MISTRY OF EDUCATION AND TRAININGFOREIGNTRADEUNIVERSITY MASTERTHESIS AN ANALYSIS ON THE WORK ENGAGEMENT OFVIETNAMESE MIDDLE MANAGERS: THE CASEOFFDIENTERPRISES- BACNINH PROVINCE Specializa
Emergenceofstudy
Work engagement is a widely recognized concept in both business and academic fields, first emerging in the 1990s, with over 200 scientific publications on the topic A global CEO survey highlights that attracting employees is one of the top five organizational challenges, prompting consulting firms to develop proprietary concepts and survey tools International data suggest that only about 20% of employees are highly engaged in their work, while another 20% are relaxed, and approximately 60% participate moderately, indicating room for improvement Research indicates that employee engagement significantly contributes to business success, making it a feasible and important focus for both scientific research and practical application in organizations.
FDIinflowsareavery importantdrivingforceforVietnam'seconomicdevelopment and have a large contribution to Vietnam's GDP growth In particular,Bac Ninh province with good FDI attraction and one of the localities with the mostFDIenterprisesinthecountry.
With the advantage of being located in the Northern key economic region, inrecentyears,BacNinhprovincehasbecomeadestinationformanyf o r e i g n investors with more than 1,000 foreign direct investment (FDI) projects By the endof June
2029, the total registered foreign investment capital in Bac Ninh provincereachednearly17billionUSD(Nhandan),2019.
Middle management staff in FDI enterprises in Bac Ninh are predominantly Vietnamese and serve as the backbone of business Operations Their high work engagement is a key driver of overall enterprise development, significantly contributing to the growth and success of both local and foreign-invested companies in the region.
According to Gallup's 2019 Report, companies with highly engaged employees experience a 21% increase in productivity, highlighting the importance of work engagement for competitive advantage This underscores the significance of analyzing work engagement levels among middle managers, particularly in Vietnamese FDI enterprises, to understand how employee engagement impacts organizational performance and global competitiveness The study aims to explore the factors influencing work engagement among Vietnamese middle managers in foreign direct investment companies, emphasizing its role in driving business success and sustainable growth.
B a c N i n h p r o v i n c e " i s v e r y u r g e n t a n d s u i t a b l e w i t h p r a c t i c a l needs in order to offer advanced solutions for work engagement of management atFDIenterprisesinVietnam(SKHDTBN),2019.
Work engagement in human resource management is a critical concept widely emphasized in both domestic and international research In Vietnam’s economy, FDI enterprises serve as the primary drivers of development, with Bac Ninh province exemplifying successful FDI attraction and supportive policies for foreign-invested firms At the enterprise level, middle managers act as the vital link between Vietnamese workers and foreign leadership, making their work engagement essential for overall enterprise performance Consequently, this study focuses on understanding how middle managers' work engagement influences the success of FDI enterprises in Vietnam.
Purposeofstudy
Inparticular, theresearchhopesto achieve the followingmainpurposes:
Subjectandscopeofthestudy
The study will be conducted only in 4 large industrial zones in Bac NinhincludingVSIP, Yen Phong, Tien Son and Que Voas these areas have collected therequirednumber ofsamples
This study focuses on four major industrial zones in Bac Ninh—VSIP, Yen Phong, Tien Son, and Que Vo—selected due to their large scale and significance among the 15 centralized industrial zones covering a total area of 7,681 hectares These zones host the largest and most prominent companies, including industry leaders such as Suntory PepsiCo Vietnam Beverages, Fusan Technology Co., Ltd (formerly Microsoft Phone Factory), Canon Vietnam Co., Ltd., Samsung Electronics Co., Ltd Vietnam, TOYO INK Compound Vietnam Co., Ltd (TICV), and Sumitomo Electric Interconnect Products Vietnam These industrial zones are notable for their high concentration of workers and Vietnamese middle managers, making them critical hubs of economic activity and employment in the region.
Thetimeforresearching,interviewingandcollectingdatafrommiddlemanagers in the above mentioned industrial parks will take place from March toMay2020includingaface-to- facemeetingandgatheringtimes.Additionalinformation,fillingoutthequestionnairewill bedonebyemail
Researchmethodologyandresearchquestions
To solve the problems raised, the study used a combination of two methodsincluding:QuantitativeandLiteraturereviewsasfollows:
Quantitative method:Thisstudyemployedthequantitativemethodtodeterminetherelationshipbetwe enworkengagementandsevenindependentvariables,aswellastherelationshipbetweenwork engagementandeachdemographicfactor.Afterbeingcollected, surveyresultswereanalyzedbytheStatisticalPackagefort h e S o c i a l S c i e n c e s (SPS
By conducting a comprehensive survey with a sample size of 144 middle- level managers at 4 largest industrial zones in Bac Ninh, anumberoftestswereperformedonthec o l l e c t e d d a t a , n a m e l y K a i s e r -
M e y e r - O l k i n ( K M O ) M e a s u r e of Sampling Adequacy,Bartlett’s test of sphericity,C r o n b a c h ’ s a l p h a r e l i a b i l i t y test,ExploratoryFactorAnalysis,MultipleregressionanalysisandOne- wayANOVAtest.
Literature review: Reviewing previous researches to analyze core meaningsandprincipalofworkengagement,thereforewecanidentifymaine f f e c t o r s affectingemployeesworkengagement.
2) Which level of work engagement of middle managers is in FDI enterprisesinBacNinhindustrialzones?
Structureofthesis
Chapter 2: Frame work of work engagementChapter3:Researchmethods
Chapter 4: Research conclusionChapter5:Recommend ations
Theoreticalfamework
Literature review
Work engagement is a widely discussed concept in human resource management, with numerous definitions reflecting its importance in the workplace Since 2000, there has been a significant increase in research, publications, and articles exploring employee participation and engagement, highlighting its growing relevance The concept of work engagement first gained academic attention with William Kahn's 1990 paper in the Management Academy Journal, marking the beginning of scholarly interest This development coincided with the rise of positive psychology, promoted by experts like Martin Seligman, which emphasized the psychological well-being and active participation of employees at work.
Engagementreferstoparticipation,commitment,passion,enthusiasm,uptake,fo cusedeffortandenergy.Workengagementfirstappears inbusiness,despite its roots terminology is not entirely clear, it was first used in the 1990s byGallupFoundation(1990)
Work engagement, as defined by Maslach and Leiter (1997), is a psychological state characterized by emotional attachment to the organization, commitment to staying, and behaviors that promote organizational effectiveness Engaged employees invest significant effort because they genuinely sympathize with their work, leading to positive outcomes such as personal growth and improved organizational performance Unlike exhausted employees, those who are engaged connect consciously with their work, viewing challenges as opportunities rather than stressors, and exhibit energy, participation, and efficiency Engagement is inherently linked to a reduced risk of burnout, characterized by vitality, dedication, and absorption—where employees feel enthusiastic, inspired, and fully immersed in their tasks This high level of energy, resilience, and purpose fosters perseverance and a sense of meaning, making work more fulfilling and time pass quickly, as highlighted by Schaufeli (2012).
