The impact of employee perception on job performance with mediating role of extra role behaviors in vietnam motorbike market

The impact of employee perception on job performance with mediating role of extra-role behaviors in Vietnam motorbike market Abstract This study examines the impact of employee percepti

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-VO LE TRUNG HAU

THE IMPACT OF EMPLOYEE

PERCEPTION ON JOB PERFORMANCE WITH MEDIATING

ROLE OF EXTRA-ROLE BEHAVIORS IN VIETNAM

Acknowledgement

Apart from the efforts of me, the on time completion of the thesis largely on the

encouragement and guidelines of many others I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this thesis

I would like to express my appreciation to Dr Pham Ngoc Thuy – my

instructor She provided me with tremendous support, help and motivations Without her instructions and guidance, I would not finish this thesis

The guidance and supports received from ISB, classmates, friends and family are also very important to me I am grateful for their constant support and help

The impact of employee perception on job performance with mediating role of

extra-role behaviors in Vietnam motorbike market

Abstract

This study examines the impact of employee perception of conscientiousness,

organizational justice and organizational identification on job performance of

frontline employee in the context of Vietnam motorbike retail market It also

investigates the mediation effect of customer-directed and employee-directed role behavior on above relationships By using structural equation modeling, these impacts were empirically tested with a sample of 252 frontline employees working at motorbike retail dealers in Vietnam The result reveals conscientiousness,

extra-organizational justice and extra-organizational identification as positive predictors of job performance Furthermore, the relationships are indicated to mediate by extra – role behaviors Overall, the mediating effect of customer – directed extra – role behaviors are stronger than employee – directed extra – role The impact of conscientiousness and organizational justice to job performance was mediated by both extra – role

behaviors In the other hand, while this study shows the mediation effect of directed extra-role behavior on the relationship of organizational identification and job performance, the mediation effect of employee-directed extra-role behaviors on the relationship is not support

customer-Key words: conscientiousness, organizational justice, organizational

identification, extra-role behaviors, job performance, Vietnam motorbike retail

Table of content

1 Introduction 5

2 Theoretical background and hypotheses 9

2.1 Employee perception and job performance model 9

2.2 Extra-role behaviors 10

2.3 Conscientiousness as employee perception 11

2.4 The Perception of Organizational justice and organizational identification 12

2.5 The mediating role of extra-role behaviors 13

3 Research method 16

3.1 Research procedure 16

3.2 Data collection and sample 17

3.3 Measurement scale 19

4 Analysis and results 21

4.1 Scale validation 21

4.2 Structural Equation Modeling 23

5 Theoretical Implication 27

6 Managerial implication 31

7 Limitation and future research 33

8 Conclusion 34

Appendix A: Sources of questionnaire item 35

Appendix B: Pilot research guidelines and revised questionnaires (English version) 37 Appendix C: Survey form and questionnaires (Vietnamese version) 40

Appendix D: List of motorbike retail store taking place in quantitative research 42

Appendix E: CFA result of measurement scale (standardized) 44

Appendix F: SEM result of direct model 45

Appendix G: SEM weights and standardized result of structural model 46

Appendix H: Standardized result of structural model 47

Reference 48

List of table and figure

Figure 1: Proposed model 10

Table 1: Demographic information of sample 19

Table 2: Cronbach’s Alpha of factors 21

Table 3: Composite reliable, average variance extracted and correlation 23

Figure 2: standardized path coefficient of the direct relationship 24

Figure 3: structural model of mediation mechanism 25

Table 4: Direct effect and indirect effect of hypothesis relationship 27

1 Introduction

With the rapid growing and urbanization, Vietnam motorbike market has developed significantly in both production and consume over the past decade As a developing country, Vietnamese people still use motorbike as main transportation vehicle which every household have at least one motorbike, usually more than one As a result, Vietnam motorbike market becomes an intriguing location for investors which the competition is intense between foreign motorbike makers as well as between domestic motorbike retailers Most notably, there was a fierce competition between Chinese manufacturers and Japanese manufacturer early 2000s which Chinese motorbike makers changed the context of motorbike industry with their low price strategy

