The impact of perceived organizational support on job performance, the medication of job engagement a study of commercial banks in vietnam luận văn thạc sĩ

By This reason this study also analyzes relatedmediation factors to support to the relation of Perceived Organizational Support on JobPerformance.As we know that there is little theory o

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGÔ VĂN QUẰN

The Impact of Perceived Organizational Support on Job Performance, the Mediation of Job Engagement.

A Study of Commercial Banks in Viet Nam.

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City, 2012

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGÔ VĂN QUẰN

The Impact of Perceived Organizational Support on Job Performance, the Mediation of Job Engagement.

A Study of Commercial Banks in Viet Nam.

MAJOR: BUSINESS ADMINISTRATION

First, I would like to thank to our supervisor of this study, PhD Pham Quoc Hung for hisvaluable guidance and advice He inspired me greatly to work in this study Hiswillingness to motivate me contributed tremendously to my study I also would like tothank him for providing me valuable documents, information as the guidance of mystudy Besides, I would like to thank all teachers of the Ho Chi Minh City of Economics(EUH) for providing me and student like us with a valuable knowledge, goodenvironment and facilities to complete our researches I also would like to thank Mr.Nhat Truong, from The Poly-Technique University Ho Chi Minh City for supporting me

to analyze the research data by using Amos with statistical technique SEM My thanksand appreciations also go to my colleague in developing the project and people who havewillingly helped me with their abilities Finally, I would like to express my gratitude andthanks towards my parents, sistsers, friends for their understanding, kind co-operationand encouragement which help me in completion of MBA programe and this study, fortheir support in giving me such attention and time Without helps of the particular thatmentioned above, I would face many difficulties while doing this study

Page

CHAPTER 1: INTRODUCTION 1

1.1 Executive abstract 1

1.2 Purpose of the study 2

1.3 Questions of the study 3

1.4 Scope of the study 3

1.5 Framework of the study 4

CHAPTER 2: LITERATURE REVIEW 4

2.1 Perceived organizational support (POS) 5

2.2 Job engagement 6

- Physical engagement (PE) 6

- Emotional engagement (EE) 6

- Cognitive engagement (CE) 8

2.3 Job performance (JB) 8

2.4 Related theories and antecedent researches 10

2.5 Hypothesis development 16

* Research model 18

CHAPTER 3 RESEARCH METHODOLOGY 18

3.1 Research design 19

3.2 Questionnaire development 20

3.3 Translation of the questionnaires 22

3.4 Variable control 23

3.6 Target population 25

3.7 Sample size 26

3.8 Selecting the sample and collecting data 26

3.9 Methods of data analysis 28

3.9.1 Data Screening 28

3.9.2 Normal Distribution Examining 28

3.9.3 Reliability 28

3.9.4 Confirmatory factor analysis (CFA) & Structural equation modeling (SEM) 28 CHAPTER 4: RESULT OF DATA ANALYSIS 37

4.1 Descriptive statistics 37

4.2 Normal Distribution Examining 41

4.3 Reliability 42

4.4 Confirmatory factor analysis (CFA) 45

4.5 Structural equation modeling (SEM) 49

4.6 Sumary of model test 55

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 57

5.1 Summary of all hypotheses 57

5.2 Conclusions and implications 58

5.3 Limitations and recommendations 62

CHAPTER 6: LIST OF REFERENCES 63

7 APPENDIX 67

CHAPTER 1: INTRODUCTION1.1 Executive abstract

In the context of the international economic tendency, WTO integration, Vietnam nowhas both opportunities and challenges for organizations to raise pressure on thecompetitiveness of the product, services, brand, and human resources In particular,human resources is considered a key advantage for organizations to develop theirbusinesses, it is a valuable asset to help organizations improve their competitivenessand performance

Currently, the reciprocity responsibility norms were popular applied in organization inViet Nam, however majority of organizations have not sufficiently invested interestand improve the system of human resource management in the area of relationbetween between perceived organizational support and job performance Due to thisreason, there remain areas that both employers and employees do not have in common

As a result, the consequence of this shortcoming in HR Management, to some extent,has caused employees were not motivated to compensate beneficial treatment and theorganizations did not obtain expected business outcome

According to previous studies such as studies of (Pfeffer J 1998); (Huselid, MA1995), (Guest 1997), (D Hartog and RM Verburg 2004), (Singh K 2004), humanresource practices have important influence on the performance of the business Bystudying factors contributing to the effective human resource management, it provesthat preceived organizational support (POS) takes an important position in this area.POS contributes to increase employees’ performance (POS) to help organizationsreach their objectives The behavioral outcomes of POS mentioned herewith include

increases, decrease in role and Job performance.

The study of effective Human resource (HR) management, specifically relationshipbetween perceived organizational support (POS) and job performance also measures ofman-power resource to achieve set targets of organizations; help managers withsolutions to encourage and motivate employees to work effectively in conditions oftight labour market, where changing knowledge management practices and globalconvergence of technology has redefined the nature of work, and in the context oflimited talent resources in manpower market

By studying the impact of Perceived Organizational Support on Job Performance it hasbeen seen that there are mediation factors also contribute to establishing relationbetween Perceived Organizational Support on Job Performance Following Kahn(1990) people employ and express themselves physically, cognitively, emotionally andmentally during role performances” By This reason this study also analyzes relatedmediation factors to support to the relation of Perceived Organizational Support on JobPerformance.

As we know that there is little theory or empirical observation accounts for the role ofperceived organizational support, engagement as a means through which organizationscan create competitive advantage In particular, not many researches examine the role

of engagement as mechanism that links employee characteristic and organizationalfactors to job performance This can be explained why the situation is the same in VietNam, not many research and specific study on the Perceived Organizational Supportand Job Performance Also, almost no research and no specific study on the PerceivedOrganizational Support and Job Performance in Viet Nam The majority oforganizations in Viet Nam has not yet invested interest and improves their system ofhuman resource management in this specific area

Due to this reason, the topic we choose for our thesis is studying “The Impact ofPerceived Organizational Support on Job Performance, the Mediation of JobEngagement - A Study of Commercial Banks in Viet Nam By this study, we willexpect to find out solution on how to improve manpower resource management incommercial banks in Viet Nam, especially solutions relating to factors affecting theimpact of Perceived Organizational Support on Job Performance, the Mediation role ofJob Engagement in Commercial Banks in Viet Nam For the result, the study isexpected to explain how bank community should respond to challenges of humanresource so as to get satisfactory staff’s performance and satisfactory business outcomethrough the factors of Perceived Organizational Support and Job Engagement

1.2 Purpose of the research

The purpose of this research is to study the impact of Perceived OrganizationalSupport on Job Performance and related mediation factors to the relation of POS–JobPerformance (JB) in commercial banks in Viet Nam, specifically:

- Offer measures to improve the impact of perceived organizational support to job performance in banks in Viet Nam, help banks to improve business performance and enhance their ability to attract, motivating, satisfying and keep qualified employees, encourage the employee to work in an effective way.

