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Antecedents of Organizational Commitment in a ChineseConstruction Company

Weihui Fu Satish P. Deshpande

Received: 9 May 2011/ Accepted: 21 November 2011

Springer Science+Business Media B.V. 2011

Abstract This study examines the impact of various

ethical climate types and job satisfaction on organizationalcommitment of 144 employees working at a Chinese pri-

vate construction company. Both caring and independence

climate types had a significant positive impact on organi-

zational commitment. Instrumental climate had a signifi-

cant negative impact on organizational commitment. Other

climate types (professional, rules, and efficiency) had no

significant impact on organizational commitment. Overall

job satisfaction had a significant positive impact on orga-

nizational commitment. Overclaiming was significantly

correlated with organizational commitment, caring climate,

rules climate, and job satisfaction.

Keywords China Ethical climate Job satisfaction

Organizational commitment Private construction

company

Introduction

Much has been written about Chinas rapid economic

growth and its critical role in an increasingly integrated

global economy (Krueger 2009). Chinas average annual

growth rate of 9.5% over the last three decades had made it

the second largest economy in the world. At current growth

rates, China is likely to overtake the United States in thenext two decades and become the largest economy in the

world. Chinas focus on industrialization and urbanization

has been a boon to its domestic construction industry

(Sridharan 2007). Even the world wide 20082009 reces-

sion had little impact on the construction industry in China

largely due to the RMB 4 trillion stimulus package

implemented by the Chinese government to fuel growth in

this sector. The growth in the construction section in China

is not expected to decline in the near future (Clapper2011).

Thus, it is not surprising that this high growth sector has

been drawing a lot of attention from construction firms in

the US, Europe, and Japan who are facing a declining or

flat market in their home countries. With Chinas entry into

the WTO, it is much easier for international firms to pen-

etrate the Chinese construction market today.

As China moves toward a market economy, private-

owned enterprises (POEs) have been in a better position to

adapt to the needs of the marketplace. Currently the

number of private enterprises in China exceeds 8.4 million.

In the last 5 years, the number of POEs has increased at an

annual rate of 14.3% (Wang2011). This sector has become

a major player in foreign-trade market and makes sub-

stantial contribution to Chinas tax revenue, export vol-

umes, and urban employment (IMD2009).

Unfortunately like other sectors of the Chinese econ-

omy, the construction industry also faces a shortage of key

talent (Sridharan2007). It is not surprising that recruiting

and retaining key talent is one of the major operational

problems facing both domestic and foreign firms in China

(Lane and Pollner 2008; Hudson 2010). These issues can

be more critical in a construction company. Construction

work is very labor intensive. Besides attracting key talent,

firms have to make sure that they can retain key talent for

W. Fu

School of Economics and Management, University of Science

and Technology Beijing, Beijing, China

e-mail: [email protected]

S. P. Deshpande (&)

Department of Management, Haworth College of Business,

Western Michigan University, 1903 W. Michigan Ave.,

Mailstop 5429, Kalamazoo, MI 49008-5429, USA

e-mail: [email protected]

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J Bus Ethics

DOI 10.1007/s10551-011-1128-y


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long periods of time. The ability of a firm to retain and

foster long-term commitment of high quality human capital

can be a major source of competitive advantage for a

construction company (Leininger 2008; Youzheng and

Ming 2008). Hrebeniak and Alutto (1972) look at com-

mitment as reluctance of an individual to change organi-

zations for modest individual gain. Steers (1997, p. 46)

described organizational commitment as the relativestrength of an individuals identification with and involve-

ment in a particular organization.

Firms with highly committed employees provide greater

shareholder returns (Leininger2008). Meyer et al. (2002)

in their meta-analysis found that organizational commit-

ment and withdrawal cognition were strongly linked. In

addition, they voiced their concern about the lack of studies

on organizational commitment in counties beyond North

America. Due to difference in economic, political, and

social environment, Western theories on organizational

commitment may not apply to non-Western countries. For

example, in China guanxi or interpersonal network ofreciprocal bonds has a major impact on organization

behavior, relationships, and business ethics (Lin 2011,

p. 441). It has been suggested that many work outcomes in

China are influenced by guanxi (Chen and Francesco

2011). It is not unusual for employees in China to use

personal relationships to achieve instrumental ends. Thus,

it is not surprising that previous research reports that many

practices considered corrupt by Westerners may be con-

sidered appropriate in China (Chua et al. 2007).