(Nguyen, 2007) Under such circumstance, the current leading Japanese suppliers had

to respond to the challenge by developing sustainable competitive advantages through their internal resources (Nguyen, 2007) Recently, the context of Vietnam motorbike industry continues to develop a significant ground of competition between foreign suppliers which contains of 5 major brand names such as Honda, Yamaha, Suzuki, SYM and Piaggio According to the report of Vietnam Association of Motorcycles Manufactures (2018), the total sales volume of 5 major manufactures in 2017 was over 3.2 million motorbikes (1) Due to the dynamic of the competition, Vietnam motorbike retailers understand that they have to keep evolving and improving to adapt

to the changing market and retain their market share Considering the important of human capital as a sustainable competitive advantage, it is vital for Vietnam

motorbike retailers in to enhance their knowledge about frontline employee inorder to

optimize their decision – making process regarding recruitment, training and

evaluation

The role of frontline employee is widely agreed as critical factors to the

success of organizations in various contexts such as retail, banking or service

(Lindblom, Kajalo & Mitronen, 2016; Handa & Gulati, 2014; Wallace, de

Chernatony & Buil, 2011) Bagdare (2015) indicates that frontline employee is

the most significant determinants of retail customer mood and shopping

emotional experience According to Steffen and Atorough (2015), frontline

employee is the key driver of the customer loyalty and satisfaction which were

inevitable to train a proficient and sociable frontline employee to avoid negative

behaviors from customers However, most previous studies only examine

companies in developed country, neither or limited studies investigate Vietnam

market or Vietnamese organizations Various researchers and practitioners insist

to apply these framework models in other cultural locations and settings which

might generalize difference results and improve our understanding of profound

knowledge (Reychav & Sharkie, 2010; Usmani & Jamal, 2013; Maxham,

Netemeyer & Lichtenstein., 2008) This paper’s goal is to further the exposure of literature by examining both employee perception and extra-role behaviors as the antecedents of frontline employee job performance in the context of motorbike

they are more likely to perform discretionary behaviors which eventually improve individual performance (Elorza et al., 2016) Punia (2011) indicates that high

performers would be more likely to have a good perception of their work and

organization In the literature of retail, there are 3 possible constructs of employee perception that impact job performance, such as conscientiousness, organizational justice and organizational identification Particularly, the personality trait of

conscientiousness is considered as the employee perception of their wellbeing and responsibility toward their job (Handa & Gulati, 2014) Otherwise, organizational justice and organizational identification are included as perspective and feeling of frontline employee toward their supervisor and organization which motivated them for higher performance (Usmani & Jamal, 2013; Lichtenstein, Netemeyer &

Maxham 2010) Arguably, employee perceptions are important determinants of

employee positive behavior as well as job performance

Extra – role behaviors are another important asset which significantly enhance the result of frontline employee in retail context Generally, there are two distinct categories in the study of employee job performance, including in-role behaviors and extra-role behaviors While in-role behaviors refer to task performance directly

related to job description, extra-role behavior is a set of behaviors that go beyond their obligations to contribute to their organization (Wallace et al., 2011) Other researches has focused on extra-role behaviors as discretionary behavior to measure the outcome

of employee (Elorza, Harris, Aritzeta and Balluerka, 2016; Wallace et al., 2011;

Maxham et al., 2008) The definition of extra-role behaviors is extended to which employees go beyond their role to help customers as well as their co-workers

(Reychav & Sharkie, 2010) Despite the important of extra – role behaviors toward job performance, the understanding of extra – role behaviors, especially in motorbike retail in Vietnam, is quite vague With the high demand of motorbike in Vietnam, many motorbike retail store tend to focus only on the profit rather than strategy to develop their human capital From the observation of author, frontline employees at retail store in Vietnam have the tendency to do nothing or provide minimum

supportive to their customers Some employees only come to work to finish their daily task while don’t show any dedication to the overall success of their

organization Although the performance of employees and retail store still keep an acceptable sales result at the moment, it’s necessary for motorbike retailers to

understand and focus on different components of their employee performance for long-term and sustaining success Therefore, this study includes extra-role behaviors

in the performance model to explore their impact to frontline employee in Vietnam motorbike industry Both customer-directed and employee-directed extra – role

behaviors are accounted as the determinants of frontline employee’s job performance