1.3 Questions of the research

With the above mentioned background, there arise question required to be studied so

as to have solution as follows:

1 What is the common relationship between perceived organizational support and job performance in commercial banks in Viet Nam?

2 Which factors can be applied to improve the impact of perceived organizationalsupport and job performance in commercial banks in Viet Nam, which are key factors?

3 Can the improvement of relation of perceived organizational support and jobperformance promote and develop competitive advantage and performance outcome of commercialbank in Viet Nam?

1.4 Scope of the research

Study subjects: staffs and managers of commercial banks in Vietnam

Since HR Management is a very broad research theme, this research only focuses onstudying scientific basis to help managers understand the factors that relationshipbetween perceived organizational support and job performance so that they canimplement these tools in banks This research is limited in the scope of the Impact of

Perceived Organizational Support on Job Performance, related Mediation of JobEngagement (PE) in commercial banks in Viet Nam

1.5 Framework of the study

Introduction Research problem

Research questions Research objectives

Literature review Hypothesis

Empirical model Data collection Descriptive statistic Data analysis Conclusion, recommendation and limitation

CHAPTER 2: LITERATURE REVIEW

Chapter 2 is to review theories of Perceived Organizational Support on JobPerformance and related mediation factors to the relation of POS–Job Performance(JB) including Physical engagement (PE), Emotional engagement (EE), Cognitiveengagement (CE), and Job performance (JB) This Chapter also presents relatedtheories, antecedent researches; hypothesis development and proposed research model.Most of the research in Organizational behavior has been concerned with threeattitudes: job satisfaction, job involvement, and organizational commitment Otherattitudes are also attracting attention from the researchers, including perceivedorganizational support (POS) and employee engagement In our research we

concentrate in studying the relation of organizational support, employee engagementand job performance in the context of commercial bank in Viet Nam:

2.1 Perceived organizational Support (POS):

As one of definition, POS is the degree to which employees believe that theirorganization values their contributions and cares about their well-being (Eisenberger,Huntington & Sowa, 1986; Rhoades & Eisenberger, 2002)

POS is generally thought to be the organization’s contribution to a positive reciprocitydynamic with employees, as employees tend to perform better to pay back POS(Rhoades & Eisenberger, 2002) Research on perceived organizational supportobserved if managers are concerned with their employees’ commitment to theorganization, employees are focused on the organization’s commitment to them Foremployees, the organization serves as an important source of socioemotionalresources, such as respect and caring; and tangible benefits, such as wages and medicalbenefits Being regarded highly by the organization helps to meet employees’ needsfor approval, esteem, and affiliation Positive valuation by the organization alsoprovides an indication that increased effort will be noted and rewarded Employeestherefore take an active interest in the regard with which they are well taken care of bytheir employer

Organizational support theory (OST: Eisenberger, Huntington, Hutchinson, & Sowa,1986; Rhoades & Eisenberger, 2002; Shore & Shore, 1995) indicated that in order tomeet socioemotional needs and to assess the benefits of increased work effort,employees form a general perception concerning the extent to which the organizationvalues their contributions and cares about their well-being Such perceivedorganizational support (POS) would increase employees’ felt obligation to help theorganization reach its objectives, their affective commitment to the organization, andtheir expectation that improved performance would be rewarded Behavioral outcomes

of POS would include increases in in-role and extra-role performance and decreasesunexpected outcome and behaviors from employees

Although there were relatively few studies of POS until the mid 1990’s, research onthe topic has developed in the last few years Rhoades and Eisenberger’s (2002) meta-analysis covered some 70 POS studies carried out through 1999, and over 300 studies

have been performed since The meta-analysis found clear and consistent relationships

of POS with its predicted antecedents and consequences

Recent research of David R Hekman and colleagues (2009) found that professionalemployees were more likely to reciprocate POS when they strongly identified with theorganization Indeed, such workers' organizational identification and professionalidentification combined to influence performance behaviors The results suggested thatPOS had the most positive influence on professional employees' work performancewhen employees strongly identified with the organization and weakly identified withthe profession

2.2 Job engagement (JE)

Job engagement has seen dramatic growth in research interest over the past few years.Briefly, work engagement can be defined as a positive, fulfilling state of mind, mostcommonly characterized by vigour, dedication, and absorption (Jonathon R.B.Halbesleben and Anthony R.Wheeler, 2008) Job embeddedness is defined as ‘‘thecombined forces that keep a person from leaving his or her job’’ (Yao, Lee, Mitchell,Burton, & Sablynski, 2004, p 159)

“Work engagement is defined as a positive, fulfilling, work-related state of mind that

is characterized by vigor, dedication, and absorption” (Schaufeli, Salanova, Gonza´lez– Roma and Bakker, 2002, p 74)

Kahn, W A (1990) was the first scholar to define “personal engagement” as theharnessing of organization member’s selves to their work roles: in engagement, people

employ and express themselves physically, cognitively, emotionally and mentally

during role performances Kahn (1900) theorized that there is a unique aspect ofhuman aganency that functions in a moreholictic, consistence and connected manner

To be engage in a job not just being cognitive attentive to the job, or feeling andexpressing emotions on the job, or doing specific job tasks simply for the sack of

doing them Instead, engagement reflects the simultaneous investment of cognitive,

emotional, and physical energies in such a way that one is actively and completely

involved in the full performance of a role

Besides, there are others views relating to definition of work engagement, in which aretwo different schools of thought as follows: on the one hand Maslach and LeiterMaslach, C., Jackson, S.E., & Leiter, M (1997) assume that a continuum exists with

burnout and engagement as two opposite poles The second school of thoughtoperationalizes engagement in its own right as the positive antithesis of burnout asstated by Bakker, A.B., Demerouti, E (2007) According to this approach, workengagement is defined as a positive, fulfilling, work-related state of mind that ischaracterized by vigor, dedication, and absorption Vigor is characterized by highlevels of energy and mental resilience while working, the willingness to invest effort inone’s work, and persistence even in the face of difficulties; dedication by beingstrongly involved in one's work, and experiencing a sense of significance, enthusiasm,inspiration, pride, and challenge; and absorption by being fully concentrated andhappily engrossed in one’s work, whereby time passes quickly and one has difficultieswith detaching oneself from work

Measures of engagement:

A measure that was constructed and validated by Schaufeli, Salanova, Gonzalez-Romaand Bakker (2002), called the Utrecht Work Engagement scale, is often administered

to assess engagement (Salanova, Agut,& Peiro, 2005)

The first subscale, vigor, is represented by five items and reflects elevated levels ofenergy, resilience, and persistence The second subscale, dedication, is alsorepresented by six items and corresponds to a sense of purpose, enthusiasm,inspiration, pride, and challenge at work The third subscale, absorption, represents theextent to which individuals are absorbed in their work