Since the publication of Meyer et al.s (2002) meta-

analysis, we have seen a gradual increase in research on

organizational commitment in countries outside North

America such as Taiwan (Tsai and Huang2008), Singapore

(Koh and Boo 2004), Turkey (Cetin 2006; Turker 2009),

Pakistan (Malik et al. 2010), Portugal (Rego et al. 2010),

and Oman (Azeem2010). The purpose of this study is to

study organizational commitment in a Chinese POE. Spe-

cifically, the objective of this research is to examine the

impact of different ethical climates, job satisfaction, and

various demographic variables on organizational commit-

ment of employees working for a privately owned Chinese

construction company.

Previous research has shown that different ethical cli-

mate types impact organizational commitment. Filipova

(2011) in a sample of nurses in Midwestern United States

found that a caring ethical climate had a significantly

positive influence on organizational commitment, whereas

an instrumental climate was negatively associated with

organizational commitment. Erben and Guneser (2008)

found a strong relationship between ethical climate and

affective commitment and a moderate relationship between

ethical climate and continuance commitment in a sample of

142 Turkish employees. Schwepker (2001) suggests that

salespersons perception of positive ethical climate can

significantly impact organizational commitment. Sims and

Kroeck (1994) report that ethical climate impacts person

organization fit. In a subsequent research (Sims and Keon

1997), they found that turnover intentions were lower when

subjects expressed a match between their preferences for

an ethical climate and their present ethical climate.

Research indicates that stronger enforcements of ethicalrules and codes were positively related to organizational

commitment (Schwepker2001). Cullen et al. (2003) found

that benevolence ethical climate of had a positive impact

on organizational commitment, while egoistic climate is

negatively related to commitment. Tsai and Huang (2008)

found that Taiwanese hospitals can increase organizational

commitment among nurses by influencing an organiza-

tions ethical climate. In addition, Shafer and Wang (2010)

also report that weak ethical culture can result in decreased

commitment in a sample of Chinese accountants.

Most of the current research on ethical climate of firms

is based on climate types identified by Victor and Cullen(1987, 1988). They used ethical theory research (Fritzche

and Becker 1984; Williams 1985), moral development

research (Kohlberg 1984), and sociocultural theories of

organizations (Schneider 1983) to identify six ethical cli-

mates that could exist within an organization. Professional,

rules, and independence climates were developed from

principle dimension. Caring climate belongs to benevo-

lence dimension and instrumental and efficiency climates

are developed from egoism dimension. Thus, based on the

literature review we propose the following hypotheses:

H1 Professional climate has a significant positive impacton organizational commitment of Chinese employees.

H2 Caring climate has a significant positive impact on

organizational commitment of Chinese employees.

H3 Rules climate has a significant positive impact on


H4 Instrumental climate has a significant negative impact

on organizational commitment of Chinese employees.

H5 Efficiency climate has a significant negative impact


H6 Independence climate has a significant positive impact


Previous meta-analysis research has shown that job

satisfaction is a significant predictor of organizational

commitment (Meyer et al. 2002). Cheung et al. (2009,

p. 78) define job satisfaction as a persons pleasurable

state that stems from ones own appraisal of ones job or

job experience. Filipova (2011) found that job satisfaction

was negatively related to employees intent to leave in a

W. Fu, S. P. Deshpande

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survey of 656 nurses in the Midwestern United States.

Azeem (2010) found that supervision and pay satisfaction

significantly influenced organizational commitment of

service industry employees. Malik et al. (2010) found that

various facets of job satisfaction like satisfaction with

work, supervision, pay, and co-worker were significantly

correlated with organizational commitment of faculty

members in Pakistan. Valentine et al. (2011) found thatemployees with a higher job satisfaction are less likely to

leave an organization. Tang and Chiu (2003) found a

positive relationship between pay satisfaction and organi-

zational commitment in Hong Kong. We expect that job

satisfaction will have a significant positive impact on

organizational commitment of Chinese employees in our

study. Thus, we hypothesize:

H7 Job satisfaction has a significant positive impact on


This study also included demographic variables like age,

gender, and type of job. Previous research suggests thatsocial desirability bias may impact the result in research in

business ethics and organizational commitment (Bernardi

et al. 2003; Bernardi and Guptill 2008). Accordingly, we

used an overclaiming scale to control the impact of social

desirability bias.