Kahn (1990) defines employee engagement as the extent to which individuals dedicate their full mind, knowledge, and physical abilities to their work, though this concept can sometimes be confused with organizational behavior or job satisfaction To better understand the varying degrees of attachment employees have to their roles, Kahn examined key principles such as 'personal participation' and 'personal disengagement,' which describe how individuals may include or ignore their personal roles while performing their job These concepts, developed by Kahn, integrate ideas from motivational theories, emphasizing that people seek to express themselves and exercise self-control in their work life, thereby highlighting the importance of psychological engagement in the workplace.
According to Britt (1999; 2003), the definition of work coherence is personalresponsibilityandacommitment to fulfilland focusongettingworkdone.
Work engagement is considered the opposite of exhaustion, encompassing energy, commitment, and personal achievement, which are essential for fostering work cohesion Schaufeli (2002) describes work cohesion as a state of persistence, positivity, and motivation aimed at accomplishing goals Ulrich (2007) emphasizes the importance of valuing employees' contributions, noting that increased business outputs rely on effectively engaging employees both mentally and emotionally to boost labor productivity.
Various definitions of job linkage emphasize the importance of work engagement, which refers to the energy level a user has to work effectively and efficiently (Macey & Schneider, 2008) According to Schaufeli and Bakker (2004), work engagement is considered a fluctuating state where employees are attached to their jobs, regardless of holidays or non-employment periods Recognizing employees who are genuinely psychologically connected and truly engaged at work is crucial for organizations, as these employees are consistently motivated and committed to delivering high-quality work (Bakker & Leiter, 2010).
Work engagement is a positive, satisfying mental state characterized by dedication and enthusiasm, involving employees' mental focus, dedication, passion, hard work, and energy toward their tasks (Schaufeli & Bakker, 2010) Unlike "employee engagement" which emphasizes organizational connection, work engagement pertains to employees’ internal mental states reflected in their thoughts and actions at work This concept emphasizes a continuous awareness and commitment to work rather than focus on specific objects, individuals, or events According to Bakker (2009), three key factors measure work engagement: energetic (willingness to work hard despite difficulties), dedicating (immersing oneself in work with enthusiasm and pride), and passionate (being fully focused and happy to spend time working) These elements collectively define a highly engaged and committed workforce.
Although work-related fatigue after a long day may feel tiring, many employees perceive it as a pleasant state that justifies the positive outcomes of their efforts Employees who are dedicated to their work do not become workaholics; instead, they enjoy engaging in other aspects of life outside of work, making work a source of joy This balance contributes to overall well-being and job satisfaction (Gorgievski, Bakker & Schaufeli, 2010).
In Vietnam, research by Pham Duy Khanh and Tran Dinh Long (2015) examined factors affecting employee engagement at Military Petroleum Corporation The study employed Cronbach’s Alpha for reliability assessment and EFA (Exploratory Factor Analysis) to identify key influencing factors The regression model results indicated that employee evaluation, job identification, and training, remuneration, and compensation are significant determinants of employee engagement.
"Recruitment" are important factors that have a positiveimpactontheengagementofemployeewithbusinesses.
Ha Nam Khanh Giao and Nguyen Dang Huyen Tran (2017) studied the factors influencing employee engagement at Ho Chi Minh Banking University, identifying five key factors with positive impacts in order: nature of work, colleague relations, school reputation, salaries and benefits, and support from superiors Their research, based on surveys of 174 employees and analyzed using Cronbach's alpha, EFA, and multiple regression, suggests that enhancing these areas can improve employee engagement The authors recommend administrative solutions directed at the board of directors and unit leaders to foster higher levels of employee engagement.
The study "Assessing Organizational Awareness and Job Satisfaction in the Vietnamese Context" by Tran Kim Dung and Abraham (2005) examined the link between job satisfaction and employees' sense of attachment Based on a sample of 396 full-time employees in Ho Chi Minh City, the research utilized a network model focusing on three components of organizational consciousness and five aspects of public satisfaction The findings indicate that employees demonstrate high dedication and pride in their workplace because they enjoy their jobs and maintain positive relationships at work.
Many domestic researchers have investigated the factors influencing employees’ long-term engagement across various industries Nguyen Chi Cong (2011) conducted a study titled "Solutions to create long-term cohesion of employees with enterprises in VNPT member units," employing exploratory factor analysis (EFA) and multivariate regression analysis to identify key determinants The study found that job satisfaction and family influence significantly positively impact long-term employee engagement Additionally, Cong highlighted differences in long-term association intentions based on education and income levels, noting that employees with higher education and postgraduate degrees tend to have lower engagement intentions, while those earning five million VND or more demonstrate a higher level of engagement compared to lower-income groups These findings emphasize the importance of job satisfaction, family influence, education, and income in fostering employee engagement.
Tran Van Tuan (2018) applied models of reward and recognition, organizational fairness, organizational support awareness, job characteristics, work engagement, and organizational citizenship behavior to real-life conditions at non-life insurance companies in Ho Chi Minh City The study combined qualitative research to refine and supplement existing theories and scales, alongside a quantitative survey of 283 full-time employees with at least one year of work experience in the area.
City.AnalysisresultsshowthatOrganizationalJusticeIntermsofworkengagem ent, the Rewards and Recognition factors are considered as twoseparatefactorswith differentlevelsof impact onworkengagement.
Instituteso fNe wY ork”built f o r thefirsttime applied t ow or ke rs intheindustry,with9encouragingcomponentsforemployees,including:
Autonomy at work: The employee has control and responsibility forhis work, is encouraged to participate in work-related decisions and isencouragedto take initiatives.
Interestingwork:Expressingthroughthediversity,creativityandchalleng esofthejobandtheopportunitytousetheindividual'sabilities.
Fully recognized work done: Recognized when completing the workwell,aswellascontributingtothesuccessof thecompany.
High salary: Receive a salary that is commensurate with the results ofworkandensuresasufficientpersonallife
Long-term work: Having a stable job, no need to worry about how tokeepajobor lookfornewjobs.
Goodworkingconditions:Relatedissuessuchaslabors a f e t y , hygiene, environment, working time, etc are above average in theindustry.
Support from superiors: The superiors always show their care andsupportinsolvinglaborproblems.
- According to Vishwanath V Baba and Muahammad Jamal (1979)with the topic "On Becker's Theory of Commitment: An
A survey of 377 production workers across six companies in Vancouver revealed that three key factors influence employee engagement: demographics, background, and job-related factors Among these, job factors such as variety of tasks, relaxing break times, support from colleagues, and the convenience of commuting to the office are identified as the primary determinants of workers' engagement, attitude towards the organization, and overall work satisfaction.
The concept of engagement at work is centered on how employees actively commit themselves during job performance, emphasizing emotional involvement alongside cognitive effort Unlike basic job involvement, engagement involves the active use of emotions and cognition to perform work tasks effectively According to this model, employees express themselves cognitively, physically, and emotionally while fulfilling their roles For full engagement to occur, three psychological conditions must be satisfied in the work environment: a sense of meaningfulness, safety, and availability.
