The Impacts of Organizational Culture on Organizational Commitment: Evidence from Vietnamese Garment Companies

The Impacts of Organizational Culture on Organizational Commitment: Evidence from Vietnamese Garment Companies

The purpose of the study is to determine how organizational culture affects employees’ organizational commitment in Vietnamese clothing enterprises. Quantitative research through a questionnaire survey was applied in this research. A Survey of employees of Vietnamese garment companies in Hanoi was conducted from May 2021 to August 2021. The questionnaire was built from reference to previous studies and transferred to Google form. 315 returned questionnaires were usable. The statistical software SPSS 20.0 was used to test the reliability of the scale (Cronbach alpha), exploratory factor analysis (EFA), and regression analysis. The Organizational culture is constructed by 8 components including Organizational Communication, Training and development, Reward and Recognition, Teamwork orientation, Decision-making, Innovation and risk-taking, Direction and future planning, and Leader behavior. Organizational commitment is constructed by 3 components such as affective commitment, continuance commitment and normative commitment. Findings show that organizational culture has a strong impact on organizational commitment in Vietnamese garment companies. Research provides recommendations on developing a good organizational culture through forming suitable leadership, effective organizational communication, training and development, reward and recognition, and a clear direction and future planning to enhance employee commitment to the organization and increase the garment company’s performance in the future.