vii List of abbreviations 1 AVE Average Variance Extracted 2 CFA Confirmatory factor analysis 4 EEI Explicit ethics institutionalization 5 EFA Exploratory factor analysis 7 KNOC Kor
Trang 1UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-
Pham Nhu Huynh
THE ROLE OF ETHICS INSTITUTIONALIZATION IN
INFLUENCING QUALITY OF WORK LIFE AND JOB
SATISFACTION
A STUDY IN VIETNAMESE PETROLEUM INDUSTRY
MASTER OF BUSINESS (Honours)
Ho Chi Minh City – Year 2017 tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Trang 2UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-
Pham Nhu Huynh
THE ROLE OF ETHICS INSTITUTIONALIZATION IN
INFLUENCING QUALITY OF WORK LIFE AND JOB
SATISFACTION
A STUDY IN VIETNAMESE PETROLEUM INDUSTRY
ID: 22130032 MASTER OF BUSINESS (Honours)
SUPERVISOR: DR NGUYEN THI NGUYET QUE
Ho Chi Minh City – Year 2017 tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
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Acknowledgement
I would like to express my sincere thankfulness to my supervisor, Dr Nguyen Thi
Nguyet Que, who made me believe in myself and gave me the possibility to complete
the thesis Her guidance helped me in all the time of research and writing this thesis I
am sure that this thesis would not have been possible without her support
I would like to express my gratitude to all staffs in ISB who supported necessary
materials and helped submit my papers
My sincere thanks also go to friends and colleagues who participated in the pilot study
that led to the development of the final survey questionnaire and their support over the
time when I was busy to conduct the research
Especially, I would like to give my special thanks my family for supporting me
spiritually throughout my life
Pham Nhu Huynh
February 2017
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Abstract
Purpose – This research aims to explore the role of ethics institutionalization in
influencing quality of work life and job satisfaction – A study in Vietnamese
Petroleum Industry
Methodoldy/Sample – A total of 280 questionnaires were distributed out at many oil
and gas companies in Vietnam As the method is directly interviewing combining with
online surveying, all of respondents who working at petroleum companies (e.g., staffs,
team leaders, line managers and top managers), thus, data collecting also was primary
sources The hypothesized relationships were tested using structure modeling
Findings – This research found that a positive relationship between implicit ethics
institutionalization and quality of work life The results also indicate that implicit
ethics institutionalization and quality of work life have positive impacts on the job
satisfaction of employees
Key words – Ethics institutionalization, quality of work life, job satisfaction
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Contents
Acknowledgement i
Abstract ii
Contents iii
List of figures v
List of tables vi
List of abbreviations vii
CHAPTER 1 INTRODUCTION 1
1.1 Research background 1
1.2 Research problem 3
1.3 Research objectives 7
1.4 Research scope 7
1.5 Research significance 7
1.6 Research structure 8
CHAPTER 2 LITERATURE REVIEW 9
2.1 Job satisfaction 9
2.2 Quality of work life 10
2.3 Ethics institutionalization and Quality of work life 14
2.4 Ethics institutionalization & Job satisfaction 17
2.5 Research model and hypothesis 19
CHAPTER 3 RESEARCH METHODOLOGY 20
3.1 The research design 20
3.1.1 Pilot study 20
3.1.2 Main survey method 21
3.2 Measurement scale building 23
3.3 Sample size and sample method 26
3.4 Data analysis method 27
CHAPTER 4 DATA ANALYSIS AND RESULTS 30
4.1 Data collection 30
4.2 Respondents’ demographic 30
4.3 Reliability analysis 32
4.4 Exploratory factor analysis (EFA) 34
4.5 Confirmatory factor analysis (CFA) 35
4.5.1 Model fit 35
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4.5.2 Reliability and validity check 38
4.6 Structure equation modeling (SEM) 40
4.7 Summary 43
CHAPTER 5 CONCLUSION 44
5.1 Conclusions and discuss of the findings 44
5.2 Managerial implications 46
5.3 Limitations and future research 48
REFERENCES 49
APPENDICES 55
Appendix 1 – Guidelines for in-depth interview 55
Appendix 2 – Questionnaire (English version) 59
Appendix 3 – Questionnaire (Vietnamese version) 63
Appendix 4 – Frequencies Table 67
Appendix 5 – Reliability results 69
Appendix 6 – EFA results 73
Appendix 7 – CFA results 75
Appendix 8 – SEM results 77
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List of figures
Figure 2.1 – Conceptual model - 19
Figure 3.1 – Research process - 22
Figure 4.1 – Confirmatory factor analysis model - 37
Figure 4.2 – SEM of research model - 41
Figure 4.3 – Final research model - 42
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List of tables
Table 3.1 – Measurement scale - 24
Table 3.2 – Key indices - 29
Table 4.1 – Sources of data collection - 30
Table 4.2 – Description of sample - 31
Table 4.3 – Reliability test results - 32
Table 4.4 – The list of deleted items - 33
Table 4.5 – KMO and Bartlett's Test - 34
Table 4.6 – Pattern Matrix - 34
Table 4.7 – Standardized Regression Weights - 36
Table 4.8 – Confirmatory factor analysis results - 38
Table 4.9 – Construct correlations, AVE & CR - 39
Table 4.10 – Fitness of conceptualized model - 40
Table 4.11 – Final results of hypotheses testing result - 42
Table 4.12 – Final results of relationship checking of model’s constructs - 43
Table 4.13 – Modified scales - 43
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List of abbreviations
1 AVE Average Variance Extracted
2 CFA Confirmatory factor analysis
4 EEI Explicit ethics institutionalization
5 EFA Exploratory factor analysis
7 KNOC Korean National Oil Corporation
8 IEI Implicit ethics institutionalization
10 PetroVietnam Vietnam Nation Oil and Gas Group
11 PVD-DD PetroVietnam Drilling Division
12 PVEP POC PetroVietnam Domestic Exploration Production Operating Company Limited
13 PVD TECH Petroleum Trading & Drilling Technical Services Company
14 QWL Quality of work life
15 SEM Structural equation modeling
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CHAPTER 1 INTRODUCTION 1.1 Research background
Each organization has its own assets which contains two main components – labor and capital Capital is so important to the achievement of the business, while
labor is the vital factor for creating profits to it The labor does everything daily and
the whole existing time of the organization The reality of working life today is that
employees are frequently trying to control their work and personal lives
In the context of integration into the world economy, along with the introduction of many domestic petroleum companies and foreign petroleum
companies have made the competition attract high-quality human resources to be
more intense Therefore, the vital importance which leaders should perform are to
retain current employees because the stability of personnel will help organization save
time, costs of recruitment, training According to Tett and Meyet (1993), job
satisfaction is negatively associated with turnover intention Job satisfaction was
associated with decreased intentions to leave a company (Hom & Griffeth, as cited in
Valentine et al., 2011; Jaramillo, Mulki & Solomon 2006) Thus, besides the ways to
improve business efficiency, management efficiency, cost savings, etc the methods to
improve the job satisfaction of employees are the concern of all organization
The job is considered an important part of human life since the majority of their lives is devoted to the organization Many people believe that the work represents