To summary, the present study aims to investigate how employee perception

of conscientiousness, organizational justice and organizational identification

influence behaviors and job performance of frontline employees in motorbike retail stores The objective is to examine a number of possible employee perceptions that could improve frontline employee’s job performance Moreover, this study will

also investigate extra-role behaviors toward employee and customer as mediator in the relationship of employee perceptions and job performance These finding will

help to optimize human capital resources of motorbike retail store tin Vietnam

through better recruitment, HR decision, training and evaluation

2 Theoretical background and hypotheses

2.1 Employee perception and job performance model

Employee Perception is widely argued as the antecedent of higher performance level

as well as the behaviors and motivation of employee (Lichtenstein et al., 2010; Punia, 2011; Haumann, Ahearne & Wieseke, 2015) The study of Lindblom et al (2016) focuses the relationship between employee perception and employee job performance

by examining the perception of charismatic leadership Similarly, perception of trust

is indicated to be a significant factor of employee discretionary behavior (Reychav & Sharkie, 2010) Extending research has stated the strong influence of employee

perception to employee job satisfaction which has positive effect to employee job performance (Usmani & Jamal, 2013)

After reviewing the retail literature of employee perception, this study

adapted three categories of employee perceptions from the model of Maxham et al (2008) that can positive impact employee behavior and job performance in their

investigation of retail value chain There are three constructs of employee

perceptions including in this study which are the perception of (1)

conscientiousness, (2) organization justice and (3) organization identification Thus, the present study proposes a model to support above relationship in Figure 1 The model also hypothesizes that extra-role behaviors which included employee-

directed and customer-directed extra – role behaviors will have a mediating role in

the relationship of employee perception and job performance

Figure 1: Proposed model

2.2 Extra-role behaviors

Extra-role behaviors have been considered as main component of employee job

performance in previous literature (Wallace et al., 2011) Extra-role behavior is

defined as the willingness of employee to perform voluntary task that do not require

in job description to improve their performance as well as collaborate with their

colleague to help customers (Bettencourt & Brown, 2003) Likewise, extra-role

behaviors are emphasized as an important facet of frontline employee performance in retail banking (Wallace et al., 2011) To put it simply, extra-role behaviors referred to the volitional acts of employee that benefit both organization and other stakeholders, including colleagues and customers Particularly, extra – role behaviors are defined by studies as employee’s attitude and obligation toward organization or known as

Organization Citizen Behaviors (OCB) which influenced the wellbeing of the

organization and other colleague (Bowling, 2010) Reychav and Sharkie (2010)

verified the benefits of extra – role behaviors which frontline employee was more

likely to participate in decision making process and sharing knowledge to other

employee in order to contribute to organization’s overall performance Other studies viewed extra – role behaviors as characteristic of customer orientation which

positively impact the relationship between customer and frontline employee (Sulea, Virga, Maricutoiu, Schaufeli, Catalina, & Sava, 2012) With that perspective, current study will account both employee-directed and customer-directed extra-role behavior

as a positive determinant of job performance to examine their mediation effect

2.3 Conscientiousness as employee perception

Although known as a personality trait, the impact of conscientiousness as employee perception is well-studied According to Auh, Menguc, Fisher and Haddad (2011), conscientiousness would enhance employee perception of service climate which

increase customer’s satisfaction and purchase intention Other research find that

conscientiousness impact employee perception as well as job performance in a

positive way, whereas conscientious employee was more likely to act as a competence and dependable individual (Bernerth, Armenakis, Feild, Giles & Walker, 2007)

Recent study also stressed the role of conscientiousness that could influence

perception and engagement of employee in difference scenarios at a retail store

(Handa & Gulati, 2014) In other word, conscientiousness was the individual

perception which demonstrates how employee perceived their work responsibility and environment Thus,

H1: Conscientiousness has a positive impact to job performance

2.4 The Perception of Organizational justice and organizational identification

Both organizational justice and organizational identification represent perspective and feeling of employee toward their supervisors and organization Particularly,

organizational justice reflects the feeling and reactions of employee on how they were treated by their employer and organization in term of fairness and equality (Wang, Liao, Xia & Chang, 2010) The concept of organization justice is specified into three main dimensions, including distributive, procedural and interactional justice (Usmani

