Factors Affecting Employees' Organizational Commitment in Foreign Direct Investment Enterprises

This study aims to develop a research framework to investigate the factors affecting organizational commitment among employees who are working in Foreign Direct Investment (FDI) enterprises in Vietnam. The authors designed an online survey distributed to employees in FDI enterprises, collecting the data from 312 employees. All scales in this study are adopted from previous studies; tools employed include Cronbach's Alpha, Exploratory Factor Analysis, and Confirmatory Factor Analysis (CFA) to examine the internal consistency, reliability, dimensionality, and validity of each variable. Then, the structural equation modelling (SEM) was utilized in order to estimate path correlations between variables. Results indicate that the leadership style has the strongest effect on organizational commitment, followed by job satisfaction and working performance. Moreover, working performance and job satisfaction are also influenced by leadership style. However, there is no statistical evidence to show that job satisfaction has an impact on working performance. In addition, bootstrapping method is used to show the indirect effect of variables; results reveal that leadership style, though, does not have indirect effect on working performance via job satisfaction, but it indirectly affects organizational commitment throughout working performance. In other words, the study finds that working performance mediates the link between leadership style and organizational commitment.