their value in society Therefore, the quality of life will depend on the quality of work
life which they have been at the workplaces Improving the quality of work life will
contribute to bring good quality of life for each individual
Quality of work life including the life aspects related to the work such as wages, working hours, work environment, benefits, career prospects, the human
relationship, the balance between work and life These aspects contribute to the
satisfaction and motivation of employees According to Efraty, Sirgy and Claiborne
(1991), high quality of work life results in an increase in job satisfaction and
performance of employees, and at the same time, cause a decrease in both alienation
and turnover intention From that, employees are willing to contribute to an
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organization where quality of work life exists because they feel that their work fulfills
their needs (Cascio, as cited in Koonmee, Singhapakdi, Virakul, and Lee, 2010)
Recent studies have shown that quality of work life is not the unique factor affecting to job satisfaction of employees, the institutionalization of ethics is also
considered the important factor influencing to employees’ job satisfaction According
to Sims and Kroeck (1994), ethical working environment is an important factor in the
person-organization study That is, employees usually choose to work in organizations
whose ethical preferences fit their own And so, employees who work for
organizations that institutionalize ethics would tend to be more satisfied with their
jobs (Singhapakdi & Vitell, 2007) And finally, Valentine, Godkin, Fleischman, and
Kidwell (2011) indicated that corporate ethical values and job satisfaction were
associated with decreased turnover intention
Therefore, it is necessary to study the association between institutionalization
of ethics, quality of work life and job satisfaction Because of in parallel to the
importance of ethics institutionalization, both quality of work life and job satisfaction
have been important topics in human resource and organizational development
(Leopold, as cited in Koonmee et al., 2010)
The oil and gas company is a type of specific enterprise, operating in the field
of petroleum exploration and production Its operation and business are conducted
through laborers The works at the oil and gas company is considered to be extremely
stressful, contain many risks, frequently long working hours, working fully stretched
in harsh environments and often facing danger, be able to occur injury or even
dangerous to life Such as explosives, gas eruption, falling into the sea, labor accidents
due to work with heavy machinery, etc although safety regulations are very closely
on the rig To work well in the petroleum sector, employees need more skills such as
analysis, synthesis, teamwork and have good health Besides, the petroleum sector is
the operation field related to exploration and production of natural resources therefore
the intelligence is pre-requisite for the employees working there In addition, soft
skills are such as presentation, conflict resolution, establishing good relations with
colleagues; fast processing unexpected problems occur, etc those are the important
skills which staffs need to equip themselve Therefore, when there is an employee
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meeting the above requirements, any petroleum company which wishes to maintain
existing staff and make them meet the job satisfaction to engage with the organization
in the long-term, especially employees with high technical qualifications The research
of Al Muftah and Lafi (2011) related to petroleum industry in Qatar supports that
quality of work life is positively and significantly related to employees’ job
satisfaction Regarding the importance of ethics and quality of work life and the effect
of them on job consequences such a job satisfaction of employee and spirit of team
work, Chamesghali and Salimiare (2014) considered the relationship between ethics
institutionalization, quality of work life and job-related outcomes in the form of case
study of employee of national Iranian oil product distribution company
Nowadays, the common problem of the petroleum company is to improve the job satisfaction of employees, creating incentives for employees to work effectively
and engage long-term with the organization Therefore, the determination of the
degree of influence of the ethics institutionalization and the quality of work life to the
job satisfaction of petroleum employees is a necessary matter
1.2 Research problem
For the last decade, organizations have increased effort to institutionalize ethics, partly because such efforts positively affect employee behavior In addition,
given increasing ethical problems in business, many organizations have tried to
control these problems by institutionalizing ethics Therefore, ethics
institutionalization is not only a process developed through continual ethical operation
but also an important topic in business ethics research and ethics become
institutionalized by “the persistence of specific behaviors associated with an
organization and its employees behaving ethically” (Sims, 1991, p 494)
According to Purcell and Weber (1979), mechanism for ethics institutionalization within an organization is the utilization of a code of ethics This
code describes the general value system of the organization, defines the purpose of the
organization, and provides guidelines for decision-making consistent with these
principles Ethics institutionalization is a part of the organizational environment, and it
is also an important determinant of the decision-making processes of employees in
situations involving ethical issues (Hunt & Vitell, 1986; Ferrell & Gresham, 1985)
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Sims (1991) also discusses the important of institutionalizing organizational ethics and
emphasizes the importance of an ethically oriented culture to ethics institutionalization
within organizations
In recent years, the ethics institutionalization is also an important responsibility for organizations in order to effectively counteract the frequent occurrences of
unethical and illegal behavior within organizations An organization can utilize
different methods to create an ethical work culture for employees, especially ethical
practices can be a powerful tool for enhancing an organization One of methods is to
institutionalize ethics in business organizations and Koonmee, Singhapakdi, Virakul,
and Lee (2010) emphasized that ethics, quality of work life and job-related outcomes
are identified as progressive indicators related to the function and sustainability of
business organizations
Much research has expected that people in organizations with a high degree of institutionalization of ethics will be more satisfied with their jobs Such as,
Singhapakdi and Vitell (2007, p 287) argue, “organizations that institutionalize ethics
appear to value integrity and trust and, as a result, often treat their employees more
fairly in terms of compensation, performance evaluation, promotion and conflict
resolution” Accordingly, organizations that institutionalize ethics pay attention to the
quality of their employees work life will get the advantages of having more committed
workforce and more commitment of workforce
Much research has documented that institutionalization of ethics is an important factor affecting various aspects of employees’ job-related outcomes Such