& Jamal, 2013; Wang et al., 2010) Other researches show the relationship between organization justice and job satisfaction through examining banking employee

(Usmani & Jamal, 2013) Likewise, Elamin (2012) indicates the correlation of

organizational justice with employee job satisfaction and commitment According to Wang et al (2010), organizational justice affects employee job performance with the mediation of job commitment In their study, Aizzat and Soon (2011) point out the significant effect of organizational justice on job performance in Malaysia As a

result, current study argues the positive effect of organizational justice to frontline employee’s job performance in motorbike retail context in Vietnam Thus,

H2: Organizational Justice has a positive impact to job performance

Correspondingly, organizational identification is regarded as how employee defined themselves in organization as well as their perception of organization’s goal and vision (Lichtenstein et al., 2010; Karanika-Murray, Duncan, Pontes & Griffiths, 2015) Like organizational justice, organizational identification is reported to have positive relationship with job satisfaction and employee engagement (Karanika-

Murray et al., 2015) Karanika-Murray et al (2015) discussed that organization

identification improved employee job performance by increasing their engagement and dedication to their work and organization According to the study of Kraus,

Haumann, Ahearne & Wieseke (2015), the study’s result showed significant

influence of organizational identification to satisfaction of customer through the

affection of frontline employee performance In retail context, store financial

performance was impacted by the level of identification of store manager and

employee toward their organization (Lichtenstein et al., 2010) Current study

hypothesized the positive relationship of organizational identification and job

performance Thus,

H3: Organizational Identification has a positive impact to job performance

2.5 The mediating role of extra-role behaviors

Although efforts have been done to prove the influence of employee perception to extra-role behaviors or extra – role behaviors as a positive antecedents of job

performance, few studies had examined extra – role behaviors as mediator in the relationship of employee perception and job performance Therefore, this study

attempted to investigate mediation effect of both employee – directed and customer – directed extra – role behaviors in the connection between employee perception and job performance In order to investigate the mediation effect of extra-role behaviors, the study followed the process suggested by Baron and Kenny (1986) who were

simplified by Zhao, Lynch and Chen (2010) Firstly, the employee perception of conscientiousness, organizational justice and organizational identification was proved

to be a positive predictor to job performance which would be tested in H1, H2 and H3 Second, the indirect effect and directed of employee perception to job

performance with the mediator would be checked to prove the hypothesis Many evidences support positive influence of conscientiousness to extra-role behaviors of frontline employee which presented their tendency to go beyond the “call of duty” to help customer or support their co - worker A high conscientiousness employee is more likely to be more engage with their organization as well as work harder to

achieve their target (Bowling, 2010) Furthermore, conscientiousness is emphasized

by Phipps, Prieto and Deis (2015) as a strong factor that influence frontline

employee’s behaviors to act more helpful and supportive toward their supervisor and colleague Conscientiousness is also reported to have a positive impact to frontline employee’s discretionary behaviors toward customers in retail environment which requires a high level of social interaction (Handa & Gulati, 2014) Therefore, based

on theory of literature discussed above, this study was expected to find that directed extra – role behaviors and customer-directed extra – role behaviors would mediate the relationship between conscientiousness and job performance

employee-H4: The relationship of conscientiousness and job performance is

mediated by employee-directed extra-role behaviors

H5: The relationship of conscientiousness and job performance is

mediated by customer-directed extra-role behaviors

Similarly, this study continued to examine the mediation effect of extra – role behavior on the relationship of organizational justice and job performance Reychav and Sharkie (2010) indicate that the employee-directed extra – role behaviors are influence by the fairness they are felt about their organization, including the trust in management and psychological support Identically, the interactional justice of the

supervisor impacts the tendency to perform extra – role behaviors of frontline

employee significantly according to Lam and Leong (2013) Likewise, directed extra – role behaviors are also affected by organizational justice which

customer-improve frontline employee’s attitude and behavior toward customer (Aizzat & Soon, 2011) In recent study in hospitality context, Wen, Li and Hou (2016) indicated that if the employee was treated fairly by their management, it will positively reflect on their extra – role behaviors by suggesting new idea, helping other colleague as well as avoid customer mistreating behavior Thus, it’s fair to assume that both extra – role behaviors will mediate the relationship of organizational justice and job performance