Study Methodology

Sample Characteristics

The data for this study was part of a survey done by the first

author at a private construction firm in the Jiangsu province

of mainland China. Data collection was completed in

October 2010. The survey for this study was initially pre-

pared in English. It was subsequently translated into Chi-

nese by the first author. In order that there is no distortion

in the translation, the survey was translated back to English

by three professionals and compared with the original

English version of the paper. 200 surveys were distributed

and 152 were returned. We were left with a sample of 144

respondents after dropping surveys with missing values.

This resulted in a useable response rate of 72%.

Measures

Items in the survey included measures of organizational

commitment, ethical climate, job satisfaction, overclaim-

ing, and demographics. Four items were used to measure

organizational commitment (Hrebeniak and Alutto 1972).

They were Would you leave your present organization if

another organization offered you: an increase in pay; more

freedom to be professionally creative; more status; and to

work with friendlier people? These four items were rated

on a seven-point Likert scale (7 = definitely no, 1 = def-

initely yes). High scores indicate strong organizational

commitment while low scores imply weak organizational

commitment. The Cronbachs alpha for organizational com-

mitment was 0.868.

Ethical climate was measured using six climate types

proposed by Victor and Cullen (1987). We used globalmeasures of the six ethical climate types (Deshpande1996;

Deshpande et al. 2011). They are professional climate

(people are expected to comply with the law and profes-

sional standards in my organization), caring climate (our

major consideration is what is best for everyone in the

organization), rules climate (it is important to follow rules

and procedures in this organization), instrumental climate

(in this organization, people protect their own interest

above all else), efficiency climate (the most efficient way is

the right way in this organization), independence climate

(each person in this organization decides for themselves

what is right and wrong). A seven-point Likert scale wasused to measure the climate types (7 = mostly true and

1 = mostly false). Thus, a high score shows the presence

of a climate type and a low score shows the absence of a

climate type.

Job satisfaction was measured using 20 items. These

items were developed by Cellucci and Devriess (1978)

and used by previous researchers in business ethics

(Deshpande 1996; Vitell and Davis 1990). These items

were: My organization pays better than competitors; My

pay is adequate considering the responsibilities I have; I am

underpaid for what I do (R); My fringe benefits are gen-

erous; I do not like the basis on which my organization

promotes people (R); Promotions are infrequent in my

organization (R); If I do a good job, I am likely to get

promoted; I am satisfied with my rate of advancement; The

people I work with do not give enough support (R); When I

ask people to do things the job gets done; I enjoy working

with people here; I work with responsible people here; The

managers I work for back me up; The managers I work for

are top notch; Management does not treat me fairly (R);

My superiors do not listen to me (R); My job is interesting;

I feel good about the amount of responsibility in my job; I

would rather be doing another job (R); and I get little sense

of accomplishment from doing my job (R). These items

were rated on a seven-point Likert scale (7 = mostly true;

1 = mostly false). Job satisfaction score was arrived at by

calculating the average of the items after reverse coding

items with R. The Cronbachs alpha for job satisfaction

was 0.854.

Overclaiming scales were used to control for social

desirability bias in our survey. The protocol used in our

study was first proposed by Randall and Fernandes (1991).

Respondents were asked to rate their degree of familiarity

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with items within four categories (movies, products, TV

shows, and designer labels) on a three-point Likert scale

(1 = not at all familiar, 3 = very familiar). Each category

has a fake item which is nonexistent. Overclaiming score

were arrived at by calculating the average score of fake

items. High scores indicate that respondents report that

they were aware of items that actually did not exist.

Cronbachs alpha for this scale was 0.723. Other controlvariables were demographic variables like age, gender

(1 = male, 2 = female), and type of job (1 = worker, 2 =

clerical 3 = technical, 4 = office manager, 5 = executive).

Results

The mean and standard deviation of all the variables used

in this study are shown in Table 1. An average respondent

was 27-year old worker. About 62% of subjects were

males. In addition, over 52% of the respondents were

workers. While professional and rules were the most

reported ethical climate types, independence was the least

reported ethical climate.

Pearsons zero-order correlations and reliabilities are

shown in Table 2. The reliabilities (coefficient alphas) of

organizational commitment, job satisfaction, and over-claiming are shown in parentheses on the diagonal of

Table2. All of them had a satisfactory reliability

(alpha[ 0.70). Professional climate, caring climate, rules

climate, instrumental climate, job satisfaction, and over-

claiming were significantly correlated with organizational

commitment of respondents. A number of these variables

also had significant inter-correlations. Unfortunately, zero-

order correlations do not show causations or control for the

impact of other variables in the study. In order to overcome

these limitations, a regression analysis was done to

examine the impact of various factors on organizational

commitment.Table3 shows ordinary least square (OLS) regression

analysis results for our study. Standardized regression

coefficients show that caring climate had a significantly

positive impact on organizational commitment; so H2 was

supported. Instrumental climate had a significantly nega-

tive impact on commitment; so H4 was also supported.

