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The effects of perceived external prestige, ethical organizational climate, and leader-member exchange (LMX) quality on employees' commitments and their subsequent attitudes

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Abstract:

Purpose ‐ This study aims to investigate the role of perceived external prestige (PEP), ethical organizational climate, and leader-member exchange (LMX) quality in explaining organizational and career commitment, and also analyzes effects of the two commitments on motivation to participate in training and turnover intention. Design/methodology/approach ‐ Relationships among the constructs are predicted based on relevant literature, and are tested using survey results from 477 employees working in 15 of the leading corporations in South Korea. Findings ‐ Structural equation modeling (SEM) shows that ethical organizational climate and LMX quality are a significant correlate of both forms of commitment, whereas perceived external prestige is a predictor of organizational commitment but not career commitment. Furthermore, as a mediator, each form of commitment also affects employees' training participation motivation and their turnover intention. Originality/value ‐ Overall, the value of this study lies in its focus on multiple forms of commitment reflecting current employment relationships, and in the identification of new variables for use by HR professionals in determining ways to improve both commitment to organization and career.

Keywords: Employees attitudes; Ethical organizational climate; Leader-member exchange quality; Perceived external prestige; Republic of Korea; Work commitments and attitudes

Document Type: Research Article

DOI: https://doi.org/10.1108/00483481111169670

Publication date: 2011-09-20

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