H6: The relationship of organizational justice and job performance is

mediated by employee-directed extra-role behaviors

H7: The relationship of organizational justice and job performance is

mediated by customer-directed extra-role behaviors

High level of identification also prompts employee who define themselves with organization to participate discretionary behavior (Kane, Magnusen & Perrewé,

2012) According to Kane et al (2012), if employee has high identification with their company, they will be expected to perform more voluntary action, including extra – role behaviors, to help others as well as OCB which improve their efficiency and customer satisfaction Based on study of social identity theory, a strong connection between frontline employee and organization is certainly influence their behavioral while also help creating loyalty customers (Gammoh, Mallin & Bolman, 2014)

Baker, Rapp, Meyer and Mullins (2014) highlight organization identification of

frontline employee as an importance factor to develop extra – role behaviors which

ultimately enhance their performance Thus, this study hypothesized the influence of employee-directed extra-role behavior and customer-directed extra-role behavior as mediator that affect the relationship between organizational identification and job performance as below:

H8: The relationship of organizational Identification and job

performance is mediated by employee-directed extra-role behaviors

H9: The relationship of organizational Identification and job

performance is mediated by customer-directed extra-role behaviors

3 Research method

3.1 Research procedure

There were two phases in procedure, including pilot phase and main phase in which qualitative and quantitative methods are used In the pilot phase, by reviewing

literature and definition, various multi-items scales were adapted to measure the

constructs After translating the questionnaires from English to Vietnamese, face interviews were taken place to test the initial scales with 2 frontline employees and 2 store managers who had at least 2-year experience in current position Depend

face-to-on their respface-to-onses and suggestiface-to-ons, the initial scales were revised and adjust until there were no additional revisions and the participants confirmed to be understanding and agree with the modified scales

In the second phase, the questionnaires were designed based on the modified scales which various items were created to measure employee perception, extra-role performance and job performance The data collected in this phase were used to test the hypotheses after being gathered and validated the level of fit by the author

Then, the results of the data analysis were discussed to explain the address issues as well as recommend a solution and practical implication for retailers and store

manager The limitation and further research were also mentioned as last chapter in the study

3.2 Data collection and sample

In the pilot phase, qualitative research of the study was conduct to revise the

questionnaires in order to ensure that frontline employee at retail motorbike store could understand as well as the content was appropriate in Vietnamese language Refer to Appendix B for detail guidelines of qualitative research and revised

questionnaires According to the result, there were some adjustments in term of

wording need to be made in questionnaires for better understanding There were also some other issues mentioned by interviewees, such as the scale would not correctly measure the performance of frontline employee (job performance), or some would be not related to performance (organizational identification and organizational justice) However, because each issue was only mentioned by one interviewee and only based

on their opinion so these items were not modified Most of respondent understand and agreed with the questionnaires After revising, the final questionnaire was

composed successfully

In quantitative phase, the data were collected by asking frontline employee to self-evaluate through answering the questionnaire Self-evaluate method which has been proved to be valid in marketing and behavior literature were a widely used

method to measure frontline employee performance (Rozell, Pettijohn & Parker, 2006; Lee & Turban, 2010) The participants of the research consisted of frontline

employee working at motorbike retail stores in which they were given a general

explanation of definition and objective of the research as well as ensured about the confidential of their name and answers The questionnaires were distributed directly

by paper to the participants as the author occasionally visited retail stores in business travel However, most of the survey was sent through online email to the store

managers then giving to the frontline employee working at their stores The survey was made by Microsoft Word software and sent by email to store manager who

printed the survey for their frontline employees After that, the paper survey was sent back to author There were 102 motorbike retail stores all around Vietnam which were chosen to take part in the research Only motorbike retail stores which were authorized by a popular company in Vietnam (Honda) were chosen to ensure

reliability and consistent results The survey was conduct from the second week of July, 2017 to the end of September, 2017

