Exploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach

Saridakis, G., Lai, Y., Muñoz Torres, R.I. and Gourlay, S. 2018. Exploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach. International Journal of Human Resource Management. Advanced online publication. doi:10.1080/09585192.2017.1423100

TitleExploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach
TypeJournal article
AuthorsSaridakis, G., Lai, Y., Muñoz Torres, R.I. and Gourlay, S.
Abstract

The possible role of job satisfaction (JS) on organizational commitment (OC) has been a very important and hotly debated topic among experts. However, existing studies have yielded
mixed results potentially due to utilization of small datasets, different methodological designs,estimation techniques that do not control for potential endogeneity between the variables, or a combination of these issues. Using a large matched employer-employee dataset from
Britain (WERS2011), we find that increases in employees’ JS positively influence OC. We also show that this relationship holds when an instrumental variable framework (IV ordered
probit/IV probit) is adopted to take into account the potential endogeneity of JS. However, throughout the analysis, the IV estimates are smaller in magnitude in comparison to where JS is considered as an exogenous variable. Moreover, utilising a two-stage probit least square
(2SPLS) estimator, we support our previous findings i.e. increased JS is likely to lead to enhanced OC, but we also show that greater OC leads to higher levels of JS suggesting that JS and OC are likely to be reciprocally related. Overall, the IV estimates confirm the importance of addressing the endogeneity issue in the analysis of the relationship between JS and OC.

KeywordsJob satisfaction; Organizational commitment; Endogeneity; Instrumental variable framework; WERS, Britain
JournalInternational Journal of Human Resource Management
ISSN0958-5192
Year2018
PublisherTaylor & Francis
Accepted author manuscript
Digital Object Identifier (DOI)doi:10.1080/09585192.2017.1423100
Publication dates
Published online17 Jan 2018
Published17 Jan 2018

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