According to Coffman and Gonzalez-Molina (2002) in "How the World’s Greatest Organizations Drive Growth by Unleashing Human Potential," employee engagement is a dynamic factor that can vary significantly across workplaces Studies suggest that employees often mirror the attitudes of their organization’s leadership, with engagement levels reflecting the influence of leaders at all levels High engagement scores are linked to strong leadership, which directly impacts organizational success These insights are highly applicable to the social work sector, where agency leaders can leverage engagement data to develop targeted strategies that boost staff motivation, retention, and overall effectiveness in serving clients.
Classificationofworkengagement
Employees can be categorized into three groups based on work engagement: engaged employees, not engaged employees, and actively disengaged employees According to Williams and Schneiderman (2002), engaged employees are highly committed and motivated, contributing positively to organizational success In contrast, not engaged employees lack enthusiasm and may perform their duties passively, which can impact overall productivity Actively disengaged employees are often dissatisfied, disengaged, and may even undermine workplace morale, posing a significant challenge for organizations aiming to foster a healthy work environment.
Engaged employees are those who are committed to their work and actively contribute to organizational success In contrast, disengaged employees tend to focus solely on completing specific tasks rather than aligning with overall goals and expected results Disconnected employees often lack a strong relationship with management and colleagues, feeling that their contributions are overlooked and their potential unrecognized They usually seek clear guidance on what needs to be done and concentrate on completing specific tasks, rather than engaging with broader organizational objectives (Gallup, 2004).
Not engaged employees are those who are intrinsically connected to their work and possess a constructive spirit They are motivated by clear expectations and strive to achieve results that go beyond those expectations, caring deeply about their company and their role within it These employees consistently perform at a high level, driven by passion, and actively seek opportunities to utilize their talents and strengths through innovation to support organizational growth (Gallup, 2004).
- (3)Activelydisengagedemployees:Thegroupofproactiveemployeesw h o a r e n o t a s s o c i a t e d w i t h t h e w o r k T h o s e w h o a r e "separatist"a n d a l m o s t r e s o l u t e l y a g a i n s t e v e r y t h i n g T h e y n o t o n l y do not feel happy at work, but also always express their unhappyattitude.Everyday,thisgroupofpeopleseekstounderminethesuccesso fcolleaguesassociatedwiththejob(Gallup,2004).
Humphrey et al (2007) emphasize the importance of integrating contextual features into a job specification model, as they focus on the work environment and setting Kahn (1990) explains that workers tend to perform tasks influenced by external scenarios due to material needs and working conditions, which can lead to decreased engagement Additionally, increased physical demands and stressful work conditions contribute to physical discomfort, resulting in more negative experiences while working.
The importanceofworkengagementonFDIenterprises
Work engagement, as highlighted by Balogun and Johnson (2005), is a critical factor influencing business outcomes and overall performance Employees play a decisive role in the success of each department and the enterprise as a whole Those with high professional skills, problem-solving abilities, and creative dynamics significantly contribute to improving business performance.
Therefore,iftheemployeeisassignedwithasuitablejobaswellascreatingfavorablecondition stoperformworkeffectively,improveworkengagement,businesses willgetpositiveresults.
Work engagement is crucial for protecting business secrets and ensuring overall success, as employees hold essential knowledge and skills that contribute to the company's growth (Williams and Schneiderman, 2002) When an employee leaves, the business faces the risk of losing valuable proprietary information, which can then be exploited by competitors without the additional investment of training or resources The threat is especially significant if the departing employee is a senior manager, as they may possess critical business strategies, social relationships, and technical secrets related to partnerships or engineering Such exits can lead to substantial losses in competitive advantage and overall business stability.
Work engagement is a fundamental resource for sustainable development, as human resources are vital in the knowledge economy by capturing essential knowledge, skills, and business relationships that shape an enterprise’s development strategy The success of strategic planning depends on leveraging both financial and human resources, with a cohesive and committed workforce playing a crucial role in implementing and adjusting these strategies Strong employee engagement forms the basis for achieving long-term growth and higher development goals.
Work engagement is the foundation for developing innovative ideas and driving growth In the current information age and global knowledge economy, access to knowledge and information is crucial for maintaining a competitive advantage Skilled and engaged employees are essential for ensuring and enhancing a company's strengths, as they are the primary source of creativity and ideas that improve product and service quality, optimize processes, and distinguish the business from competitors.
Work engagement is a valuable asset for any enterprise, as it directly impacts operational efficiency and overall success Finding, recruiting, and mobilizing new employees to effectively grasp their roles is a time-consuming and costly process, involving expenses for hiring, training, and probation periods Developing the necessary skills and relationships takes time, but strong work engagement ensures employees are well-equipped to meet job demands, ultimately driving company growth and productivity.
Factorsinfluenceemployees’workengagement
According to Demerouti et al (2001), the Job Demands-Resources (JD-R) model identifies key elements within each industry and occupation that influence employee well-being Work-related risks, particularly stress at work, are associated with these factors and are categorized into two main components: Work Resources and Job Requirements Understanding the balance between these elements is essential for managing burnout and promoting a healthier work environment.
According to the JD-R model, the resources and requirements at work covermanyaspects.
Firstly,thismodelincludesjobrequirementsrelatedtothephysical,psychological, socialandorganizationalaspectsofajobthatrequireconstantphysicaleffort, psychologically or require thenecessary skills, andit isrelatedt o thephysiologicalandpsychologicalcosts.
Secondly, work resources are related to the physical, psychological, social,andorganizationalaspects of a job thatincludeor combine:
Promoting individual maturity, learning, and development is essential for personal and professional growth Key resources in the workplace—such as constructive feedback, effective control work, and societal support—play a vital role in this process These work resources serve as internal motivators by fostering personal development and as external motivators by providing tools to achieve professional goals, ultimately enhancing each individual's ability to learn, adapt, and succeed.
Previousresearchesofworkengagement
El-Kot et al (2010) examined job participation among male and female managers and professionals across various Egyptian organizations and industries, using data from 242 respondents with a 48% response rate through anonymous questionnaires Their study assessed participation via three scales—vigor, dedication, and absorption—developed by Schaufeli (2004), considering demographic factors, job characteristics, achievement needs, and workaholic behaviors, alongside measures of job satisfaction and psychological outcomes The findings indicated that both a need for achievement and workaholic tendencies significantly predict all three components of participation, with dedication particularly linked to positive job outcomes like higher job satisfaction and lower turnover intention However, the study's limitations include inability to establish causality due to its cross-sectional design.
Longitudinalstudiesareneededtodeterminetheimpactoflifeexperiencesatworkonparti cipation Accordingly, organizations can increase their level of job participationby creating supportive work experiences (e.g control, reward and recognition) thatareconsistentwith human resourcemanagementpractices(HRM) effective.