In 400 questionnaires sending to collected data, a total of 273 questionnaires was returned which had 68.3% rate of responds However, 21 responses were

dropped due to missing data as well as unengaged questionnaires which they chose almost the same answers to every Likert scales items Hence, only 252

questionnaires were able to use in the data analysis Demographic information of the respondents who joined the research was showed below in Table 1 According to the table, frontline employees working in motorbike retail are fairly young which mostly

on their 20s Moreover, because the income in the industry is also not high, this may affect the behaviors and perception of the employee toward their store Future study

should consider include these factors as control variables to further exam the model Otherwise, the list of motorbike retail store was displayed in Appendix C

Table 1 Demographic information of sample

For employee perception, Conscientiousness was measured by 4 items from the study of employee engagement and personality of Handa and Gulati (2014) A

total of 13 items were used to measure organizational justice (Usmani & Jamal,

2013), including 5 items of distributive justice, 4 items of procedural justice and 4 items of interactional justice (4 items) For that reason, organizational justice was considered as second – order factor in the measurement scale Organizational

identification was measured with 6 items from study of Kraus et al (2015) In cases

of extra-role behavior, both customer-directed and employee-directed extra-role

behavior were measured by 3 items each suggested by Netemeyer and Maxham

(2007) In order to examine employee job performance, the respondents were asked to describe how they perform in term of sales accomplishment comparing with other frontline employee by a 5-items scale (Yavas, Karatepe & Babakus, 2010) The

source of questionnaires was shown in Appendix A

To test the structural model, current study used structural equation modeling (SEM) analysis as main method, after confirmatory factor analysis (CFA) was

conducted to check internal consistency of the measurement scale while also took into account the overall modelling (Lindblom et al., 2016) In order to test the mediation effect, there were a four condition recommended by Baron and Kenny (1986) which was widely used in mediation research, including (1) direct effect of independent variables on dependent variables prior adding mediators, (2) the relationships between independent variables and mediators, (3) the correlation between mediators and

dependent variables, and (4) the regression of independent variable with both

mediators and dependent variable However, in the study of Zhao et al (2010), they suggested a simplified process by using SEM which examining two dimension of the direct and indirect effect to determine the mediation effect of hypothesized

relationship Bootstrapping method was also used as an additional step which take advantage of bootstrap samples and bias-corrected to increase interval consistency to test the mediation effect (Preacher & Hayes, 2004)

4 Analysis and results

4.1 Scale validation

In order to test the internal consistency of the scale, Cronbach coefficient alpha was computed on each constructs as well as overall model During the analysis, some of items was deleted, including Con2, Iden5 and Iden6, because the Cronbach’s alpha if these items deleted was higher than the original Cronbach’s alpha After excluding the deleted items, Cronbach’s alpha of the current study was 0.861 which was reliable as

it was above the recommend level of 0.7 (Nunnally & Bernstein, 1994) Cronbach’s alpha of each construct was also shown reliability, ranging from 0.736 to 0.869 Table

2 show Cronbach’s alpha of every factor in the measurement scale

Table 2 Cronbach’s Alpha of factors

Factor Cronbach’s Alpha

Current study approached a two-step approach which both CFA and SEM were conducted (Anderson and Gerbing, 1988) Firstly, CFA including all the items (with organizational justice as second – order factor) of the scale were conducted to

determined validity and reliability of the scale, validate the applied measurement as well as discriminant validity of each constructs Maximum likelihood estimation was used to access the global fit index of six factor model The initial CFA result didn’t show a satisfied level of fit so some items were deleted out of the research model in order to meet the requirements Item Djus3 and Ijus1 were removed by the author due

to low factor loading (0.38 and 0.44 respectively) Likewise, some items were also deleted because of high modification indices, including Djus2, Pjus4, Ijus1 and Per4 Consequently, each component of organizational justice and job performance were still measured by at least 3 items For instance, distributive justice and procedural justice was measured by Djus1, Djus4, Djus5 and Pjus1, Pjus2, Pjus3 respectively, while interactional justice was measured Ijus2, Ijus3, Ijus4 Job performance was measured by 4 items of Per1, Per2, Per3 and Per5.