as, Vitell and Davis (1990) found a direct link between job satisfaction and ethical
behavior, the organizational culture is a key component when looking at ethical
behavior Turban and Greening (1996) investigated the affecting of ethics programs
and perceived corporate social responsibility positively on individual work attitudes,
namely job satisfaction Vitell and Singhapakdi (2008) investigated the impact of
ethics institutionalization on job-related outcomes (job satisfaction, esprit de corps,
and organizational commitment) for marketing professionals and revealed that
implicit institutionalization is a significant determinant of job satisfaction, but explicit
institutionalization is not Kang (2010) investigated the relationship between job
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satisfaction and ethical conflict, ethical conflicts causes and consequences of job
dissatisfaction and came to the conclusion that many employees confirm the existence
of ethical conflict in their workplace Valentine, Godkin, Fleischman, and Kidwell
(2011) examined the degree to which perceived corporate ethical values work in
concert with group creativity to influence both job satisfaction and turnover intention,
and indicated that corporate ethical values is associated with increased job
satisfaction
Much research also has documented that institutionalization of ethics is studied
in various countries with different fields Such as, Koonmee et al (2010) investigated
the relationship between institutionalization of ethics, quality of work life and
employee job-related outcomes and concluded that implicit institutionalized ethics has
a positive relationship with quality of work life; implicit institutionalized ethics and
quality of work life have positive impacts on Thailand staff working results (job
satisfaction, team working and organizational commitment) Furthermore, based on
the previous research, Marta, Singhapakdi, Lee, Sirgy, Koonmee, and Virakul (2013)
examined the perception of institutionalization of ethics and quality of work life for
Thailand marketing managers versus American marketing managers, the results
showed that the impact of institutionalization of ethics on the quality of work life for
Thai managers is more than American managers because Thailand culture is
collective, while American culture is individual
In addition, Torlak, Tiltay, Ozkara, and Dogan (2014) analyzed the relationship between institutionalization of ethics and quality of work life by mid-level managers
working in the private sector in Turkey and came to the conclusion that implicit
institutionalization of ethics is positively related to both higher and lower needs that
determine quality of work life Lee, Yu, Sirgy, and Singhapakdi (2015) investigated
the effect of ethics institutionalization on employee’s work life experiences (job
satisfaction, organizational commitment, spirit de corps, quality of work life) and
overall life satisfaction (life satisfaction, employee happiness), data were collected
through a survey of marketing managers in Italy, and came to the conclusion that
implicit institutionalization of ethics has a positive effect on not only employees’
quality of work life but also job satisfaction
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The research of Al Muftah and Lafi (2011) related to petroleum industry in Qatar supports that the physical, psychological and social factors’ centrality have a
significant relationship with quality of work life which indirectly impact employees’
satisfaction The finding indicated that quality of work life is positively and
significantly related to employees’ job satisfaction Regarding the importance of
ethics and quality of work life and the effect of them on optimized performance of an
organization and job consequences such a job satisfaction of employee and spirit of
team work, Chamesghali and Salimiare (2014) considered the relationship between
ethics institutionalization, quality of work life and job-related outcomes in the form of
case study of employee of national Iranian oil product distribution company
Reichert, Webb, and Thomas (2000) examined the relationships between ethical and industry type Industries, such as computers, electronics, scientific and
photo graphics sectors, that are involved with high precision products and industries;
such as mining, crude oil, and petroleum refining, that utilize natural resources are
more inclined to have a formal written a code of ethics and social responsibility
Institutionalization of ethics is gaining more and more importance in business life day by day (Torlak et al., 2014) Moreover, the importance of understanding more
about the institutionalization of organizational ethics should be apparent because it is
really good strategy for a company to concern about and adapt institutionalization of
ethics (Purcell & Weber, 1979) However, there are very few studies about this subject
in samples of Vietnam culture Particularly, there have been very few studies on the
relationships between ethics institutionalization and quality of work life, and between
ethics institutionalization and job satisfaction (Koonmee et al, 2010)
From above discussions, it is necessary to study the association between institutionalization of ethics, quality of work life and job satisfaction Because of in
parallel to the importance of ethics institutionalization, both quality of work life and
job satisfaction have been important topics in human resource and organizational
development (Leopold, as cited in Koonmee et al., 2010) Thus, the main issue of this
study is to understand the relationship between institutionalization of ethics, the
perception of the quality of work life and job satisfaction of employees in Vietnamese
Petroleum Industry in particular and in Vietnam business organization in general
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1.3 Research objectives
The main focus of the study is to empirically examine a model that focuses on the effects of ethics institutionalization on employees’ quality of work life and job
satisfaction Furthermore, the study also examines the mediating effect of quality of
work life on employees’ job satisfaction
Specifically, the study aims to investigate the following relationship:
1 The relationship between quality of work life and job satisfaction
2 The relationship between ethics institutionalization and quality of work life
3 The relationship between ethics institutionalization and job satisfaction
1.4 Research scope
This research focuses on investigating the impact of implicit and explicit ethics institutionalization on employees’ quality of work life and job satisfaction, as well as
the mediating effect of quality of work life on job satisfaction of employees in
Vietnamese petroleum industry
Almost the oil and gas companies have located in Ho Chi Minh City, Hanoi City and Vung Tau City Moreover, basing on the advantages of communication with
the oil and gas company’s authorities, this research may conveniently conduct the
survey questionnaire via paper and online in these cities
1.5 Research significance
This research contributes to the understanding of ethics, quality of work life and job satisfaction and especially the important role of institutionalizing ethics, the
extent to which its impact on employees’ quality of work life and job satisfaction
within the context of Vietnamese business organizations in generally and within
Vietnamese petroleum industry in particularly