Independence climate also had a significantly positive

impact on organizational commitment; so H6 was sup-

ported. Since professional, rules, and efficiency climates

did not significantly impact organizational commitment;

H1, H3, and H5 were not supported. The results also show

that job satisfaction had a significant positive impact

on organizational commitment; so H7 was supported. None

of the demographic variables nor overclaiming scale

Table 1 Descriptive information of all variables

Variables Mean SD

Organizational commitment 4.17 1.57

Professional 6.13 1.59

Caring 5.29 1.71

Rules 6.13 1.56

Instrumental 3.06 2.03

Efficiency 3.63 2.15

Independence 2.49 1.81

Job satisfaction 4.72 0.79

Age 26.51 7.34

Gender 1.38 0.49

Type of job 1.79 0.68Overclaiming 2.61 0.46

n = 144

Table 2 Zero-order Correlations among the variables

1 2 3 4 5 6 7 8 9 10 11 12

1. Organizational commitment (0.87)

2. Professional 0.22 1

3. Caring 0.45 0.40 1

4. Rules 0.25 0.60 0.46 1

5. Instrumental -0.21 0.09 -0.02 0.10 16. Efficiency -0.13 0.10 -0.14 0.02 0.42 1

7. Independence 0.03 0.03 -0.15 0.00 0.33 0.45 1

8. Job satisfaction 0.48 0.22 0.54 0.33 -0.28 -0.25 0.25 (0.85)

9. Age 0.09 0.14 0.30 0.21 0.05 -0.17 -0.09 0.20 1

10. Gender 0.02 -0.22 -0.17 -0.02 -0.12 -0.02 0.06 -0.12 -0.19 1

11. Type of job 0.12 0.07 0.17 0.13 -0.06 -0.08 0.00 0.01 0.13 -0.08 1

12. Overclaiming 0.16 0.10 0.19 0.17 -0.12 -0.02 -0.09 0.24 0.07 -0.08 -0.08 (0.72)

Correlations of 0.22 and greater or -0.22 or less are significant at p\0.01 (two-tailed); correlation between 0.16 and 0.22 and -0.22 and -0.16

are significant at p\ 0.05 (two-tailed). Listwise n = 144


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significantly impacted organizational commitment of

respondents in our regression model.

Discussion and Conclusions

Factors such as globalization, low-cost production facili-

ties, and access to cheap labor have resulted in massive

foreign investments by Western firms in China. Over the

last three decades, this has allowed China to move from an

agrarian economy to the manufacturing hub of the world.However, this radical transformation has created some

unique concerns for employers in China. Today, the flight

of human capital and poor retention of local staff is the

biggest challenge faced by both domestic and foreign

employers in China (Hudson 2010). This has made orga-

nizational commitment a major issue for employers given

that it has been shown to directly impact employee reten-

tion, employee turnover and intent to leave (Schwepker

2001; Steers1997).

This study makes four important contributions to help us

understand and address organizational commitment in China.

First, it shows how ethical climate and job satisfaction canpositively impact organizational commitment in China. Sec-

ond, it employs a comprehensive measure of ethical climate.

Instead of one global measure (e.g., Schwepker 2001), we

examine the impact of six different types of ethical climate on

organizational commitment by Chinese employees. Third,

this study was done in a private construction company in

China. Past studies in China have mostly focused on service-

oriented firms, student samples, and state-owned enterprises

or joint ventures. Finally, we also show that the lack of control

for social desirability bias in international samples and busi-

ness ethics studies may affect the validity of the results.

Among the six ethical climate types examined in our

study, only caring, instrumental, and independence cli-

mates significantly impact organizational commitment.

Interestingly, Lin (2011) in their study of antecedents of

guanxi report that among the various ethical climate types,

only caring, instrumental, and independence climates stressthe development and growth of guanxi in an organization.

This suggests that the Chinese philosophy of guanxi or

networking is dominant in the private sector too.

