A Study of Effect of Hofstede’s Cultural Dimensions Theory on Employee Loyalty: The Mediating Effect Analysis of Organizational Commitment

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Project Title: A Study of Effect of Hofstede’s Cultural Dimensions Theory on Employee Loyalty: The Mediating Effect Analysis of Organizational Commitment
Author: Mr. Chen Zheng
Advisor: Assoc. Prof. Li Chiao-Ming
Degree: Master of Business Administration (International Program)
Major: International Master of Business Administration
Faculty: Graduate Schools
Academic year: 2017

Citation

Chen, Zheng. (2017). A Study of effect of hofstede’s cultural dimensions theory on employee loyalty: The mediating effect analysis of organizational commitment. (Master’s independent study). Bangkok: Siam University.


Abstract

In the final analysis, the competition among countries in the world is the competition of talents, and the competition among enterprises is also the case. How to make excellent employees identify with and be loyal to the enterprise and ultimately remain effective for the enterprise is particularly critical.

This article studies employee loyalty from the Hofstede’s cultural dimensions theory and Organizational Commitment,and aims to provide some reference for multinational corporations to establish effective employment and retention mechanisms and policies in Asian regions.

In this paper, a questionnaire survey was used to survey 400 employees.Inspected the relationship between the Hofstede’s cultural dimensions theory and Organizational Commitment and employee loyalty.This paper discusses the mediating effect of organizational commitment on the influence of Hofstede’s cultural dimension theory on employee loyalty.Through empirical analysis, this paper draws the following conclusions:(1) Hofstede’s theory of cultural dimensions has a positive effect on employee organizational commitment. Hofstede’s five cultural dimension theories have a positive effect on employee organizational commitment. (2) Hofstede’s cultural dimension theory has a positive effect on employee loyalty. (3) The employee’s organizational commitment has a positive effect on employee loyalty. (4) Organizational commitment plays a mediating role in Hofstede’s cultural dimension theory and employee loyalty. (5) Highly-matched Hofstede’s cultural dimension theory, through high-quality organizational commitment, can strengthen employee loyalty. (6) Hofstede’s cultural dimension theory and employee organizational commitment may have dual effects on employees’ corporate loyalty.

Keywords:  Hofstede’s cultural dimension theory, organizational commitment, employee loyalty, mediating effects.


A Study of Effect of Hofstede’s Cultural Dimensions Theory on Employee Loyalty: The Mediating Effect Analysis of Organizational Commitment

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand

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