Engagement measures derived from the work of Kahn

Rich, Lepine, and Crawford (2010) develop a measure of engagement that moreexplicitly assesses the three dimension of engagement that were defined by Kahn

(1990, 1992): the investment of physical, emotional, and cognitive energy into the

task at work

First, to represent physical engagement, Rich, Lepine, and Crawford (2010) adapted

items from a measure of work intensity, developed by Brown and Leigh (1996) This

subscale comprised six items, such as "I work with intensity on my job" Second, to

represent emotional engagement, a set of items were derived from a measure that was

utilized by Russell and Barrett (1999), entailing two dimensions: positive or pleasantfeelings and a sense of energy or activation In particular, each item refers to the extent

to which individuals perceive their job as both pleasant and energizing This subscale

also comprised six items, such as "I am excited about my job" Third, to represent

cognitive engagement, items developed by Rothbard (2001) were adapted to assess the

degree to which individuals felt both focused as well as engrossed in their work Oneexample of these six items is "At work, I am absorbed by my job"

Other measures of engagement:

Other measures of engagement comprise only one main factor Peterson, Park, andSeligman (2006), for example, developed a measure of engagement that primarilyseems to represent absorption They conceptualized engagement, together withmeaning and pleasure, as the three factors that underpin happiness Harter, Schmidt,and Hayes (2002) developed a measure, comprising 12 items, that assesses one facet,but defined more broadly They defined engagement as the perception thatexpectations are clear, the job is significant, colleagues are trustworthy, and thepotential to develop is strong

Other views are also available Following Maslach, Jackson, & Leiter (1996) ifengagement is conceptualized as the converse of burnout, the Maslach BurnoutInventory is sometimes administered Cf., Maslach & Leiter 1997 (2008) indicates thatlow levels of exhaustion and cynicism as well as elevated levels of efficacy areassumed to manifest engagement Indeed, research indicates that vigor and exhaustionseem to represent opposite poles of one dimension; similarly, dedication and cynicismrepresent opposite poles of one dimension (Gonzalez-Roma, Schaufeli, Bakker, &Lloret, 2006) The Oldenburg Burnout Inventory (Demerouti, Bakker, Nachreiner, &Ebbinghaus, 2002) is sometimes preferred instead, because the scale includes bothpositively and negatively worded items, more applicable to engagement

Due to the importance role of job engagement, by this study we aim to prove the role

of job engagement, as a mediator (including cognitive, emotional and physicalengagement), between POS and job performance

2.3 Job performance

Motowidlo, Borman, and Schmit (1997, p.73) stated that, “as a construct, performance

is behavior with an evaluative component, behavior that can be evaluated as positive

or negative for individual or organizational effectiveness.”

Following Conway, Motowidlo & Schmit (1999), Motowidlo et al (1997), twospecific types of job performance in the form of work performance are taskperformance, which relates to the pursuit of activities described in the formal jobdescription which bears a direct relationship to the organization’s technical core; andcontextual performance, often referred to as organizational citizenship behaviors(OCB) and which does not contribute through the organization’s core technicalprocesses

Among the most commonly accepted theories of job performance comes from thework of John P Campbell and colleagues Coming from a psychological perspective,Campbell describes job performance as an individual level variable Campbell definesperformance as behavior It is something done by the employee Campbell allows forexceptions when defining performance as behavior He clarifies that performance doesnot have to be directly observable actions of an individual It can consist of mentalproductions such as answers or decisions However, performance needs to be under theindividual's control, regardless of whether the performance of interest is mental orbehavioral

Dennis Organ (1988) is generally considered the father of OCB (Organizationalcitizenship behavior) According to Organ, OCB refers to as behaviors exhibited byemployees that are supportive, discretationary, and go beyond normal jobrequirements Organ (1988) defines OCB as “individual behavior that is discretionary,not directly or explicitly recognized by the formal reward system, and that in theaggregate promotes the effective functioning of the organization” (p 4) Organ’sdefinition of OCB includes three critical aspects that are central to this construct First,OCBs are thought of as discretionary behaviors, which are not part of the jobdescription, and are performed by the employee as a result of personal choice Second,OCBs go above and beyond that which is an enforceable requirement of the jobdescription Finally, OCBs contribute positively to overall organizationaleffectiveness The word discretionary, according to Organ (1988) means that behavior

is not a requirement of formal job description OCB is a matter of individual choiceand failure to exhibit that the behavior is not generally considered as cause for penalty.What is important is that these examples describe behaviors which are helpful to theorganization, yet they are not behaviors considered part of the core elements of the job

2.4 Related theories and antedent researches

2.4.1 Relationship of POS- Job performance and role of mediators

Perceived organizational support, a concept that reflects the type of support Kahn(1990) discussed, develops through employee interactions with organizational agentssuch as supervisors and reflects employees’ beliefs concerning the extent to which theorganization they work for values their contributions and cares about their well-being(Eisen- berger, Huntington, Hutchison, & Sowa, 1986) Employees who perceive highorganizational support have positive expectations concerning the organization’s likelyreaction to employees’ contributions as well as their mistakes, and thus they have lessreason to fear unexpected consequences for their self-images, statuses, or careers as aresult of investing themselves fully into their work roles (Edmondson, 1999) Whenperceived organizational support is low, employees are unsure of what to expect, fearthat they may suffer for their personal engagement, and choose to guard their selves bywithdrawing from their roles (Kahn, 1990) This reasoning is consistent with researchshowing positive relationships between perceptions of various forms of support in anorganization and conceptualizations of job engagement similar to Kahn’s (e.g.,Bakker, Demerouti, & Schaufeli, 2005; Nembhard & Edmondson, 2006; Saks, 2006).`

Following research of Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel,Patrick D Lynch, and Linda Rhoades, uiversity of Delaware (2001) By manage asurvey of four hundred thirteen postal employees regarding reciprocation's role in therelationships of perceived organizational support (POS) with employees' affectiveorganizational commitment and job performance The authors found that

(a) POS was positively related to employees' felt obligation to care about theorganization's welfare and to help the organization reach its objectives; (b) felt obligation mediatedthe associations of POS with affective commitment, organizational spontaneity, and in-roleperformance; and (c) the relationship between POS and felt obligation increased with employees’acceptance of the reciprocity norm as applied to work organizations The pattern of findings isconsistent with organizational support theory's assumption that POS strengthens affectivecommitment and performance by a reciprocation process

2.4.2 Related theories to concepts of POS, JE, JP:

Early theories of motivation, satisfaction and antecedent researches prove significantrelation among motivation with Perceived organizational support (POS), Jobengagement (JE) and Job performance (JP) Properly manipulating the tools of Jobmotivation, satisfaction will help to inmprove POS, PE and JP Research result ofResearch of Bruce Louis Rich and Jeffrey A Lepine, Eean R Crawford (2010) showedmediation roles of Job engaement and Job satisfaction in the relation of POS and Jobperformance