Low engagement can significantly reduce employee performance, prompting many organizations to focus on evaluating, promoting, and maintaining work participation A systematic meta-analysis by DeBeer et al (2016) assessed the effectiveness of work-related interventions using the Utrecht Work Engagement Scale (UWES), analyzing data from 20 studies categorized into four intervention types: individual resource building, employment resource development, leadership training, and health promotion Results indicated that group interventions had moderate to large positive effects, although high heterogeneity among studies suggests varied implementation success and outcomes These findings highlight the importance of selecting effective intervention strategies to enhance employee engagement and organizational productivity.
Figure2.2: Utrecht WorkEngagement Scale (UWES)
Research by Torp et al (2012) highlights that work needs, personal control, and social support significantly influence depression levels, while work engagement plays a mediating role in this relationship Their study emphasizes the importance of using engagement as a measure to improve workplace health, showing that higher social support and control are associated with increased work engagement Findings suggest that promoting employee engagement can effectively reduce depression by mediating social factors, making it more impactful than traditional disease prevention efforts Encouraging organizations to focus on enhancing engagement can lead to better performance, motivation, and overall organizational health.
According to Ten et al (2012), New Ways of Working (NWW) allows employees to choose their work time and location, and its implementation is increasing in organizations Their research shows that daily use of NWW is positively associated with greater work engagement and negatively related to work exhaustion, due to improved communication and stronger peer connections However, the study also identifies a positive link between NWW and burnout, as increased flexibility can lead to more work disruptions Overall, the authors conclude that NWW has the potential to enhance employee engagement while also posing some risks for burnout.
According to Stan et al (2014), work engagement is a positive, fulfilling state characterized by vitality, dedication, and absorption, reflecting perseverance and focused involvement rather than uncertain mood Employee participation comprises three key elements: strength, devotion, and absorption, which influence morale by fostering high energy, resilience, effort, and steadfastness amid challenges Dedication involves enthusiastic pride, inspiration, and a sense of significance in the work, while absorption denotes a high level of focus and engrossment in tasks Both participation and internal motivation are closely linked, serving as mediators between job characteristics and organizational outcomes Autonomy plays a crucial role by enabling employees to exercise creativity, respond swiftly to changing needs, and reduce stress, thereby enhancing participation and overall performance Multiple studies affirm that autonomy and participation in work are positively correlated, leading to improved employee engagement and organizational success.
Mowday et al (1979) developed a scale to measure employees' sense of organizational commitment (OC) through direct perceptions of behavioral and attitudinal aspects They defined OC as the strength of an individual's identification with and active participation in the organization, highlighting three key components: belief in the organization’s goals and values, willingness to work hard for the organization, and a strong desire to remain a member Their 15-item Organizational Commitment Questionnaire (OCQ), using a 7-point Likert scale, assesses these components with a gender-balanced sample, demonstrating satisfactory reliability and internal consistency across a study involving 2,563 employees from nine organizations.
The study highlights the significance of OCQ in assessing employees' intention to stay and organize, a key component of organizational commitment Research indicates that OCQ effectively predicts employees' expected duration within the organization Employees who demonstrate interest and career orientation tend to have higher organizational cohesion Additionally, strong correlations between organizational commitment and job satisfaction, as measured by the Job Descriptive Index (JDI), were identified, emphasizing the link between commitment and overall job contentment.
Stefan Gaertner (1999) examined the structural determinants of job satisfaction and organizational commitment within a turnover model, based on data from 7,040 office workers (49% male) across nine empirical studies Utilizing LISREL 8.3, he conducted a Meta-Analytical Structural Equation Modeling (SEM) analysis to identify key factors influencing employee retention The study focused on ten critical elements, including salary and opportunities for promotion, highlighting their significant impact on job satisfaction and organizational commitment.
Our research examines how key workplace elements—such as fair distribution of tasks, support from colleagues and superiors, workload, conflict resolution, transparency, autonomy, and habits—affect job satisfaction and engagement The findings reveal that all ten components significantly influence overall job satisfaction, highlighting the importance of a positive work environment However, only three components—promotion opportunities, fair distribution, and superior support—demonstrate a direct correlation with employee engagement, emphasizing their critical role in fostering a motivated and committed workforce These insights underscore the need for organizations to focus on these areas to enhance employee satisfaction and engagement effectively.
Figure 2.5: Relationship of Structural Determinants and
SnapshotofFDIenterprises -BacNinhprovince
F D I enterprisesinVietnam
Since integrating into the global economy in the early 1990s, Vietnam has emerged as a highly attractive destination for Foreign Direct Investment (FDI), attracting numerous multinational companies and enterprises In 2015, Vietnam ranked as the fifth-largest recipient of FDI globally by the number of projects, following China, India, Singapore, and Australia Additionally, when considering total investment capital, Vietnam secured the fourth position worldwide, after India, China, and Indonesia, according to The FDI Report (2016) published by FDI Intelligence.
Additionally,thisreportrankedVietnamthehighestFDIperformanceindexamongst emerging economies for the period 2014-2015 Vietnam’s FDI inflow hasfollowedalong-termupwardtrend,withspecificshort-termfluctuations.
Figure 2.8: Vietnam's FDI total capital registered and average capital perproject
2015,FDI,inbothnumberofprojectsandregisteredca p i t a l , i n c r e a s e d st e a d i l y, w i t h a v e r a g e g ro wt h r a t e o f 8 1 per ce nta nd
13.4 percent, respectively The sharp increase in FDI in 2008 reflected the strongworld economy up to the global financial crisis, as well as the rising interest offoreignersi n V i e t n a m f o l l o w i n g t h e c o u n t r y ’ s a c c e s s i o n t o t h e W T O i n 2 0 0 7
In 2008, registered FDI in Vietnam included major projects such as a petrochemical complex, steel mills, a software park, and a tourism complex However, the global financial crisis caused many of these projects to be delayed or canceled Notably, FDI in Vietnam is primarily concentrated in the manufacturing sector, with the majority of investments coming from foreign flows.
In 2015, Asian countries ranked as seven of the top ten foreign investors in Vietnam, with their registered capital accounting for 67.2% of Vietnam’s cumulative FDI over the past decade Vietnam’s successful efforts to attract FDI have positively influenced its economic development, with FDI’s contribution to GDP increasing from 15.1% in 2005 to 18% in 2015 While FDI’s direct impact on job creation is modest—contributing around 4.2% of the labor force in 2015—it is likely to be even greater when considering indirect effects Additionally, the share of FDI within total investment rose from 14.9%, highlighting its growing importance in Vietnam’s overall investment landscape.
2005 to 23.3 percent in 2015, and the contribution of foreign investedcompanies to the state’s budget fiscal revenues increased from 8.3 percenti n
ThewholepictureofFDIenterprisesinBacNinh
By the beginning of 2020, Bac Ninh Industrial Zones had issued investment certificates for 996 valid FDI projects, totaling over 17.332 billion USD in registered capital Outside the concentrated industrial zones, the Department of Planning and Investment granted new investment licenses for 13 projects with a total registered capital of 3.574 million USD, while one project was withdrawn, amounting to 0.1 million USD Consequently, the total new and adjusted investment capital in Bac Ninh reached USD 181.675 million, reflecting strong foreign investment growth in the region.