The findings provide a significant opportunity for managers perceives that some aspects of employees’ quality of work life can have a positive predictive impact
on their job satisfaction Based on this finding, it is very important for business
organizational management to design work requirements, build appropriate policy in
order to improve employees’ quality of work life, as well as, so that employees can
enhance job satisfaction in organization, have a balanced life at work and with family
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Chapter 2: Literature Review This chapter provides the literature review and previous studies, defines clearly the constructs (implicit ethics institutionalization, explicit ethics institutionalization,
quality of work life and job satisfaction), and then the research model of the study and
the hypothesis are also discussed
Chapter 3: Research Methodology This chapter describes the method to conduct the study, including the research design, measurement scale building and the main survey The processes of doing the
study are also presented
Chapter 4: Data Analysis and Results All of data collected from the survey are analyzed The final model of the study
is built based on the results of those analyses Depending on output results from the
analyzing, the relationship of those factors as mentioned in the study model will be
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CHAPTER 2 LITERATURE REVIEW
This chapter gives a specific view about the important constructs of the study, presents a discussion of job satisfaction, quality of work life and institutionalization of
ethics This is followed by the development of hypothesis and construction of a
conceptual model Five hypotheses are also proposed after being argued based on
previous researches
2.1 Job satisfaction
An employee’s overall job satisfaction is composed of several aspects such as satisfaction with compensation, satisfaction with top management, satisfaction with
promotions and satisfaction with coworkers
According to Spector (1988), job satisfaction is important from two perspectives: first, from the human aspect, employees should be treated fairly and be
respected Second, behavioral aspects, attention to job satisfaction could direct the
behavior of employees, so that it would affect the performance and organizational
responsibilities and lead to positive and negative behavior from them
Thus, job satisfaction is the essential component for employee motivation and encouragement towards better performance Many previous researches have defined
job satisfaction over the years For instance, Hoppok and Spielgler (1938) defines job
satisfaction as the integrated set of psychological, physiological and environmental
conditions that encourage employees to admit that they are satisfied or happy with
their jobs Locke (as cited in Valentine et al., 2011, p 6) defines job satisfaction as “a
pleasurable or positive emotional state due to appraisal of one’s job experience”
Accordingly, once a person feels satisfied, they are willing to participate in work
positively and this leads to improve their quality of work life In addition, job
satisfaction is also the one attitude that is related to an organization’s ethical context,
particularly where there is strong belief that the organization and its leaders truly
promote the ethical conduct (Vitell & Davis, 1990)
Much research also has documented that job satisfaction is studied in various relationship within an organization Such as, the relationship between job satisfaction
and turnover intention has been evaluated extensively in the organizational literature,
and the result generally shows that job satisfaction was associated with decreased
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intentions to leave a company (Hom & Griffeth, as cited in Valentine et al., 2011;
Jaramillo, Mulki & Solomon 2006); another finding indicates that job satisfaction is
negatively associated with turnover intention (Tett & Meyet, 1993) Finally, Valentine
et al (2011) indicated that corporate ethical values and job satisfaction were
associated with decreased turnover intention
Much research also has documented that job satisfaction is studied in the human aspect For instance, the motivational factors, such as the nature of work, the
sense of achievement, the recognition, the responsibility, and opportunities, that helps
employees to find their worth with respect to value given to them by organization
(Baah & Amoako, 2011) Further, this can increase motivational level of employees
which will ultimately raise internal happiness of employees and the internal happiness
will cause satisfaction Thus, the role of employees at workplace is emphasized as
there is an influence of various elements on an employee within the organization
(Raziq & Maulabakhsh, 2015)
The recent research emphasizes that job satisfaction is a pleasurable or positive emotional state and also the most controversial concepts in organizations Based on
the foundational and theoretical efforts, it is very important not only towards
employees but also at all levels of management and organizational human resource
(Etebarian & Yazdi, 2016) Besides, job satisfaction in an important factor in
increasing productivity, sense of belonging towards workplace, increase quantity and
quality of work, good human relation at work, raise morale, create interest in the work
and reduce stress In contrary, declining in job satisfaction leads to excessive
absenteeism, low efficiency, displacement and transfer of employees
Based on the above literature, it is necessary to study the importance of job satisfaction of employees within organizations, especially examining the factors
affecting on the job satisfaction
2.2 Quality of work life
In recent years, many business organizations fail to understand the importance
of working environment for employees’ job satisfaction and thus face a lot of
difficulties during their work (Aiken, Clarke & Cloane, 2002) Employee is an
essential component in the process of achieving the mission and vision of a business
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organization Employees should meet the performance criteria set by the organization
to ensure the quality of their work In order to meet the standards of the organization,
employees need a working environment that allows them to work freely without
problems that may restrain their working performance
In addition, Lawler (as cited in Narehan, Hairunnisa, Norfadzillah &
Freziamella, 2014) refers that quality of work life have relationship to job
characteristics and working environment because the whole quality of work life in the
organization goals is to improve employee’s well-being and support from
productivity Thus, the objective of this research is to analyze the impact of working
environment as well as quality of work life on employees’ job satisfaction
In over the years, the quality of work life is defined by many researches in the various aspects For instance, Shamir and Solomon (1985) define quality of work life
as a comprehensive construct that includes well-being related to the extent to which
work experiences are rewarding, fulfilling, and reduce stress Beukema (as cited in
Narehan et al., 2014) refers quality of work life as the extent to which employees are
able to configure their jobs in accordance with their options, interests and needs in the
organization Walker’s (as cited in Koonmee et al., 2010) definition, quality of work
life involves promoting a work environment favorable to the satisfaction of
employees' needs And then, Quality of work life is defined as “employee satisfaction