Roles of motivation, satisfaction to POS, JE, JP can be seen in the following contents:

- Motivation:

Motivation is one of the most frequently research topics in organizational behavior(OB) Many research prove that motivation play important role to improve employee’sengagement, retention, commitment, job satisfaction; effective support of theorganizations to employees; reducing employee turn-over…

Motivation is defined as the process that account for an individual’s intensity, directionand persistence of effort toward attaining a goal (T.R Michell, 1997) In the 1950sthree specific theories were formulated which significantly affect, even now in term ofvalidity They still the best-known explanation for employee motivation They are theHierachy of need theory of Maslow (1943), theories X and Y and Herzberg two factortheory (1959)

Beside the above early theories of motivation, other theories were recognized as basisfor studies and researches, providing us the theoretical basis to prove relation amongfactors of HR management, especially the relation among job performance,motivation, engagement, retention, commitment, job satisfaction, turnover, andsupport of the organizations to employees They are ERG Theory of Alderfer (1969),McClelland’s theory of needs (1988), as we mention hereunder

relation with satisfactory, and thus having relation with job satisfaction and job performance,organizational citizenship behavior (OCB) (Stephen P.Robbins and Timothy A.Hudge, 2007)

Job satisfaction definition: Job satisfaction can be defined as a positive feeling about

one’s job resulting from an evaluation of its characteristics A person with a high level

of job satisfaction hold positive feeling about the job, while the other person who isdissatisfied holds negative feeling about the job (Stephen P Robbins and TimothyA.Hudge, 2007)

Job satisfaction and Job performance (JP) : A review of 300 studies suggests that the

correlation between job satisfaction and job performance is pretty strong Whensatisfactory and proclivity date are gathered for organization as a whole, we find thatorganizations with more satisfied employees tend to be more effective thanorganization with fewer satisfied employee (T A Judge, C J Thoresen, J.E Bono, andG.K Patton, 2011)

- Hierachy of need theory of Maslow (1943)

It can say that the most well-known theory of motivation is Abraham Maslow’sHirachy of Needs Following Maslow, within every human being there is existence ahierarchy of five needs These needs are:

o Physiological: Includes hunger, thirst, shelter, sex, and other body needs

o Safety: Include security and protection from physical and emotional harm

o Social: Includes affection, belongingness, acceptance, and friendship

o Esteem: includes internal esteem factors such as self-respect, autonomy, andachievement; and external esteem factors such as status, recognition, and attention

o Self-actualization: The drive to become what one is capable of becoming, including growth, achieving one’s potential, and self-fulfillment

As each of these needs becomes substantially satisfied, the next becomes dominant.Maslow separated the five needs into higher and lower orders Physiological and safetyneeds were describe as low-order-needs and social, esteem, and self-actualization ashigher-order needs

Emphasis on growth or higher order needs of A Maslow social needs (affection,friendship, acceptance, belongingness in group), esteem ego needs (status, recognition,

respect, ect.) and actualization needs (growth, achieving one’s potential,

self-fulfillment ect.)

The differentiation between the two orders was made on the premise that higher-order

needs are satisfied internally (within a person), whereas lower-order needs are

predominantly satisfied externally (by things such as pay, union contracts and tenure)

- Herzberg two factor theory (1959)

The two factor theory also called motivation-hygiene theory was proposed by

psychologist Two factor theory Frederick Herzberg theorized that employee

satisfaction depends on two sets of issues - Two dimensions of employee satisfaction:

"hygiene" issues and motivators Once the hygiene issues have been addressed, he

said, the motivators create satisfaction among employees

According to Herzberg, hygiene issues, cannot motivate employees but can minimize

dissatisfaction, if handled properly In other words, they can only dissatisfy if they are

absent or mishandled Hygiene topics include company policies, supervision, salary,

interpersonal relations and working conditions They are issues related to the

employee's environment Motivators, on the other hand, create satisfaction by fulfilling

individuals' needs for meaning and personal growth They are issues such as

achievement, recognition, the work itself, responsibility and advancement Once the

hygiene areas are addressed, said Herzberg, the motivators will promote job

satisfaction and encourage production

Hygiene issues (dissatisfies) Motivators (satisfiers)

- Company and administrative policies - Work itself

- Theory X and Theory Y (1960)

Theory X and Theory Y is theory of human motivation McGregor developed a

philosophical view of humankind with his Theory X and Theory Y in 1960 His work

is based upon Maslow's Hierarchy of Needs, in that he grouped the hierarchy into

lower-order needs (Theory X) and higher-order needs (Theory Y) He suggested that

management could use either set of needs to motivate employees, but better resultswould be gained by the use of Theory Y, rather than Theory X These two opposingperceptions theorized how people view human behavior at work and organizationallife:

Theory X: With Theory X assumptions, management's role is to coerce and control

employees

Theory Y: With Theory Y assumptions, management's role is to develop the potential

in employees and help them to release that potential towards common goals

- ERG Theory of Alderfer (1969)

Clayton Alerfer attempt to rework Maslow’s needs hierarchy to align in more closelywith empirical research.Alderfer argued that there are three groups of core needs-existence (similar to Maslow’s physiological and safety needs), relatedness (similar toMaslow’s social and status needs), and growth (similar to Maslow’s esteem needs andself-actualization)

Unlike Maslow’s theory, ERG does not assume that there exists a rigid hierarchy inwhich lower-needs must be substantially gratified before one can move on

- McClelland’s theory of needs (1988)

McClelland’s theory of needs developed by David McClelland The theory focuses onthree needs: Achievement, power, and affiliation They are defined as follows:

o Need of achievement: the drive to excel, to achieve in relation to a set of standard, to strive to succeed

o Needs of power: The need to make others behave in a way that they would not have to behave otherwise

o Need for affiliation: The desire for friendly and close interpersonal relationship

Content of theories - a comparison

Physiological

(Source: Bowduch & Buono, 65 – 70, Schein, P 93 )

In brief: Satisfaction of employees’ needs help to improve motivation Depending on

the extents, levels of employees’ satisfaction coming from the interaction between

employers and employees, from the support of employer to employees, there will

result outcomes of compatible engagement, job performance and perceived

organization support

(2010) and of Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel, Patrick D Lynch (2011)

This research proved the relation of the related factors which are the basis for this

study to develop in the context of Viet Nam, especially in the community of

commercial banks, specifically as follows:

Research of Bruce Louis Rich and Jeffrey A Lepine, Eean R Crawford (2010) found

the relation of POS-Job performance, and also the mediators of Job engagement beside

other relations

Patrick D Lynch (2011):

This research found POS to be positive related to affective commitment, performance