FDI enterprises face a critical labor shortage, especially among skilled workers and middle managers, hindering sustainable development These companies primarily exploit low-cost labor without investing in technology transfer or human resource training to foster domestic industry growth High-tech production stages are often outsourced to foreign workers, limiting domestic workers' learning opportunities and skill development Historically, inadequate licensing for FDI enterprises has led many to prioritize cheap labor exploitation over knowledge transfer, as noted by Hanoi Moi in 2011 On average, only 17.90% of employment in FDI firms comprises technically skilled and professional workers, with industrial parks like Que Vo and Tien Son boasting higher percentages of such labor—25.34% and 22.46%, respectively, highlighting gaps in workforce specialization (Hravn, 2015).
The increasing market demands for higher product quality and competitive pricing, driven by advancements in science, technology, and environmental protection, necessitate that FDI enterprises implement early training strategies These strategies are essential to enhance the quality of human resources, enabling companies to meet the evolving requirements for development, innovation, and the application of new scientific and technological solutions Improving both product quality and service standards is critical for remaining competitive in today’s dynamic marketplace (Hravn, 2015).
At FDI enterprises in Bac Ninh, awareness among employees and employers regarding labor relations has greatly improved, leading to significant positive changes Middle managers now rely more on negotiated mechanisms, actively engaging in discussions with employers to protect their rights and interests Employers are increasingly complying with labor laws, which has resulted in better working conditions, higher incomes, and increased support for housing, culture, and spirituality for workers These developments have strengthened the cohesion between middle managers, core forces, and workers, creating a vital link between employees and the leadership of FDI enterprises in Bac Ninh.
Middle managers in FDI enterprises earn higher average monthly salaries compared to non-state enterprises, yet still earn less than those in state-owned enterprises While all FDI companies adhere to an standard 8-hour workday and 48-hour workweek, employees often work substantial overtime, averaging over 275.8 hours annually, with some sectors like garment, footwear, and electronics experiencing overtime up to 500-600 hours per year This results in many workers, including middle management officials, working excessive hours, with overtime surpassing approximately 30% of the limits outlined in the Labor Code.
In Bac Ninh, the presence of foreign workers and experts has significantly contributed to local industrial growth By the end of 2018, there were 284,470 employees in the province's industrial parks, with 75.5% (214,920) coming from other provinces, alongside approximately 5,000 foreigners working in industrial zones This influx of skilled labor has strongly boosted the development of service industries within the province.
ResearchonthecausesofterminationofemploymentrelationsinFDIenterprises has the following results: Up to 39% of employees leave due to workpressure( o v e r t i m e , h i g h n o r m s ) ; 1 3 4 % o f e m p l o y e e s q u i t t h e i r j o b s d u e t o h a r d anddangerousjobs;8.4%ofworkersareabsentfromworkduetosexualhara ssment;16.4%ofemployeesquittheirjobsduetobeingscoldedanddiscriminated against; 15.1% quit their jobs due to insecure health, loss of laborforce;12.6%werelaidofffornoreason
From 2017 to the present, there have been 343 strikes in FDI enterprises, leading to increased tensions between employees and employers Notably, Korean-invested enterprises account for 44.02% of these strikes (151 cases), followed by Taiwan at 23.91% (82 cases), China at 10.2% (35 cases), and Japan at 4.96% (17 cases) All these enterprises are operating in Bac Ninh Province, highlighting regional challenges in labor relations among foreign-invested companies.
Collective stoppages and strikes primarily arise from labor disputes over rights and benefits, particularly issues related to wages and bonuses Common causes include unpaid wages, wages not adjusted to the minimum wage, and payments made outside legal regulations or without proper labor contracts Additional factors involve wage reductions due to increased labor norms, violations of working and rest time regulations, debts or unpaid social insurance, issuance of illegal policies, and instances of unfair treatment or cruelty in the workplace.
Under the provisions of the 2014 Investment Law, FDI enterprises will beestablished according to types of enterprises such as: Onemember limited company,Twomemberlimitedcompany,JointstockcompaniesandPartnership.
Foreign Direct Investment (FDI) enterprises primarily take two forms: 100% foreign-owned companies and joint ventures between foreign investors and domestic partners This investment model is increasingly popular worldwide due to economic integration In Bac Ninh province, effective FDI attraction policies have enabled the development of a diverse range of FDI enterprises through direct foreign investment As a result, Bac Ninh has gained access to modern technologies across sectors such as electronics, chemicals, automation, and food processing.
The FDI sector has significantly contributed to developing a skilled workforce and boosting employment growth, especially following Vietnam's WTO accession This sector has facilitated a shift in the labor market from rural areas to large industrial zones, supporting economic transformation Through direct participation in FDI enterprises, a highly qualified team of managers and technical workers is being cultivated, enhancing access to advanced science, technology, and modern industrial practices FDI companies also prioritize training local labor in skills and foreign languages, improving human resource quality and enabling local employees to replace key managerial positions over time.
Foreign direct investment (FDI) has played a vital role in providing investment capital, creating jobs, and boosting Vietnam's competitiveness in the global market The FDI sector ranks second in contributing to regional annual labor productivity growth, accounting for 29.3%, mainly due to the migration of labor from low-productivity inland sectors to higher-productivity FDI industries, which makes up 64% of this contribution However, only 36% of FDI's labor productivity growth stems from improvements within the sector itself, excluding labor mobility effects The low level of backward linkages between FDI and the domestic sector, particularly in technology and high-skill industries, indicates limited indirect influence on labor productivity through technological advancements and skill development To enhance its development, Bac Ninh should focus on identifying key industries to increase connectivity with domestic sectors, develop supporting industries with targeted initiatives, and invest in workforce training and skill enhancement, thereby fostering sustainable growth and greater integration of the domestic economy.
According to Bac Ninh Portal (2019), foreign direct investment (FDI) enterprises in Bac Ninh operate under direct or indirect management by foreign investors, resulting in distinct management approaches compared to domestic companies These FDI enterprises typically achieve higher economic efficiency due to better investments in technology, capital, and human resources, contributing significantly to the region’s economic growth.
Middle management team is often seen as the pillar of the business and is thefocalpointtoconnectemployeestogethertobridgethegapbetweenseniormanagementt eamandforeignmanagerswithstaff(Dang,T.H,2016).Theyimplement strategic and organizational change strategies, stay with and motivateemployeesthroughouttheoperationsofthebusiness.
The middle management is responsible for directly managing employees andmakingevaluationreportsforseniormanagementwhocanbeforeignersorVietnames e.T h e r e f o r e , t h e y m u s t b o t h h a v e m a n a g e m e n t c a p a c i t y , e x p e r t i s e a n d musthavegoodleadershipskillsand mustbeabletoevokethepotentialofothers.
Middle managers play a crucial role in facing the challenges of development and maintenance within an organization While senior or foreign managers often develop strategic plans, the successful implementation of these strategies depends on middle managers, especially when there is a lack of personnel or when some managers lack the capacity to execute them It is essential for middle managers to possess a deep understanding of the company's core values, the ability to build a strong subculture, and knowledge of the management system to effectively lead their departments and ensure strategic goals are achieved.