with a variety of needs through resources, activities, and outcomes stemming from
participation in the workplace” (Sirgy, Efraty, Siegel & Lee, 2001, p 242)
The construct of quality of work life has been defined as the relating to job characteristics and working environment (Lawler, as cited in Narehan et al., 2014),
employee’s well-being (Shamir & Solomon, 1985), the options, interests and needs of
employees (Beukema, as cited in Narehan et al., 2014), and the satisfaction of
employees’ needs (Walker, as cited in Koonmee et al., 2010) To facilitate the
discussion that relates quality of work life with job satisfaction, this study will adopt
the need satisfaction approach to quality of work life (Sirgy et al., 2001) That is,
quality of work life is defined as employee satisfaction with a variety of needs through
resources, activities, and outcomes stemming from participation in workplaces
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Based on need-hierarchy theory (Maslow, as cited in Koonmee et al., 2010), Sirgy et al (2001, p 241) propose that quality of work life is measured in terms of
employees' needs Specifically, seven dimensions of needs are suggested:
a) Health and safety needs (protection from ill health and injury at work and outside of work, and enhancement of good health);
b) Economic and family needs (pay, job security, and other family needs);
c) Social needs (collegiality at work and leisure time off work);
d) Esteem needs (recognition and appreciation of work within and outside the organization);
e) Actualization needs (realization of one's potential within the organization and as a professional);
f) Knowledge needs (learning to enhance job and professional skills); and g) Aesthetic needs (creativity at work as well as personal creativity and general aesthetics)
According to their research into different dimensions of need-based quality of work life, Koonmee et al (2010) and Marta et al (2013) categorize quality of wok life
into two major categories: lower and higher order needs
Lower-order quality of work life: Lower-order quality of work life is the organizational
programs designed to meet the needs related to security, health, family and economic
Higher-order quality of work life: Higher-order quality of work life is the organizational programs designed to meet the needs related to community, self-esteem, self-actualization, knowledge and aesthetics
Why the quality of work life is important? Some studies have shown that quality of work life could affect employees’ behavioral responses such as
organizational identification, job satisfaction, job involvement, job effort, job
performance, and turnover intention (Etebarian & Yazdi, 2016) Walton (as cited in
Narehan et al., 2014) emphasizes that quality of work life was an important approach
to save human and environment values which have been ignored due to technological
advancement of the economic growth and productivity Once the employees
experience enjoyment in working at an organization, they would feel satisfied and
influence their commitment in their daily tasks High quality of work life results in an
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increase in job satisfaction and performance of employees, and at the same time, cause
a decrease in both alienation and turnover intention (Efraty, Sirgy & Claiborne, 1991)
Furthermore, the quality of work life also has the significant impact to the society A happy employee will experience the positive feeling and this feeling is
carried to their family and the society Thus, since today’s life demand is quite
stressful, quality work life is important as it contributes to the environment as well as
family structure by offering ways to fulfill individuals’ responsibilities (Bagtasos,
2011)
The mainstream research on quality of work life has been linked to employees' job-related outcomes such as productivity, job satisfaction, and employees'
commitment For example, the research findings from Lau and May (1998) suggest
that companies with high quality of work life can also have high customer satisfaction
which, in turn, will provide higher growth and profitability to the companies
Greenhaus, Bedeian, and Mossholder (1987) suggested that quality of work life is
related to employees’ satisfaction and work related behaviors Cascio (as cited in
Koonmee et al., 2010) argues that employees are willing to contribute to an
organization where quality of work life exists because they feel that their work fulfills
their needs
Moreover, quality of work life involves the opportunity to make decisions about employees' job and the design of their workplaces Consistently, the recent
study reveal that quality of work life generally has a positive influence on job
satisfaction, organizational commitment, and esprit de corps (Lee, Singhapakdi &
Sirgy, 2007) In another study by Koonmee et al (2010), quality of work life mediates
the relationship between institutionalization of ethics in firms with job-related
outcome
These studies indicate that, once quality of work life programs are presented in
a business organization, employees will feel satisfied towards their job And so, the
job satisfaction has a significant relationship with the quality work life
In fact, some experts have raised the quality of work life as a hierarchy of concepts including life satisfaction (on the top of the hierarchy), job satisfaction (in
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the middle of the hierarchy) and satisfaction from certain aspects such as pay
satisfaction, colleagues, and supervisors (Champoux, 1981)
A large number of employees in the oil & gas companies in Qatar are playing a significant role for economic growth Based on this context, Al Muftah and Lafi
(2011) focus on identifying the factors that associated with employees’ satisfaction
and their quality of work life More specifically the study is held to identify the
relationship between quality of work life and employees’ satisfactions This is
especially true as quality of work life is less emphasized in Asia as compared to North
America and European countries (Bagtasos, 2011; Wyatt & Wah, 2001) Looking
back at Vietnam, Vietnam is also a country in Asia, Vietnam is also developing oil
and gas industry, so it is necessary to have a study on the relationship between quality
of work life and job satisfaction
Based on the above discussions, this study aims to expect the quality of work life to have a positive influence on job satisfaction Thus, the hypothesis is proposed
as the following below:
Hypothesis 1 (H1): Quality of work life is positively related to job satisfaction
2.3 Ethics institutionalization and Quality of work life
In recent years, due to increasing ethical problems, many business organizations have established ethics programs to help improve ethical behavior and
to help prevent ethical problems among their employees (Valentine & Fleischman,
guardrails to keep corporate wayfarers on track”
Goodman and Dean (as cited in Sims, 1991) referred an institutionalized act as
a behavior that is performed by two more individuals, persists over time, and exists as
a part of the daily functioning of the organization
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Singhapakdi and Vitell (2007, p 284) defined the institutionalization of ethics
as “the degree to which an organization explicitly and implicitly incorporates ethics
into its decision-making processes”