Also felt obligation and positive mood was found as mediators of POS- Outcome

relation

1 Hypothesis 1A: Perceived organizational support is positively related to Physical engagement.

2 Hypothesis 1B: Perceived organizational support is positively related to cognitive engagement.

3 Hypothesis 1C: Perceived organizational support is positively related to Emotional engagement.

2.5.2 Hypothesis for the relation of Perceived organizational support (POS) - Job Performance (JP)

Following Eisenberger, Huntington, Hutchinson, & Sowa, 1986; Rhoades &Eisenberger, in order to meet socioemotional needs and to assess the benefits ofincreased work effort, employees form a general perception concerning the extent towhich the organization values their contributions and cares about their well-being.Outcomes of POS would include increases in in-role and extra-role performance (Jobperformance) and decreases unexpected outcome and behaviors from employees Suchperceived organizational support (POS) would increase employees’ felt obligation tohelp the organization reach its objectives Developed from these reasons, the

2.5.3 Hypothesis for the relation of Job Engagement (JE) - Job Performance (JP)

Following Kahn, W A (1990) “Personal engagement” as the harnessing oforganization member’s selves to their work roles Engagement reflects thesimultaneous investment of cognitive, emotional, and physical energies in such a waythat one is actively and completely involved in the full performance of a role Theinvestment of engagement factors (physical, emotional, and cognitive) energy into thetask at work For these reason the hypothesis for the relation of Job engagement -JobPerformance is as follows:

5 Hypothesis 2A: Physical engagement is positively relate to Job Performance.

6 Hypothesis 2B: Cognitive engagement is positively relate to Job Performance.

7 Hypothesis 2C: Emotional engagement is positively relate to Job

Performance.

2.5.4 Hypothesis for the mediation role of Job engagement (JE)

POS strengthens affective commitment and performance by a reciprocation process(Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel, Patrick D Lynch, andLinda Rhoades, University of Delaware, 2001) Following Kahn (1990, 1992), theinvestment of physical, emotional, and cognitive energy into the task at work By thisway it can be seen that engagement plays mediation role in the associations of POSwith job performance The hypothesis for mediation role of engagement is as follows:

8 Hypothesis 3A: Physical engagement positively meditates the relationship between Perceived organizational support and Job Performance.

9 Hypothesis 3B: Cognitive engagement positively meditates the relationship between Perceived organizational support and Job Performance.

10 Hypothesis 3C: Emotional engagement positively meditates the relationship between Perceived organizational support and Job Performance.

*Research model

All the above hypothesis are summarized in the following model

Picture 1 Research model and hypothesis

The Impact of Perceived Organizational Support on Job Performance,

the Mediation of Job

Engagement A study of Commercial Banks in Viet Nam.

Emotional engagement.

CHAPTER3: RESEARCH METHODOLOGY

This chapter is to describe methodologies for this research including: research design,questionnaire development, data collection, method of data analysis based on the

results of the above mentioned literature review chapter In addition, in this chapter westate theories relating to variables, constructs proposed in our research model.

3.1 Research design:

3.1.1 The approach to research in this study is quantative research.

“In quantitative research your aim is to determine the relationship between one thing(an independent variable) and another (a dependent or outcome variable) in apopulation Quantitative research designs are either descriptive (subjects usuallymeasured once) or experimental (subjects measured before and after a treatment) Adescriptive study establishes only associations between variables An experiment

establishes causality” (Will G Hopkins 2000)

For accurate estimate of the relationship between variables, our descriptive studyneeds a sample of 200 subjects To express the relationship between variable we useeffect statistics, such as correlations, relative frequencies, or differences betweenmeans

3.1.2 The quantative methology is a cross-sectional survey:

In quantitative research, the study aim is to determine the relationship between onething (an independent variable) and another (a dependent or outcome variable) in apopulation Quantitative research designs are either descriptive (subjects usuallymeasured once) or experimental (subjects measured before and after a treatment) Adescriptive study establishes only associations between variables An experimentestablishes causality.( http://www.sportsci.org/jour/0001/wghdesign.html)

Cross-sectional studies (also known as cross-sectional analyses or transversal studies)

form a class of research methods that involve observation of all of a population, or arepresentative subset, at one specific point in time Cross-sectional studies aredescriptive studies, it can be used to describe, not only the Odds ratio, but alsoabsolute risks and relative risks from prevalence (sometimes called prevalence risk

ratio, or PRR) (Carsten Oliver Schmidt, Thomas Kohlmann, 2008, James Lee, 1994).

Cross-sectional surveys are used to gather information on a population at a single point

in time An example of a cross sectional survey would be a questionnaire that collectsdata on how parents feel about Internet filtering, as of March of 1999 A differentcross-sectional survey questionnaire might try to determine the relationship between

two factors, like religiousness of parents and views on Internet filtering (Babbie, Earl

R Survey Research Methods Belmont, CA: Wadsworth Pub Co., 1973.)

This study is carried out through quantitative research methology in the form of sectional survey Cross-sectional survey are a positive methodology designed to obtaininformation on variables in different contexts, in which variables of interest in asample of subjects are assayed once and the relationships between them aredetermined Different banks and groups of people selected in this study and beconducted to ascertain how factors differ Banks mentioned in this study arecommercial banks in Viet nam from different areas from the North to the South

cross-After survey data is conducted, statistical test is conducted to find out correlationbetween variables This step is mentioned in the data analysis step

3.2 Questionnaire development

Data collection relies on questions as vehicle for extracting the primary research data

are developed with respect to the general rules for questionnaire designing as follows:The questionnaire development is the key step to set up measuring scale for the study

In this study, questionnaire, scales development is designed based on antecedentresearches of:

+ Bruce Louis Rich (California State University SanMarcos) and Jeffrey A Lepine, Eean R Crawford (University of California) (2010)

+ Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel, Patrick D Lynch, and Linda Rhoadesm, (University of Delaware) (2001)

Also, in this study, two mini group discussions were conducted In the first discussion,four bank experts including two branch directors and two managers from asSacombank, Saigonbank, Agribank, VinaSiam Bank were invited The purpose of thisstep is to examine the clarity the instrument and to be sure that all survey questionswere clear in meaning and sufficient to cover the research matter in reality, from theperspective of a banking professional Some amendments were made after suggestionsfrom bank managers

The other discussion was conducted with the participation of 4 banking staff in HRand banking management in commercial banks such as Sacombank, Saigonbank,Agribank, VinaSiam Bank The purpose of this step was the same as that of the firstdiscussion, but in this case from the staff’s perspective with reference to the actualsituation of banking sector of Vietnam and working environment, practice of Vietnam.Some questions were adjusted on the recommendation of the participants, for example,

to make the terms in the questionnaire more concrete and less negative Officialquestions were deliberately selected for the study; those unnecessary questions weretaken away

Final questionnaire check was implemented with a group of HR staff working inbanks