In addition, middle managers in FDI enterprises need to be a bridge betweensenior leaders and their employees Know how to effectively convey the ideas ofseniorleadershiptoemployeesaswellasimplementallbusinessi n s t r u c t i o n s ; K nowhowtosourceandspreadpositiveenergytoemployees.
Middle managers play a crucial role in organizational success by effectively assigning and delegating tasks, coordinating employees across departments, and resolving internal issues Their responsibilities are vital to ensuring smooth operations within their departments, which directly impact the overall performance of the entire company Strong leadership and problem-solving skills are essential for middle managers to navigate these challenges and drive organizational growth.
Especially,someFDIenterprisesinBacNinhhavenotattachedmuchimportance to middle management positions, many companies do not have trainingprograms for them Training programs will improve skills for middle managers andmostimportantly,thisshowsthemiddlemanagerthatthecompanyisalwaysinterestedina ndfacilitatesmoredevelopment.
Middle management occupies a crucial position within organizational hierarchies, situated between the operating core and the top leadership, responsible for managing specific business units at an intermediate level According to Mintzberg (1989), middle managers bridge the gap between strategic decision-makers and operational staff Uyterhoeven (1972) further clarifies that middle management includes all levels below top strategic management and above first-line supervision While there is general consensus on the definition of middle management, debates continue regarding its functions: some literature outlines what middle managers should do, empirical studies reveal what they actually do, and others focus on the impact of their roles on the individuals occupying these positions.
Researchdesignandprocedure
Stage2:Studythefeasibilityofthemodel:Developresearchmodels,questionnaires,s calesandobservationvariables,studytime.
Research, investigation, experiment with the object is the selected sampleStage4:Aggregateandanalyzedata
Suggestedresearchmodelandhypotheses
The proposed model to examine the factors influencing middle managers' engagement in FDI enterprises in Bac Ninh province is illustrated in the figure below The model identifies the work engagement of middle managers as the dependent variable, while various independent variables are considered to understand their impact This framework aims to provide insights into how different factors contribute to enhancing managerial engagement within foreign-invested enterprises in the region.
2variables:includingPhysicalvalue(OPV)andSpiritualvalue(OSV)affecti ngworkengagement.
Theauthorproposes7mainvariablesthatare7factorgroupsofworkresources of middle managers: Current jobs/tasks, Working conditions, Salary andincome,Leadership,Colleagues,TrainingandpromotionandOrganizationalstruct ureaffects thework engagement ofmiddlemanagers inFDI enterprisesi n BacNinh,specificallyasfollows:
(H2): W o r k i n gc o n d i t i o n s i m p a c t t h e s a m e d i r e c t i o n o n p u b l i c w o r k engagement of themiddle managers
(H3): W a g e sa n d in com eh avea positive im pac to nt hee ng ag eme nt o fth e workofmiddlemanagers.
(H4): Leadershipbehaviorhasapositive im pac t ontheengagemento ftheworkofmiddlemanagers
(H6): Training-promotion works in the samedirection to the engagementoftheworkofmiddlemanagers.
(H7): Suitableorganizationalstructurehas thesamedirection toth eengagement of thework of middle managers
(H8): P h y s i c a lv a l u e s i n w o r k p l a c e h a v e a p o s i t i v e i m p a c t o n t h e engagement of thework of middle managers
(H9): S p i r i t u a lv a l u e s i n w o r k p l a c e h a v e a p o s i t i v e i m p a c t o n t h e engagement of thework of middle managers
Researchmethodology
Questionnairedesign
This study utilized a three-page self-administered questionnaire, which included a brief cover letter to introduce participants to the research topic Questionnaires are designed to gather essential data about subjects, such as facts about events or situations, beliefs, attitudes, opinions, levels of knowledge, and intentions (Burns and Grove, 1993) This method allows for efficient collection of relevant information directly from participants, ensuring comprehensive insights into the study’s objectives.
Self-administered surveys offer several key advantages over other data collection methods, primarily their lower cost and minimal participant inconvenience, as highlighted by O'Sullivan and Rassel (1989) These surveys are significantly more affordable than conducting interviews, which require considerable time, effort, and expenses related to hiring and training interviewers In this study, the cost-effectiveness of self-administered surveys is evident in the streamlined distribution and collection of research instruments.
Self-administered surveys are essential for maintaining anonymity, especially when dealing with sensitive issues They allow participants to answer honestly and accurately without fear of repercussions, as responses are kept strictly confidential This confidentiality encourages truthful reporting of controversial or nonconformist attitudes, which might otherwise be suppressed in face-to-face interviews By ensuring anonymity, organizations can better evaluate employees' perceptions and attitudes toward company practices, fostering a more open and trustworthy communication environment.
- SectionA: containss i x g e n e r a l m u l t i p l e - c h o i c e q u e s t i o n s t h a t a r e u s e d to reportc e r t a i n d e m o g r a p h i c i n f o r m a t i o n i n c l u d i n g : g e n d e r , m a r i t a l status,highesteducationalbackground,lengthofserviceasm i d d l e managers, department/division and income.Participantswereofferedanumberofchoicestochoosefrom;insomeq uestions,theycouldchoose the “Other” optionift h e i r a n s w e r s d i f f e r e d f r o m t h e e x i s t i n g c h o i c e s , andindicatet h e d e t a i l s T a b l e 2 1 d e s c r i b e s t h e a v a i l a b l e o p t i o n s f o r eachd e m o g r a p h i c q u e s t i o n usedin thesurvey.
Lessthan1years From1-3years From3-5years Morethan5years
Lessthan20 millionsVND From20-30 millions VND From30-35 millions VND Morethan35millionsVND
Electrics Foodand Beverages Leatherand Textile Logistics
- Section Bcontains 1 statement which describes the participants‟ level of jobcommitment.Thisstatementisd e v e l o p e d b y t h e a u t h o r a n d s y m b o l i z e d fortheeaseofperformingquantitativetest s:
- Section Ccontains10parts with a total of 32 statements on the factors thatare identified to influence an employee’s job commitment towards his/herorganization.