To make possible the discussion that relates institutionalization of ethics with quality of work life, this study will adapt “institutionalization of ethics” as the degree
to which an organization explicitly and implicitly incorporates ethics into its
decision-making processes, a definition by Singhapakdi and Vitell (2007)
According to Brenner (1992), there are two categories of ethics programs in organizations — either explicitly created or implicitly inherited Based on his
research, the explicit components include codes of ethics, policy manuals, ethics
seminars, internal control systems, and ethics staff The implicit components include
corporate culture, incentive systems, valued behaviors, promotion policies, and
number of people in the organization behaving according to its ethics, and the degree
to which it exists as part of the organization
When organizations create an environment that makes their employees behave and act persistently according to their ethical values and policies, those organizations
are considered to have institutionalized their ethics (Koonmee et al., 2010)
Thus, since ethical problem is increasing in the business organization, ethics institutionalization is important as it is one of the most effective methods for business
organizations to overcome the ethical problems they have faced in over years
Ethics and the quality of work life are closely related to each other Studies show that ethics positively influence the quality of work life and employees’ job
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performance (Shaw, as cited in Torlak et al., 2014) Besides, acting in accordance with
ethical values and policies in an organization, and creating an organizational
environment promoting them, also has a positive influence on the quality of work life
(Ferrell, Fraedric & Ferrell, as cited in Koonmee et al., 2010)
The purpose of a study by Lee et al (2015) is to examine the effects of ethics institutionalization on employee experiences in work life and overall life satisfaction
The results indicate that implicit ethics institutionalization does indeed have a positive
predictive effect on job satisfaction, esprit de corps, organizational commitment and
quality of work life
Koonmee et al (2010) examines the relationship between institutionalization of ethics, quality of work life and job-related outcomes and concludes that implicit ethics
institutionalization has a positive association with quality of work life
Also, in a study on ethics institutionalization and the quality of work life, Marta
et al (2013) compare American and Thai marketing managers and find that Thai
businesses organizations have a higher tendency towards implicit ethics
institutionalization than American business organizations Especially, they have found
no significant differences in levels of explicit ethics institutionalization However,
Singhapakdi, Sirgy, Lee and Vitell (2010) have documented that explicit ethics
institutionalization has a positive effect on implicit ethics institutionalization and,
therefore, this could have a positive effect on the quality of work life
In summary, the above evidences suggest that institutionalization of ethics could be closely associated with the quality of work life (Marta et al., 2013; Koonmee
et al., 2010; Singhapakdi et al., 2010; Vitell & Singhapakdi, 2008)
Based on the above arguments, this study aims to expect the ethics institutionalization to have a positive influence on quality of work life Thus, the
hypothesis is proposed as the following below:
Hypothesis 2a (H2a): Implicit ethics institutionalization is positively related to quality of work life
Hypothesis 3a (H3a): Explicit ethics institutionalization is positively related to quality of work life
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2.4 Ethics institutionalization & Job satisfaction
In organizational working environment, job suitability and ability to handle conflicts at work also have a positive impact on an employee’s satisfaction (Dubinsky,
Howell, Ingram & Bellenger, 1986) Accordingly, Sims and Kroeck (1994) argue that
ethical working environment is an important factor in the person-organization study
That is, employees usually choose to work in organizations whose ethical preferences
fit their own And so, employees who work for organizations that institutionalize
ethics would tend to be more satisfied with their jobs (Singhapakdi & Vitell, 2007)
One reason, which makes an organization institutionalize ethics, is to value integrity and trust In fact, according to a study by Moorman (1991), there is a positive
causal relationship between perceptions of organizational justice and job satisfaction
More recently, a study of salespeople by Schwepker (2001) indicates that there is a
positive association between their perceptions of a positive ethical climate and job
satisfaction
Organizational culture is considered as one of the most important tools in the study of organizations (Schwartz & Davis, 1981) There is a direct relationship
between ethical behavior in organizations and corporate cultures because corporate
cultures, one of categories of implicit ethics institutionalization, set the moral tone for
organizations (Sims, 1992) Ethics training, one of categories of explicit ethics
institutionalization, is another valuable tool that is used to raise the ethical
consciousness of employees in organizations (Callan, 1992; Thompson, 1990)
Based on the research of Singhapakdi and Vitell (2007), their survey of American marketing practitioners, they argue that relationship between
institutionalization of ethics and job satisfaction have been significant issues because
organizations that institutionalize ethics appear to value integrity and trust and, as a
result, are often more likely to treat their employees fairly And in the same study,
they examine the effects of two dimensions of ethics institutionalization on perceived
importance of ethics, job satisfaction, esprit de corps and organizational commitment
and conclude that implicit ethics institutionalization is a significant determinant of job
satisfaction, but explicit institutionalization is not
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Lee et al (2015) argue that ethics institutionalization has a positive effect on job satisfaction for the following reasons Ethics institutionalization is an
environmental factor affecting individual employee’s ethical decision making Ethics
institutionalization fosters an ethical work climate within the organization Employees
are likely to be satisfied with their jobs when they are working for an ethical firm
(Chan & Lam, 2011; Valentine & Fleischman, 2008) Thus, institutionalization of
ethics should reduce the incident of unfair treatment within the organization and
enhance employee’s sense of security in the workplace Feelings of security in the
work place should increase employee job satisfaction
Based on the above discussion, this study aims to expect both implicit and explicit ethics institutionalization to have a positive influence on job satisfaction
Thus, the hypothesis is proposed as the following below:
Hypothesis 2b (H2b): Implicit ethics institutionalization is positively related to job satisfaction
Hypothesis 3b (H3b): Explicit ethics institutionalization is positively related to job satisfaction
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2.5 Research model and hypothesis
Based on the literature review, a conceptual model of this study with five hypotheses is presented in Figure 2.1
Figure 2.1 – Conceptual model
There are total five hypothesis developed for this research:
H1: Quality of work life is positively related to job satisfaction
H2a: Implicit ethics institutionalization is positively related to quality of work life
H2b: Implicit ethics institutionalization is positively related to job satisfaction
H3a: Explicit ethics institutionalization is positively related to quality of work life
H3b: Explicit ethics institutionalization is positively related to job satisfaction
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CHAPTER 3 RESEARCH METHODOLOGY
This chapter presents a details account of a research methodology of this study
First, it starts with the research design, including qualitative research, main survey
method and research process After that, measurement scales are presented to develop
questionnaire, the preliminary evaluation of research scales is conducted to help
measurement scales clearer and understandable Followed by sample size and sample
method Beside, this chapter also introduces the official method of research
3.1 The research design
As mentioned in the literature review part, this topic has just taken in marketing while never done at any petroleum industry in the past Thus, the questionnaires had to
take a deep consideration though being developed by many previous studies to make
sure the sufficient application in the oil and gas industry Accordingly, the research
design was separated into two phases: the pilot test as a qualitative research and the
main survey as a quantitative research
The survey questionnaires was originally designed in English and then translated into Vietnamese by the researcher with the support of some English experts
understood The procedure of conducting in-depth interviews started with specifying
the objectives of the research in terms of what information was needed to be collected
Then the detailed questionnaire was shown to the respondents for checking their
understanding During the interview, the researcher also wanted to find out if the
chosen measurement scale was suitable for conducting the research in Vietnam All
the comments from the interviewees were gathered with the aim to modify the
measurement scale
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Based on the feedback of respondents, the survey questionnaire was slightly modified to make it clearer and more understandable (see appendix 1)
3.1.2 Main survey method
The main survey was conducted in the large scale with all the positions of employees who are working for companies related to the oil and gas industry
The methods of collecting information were personal interviews, directly filling out the paper form and, also, indirectly filling via online version of questionnaire
To access the degree of respondent’s answer, Likert scale was used in the answer sheet (from 1-strongly disagree to 5-strongly agree) The questionnaire firstly
prepared in English, and then was translated Vietnamese in order to make sure the
respondents could understand clearly those mentioned constructs
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Figure 3.1 – Research process
In-depth interview – Qualitative research
Main survey – Quantitative research
(n=200)
EFA
corrected item – total correlation
Final scale
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3.2 Measurement scale building
From the literature reviews and the research model as referred above, measurement carefully given out to make sure the appropriation of research cope
All the constructs in the model were measured with multiple items, which were developed by other researches and also based on the results of qualitative study to
adequately capture the domain of the constructs
Implicit ethics institutionalization was measured by nine items (Singhapakdi &
Vitell, 2007; Vitell & Singhapakdi, 2008; Koonmee et al., 2010; Marta et al., 2013; Torlak et al., 2014; Lee et al., 2015)
Explicit ethics institutionalization was measured by seven items (Singhapakdi
& Vitell, 2007; Vitell & Singhapakdi, 2008; Koonmee et al., 2010; Marta et al., 2013; Torlak et al., 2014; Lee et al., 2015)
Quality of work life was measured by sixteen items (Sirgy et al., 2001;
Koonmee et al., 2010; Noor & Abdullah, 2012; Marta et al., 2013; Torlak et al., 2014; Lee et al., 2015)
Job satisfaction was measured by five items (Dubinsky et al., 1986; Paolillo &
Vitell, 2002; Vitell & Singhapakdi, 2008; Koonmee et al., 2010; Lee et al., 2015)
In the research measurement scale, implicit ethics institutionalization, explicit ethics institutionalization, quality of work life and job satisfaction, all was the first-
order constructs In addition, quality of work life was also the mediating variable
Total 37 questions were presented in Table 3.1
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Table 3.1 – Measurement scale
I Implicit Ethics Institutionalization (Singhapakdi &Vitell, 2007)
1 Top management has established a legacy
of integrity for the organization
Lãnh đạo cấp cao xây dựng văn hoá chính trực cho công ty
IEI1
2 Top management believes that ethical behavior, not just legal compliance, is paramount to the success of the organization
Bên cạnh việc tuân thủ pháp luật, lãnh đạo cấp cao tin rằng hành vi có đạo đức cũng
là yếu tố rất quan trọng cho sự thành công của công ty
IEI2
3 In my organization there is a sense of responsibility among employees for maintaining an ethical reputation
Trong công ty, nhân viên luôn có ý thức trách nhiệm bảo vệ & duy trì uy tín đạo đức
IEI3
4 Top management in my organization accepts responsibility for unethical and illegal decision making on the part of employees
Lãnh đạo cấp cao cũng nhận một phần trách nhiệm đối với việc ra quyết định trái đạo đức & không tuân thủ quy định pháp luật của nhân viên
IEI4
5 There is open communication between superiors and subordinates to discuss ethical conflicts and dilemmas
Có sự giao tiếp cởi mở giữa cấp trên và cấp dưới khi cùng trao đổi, thảo luận về những tính huống khó xử & những trường hợp có sự xung đột đạo đức
IEI5
6 Some employees in my organization are allowed to perform certain questionable actions because they are successful in achieving their organizational objectives ®
Một số nhân viên trong công ty được trao quyền được phép chất vấn bởi vì họ thành công trong việc đạt được mục tiêu mà công ty đề ra
IEI7
8 There is a shared value system and an understanding of what constitutes appropriate behavior in my organization
Công ty có một hệ thống giá trị chia sẻ và
sự am hiểu những yếu tố cấu thành những hành vi phù hợp
IEI8
9 Top management believes that our organization should help to improve the quality of life and the general welfare of society
Lãnh đạo cấp cao tin rằng công ty sẽ giúp cải thiện chất lượng cuộc sống của nhân viên và phúc lợi chung của xã hội
IEI9
I Explicit Ethics Institutionalization (Singhapakdi & Vitell, 2007)
Thể chế hoá đạo đức tường minh EEI
10 My organization does not conduct ethics audits on a regular basis ®
Công ty không thực hiện kiểm tra chuẩn mực đạo đức một cách thường xuyên
EEI2
12 My organization does not have a top-level person(s) responsible for ethics compliance programs ®
Công ty không có một hoặc nhiều người ở cấp cao/cấp quản lý chịu trách nhiệm cho các chương trình tuân thủ đạo đức
EEI3
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Trang 34Công ty không có chương trình đào tạo để truyền đạt một cách hiệu quả về chuẩn mực & nguyên tắc đạo đức
EEI5
15 My organization does not have an ethics committee or team that deals with ethical issues in the organization ®
Công ty không có một hội đồng chuyên trách về đạo đức để xử lý các vấn đề đạo đức phát sinh trong công ty