As mentioned in this study, the study model consists of 5 constructs including: The Perceived organizational support (01 construct), Job Engagement (03 constructs) and Job performance (01 construct), in which the components of each construct are

listed as follows:

i The Perceived organizational support scale consists of 6 items as follows

POS.1 The Bank takes pride in my accomplishmentPOS 2 The Bank really cares about my well-beingPOS 3 The Bank strongly considers my goals and valuesPOS 4 The Bank strongly considers my goals and valuesPOS 5 The Bank shows high concerned for me

POS 6 The Bank is willing to help me if I need a special favor

ii. The Physical engagement scale consists of 5 items as follows PE 1 I work with

intensity of my job

PE 2 I exert my full effort to my job

PE 3 I devote a lot of my energy to my job

PE 4 I try my hardest to perform well on my job

PE 5 I try as hard as I can to competes my job

iii. The Emotional engagement scale consists of 6 items as follows EE.1 I am

enthusiastic in my job

EE.2 I am energic at my job EE.3 I am interested in my job EE.4 I am proud of my job EE.5

I feel positive about my job EE.6

I am excited about my job

iv The Cognitive engagement scale consists of 4 items as follows

CE.1 At work, my mind is focus on my jobCE.2 At work, I focus a great deal of attention on my job

CE.3 At work, I am absorbed my jobCE.4 At work, I concentrate on my job

v The Job performance scale consists of 4 items as follows

JP 1 I meet formal performance requirements of the job

JP 2 I fulfill responsibilities specified in job description

JP 3 I perform tasks that are expected to me

JP 4 I adequately complete assigned duties

3.3 Translation of the questionnaires

The first draft of questionnaire was developed in English It was then translated intoVietnamese During the translation, some references to previous researches of POSand job performance with mediators in Vietnam market have been made to improvethe reliability and consensus of the items

The questionnaire is translated into Vietnamese for all of the people we contact to getinformation are Vietnamese, also by translation into Vietnamese it can ensure that thecontents of the questionnaires are fully conveyed to the answerers.

The final version of questionnaire was made in Vietnamese (Appendix 1) and then wastranslated back into English (Observed variables)

Steps of translation:

- Questionnaire development in English

- Questionnaires reference from previous researches

- Self transudation from English to Vietnamese

- Getting translation check from the official translator

- Translation from Vietnamese to English for checking

- Final version of questionnaire made in Vietnamese

3.4 Variable Control:

Because the data was delivered from self-rating, it was important to control potentialbiasing the influences (Bommer, Dierdoff, & Rubin, 2007) Bias affects research inmany ways It can alter how subjects are selected for a study, it can alter how theresearcher views data, and it can certainly lead to researchers excluding data whichnegates their hypothesis

Variables in this study were generated based on previous studies that were discussed

in the literature review, consultancy of experts and managers in HR and bankingmanagement Variables for final analysis in this study are quantitative variables; beingdivided into independent, dependent, mediation factors, specifically: 1 Perceivedorganizational support, 2 Job performance The relationships among these variables

are measured through three mediation variables: 3 Physical engagement, 4 Emotional engagement, 5 Cognitive engagement.

To support variables control and to ensure accurate estimate of the relationshipbetween variables, it is necessary to select an appropriate and satisfactory sample, not

biased and can be representative of the population from which is drawn To ensure theestimate of the relationship is less likely to be biased, we respect a high participationrate in a sample selected randomly from a population Appropriate measurementscales a r e u sed for this study, specifically a pool of 35 candidate scale items toreflect relation mentioned were selected with a seven-point Likert scale, which rangesfrom 1-strongly disagree to 7-strongly agree, was used in this study

In this study, as an indispensable tool for potential biasing control and for dataanalysis, reliability statistics by Cronbach’s Alpha (Hair et al, 1998, Segar, 1997) isapplied to test

3.5 The pilot study

A pilot experiment, also called a pilot study, is a small scale preliminary studyconducted in order to evaluate feasibility, time, cost, adverse events, and effect size(statistical variability) in an attempt to predict an appropriate sample size and improveupon the study design prior to performance of a full-scale research project (Hulley,Stephen B Designing Clinical Research Lippincott Williams & Wilkins, 2007, p.168-

169).

Pilot study is usually carried out on members of the relevant population, but not onthose who will form part of the final sample This is because it may influence the laterbehavior of research subjects if they have already been involved in the research(Haralambos and Holborn 2000, p.998)

Pilot studies applied based on quantitative and qualitative methods, starting with

"qualitative data collection and analysis on a relatively unexplored topic, using theresults to design a subsequent quantitative phase of the study" (Tashakkori & Teddlie1998) The first phase of a pilot involves using in-depth interviews or focus groups toestablish the issues to be addressed in a large-scale questionnaire survey Next thequestionnaire, e.g the wording and the order of the questions, or the range of answers

on multiple-choice questions, are piloted A final pilot is conducted to test the researchprocess, e.g the different ways of distributing and collecting the questionnaires

Pilot study also aims to identify potential practical problems and improve the internalvalidity of a questionnaire

In this study the steps used to pilot a questionnaire are applied on small group ofperson who are experts in the field of this study (HR Management, Bankingmanagement) and similar to the target population In this study, HR Directors,managers of Banks are person to be contacted for pilot study for they can providedifferent and diversified perception opinion.

Banks we aim to manage pilot study are Vinasiam bank-the bank I am working formore than 10 years, other banks are Sacombank, Saigonbank, Agribank Person wecontact for pilot study are HR managers, HR seniors staff of these banks The pilotstudy will be made separately from bank to bank, from person to person and the resultwill be collected final selection

3.6 Target population

The target population is the population of individuals which we are interested indescribing and making statistical inferences about (Johan Hedal, Susie Jentoft 2011).The target population is the entire group that we are interested in; the group aboutwhich we wish to draw conclusions Target population for a survey is the entire set ofunits for which the survey data are to be used to make inferences (Cox and Cohen1985) Thus, the target population defines those units for which the findings of thesurvey are meant to generalize Establishing study objectives is the first step indesigning a survey, and defining the target population is the second step

Details of target population of this study:

- Geographical area: Ha Noi Capital, Da Nang City, Dong Nai Province, Binh Duong Province Ho Chi Minh City

- Gender: male and 55 female

- Education: College / vocational degree, university degree and higher levels

- Position: staff, experts, senior staff, Deputy Directors, Managers, Deputy managers

- Eligibility: functional employees, mangers who are working for Sacombank, Saigonbank, Agribank, Vinasiam bank

3.7 Sample size:

As mentioned above, this study exam the impact of perceived organizational support

on Job performance, the mediation of job engagement- a study of Commercial Banks

in Viet Nam The study was carried out through quantitative research methods Thequestionnaire survey was used to directly interview the subjects from a sample size of