CJ1 Currentjob/taskis interesting Balzeretal.(1997)
CJ3 Feelfreewhen doingthisjob BoselieandvanderW iele(2002) CJ4 Balancingbetweenworkandlife Author-made CJ5 Havinggoodexperience withmycurrentjob Author-made
Schroeder(2003) WC2 Facilitiesandequipmentforperformingthe workarefullyequipped Ahmad andSchroeder(20 03)
WC3 Theworkingenvironmentisverysafe Self-developed WC4 Companyprovidedailyshuttlebus Self-developed
Ramaswami(1993) LS2 Valuingtalentsof employeesfairly Boselieandvander
Wiele(2002) LS4 Havingdeeplyintensiveknowledge Self-developed
Wiele(2002) C4 Managementqualificationsareenhanced whenworkingwithcolleagues Self-developed
TP1 Beingtrained managementskills professionally Schwepker(2001)
TP2 Effectivetrainingcourseshelpemployees managetheir jobs Broadfootand
Ashkanasy(1994) TP3 Create more promotionopportunitiesfor qualifiedpeople Author-made
TP4 Fairandtransparentcompanypromotion policy Author-made
OS1 Havingappropriate organizationof apparatus Schwepker(2001)
OS2 Thelevelsofreporting areclearly transparent Schwepker(2001)
OS3 Missionof everydepartmentsincompany isclear Author-made
OS4 Effectivecoordinationbetween departments Author-made
Ramaswami(1993) WE3 Maintainingtheloyaltywhenworkingat thecompany Author-made
Willstaywith thecompanyfora long timealthoughthereareotherplacesofferingmo reattractivesalaries Author-made
Likertscale,whichrequirestheparticipantstoindicatetheirlevelo f agreementor disagreementbyplacinga n “ x ” o r a t i c k a t t h e a p p r o p r i a t e numberint h e c o r r e s p o n d i n g b o x e s T h e s t r e n g t h o f a g r e e m e n t i s d e s i g n e d o n a scaleof1to5asfollows:
Samplingmethod
Research indicates that larger sample sizes generally lead to more accurate analysis results (Tho et al., 2012) Hair et al (2006) recommend a minimum sample size of 50 for exploratory factor analysis (EFA), with 100 being preferable, and a measurement variable-to-sample ratio of at least 5:1, requiring a minimum of five observed variables Additionally, for optimal regression outcomes, the sample size should satisfy the formula n ≥ 50 + 8p, where p represents the number of predictors (Tabachnick & Fidell).
1991) Where n is the minimumsample size and p is the number of independent variables (independent factors) inthe model.
According to Hairet al (1998), the minimum sample size required for EFA discovery factor analysis is five times the total number of observed variables (n = 5 * m), where m represents the number of questions in the questionnaire This sample size is considered suitable for research using factor analysis, as supported by Comrey (1973) and Roger (2006) Ensuring an adequate sample size based on these guidelines can improve the validity and reliability of factor analysis results.
ThisstudyusesacombinationofbothEFAandlinearregressionmethodssothesamplesi zeselectedontheprincipleofsampleisaslargeaspossible.Specificallyinthe proposed research model the author has 28 observed variables, so the minimumsamplesizeforEFAdiscoveryfactoranalysisis140andtheminimumsamplesizefor performinglinearregression(with7independentfactors)is106.
In order to ensure quality of the questionnaire, the author decided to conducta comprehensive survey with a sample size of 144 middle-level managers at FDIenterprisesin Bac Ninhprovince.
Datacollectionmethod
The author contacted the human resources departments of various companies to request a list of email addresses and phone numbers, then directly sent a Google Form questionnaire to 150 middle managers at FDI enterprises using an overall survey approach Out of these responses, 146 questionnaires were collected, with 2 incomplete responses discarded to ensure data accuracy.
Therefore, the authoranalyzesandprocessesdataon144validlyansweredquestionnaires(withacommitme nt to ensure the confidentiality of respondents, survey and respondentinformationiskeptconfidentialandonlyusedforpurposeofresearch).Aftercoll ectingthequestionnaire,theauthorproceedswiththedataanalysisasthe followingsections.
Data analysisprocess
The statistical method used the significance level Alpha selected in this topicis0.05(Alpha=0.05).DatacollectedwereanalyzedusingSPSS20.0software.
The reliability of the scale was evaluated using Cronbach’s Alpha coefficient, ensuring consistent measurement The validity of the scale was assessed through Exploratory Factor Analysis (EFA), which helps determine convergent and discriminant validity—key aspects of scale accuracy (Tho et al., 2011) The extraction of factors based on the original hypothesized number of components indicates whether the scale's elements effectively discriminate between variables Convergent validity was evaluated by analyzing factor loadings and total variance explained, confirming that the scale's items reliably measure the intended constructs.
Ascaleisconsideredvalidwhenitmeasurestherightquantitytobemeasured, meaning that the measurement method has no systematic and randomdeviations. Thefirstrequirementisthattheapplicablescalemust bereliable.
In this study, the reliability of the scales was assessed using Cronbach’s Alpha Researchers generally regard a Cronbach’s Alpha of 0.8 or higher as indicating a good scale, while values close to 1 reflect excellent reliability A score between 0.7 and nearly 0.8 is considered acceptable for use Additionally, some scholars suggest that a Cronbach's Alpha of 0.6 or higher can be acceptable when the concept being measured is new or unfamiliar to respondents, especially in the context of the study (Nunnally and Burnstein, 1994).
In this study, only scales meeting specific reliability criteria were utilized for subsequent analyses, including Exploratory Factor Analysis (EFA) The author employed Cronbach's Alpha as the reliability measure, requiring a minimum value of 0.8 to ensure internal consistency Additionally, the corrected item-total correlation was set to be greater than or equal to 0.5, which was particularly important due to the small sample size These stringent reliability standards help ensure the validity and robustness of the research findings.
Before conducting EFA, Bartlett's test and KMO measure were performed to assess the adequacy of the data and the suitability for factor analysis, ensuring sufficient correlations among variables EFA involves a systematic process, typically divided into three key steps: exploring the underlying structure of research variables, eliminating unsatisfactory measurement variables, and interpreting the resulting factors to understand their conceptual meaning These steps are essential for accurately identifying latent factors and refining measurement models in the study.
- Evaluating the Kaiser-Mayer-Olkin index (KMO) to consider the suitabilityof exploratory factor analysis (EFA), the KMO index must be greater than zero(Tho,2011).
Bartlett's test evaluates whether the observed variables are sufficiently correlated to justify their use in multivariate analysis A statistically significant result (Sig ≤ 0.05) indicates that the variables are correlated across the entire dataset, supporting the hypothesis that the variables are related and suitable for further analysis (Chu and Ngoc, 2008).
Factors with weights less than 0.5 in Exploratory Factor Analysis (EFA) are excluded to ensure stability among variables (Tho, 2011) Principal Axis Factoring with Promax rotation is used for observed independent variables, while Principal Components with Varimax rotation are applied to dependent variables; factors are retained when Eigenvalues exceed 1, explaining at least 50% of total variance (Tho, 2011) If factor analysis results differ from the initial hypothesis by changing the number of components, the new scales are recalculated with Cronbach’s Alpha to meet reliability standards.
Linear regression analysis was conducted to know the impact of independentvariables on the dependent variable From there, analysis will test the suitability ofthemodelandbuildmultipleregression modelstotestthehypothesis.
Correlation analysis is essential as a preliminary step for regression analysis, focusing on calculating the linear relationship between two variables While it does not establish causality, correlation analysis provides valuable insights into the strength and direction of relationships among constituent factors Understanding these correlations is crucial for conducting effective regression analysis, making correlation a useful tool in the analytical process.