After refined the measurement scale, the report of CFA shown final

measurement scale achieved a good overall fit according to rule of thumb

Particularly, Chi – square statistic of the measurement scale was significant(347.435,

p < 0.001) with the degree of freedom (df) of 281 As the chi-square/df was1.258 which is less than 3.0, current model of fit was considered acceptable Furthermore, other fit indexes also met acceptable level of fit such as goodness of fit index (GFI) = 0.907; comparative fit index (CFI) = 0.968; The Tucker-Lewis coefficient (TLI) = 0.963; root mean square error of approximation (RMSEA) = 0.031 All items had their factor loading significantly higher than 0.5, ranging from 0.54 to 0.88, and at p < 0.001 level Therefore, current study concluded that the overall structure used in

hypothesized model is supported and at an acceptable level of model fit Convergent

validity of the measurement was shown to be adequate Table 3 summarized the

results of AVE, CR and correlation between variables The average variance extracted (AVE) of every constructs was exceeded 0.50 indicate that the reliability of the

measurement while the Composite Reliability (CR) was also exceeded 0.60 (Hair, Black, Babin, & Anderson, 2010) Similarly, the model also ensures the discriminate validity as the AVE was greater than Maximum share variance (MSV) of each

Note: n = 252; CO: conscientiousness; OJ: organizational justice; OI: organizational

identification; EE: employee-directed role behaviors; CE: customer-directed

extra-role behaviors; PER: job performance

4.2 Structural Equation Modeling

Since the measurement model meets the optimal level of fit, the study continued to examine the structural model using SEM Firstly, the direct model between employee perception of conscientiousness, organizational justice and organizational

identification and job performance was tested, as proposed in H1, H2 and H3

Although the relationship had been confirmed in past studies, they were examined again by this study in the context of Vietnam motorbike retail Figure 2 shown

employee perception as possible direct determinants to job performance

Additionally, the overall fit of the structural model was appeared to be in adequate fit The global fit indexes of the model were indicated consistent of direct model with the data (chi-square = 233.127 and df = 164; CMIN/df = 1.422; CFI = 0.957; GFI =

performance was the strongest among three variables which supported H1 (β = 0.411,

p < 0.001) Similarly, H2 and H3 were also supported as organizational justice and identification had positive impacts to job performance For instance, both

organizational identification and organizational justice had decent relationship with

job performance of frontline employee (β = 0.329, p < 0.001 and β = 0.163 with p =

0.043, respectively)

Figure 3: structural model of mediation mechanism with standardized β path

coefficients.

Finally, the study continued to test the hypothesis model to evaluate the

remaining hypothesis (H4 to H9) in which employee – directed extra – role behaviors and customer - directed extra – role behaviors were introduced to mediating the

influence of conscientiousness, organizational justice and organizational

identification to job performance Again, the final model received a good overall fit

with the data, chi-square = 369.871 and df = 285; CMIN/df = 1.422; CFI = 0.959;

GFI = 0.901; TLI= 0.954; RMSEA = 0.034 Figure 3 showed the structural model of the relationship between employee perception and job performance with two

mediators which were employee directed extra – role behaviors and customer –

directed extra – role behaviors Table 4 showed the direct and indirect effect of the relationship as well as mediation observed.

The results indicated that the impact of conscientiousness on job performance was mediated by both employee – directed extra – role behaviors and customer – directed extra – role behaviors which supported H4 and H5 (the β path coefficients was 0.21 x 0.26 = 0.55, p < 0.05 and 0.19 x 0.41 = 0.078, p < 0.05, respectively) In addition, the mediating effect of customer – directed extra – role behaviors were

slightly stronger than employee – directed extra – role behaviors Due to the

significant of total effect, the effects of employee – directed extra – role behaviors and customer – directed extra – role behaviors on the relationship of

conscientiousness and job performance were partial mediation

Similarly, the result also supported H6 and H7 For instance, both employee – directed extra – role behaviors and customer – directed extra – role behaviors

significantly mediated the effect of organizational justice on job performance (the β pathcoefficients 0.27 x 0.26 = 0.07, p < 0.05 and 0.21 x 0.41 = 0.086, p < 0.05

respectively) Table 4 also indicated that the direct effect of organizational justice to job performance was not significant (β = 0,023, p > 0.05) Therefore, the mediation

of employee – directed extra – role behaviors and customer – directed extra – role behaviors in the relationship was full mediation Similar to conscientiousness, the mediating effect of customer – directed extra – role behaviors to the impact of

organizational justice to job performance was stronger than the effect of employee – directed extra – role behaviors