200 person who are working in commercial banks in Viet Nam

According to Donald & Pamela (2003), a good sample should satisfy both accuracyand precision On the one hand, it should bring little or no systematic bias in variance,and on the other, the sampling error should fall within acceptable limits for the study’spurpose

There is no consensus in the literature on how large the sample size should be torepresent a population A host of formulas to calculate the sample size are provided,but they are not easy to apply The sample size is determined by the level of precisionand confidence desired in estimating the population parameters, as well as thevariability in the population itself (Canava et al., 2001)

The sample size for this study was intended to be 200 (equal 8 times of observedvariables) This number was decided after considering some previous researches Forexample, see Tho & Trang (2008, p.35) or Trong & Ngoc (2005, p 263) To obtain thedesired sample size, a total of 300 self-administered questionnaires were distributed tothe respondents by bank employees Of these, 250 questionnaires were returned; ofwhich 50 were useable, making effective response rate 47.2%

3.8 Selecting the sample and collecting data

The basic idea of sampling is that by selecting some of the elements in a population wemay draw conclusions about the entire population Some considerations for selectingthe scope and methodology for sampling are cost, the accuracy of results, the speed ofdata collection and the availability of population elements (Donald & Pamela, 2003).The first step in sampling is that the population should be correctly defined Apopulation is the total collection of elements from which we wish to draw someconclusion

After identifying the population, researchers will choose an appropriate samplingmethod basing on either requirements of the project, their objective or budget

available Two most common sampling techniques are probability sampling and probability sampling.

non-Steps of sample selection: Define target population > Construct sampling frame >Determine how to select sample members > decide how to covert sample estimatesinto population estimates

In this study, the population for it is limited to staff working in commercial banks inViet Nam However, it is impossible to identify all the customers that make up thewhole population, or to establish a sampling frame that includes a large proportion ofthe population Due to the tremendous limitations of time, budget and knowledge; thisstudy uses a non-probability sampling technique, specifically, convenience sampling.This is one of the least reliable sampling techniques, but it is the cheapest and easiest,and is the most feasible for this study Sample method in this study is non-probabilitysampling The sample selected includes 200 person who are HR managers, bankingemployees from Head office and branches of Sacombank, VinaSiam Bank, Agribank.Interviewers can interview any staff who agrees to take part in the interview

Selecting an appropriate and satisfactory sample will help to support variables control,avoiding error in measurement which can lead to false in study result As wementioned above, it is important to ensure that the sample is not biased and berepresentative of the population from which is drawn The estimate of the relationship

is less likely to be biased if we have a high participation rate in a sample selectedrandomly from a population To ensure the sample is not bias, sample selection in thisstudy was implemented based on the following principles:

- Selection bias: Avoiding this bias by ensuring that select samples can present for the population of the study

- Confounding: subjects of the study are separated into different group to ensure no confounding

- Information bias: Scale applied for different group must be utility

Data collection: Data for this study was collected by using a survey technique Surveytechnique “provides a quick, efficient and accurate means of assessing information on

a population, especially in the case of a lack of secondary data” (Zikmund, 1997)

3.9.2 Normal Distribution Examining

With a sample size of N = 200, if Skewness and kurtosis of measured variablesdistributed in the interval (-2, +2) the data can be considered to meet the suggested cut-off for normal distribution

3.9.3 Reliability of scale

In statistics, reliability is the consistency of a measure A measure is said to have a high reliability if it produces consistent results under consistent conditions.

+ Reliability Statistics by Cronbach’s Alpha (Hair et al, 1998, Segar, 1997)

Cronbach's (Alpha 1951) is a coefficient of reliability It is commonly used as ameasure of the internal consistency or reliability of a psychometric test score for asample of examinees

In this study, to measure the impact of Perceived Organizational Support on JobPerformance, the Mediation of Job Engagement, this study adapt the scale developed

by Bruce Louis Rich (2010) and Robert Eisenberger, Stephen Armeli, BarbaraRexwinkel, Patrick D Lynch, and Linda Rhoadesm (2001) Some complement andelimination have been done after discussion with the bank experts and staff in groupdiscussion to ensure the conformity with context of commercial banks in Viet Nam,local culture and others concerned

3.9.4 Confirmatory factor analysis (CFA) & Structural equation modeling (SEM)

Confirmatory factor analysis (CFA) is conducted for measurement instrument with Amos 16 When the measurement model is ensured to describe the sample data

adequately (i.e., model fitting), it is more confident in findings related to the

assessment of the hypothesized structural model (Byrne, 2001)

SEM is one of the most complex and flexible technique to analyze casual relationmodel (Structural Equation Modeling) using a combination of statistical data andqualitative causal assumptions SEM has been widely used in many fields includingmanagement (Tharenou, Latimer and Conroy, 1994)

The nessessity to apply SEM for the research: SEM model combines all techniques

such as multi-variable regression, reciprocal relationship analysis (between factors in amodel) which allow us to estimate complex relation in a model SEM is known asanalysis of covariance structures, or causual modeling, a combination of factoranalysis and multiple regressions The variables in SEM are measured (observed,manifest) variables (indicators) and factors (latent variables) SEM can be divided intotwo parts The measurement model is the part which relates measured variables tolatent variables The structural model is the part that relates latent variables to oneanother

Different from other statistical techniques which only allow us to estimate relation ofseparated pair of factors, SEM allow us to simultaneously estimate relation of allfactors in a general model, estimate causal relation of latent constructs by applyinggoodness-of-fit (GOF) indices for both measurement model and structural model SEMalso helps to measure recursive relation and non-recursive relation; measure direct andin-direct relation, including error and disturbance

With technique of Confirmatory factor analysis (CFA), SEM model helps us toflexibly find out the most appropriate model among the proposed models Strong andadvanced points of SEM are the reasons why we apply SEM for our research,especially when our research model pursues complex relations among factors andmediators

In this study, to measure the relevance of the model and to test the model fit, thefollowing fit indices that present the goodness-of-fit (GOF) indices are put intoconsideration:

P value is associated with a test statistic It is the probability of observing a teststatistic The smaller the P value, the more strongly the test rejects the nullhypothesis, that is, the hypothesis being tested A p-value of 05 or less rejects thenull hypothesis (or to show the relationship existed)

· Chi-Squared (χ2) is the fundamental measure to qualify the differences betweenthe observed and estimated covariance matrices Conceptually it is a function of the sample size andthe difference between the observed covariance matrix and the model covariance matrix

CMIN/ df (χ2/df): Chi-square adjusted following degree of freedom

In which df: Degree of freedom represent the amount of mathematical available to estimate model parameters

i) χ2 represents the appropriate level of the entire model at significance level pv =