This article presents a multivariate regression analysis using the Ordinary Least Squares (OLS) method to examine the specific impact of various components on middle managers' engagement The analysis is central to achieving the study's objectives, requiring the transformation of concepts into variables by calculating scores for each one To facilitate correlation and regression analysis, the study employs the mean values of observed variables as the representative scores for each component, ensuring accurate and meaningful insights into the factors influencing engagement.
This study conducted regression analysis using the Enter method to include all variables simultaneously The adjusted R-squared value was utilized to assess the model's fit, while the F-test evaluated the overall significance of the linear regression model, testing whether the regression coefficients differ from zero To ensure the reliability of the results, the study also checked for violations of regression assumptions, including multicollinearity, by examining tolerance levels and Variance Inflation Factor (VIF) values to confirm variable acceptability.
Test the difference in the average value of the sub-population: the differencein work engagement among middle managers is divided into groups: gender, age,qualification, maritalstatus,seniorityandincome.
The independent samples T-Test was used to assess whether there is a significant difference in work engagement between middle management and female employees The middle management group includes both married and unmarried individuals An ANOVA test was conducted to examine differences in work engagement across sub-populations categorized by age, professional level, seniority, and income Additionally, Levene's test was performed earlier to verify the homogeneity of variances, ensuring the validity of the ANOVA results before comparing average work engagement scores.
DemographicalAnalysis
Reliabilitytest (CR)
Testing the scale with Cronbach’s Alpha reliability coefficient we have resultasTable4.1below
The Reliability Statistics Summary indicates that all components of the work engagement scale demonstrate Cronbach’s Alpha coefficients exceeding the recommended threshold of 0.7, ensuring good internal consistency Most observed variables also meet the criterion of a Corrected Item-Total Correlation above 0.3, demonstrating their reliability, except for variable CJ5, which has a Corrected Item-Total Correlation of 0.292, slightly below the standard threshold (See Appendix 4)
SoC J c o m p o n e n t h a d o n l y 4 i t e m s i n c l u d i n g C J 1 , C J 2 , C J 3 a n d C J 4 W e find the appropriate scale (Nunnally and Burnstein, 1994), so this result can be usedinthenextanalysissteps.
ExploratoryFactorAnalysis(EFA)
ResultoffirstrunofKMOandBartlett'sTest:theOS(Organizationalstructure) factor removed due to Factor Loading of OS1, OS2, OS3 1, thisf a c t o r i s r e l a t e d t o t h e p e r c e p t i o n o f m i d d l e m a n a g e r s a b o u t t h e r e l a t i o n s h i p witht h e i m m e d i a t e s u p e r i o r i n t h e c o m p a n y T h e " L e a d e r s h i p " f a c t o r i n c l u d e s criteriasuchas: o Alwayssupportsubordinates; o Valuingcompetenciesthetalentsofemployees; o Alwaysbemotivateemployees; o Professionalintensiveknowledge.
The fourth group of factors: "Training - Promotion (TP)" has Eigenvalues value
=2,172>1,thisfactorincludesfactorsrelatedtoopportunitiesfortrainingandpromotionw henmiddlemanagers.Workatcompany.Thefactor"Training-
Promotion"includeselementssuchas: o Trainedmanagementskills professionally o Effectivetrainingcourseshelpemployeesmanagetheirjobs o Create more promotion opportunitiesforqualifiedpeople; o Fairandtransparent companypromotion policy.
Thefifthgroupoffactors:"Currentjob(CJ)"hasEigenvaluesvalue=2,172>1,relatestot heperceptionofmiddlemanagersaboutthenatureofthejobwhenmiddlemanagersworkatco mpany.Thefactor"Currentjob"includescriteriasuchas: o Currentjob/taskis interesting o Currentjoballowsmiddlemanager todevelop o Employeefeelfreewithcurrentjob o Gainbalancebetweenworkandlife
The sixth group of factors: "Salary - income (SI)" has Eigenvalues value
This factor assesses middle managers' perceptions of salary and bonus policies, emphasizing the importance of fair compensation, timely wage payments, and overall satisfaction with current income levels Specifically, it highlights that middle managers value salaries that are commensurate with their work results, wages paid on time, and overall contentment with their total income.
The factor analysis demonstrated robust results, with a Kaiser-Meyer-Olkin index of 0.866 indicating sampling adequacy and confirming that the observed variables are appropriately correlated (Sig = 0.000 < 0.05) According to Hair (1998), six factors were extracted, accounting for 73.5% of the total variance, which exceeds the acceptable threshold of 50%, signifying a strong explanatory power for the 24 observed variables Furthermore, the measurement indicators showed high loadings on their respective factors, ranging from 0.541 to 0.920, indicating good construct validity, with no indicator exhibiting cross-loadings on multiple factors, thus supporting the scales’ monotonicity, convergence, and discriminant validity as outlined by Tho et al (2009).
Analysis.RotationMethod:VarimaxwithKaiserNormaliz ation. a.Rotationconvergedin3iterations.
Bartlett'sTestofSphericity Approx.Chi-Square 133.453 df 18
The factor analysis of the dependent variables indicates satisfactory results, with two factors explaining 72.4% of the total variance—well above the 50% threshold This suggests that these two factors effectively capture the underlying data structure of the eight observed variables Additionally, the indicators used to measure the concepts have high loadings on the respective factors (ranging from 0.584 to 0.924), demonstrating the scale's strong validity and confirming its effectiveness in assessing quality assurance.
Kaiser-Meyer-OlkinMeasureofSamplingAdequacy .809 Bartlett'sTestofSphericity Approx Chi-Square 763.772 df 6
Component Total %ofVariance Cumulative% Total %ofVariance Cumulative%
The factor analysis yielded excellent results, with a Kaiser-Meyer-Olkin (KMO) index of 0.806, indicating sampling adequacy All loading factors exceeded 0.5, demonstrating strong variable correlations, and the observed variables were significantly correlated overall (Sig = 0.000, p < 0.05) These findings, based on Hair's criteria, confirm the suitability of the data for factor analysis.
In 1998, research findings demonstrated that factors explaining a total variance of 80.5%, well above the 50% threshold, are considered satisfactory, indicating that these factors account for 80.5% of the variability among four observed variables Additionally, the indicators designed to measure these concepts carry high loadings on the targeted factors, ranging from 0.854 to 0.954, which underscores the robustness and reliability of the quality assurance scale (Thoet al., 2009).
Multipleregressionanalysis
The determination coefficient R2 (R square)is usedt o a s s e s s t h e s u i t a b i l i t y oftheresearchmodel,thefirststepistocheckthesuitabilityofthe modelwith WE:
This linear regression model is consistent with the sample data set at 66,9%,the OPV and OSV dependent variables explain 66,9% of the variation of the WE(Workengagement)dependentvariable.
Model SumofSquares df MeanSquare F Sig.
Total 164.685 235 a.DependentVariable:WE b Predictors:(Constant),OSV,OPV
Testthehypothesis oftheoverallfitofthe model,thevalueofF,346wit hsig.=0 0 00 0 0 5 H o w e v e r , S i g v a l u e s o f v a r i a b l e s S I , T P , W C , C , O P V , O S V a n d W E