chosen because they are relatively inexpensive to administer, allow for surveying large numbers in a short period, let respondents take their time answering, and make privacy easier to maintain (Mangione, 1995) Of the distributed forms, 270 responses were received by email, and 259 questionnaires were suitable for analysis; 11 were excluded—5 due to incomplete responses and 6 because participants answered only a single option for all items.
Following data collection, data analysis was conducted All accepted questionnaires underwent validity checks, and reverse-scoring of negatively keyed items was applied prior to computing participants' total scores and before any statistical analyses The data were analyzed using SPSS Statistics version 20 The data processing procedures used in this study included validity assessment, reverse-scoring of negatively keyed items, calculation of composite scores, and the subsequent statistical analyses.
Cronbach’s Alpha is the most widely used objective measure of a scale’s reliability, reflecting the internal consistency of its items It evaluates how closely related the items are to one another, enabling the identification and removal of inappropriate or poorly performing variables and thereby reducing junk in the measurement model The Cronbach’s Alpha coefficient provides a quantitative assessment of scale reliability, as described by Hair et al (1998) and discussed by Pallant.
Guidelines from 2001 state that scales are reliable when each scale's Cronbach’s alpha is at least 0.70 Values below this threshold can arise from a small number of items, weak inter-item relationships, or heterogeneous constructs, all of which compromise internal consistency and measurement reliability.
Exploratory Factor Analysis (EFA) was conducted to determine the number of factors underlying the relationships among the independent variables Factor analysis is a multivariable statistical technique that defines the underlying structure among a large set of variables and serves to summarize the information contained in many variables and condense the data into a smaller number of factors In this study, six dimensions were assumed to influence employees' job performance, and factor analysis was used to derive factors for each of the six measuring scales Additionally, factor analysis helped identify which factors were highly correlated with employees' job performance According to Pallant (2001), factor analysis is appropriate for data when certain prerequisites are satisfied.
The Kaiser-Meyer-Olkin value (KMO) is 0.6 or greater
The Bartlett’s test of inadequate is statistically significant: p < 0.05
The transmission coefficient variables (factors loading) is less than 0.5 or the difference between the two factors less than 0.3 will be disqualified
Stop Eigenvalue (representing the variance explained by each factor) greater than
1 and the total variance extracted (Cumulative Extraction Sum of Square Loadings) greater than 50%
Testing the reliability and validity of measurement model
Amos 20 ran for CFA with purpose of testing the reliability and validity of measurement model The CFA results indicated the model fit if Cmin/df was less than 03 with p-value larger than 5% The goodness of fit index (GFI) was a measure of fit between the hypothesized model and the observed covariance matrix The comparative fit index (CFI) analyzed the model fit by examining the discrepancy between the data and the hypothesized model, while adjusting the issue of sample size inherence in the chi- squared test of model fit A CFI value is more than 0.95 is good, more than 0.9 is traditionally, and more than 0.8 is sometimes permissible The root mean square error of approximation (RMSEA) avoided issues of sample size by analyzing the discrepancy between the hypothesized models, with optimally chosen parameter estimates, and the population covariance matrix A value of 0.1 or less was indicated and acceptable model fit Based on composite reliability (CR), the author evaluated the measurement scale’s reliability According to CFA results, average variance extracted (AVE) was used to conclude the convergent validity and correlation between items was used to identify the discriminate validity Then, structural equation modeling (SEM) tested the hypothesized model and estimated path coefficients for each proposed relationship in the structural model SEM is a comprehensive statistical approach to testing hypotheses about relations among observed and latent variables (Hoyle, 1995) Rigdon (1998) defined that SEM is a methodology for representing, estimating, and testing a theoretical network of (mostly) linear relations between variables.
Chapter summary
In chapter three, a questionnaire survey was designed based on established measurement scales, with modifications to both the Vietnamese and English versions to ensure accuracy and clarity The survey comprised 31 items drawn from these scales and was administered to 259 respondents.
DATA ANALYSIS AND DATA RESULTS
Preliminaries of data analysis
Table 4.1 summarizes the demographics and roles of survey participants across age, gender, bank position, seniority, and bank type The overall profile shows 54% female and 46% male The largest age group is 26–35 years (54%), followed by 18–25 years (39%) The most common role is credit officer (49%), ahead of back-office officers (24%) Most respondents have 2–5 years of service (51%), with 22% having less than 1 year Monthly net income is mainly 5–11 million VND (44%), followed by 12–20 million VND (34%) The majority work in state-owned banks (68%), with joint-stock commercial banks accounting for 31%.
Table 4.1 Summary of employees’ profile
No Items Scale Frequency Percent
3 Job at respondents bank of
4 Net income per month of respondents
5 Kind of respondents bank of
6 Years at the bank job of respondents
Reliability analysis
Cronbach’s Alpha was used to assess the reliability of each measurement scale The alpha coefficient ranges from 0 to 1, with values above 0.7 indicating acceptable reliability In this study, items with Cronbach’s Alpha below 0.7 and a corrected item-total correlation below 0.3 were deleted, resulting in the removal of NC2 Consequently, all factors achieved Cronbach’s Alpha values above 0.7, ranging from 0.810 to 0.893, confirming acceptable internal consistency across the scales.
Variable Item-Total Statistics Reliability Statistics
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Exploratory Factor Analysis
After Cronbach’s Alpha analysis, Exploratory Factor Analysis (EFA) was used to examine relationships among the internal variables A strict criterion was applied: factors with loadings below 0.5 were removed, and components with eigenvalues greater than 1.0 were retained The purpose of EFA is to define groups of items that cluster together and reflect coherent respondent responses, as described by Hair et al.
(1995), sample size should be 100 or greater Hence, sample size of this study which had
259 valid observations as shown detail in chapter 3, met the requirement for EFA analysis
The study began with 30 items of all variables From table 4.3, KMO value was 0.824, which was greater than the standard 0.7 (Leech, Barrett & Morgan, 2005) KMO test indicates one whether or not enough items are predicted by each factor Additionally, Chi squared of Barllet was 4655.835 and Sig.value was 0.000, less than the statistically significant at p