Caring climate had the most impact on organizational

commitment of respondents in our study. A caring climate

is utilitarian based in which the firm has a sincere interest

in the well being of others in the organization. Our results

suggest that employees feel more committed to their firm

and feel a sense of shared values with an employer who

shows concern for them. While independence was the least

reported climate in our study, it also had a significant

positive impact on organizational commitment. In anindependence climate, employees act on their own set of

moral beliefs and conviction. Such a climate allows

employees to develop their own ethical standards without

being influenced by others. This makes them more com-

mitted to their organizations.

Our results also found that instrumental climate has a

negative impact on organizational commitment of respon-

dents in our study. Thus, employees who work for a Chinese

firm that allow them to protect their own interests and/or do

what is necessary to further the company without paying

attention to the consequences of their actions are less likely

to be committed to their organization. Self-interest behav-

iors in such an environment may include lying, cheating,

and other dysfunctional behaviors (Martin and Cullen

2006). Since an instrumental climate encourages employees

to look out for their own self-interests, such a climate may it

easier for employees to quit their jobs if they cannot get

what they want at their current workplace.

The most widely reported climate by Chinese respon-

dents was the rules climate. This climate type that ensures

that employees follow rules and procedures had no sig-

nificant impact on organizational commitment. Previous

business ethics research has found that factors such as

business such as forms of institutionalization of ethics

(Vitell and Singhapakdi2008), ethical optimism (Koh and

Boo 2004) and corporate ethical values (Valentine et al.

2011) also has a significant impact on commitment. Future

research in Chinese firms must examine these issues.

Future research in China should examine whether other

aspects of business ethics (e.g., ethical behavior, ethical

codes, corporate social desirability, and ethical values)

have a significant impact on organizational commitment of

Chinese employees.

Table 3 Regression results

Variable Beta t

Professional 0.07 0.76

Caring 0.31*** 3.34

Rules -0.02 -0.20

Instrumental -0.16* -1.87

Efficiency -0.06 -0.74

Independence 0.23** 2.79

Job satisfaction 0.31*** 3.35

Age -0.05 -0.59

Gender 0.09 1.17

Type of job 0.02 0.31

Overclaiming 0.04 0.52

F 6.49***

R2 0.35

Adjusted R2 0.30

N 144

***p B 0.01; ** p B 0.05; * p B 0.10


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Consistent with previous studies, job satisfaction had a

significantly positive impact on organizational commit-

ment of Chinese employees (Schwepker2001; Mulki et al.

2008). In our study, job satisfaction was significantly cor-

related with age. Employee surveys in China suggest that

people in different age groups are motivated differently

(Kelly Services2010). It has been shown that while baby

boomers are more motivated by pay levels and benefitcoverage, generation Y (ages 1829) in China think

training opportunities are relatively more important than

compensation. Also, the younger generation is said to be

more individualistic and thus respond better to individual

merit-based plans. It has also been suggested that there is a

decline in group-focused Confucian values among the

younger generation (Ralston et al. 1999). Correlation

results show that younger employees are not only less

satisfied; they also are less likely to perceive a caring

environment within the organization. Thus, Chinese firms

have to come up with specific steps to address the needs of

their younger workforce. Some strategies suggested byprevious research to increase job satisfaction of all Chinese

employees include creating a participative environment,

involve employees in decision making, design inter-

dependent jobs, and team-related interventions (Scott et al.

2003).

While overclaiming did not significantly impact our

overall results in our regression model, it was interesting to

note that overclaiming was significantly correlated with

organizational commitment, caring climate, rules climate,

and job satisfaction. It is possible that respondents did not

want to provide true responses on these variables as it

would make their employer look bad. However, whatever

the reason, these correlations suggest that the values on

these variables may be inflated and the respondents were

providing socially desirable responses on these factors.

This confirms assertion by researchers that social desir-

ability response bias can overstate culturally desirable

responses (Bernardi and Guptill 2008). Clearly future

researchers in business ethics and international research

need to understand that they need to control for social

desirability bias even in studies when respondents were not

asked to identify themselves on the survey.

Although this study helps us better understand organi-

zational commitment in private companies in China, it still

has a number of limitations. As work environment (e.g.,

promotion rules, wage system, and ethical issues) in POEs

may be different from other companies, it is possible that

the results of this study may not be applicable to multi-

national firms, state-owned companies, joint ventures, or

even private companies of other industries. The company

in which this study was done is heavily generation Y

dominated, so the results may be different in firms that

have a larger number of old employees. In spite of these

limitations, this research has important conclusions for

researchers and human resource managers of different

firms in China.

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