EEI6
16 In order to prevent misconduct within my organization, there are training programs to create an effective ethical culture
Để ngăn chặn hành vi sai trái trong công
ty, công ty có những chương trình đào tạo nhằm tạo ra một văn hoá ứng xử chuyên nghiệp hiệu quả
EEI7
III Quality of Work Life (Sirgy et al., 2001)
Chất lượng cuộc sống trong công việc QWL
17 I feel physically safe at work Tôi cảm thấy an toàn ở nơi làm việc QWL1
18 My job provides good health benefits Công việc mang lại nhiều lợi ích tốt cho
sức khoẻ của tôi
Tôi hài lòng về mức thu nhập hiện tại QWL4
21 I feel that my job is secure for life Tôi cảm thấy công việc hiện tại bảo đảm
ổn định cho cuộc sống
QWL5
22 My job does well for my family Với công việc hiện tại, tôi có thể trang trải
cho cuộc sống của gia đình
QWL6
23 I have good friends at work Tôi có những đồng nghiệp tốt tại công ty QWL7
24 I have enough time away from work to enjoy other things in life
Ngoài công việc, tôi có đủ thời gian để tận hưởng cuộc sống
QWL8
25 I feel appreciated at work Tôi cảm thấy được đánh giá cao trong
công việc hiện tại
QWL9
26 People at work and/or within my profession respect me as a professional and
an expert in my field of work
Trong công việc, tôi được mọi người tôn trọng
Trang 35Công việc của tôi đòi hỏi nhiều sáng tạo QWL15
32 My job helps me develop my creativity outside of work
Công việc giúp tôi phát triển sự sáng tạo bên ngoài công việc
QWL16
IV Job Satisfaction (Dubinsky et al., 1986)
33 Generally speaking, I am satisfied with this job
Nói chung, tôi hài lòng với công việc này JS1
34 I frequently think of quitting this job ® Tôi thường nghĩ về việc từ bỏ công việc
variables However, it should not be less than 100 to guarantee the correct analysis
result As the formula is below:
n >= 100 and n > = 5k (k: number of variables)
In this research, k = 37 questions Therefore, the minimum needed for the research is 185 answers To conduct Structural Equation Modeling (SEM), Garver and
Mentser and Hoelter (as cited in Mohamad & Mohamed, 2012) proposed a “critical
sample size” of 200 Thus, in this research, 200 questionnaires were essential for the
required sample size
Sampling method:
In association with the theoretical literature, other researches and the results of qualitative phase, the final questionnaire was given out to implicating the main survey
(see appendix 2 & appendix 3)
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To adapt the research objectives as mentioned above, the data was obtained from the employees who are working for the companies related to Vienamese
petroleum industry and there were several companies to be chosen from three cities
such as Hanoi, Ho Chi Minh, Vung Tau due to the convenience
3.4 Data analysis method
The SPSS (Statistical Package for Social Science) version 20.0 and Amos 20.0 were used in this research for analyzing primary data The researcher ran Amos 20 for
SEM with purpose of enhancing the value of the model
Reliability analysis is used to evaluate the reliability of the measurement scale;
this analysis requires calculating Cronbach’s Alpha Cronbach’s Alpha should be
above or at least equal 0.6 to adapt internal reliability and the correlation of each
specific item with total of the other items in the scale was quite high or higher than 0.3
(Nunnally & Burnstein, as cited in Nguyen, 2011)
After evaluating the scale reliability, the Exploratory Factor Analysis (EFA) method is applied to identify the number of underlying factors that explain the
correlations among a set of variables as well as to test the convergent validity and
discriminant validity Convergent validity shows the degree in which two
measurement of the same concept are correlated (Hair et al., 2010) while discriminant
validity states that two measurement scales are used to measure two different concepts
need to be discriminant from each other
Confirmatory factor analysis as also run to test the model fit As shown:
The Chi-square test indicates the amount of difference between expected and observed covariance matrices A Chi-square value close to zero indicates little
difference between the expected and observed covariance matrices In addition, the
probability level must be greater than 0.05 when Chi-square is close to zero (Hu &
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Root Mean Square Error of Approximation (RMSEA) is related to residual in the model RMSEA values range from 0 to 1with a smaller RMSEA value indicating
better model fit Acceptable model fit is indicated by an RMSEA value of 0.06 or less
(Hu & Bentler, 1999)
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 test hypotheses about relations among
observed and latent variables (Hoyle, 1995) Moreover, SEM was defined as a
methodology for representing, estimating, and testing a theoretical network of
(mostly) linear relations between variables (Rigdon, 1998)
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Table 3.2 – Key indices
(as cited in Nguyen, 2011)
The Corrected item-Total correlation
(as cited in Nguyen, 2011)
Chi-square/df (Cmin/df) <3 good; <5 sometimes
permissible
Kline (2005)
Average goodness of fit index (AGFI)
Comparative fit index (CFI) ≥0.95 great; >0.9 traditional;
>0.80 sometimes permissible
Hu and Bentler (1999)
Root mean square residual (RMR)
Root mean square error approximation (RMSEA)
<0.05 good; 0.05 – 0.1 moderate
Hu and Bentler (1999)
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CHAPTER 4 DATA ANALYSIS AND RESULTS
Chapter 4 presented the data analysis and findings The first section included data collection, sample characteristics, as well as reliability analysis to improve the
internal consistency of each variable by Cronbach’s alpha Exploratory Factor
Analysis (EFA) was applied to explore the factor structure (how the variables related
and grouped based on intervariable correlation) Continously, Confirmatory Factor
Analysis (CFA) extracted from EFA was examined the measurement models and
Structural Equation Modeling (SEM) was used to test the conceptual model Based on
the data analysis results, the explanation for research findings was discussed
4.1 Data collection
In order to make sure the quantity of respondents enough for the research, this research was distributed 280 questionnaires The objectives of this research aimed to
analysis from view of Vietnamese petroleum industry, questionnaires were delivery
conveniently After collecting the answering, 260 questionnaires were collected (as
similar with the response rate was approximate 92.86%) The questionnaires
collection included 20 eliminated questionnaires due to the same answers for all
asking items as well as the blank items Finally, 240 questionnaires were used as valid
data for this research In comparison with minimum sample size, this value was
satisfactory (see table 4.1)
Table 4.1 – Sources of data collection
was dominant with 52.5% of respondents and female sized 47.5% of respondents
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Trang 40located 22.1% and the rest of age criteria was from 51 to 60 with 5.4%
In addition, their working duration was more 6 months (95.4%) and they crucially were working full time (97.5%) It also implicated as the common features of
petroleum staffs because of experience demand Most of them were graduated
university showing the high education degree of petroleum staffs (67.5%)
Respondents had the different positions in their job, such as staff (67.8%), team leader
(18.8%), line manager (9.6%) and top manager (3.8%)
Table 4.2 – Description of sample
Demographic profile