0.05 [Joserkog & Sorbom, 1989] This case is unlikely because χ2 is very sensitive

to large sample size and to the strength of the test measure, so in fact χ2 / df is usedinstead

ii) χ2/df is used to measure appropriate level of the model Some authorssuggested 1`χ2/df`3 (Hair et al, 1998) The others suggested χ2 should be as small as possible(Segar, Grover, 1993), and assume that χ2/ df `3:1 (Chin & Todd, 1995) Also, in some empiricalstudies, the studies are distinguished in to two cases: χ2/df `5 (for sample size N> 200) or `3 (whensample sizes N `200), then model is considered good fit (Kettinger and Lee, 1995)

· Comparative Fit Index (CFI)

CFI is an incremental fit index that is an improved version of the normed fit index(NPI) CFI comparing appropriate indicators In examining baseline comparisons,the CFI depends in large part on the average size of the correlations in the data Ifthe average correlation between variables is not high, then the CFI will not be veryhigh A CFI value of 90 or higher is desirable

· Tucker Lewis Index (TLI) or Non-normed Fit Index (NNFI)

The TLI predates the CFI and is conceptually similar in that is also involves amathematical comparison of a specified theoretical measurement model and basedline null model A model with good fit has that approach 1

· Goodness-of-Fit Index (GFI): attempts to produce a fit statistic that was lesssensitive to sample size The possible range of GFI values is 0 to 1with higher values indicatingbetter fit

Indices: CFI, TLI, CFI, having value> 0.9, is taken to indicate good fit If these values are at 1, we say the model is perfect (Segar,Grover, 1993) & (Chin & Todd,1995)

· Root Mean Square Error of Approximation (RMSEA)

RMSEA is to attempt to correct for the tendency of the χ2 GOF test statistic toreject models with large samples or large number of observed variables Itpresents how well a model fits a population, not just the sample used forestimation It explicitly tries to correct for both model complicity and sample size

by including each in each computation Lower RMSEA value indicates better fit.RMSEA: is an important indice, it determines the relevance of the model

compared to population In IS Research Journals, the authors assume that the ifindices RMSEA, RMR `0.05 the model is considered good fit In some cases

if these value `0.08 the model can be accepted (Taylor, Sharland, Cronin and Bullard, 1993)

· Modification Indices (MI)

The results of the CFA test by using AMOS are also implemented based on theprinciples to adjust relations with MI> 4 (MI-Indice Modification is an adjustmentcoefficient for the change of χ 2 per each level of freedom)

MI suggests remedies to discrepancies between the proposed and estimated model

MI adjusts the change of χ 2 for each addition of possible relation (with one degree

of freedom) If χ 2> 3.84 (corresponding with one degree of freedom) it allows for

an additional relation to improve the good-fit for the model (Hair et al, 1998)

32Researchers should be cautious because the added relation to the model may only

be accepted when it support the theory, thus researcher should not, by all means,try to make the model more suitable (Bullock et al, 1994; Hair et al, 1998) Goodindices indicate good fit of the model, but it does not mean that the model chosen

is correct or the best model among the feasible theoretical model

In this study: we look to the modification indices for the covariances We covaryerror terms with observed or latent variables, or with other error terms so as toimprove the good-fit for the model The largest modification indices are addressedfirst before addressing more minor ones

For every step of covarying, we re-run the model then consider the other possibleerror-pairs to be covaried for improving chi-square Covarying (hooks) betweensuggested error- pairs help to reduce the amount of Chi-square of the originalmodel The GFI, TLI, CFI, RMSEA then will also be improved However, notmany covarying (hooks) are made in our models to ensure the adjustments oftheoretical and practical implications

The model is considered appropriate to market data when tested with Chi-square, value> 0.05 Tho & Trang (2008) suggested that if a model gets the value of TLI, CFI

P-≥ 0.9, CMIN/ df ≤ 2, RMSEA ≤ 0:08 the model match (compatible) with market data

In brief, if a model gets the values of: P-value ` 0.05, GFI, TLI, CFI ≥0.9 (Bentler &Bonett, 1980), CMIN\df ≤ 2, for some cases CMIN\df or can be ≤ 3 (Carmines &McIver, 1981), RMSEA ≤ 0.08, the model is considered good fit (Steiger, 1990) andmatches with market data

Remark: Title for modelsChi-square= \cmin ; df= \df ; P= \p ;Chi-square/df = \cmindf ;GFI = \gfi ; TLI = \tli ; CFI = \cfi ;

RMSEA = \rmsea

(Please see details of formulas in Appendix No 6)

Steps of CFA in model good fit test in this study:

(Tính đơn hướng/ đơn nguyên)

-Accessing measurement model validity-Accessing structural model validity

(1) Construct reliability or Composit reliability (CR) (Lu et al., 2005and Hair et al., 1998)

Construct reliability is a measure of internal consistency of the construct indicators,depicting the degree to which they indicate the common latent variable To test thereliability of the constructs, this study reports construct reliability (CR) and AverageVariance Extracted (AVE) AMOS does not output the construct reliability andaverage variance extracted directly, thus they are calculated as the following (Fornell

&Larcker, 1981):

(2) Unidimensionality (Tính đơn hướng/ đơn nguyên)

According to Steenkamp & Van Trijp (1991), the relevance of the model with marketdata provide us necessary and sufficient conditions for the collective variables

achieving Unidimensionality, except where the error of the observed variables

correlate with each other

(3) Convergent validity (Giá trị hội tụ)

Convergent validity: The items that are indicators of a specific construct should

converge or share a high proportion of variance in common, known asconvergent validity

The measurement model provides evidence of convergent validity when: Firstly, allthe item/ indicator have standard regression weight above 0.5, and regression weights(unstandardzed regression weights) are significant (P-value `0.05) (Gerbring &Anderson 1988) Secondly, all construct reliability of the construct (CR) are greaterthan 0.7 and all the average variances extracted (AVE) are greater than 0.5 (Bagozzi &

Yi, 1988)

The "average variance extracted (AVE)" is an indicator of convergent validity, itmeasures the amount of variance that is captured by the construct in relation to theamount of variance due to measurement error and can be calculated using thefollowing formula: (summation of squared factor loadings)/(summation of squared

factor loadings) (summation of error variances) (Fornell & Larcker) If the average

variance extracted is less than 50, then the variance due to measurement error isgreater than the variance due to the construct In this case, the convergent validity ofthe construct is questionable This mean the AVE must higher than .50 to meetConvergent validity

With CFA, the average variance extracted (AVE) is calculated as the mean varianceextracted for the items loading on a construct and is a summary indicator ofconvergence

This value can be calculated b y using standardized loadings:

Construct reliability (CR) Reliability is also an indicator of convergent validity.Estimates of the reliability and variance extracted measures for each construct arenecessary to assess whether the specified items sufficiently represent the constructs(Lu et al., 2005) Confirmatory factor analysis (CFA) within Structural EquationModeling (SEM) is a common method of estimating construct reliability CR is > 0.7(Hair et al., 1998) CR is computed from the squared sum of factor loadings for eachconstruct and the sum of the error variance terms for a construct: