Influence of Quality of Working Life on Job Satisfaction, Organizational Trust, and Employee Engagement: A Case Study of the Multinational Company in Bangkok, Thailand

International Journal of Economics and Management Studies

© 2022 by SSRG - IJEMS Journal

Volume 9 Issue 12

Year of Publication : 2022

Authors : Sutthathip Kamthornphiphatthanakul, Nopphong Kerdngern, Narintorn Somthong, Poonsak Sangsunt

10.14445/23939125/IJEMS-V9I12P107

How to Cite?

Sutthathip Kamthornphiphatthanakul, Nopphong Kerdngern, Narintorn Somthong, Poonsak Sangsunt, "Influence of Quality of Working Life on Job Satisfaction, Organizational Trust, and Employee Engagement: A Case Study of the Multinational Company in Bangkok, Thailand," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 12, pp. 56-63, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I12P107

Abstract:

This empirical research investigates the influence of the quality of working life (QWL) on the job satisfaction (JS), organizational trust (OT) and employee engagement (EE) of multinational company workers in the Thai setting. A quantitative method was used in this study that was carried out with a sample of 450 multinational company workers in Bangkok, Thailand, using a validated questionnaire and structural equation modeling (SEM). The results revealed that QWL has a moderate to strong significant impact on JS (β = 0.6593***), as EE (β = 0.5231***) and OT (β = 0.3886***), whereas JS has a positive impact on OT (β = 0.3751***) and EE (β = 0.2688**). Furthermore, OT positively impacts EE (β = 0.1646**). Furthermore, QWL has an indirect effect on EE through JS (β = 0.2818***), OT through JS (β = 0.2473***), and JS has an indirect impact on EE through OT (β = 0.0617*). It proves that the quality of working life has created, which increases job satisfaction, organizational trust and employee engagement.

Keywords:

Quality of working life, Job satisfaction, Organizational trust, Employee engagement, Structural equation modeling, Multinational company.

References:

[1] TMF Group Website, Doing Business in Thailand: what you should know, 2018. [Online]. Available: https://www.tmf-group.com/en/news-insights/articles/2018/december/doing-business-in-thailand/?utm_source=mondaq&utm_medium=syndication&utm_campaign= view-original
[2] Lugkana Worasinchai, and Aurilla Aurelie Arntzen Bechina, “The Role of Multinational Corporations (MNCs) in Developing R&D in Thailand: the Knowledge Flow Between MNCs and University,” Electronic Journal of Knowledge Management, vol. 8, no. 1, pp. 171 - 180, 2010.
[3] G. Gupta, and A. Gupta, “International Assignments, Expatriate Adjustment and Perceived Impact of Parent Organization Support,” The Business & Management Review, vol. 3, no. 1, pp. 57 - 65, 2012.
[4] Nadeem Bhatti et al., “The Impact of Autocratic and Democratic Leadership Style on Job Satisfaction,” International Business Research, vol. 5, no. 2, pp. 192 - 201, 2012.
[5] Jaime Bonache, “Job Satisfaction among Expatriates, Repatriates and Domestic Employees,” Personnel Review, vol. 34, no. 1, pp. 110 - 124, 2005. Crossref, https://doi.org/10.1108/00483480510571905
[6] D. Hack-Polay, “When Home Isn’t Home – A Study of Homesickness and Coping Strategies Among Migrant Workers and Expatriates,” International Journal of Psychological Studies, vol. 4, no. 3, pp. 62 - 72, 2012. Crossref, http://dx.doi.org/10.5539/ijps.v4n3p62
[7] K. G. Subramaniam, “Strategies for Reducing Employee Stress and Increasing Employee Engagement,” Doctorate, Walden University, 2017.
[8] Joel B.Carnevale, and IsabellaHatak, “Employee Adjustment and Well-Being in the Era of COVID-19: Implications for Human Resource Management,” Journal of Business Research, vol. 116, pp. 183 - 187, 2020. Crossref, https://doi.org/10.1016/j.jbusres.2020.05.037
[9] David E. Guest, “Human Resource Management and Employee Well-Being: Towards a New Analytic Framework,” Human Resource Management Journal, vol. 27, no. 1, pp. 22 - 38, 2017. Crossref, https://doi.org/10.1111/1748-8583.12139
[10] L. Sojka, “Specification of the Quality of Work Life Characteristics in the Slovak Economic Environment,” Sociologia, vol. 46, no. 3, pp. 283 - 299, 2014.
[11] R. R. Bekti, “The Influence of Quality of Work Life on Employee Job Satisfaction at X Mother and Child Hospital Surabaya,” The Indonesian Journal of Health Administration, vol. 6, no. 2, pp. 156 - 163, 2018. Crossref, https://doi.org/10.20473/jaki.v6i2.2018.156- 163
[12] Selahattin Kanten, and Omer Sadullahb, “An Empirical Research on Relationship Quality of Work Life and Work Engagement,” Procedia-Social and Behavioral Sciences, vol. 62, pp. 360 - 366, 2012. Crossref, http://dx.doi.org/10.1016/j.sbspro.2012.09.057
[13] I. Irmawati, and A. S. Wulandari, “The Effect of Quality of Work Life, Self Determination, and Job Performance on Employee Work Engagement,” Journal of Competitiveness Management, vol. 19, no. 1, pp. 27 - 36, 2017.
[14] Khaled Mahmoud Al-Shawabkeh, and Ghufran Saed Hijjawi, “Impact of Quality of Work-Life (QWL) on Organizational Performance: an Empirical Study in the Private Jordanian Universities,” Asian Social Science, vol. 14, no. 6, pp. 145 - 156, 2018. Crossref, https://doi.org/10.5539/ass.v14n6p145
[15] R. Gayathiri, and L. Ramakrishnan, “Quality of Work Life-Linkage with Job Satisfaction and Performance,” International Journal of Business and Management Invention, vol. 2, no.1, pp. 1 - 8, 2013.
[16] Balaram Bora, Das Saumendra, and Vishnu Murthy, “Quality of Work Life- A Literature Review,” International Journal in Management and Social Science, vol. 3, no. 3. pp. 106 - 115, 2015.
[17] Fulvio Castellacci, and Clara Viñas-Bardolet, “Internet Use and Job Satisfaction,” Computers in Human Behavior, vol. 90, pp. 141-152, 2019. Crossref, https://doi.org/10.1016/j.chb.2018.09.001
[18] Edwin A. Locke, “What is Job Satisfaction?,” Organizational Behavior and Human Performance, vol. 4, no. 4, pp. 309 – 336, 1969. Crossref, https://doi.org/10.1016/0030-5073(69)90013-0
[19] Angrian Permana et al., “The Effect of Compensation and Career Development on Lecturer Job Satisfaction,” Accounting, vol. 7, no. 6, pp. 1287 - 1292, 2021. Crossref, http://dx.doi.org/10.5267/j.ac.2021.4.011
[20] F. Herzberg, 1987. [Online]. Available: http://myfy.foundationyear.com/_upload/subjects/3/howtomotivate.pdf
[21] B. Stranes, S. Truhon, and V. Mccarthy, “Organizational Trust: Employee Employer Relationships, in: A Primer,” 613 on Organizational Trust, 2015.
[22] Rotter, and Julian B, “A New Scale for the Measurement of Interpersonal Trust,” Journal of Personality, vol. 35, no. 4, pp. 651 – 665, 1967. Crossref, https://psycnet.apa.org/doi/10.1111/j.1467-6494.1967.tb01454.x
[23] Roderick Kramer, and Tom Tyler, Trust in Organizations, 7 th edition, Thousand Oaks, CA: Sage, 1996.
[24] Roger C. Mayer, James H. Davis, and F. David Schoorman, “An Integrative Model of Organizational Trust,” Academy of Management Review, vol. 20, no. 32, pp. 709 - 734, 1995. Crossref, https://doi.org/10.2307/258792
[25] L. L. Cummings, and P. Bromiley, “The Organizational Trust Inventory (OTI): Development and Validation. in R. M. Kramer & T. R. Tyler (Eds.), Trust in Organizations: Frontiers of Theory and Research, Sage Publications, Inc, pp. 302 - 330, 1996. Crossref, https://psycnet.apa.org/doi/10.4135/9781452243610.n15
[26] Gaikwad Sudhir U et al., "Assisted Living System: A Review of 25 Years of Research," International Journal of Engineering Trends and Technology, vol. 70, no. 6, pp. 317-330, 2022. Crossref, https://doi.org/10.14445/22315381/IJETT-V70I6P233
[27] Kaswan, “Industrial and Organizational Psychology: Developing Productive Behavior and Realizing Employee Welfare at Work,” Industrial Psychology Organizational Psychology 2017.
[28] Mahmoud Al-dalahmeh et al., “The Effect of Employee Engagement on Organizational Performance via the Mediating Role of Job Satisfaction: the Case of IT Employees in Jordanian Banking Sector,” Modern Applied Science, vol. 12, no. 6, pp. 17 – 43, 2018.
[29] Joseph. F. Hair JR, et al., Multivariate Data Analysis, New Jersey: Pearson Prentice Hall, 2010.
[30] Jong Henseler, “Bridging Design and Behavioral Research with Variance-Based Structural Equation Modeling,” Journal of Advertising, vol. 46, no. 1, pp. 178 - 192, 2017. Crossref, https://doi.org/10.1080/00913367.2017.1281780 
[31] Joe Hair et al., “An Updated and Expanded Assessment of PLS-SEM in Information Systems Research,” Industrial Management and Data Systems, vol. 117, no. 3, pp. 442 - 458, 2017a. Crossref, https://doi.org/10.1108/IMDS-04-2016-01300
[32] KemakornChaiprasit, and OrapinSantidhiraku, “Happiness at Work of Employees in Small and Medium-Sized Enterprises, Thailand,” Procedia - Social and Behavioral Sciences, vol. 25, pp. 189 – 200, 2011. Crossref, https://doi.org/10.1016/j.sbspro.2011.10.540
[33] Christian Dude et al., “Income-(in) Dependent Equivalence Scales and Inequality Measurement,” German Economic Review, De Gruyter, vol. 22, no. 2, pp. 235 - 255, 2016. Crossref, https://doi.org/10.1515/ger-2020-0008
[34] Muel Kaptein, and Scott Avelino, “Measuring Corporate Integrity: A Survey‐Based Approach,” Business Corporate Governance, vol. 5, no. 1, pp. 45 - 54, 2005. Crossref, https://doi.org/10.1108/14720700510583467
[35] Leander Luiz Klein et al., “Quality of Working Life: Parameters and Evaluation in the Public Service,” Mackenzie Management Magazine, vol. 20, no. 3, pp. 1 - 34, 2019. Crossref, http://dx.doi.org/10.1590/1678-6971/eramg190134
[36] F. P. Morgeson, and S. E. Humphrey, “the Work Design Questionnaire (Wdq): Developing and Validating A Comprehensive Measure for Assessing Job Design and the Nature of Work,” Journal of Applied Psychology, vol. 91, no. 6, pp. 1321 – 1339, 2006. Crossref, http://dx.doi.org/10.1037/0021-9010.91.6.1321
[37] Luciana Da Silva Timossi et al., “Evaluation of Quality of Work Life: An Adaptation from the Walton’s Qwl Model,” Xiv International Conference on Industrial Engineering and Operations Management (ICIEOM), pp. 1-17, 2008.
[38] B. L. Weathington, and Allan P. Jones, “Measuring the Value of Nonwage Employee Benefits: Building a Model of the Relation Between Benefit Satisfaction and Value,” Genetic, Social, and General Psychology Monographs, vol. 132, no. 4, pp. 292 – 328, 2006. Crossref, https://doi.org/10.3200/Mono.132.4.292-328
[39] Susan J. Linz, and Anastasia Semykina, “What Makes Workers Happy? Anticipated Rewards and Job Satisfaction,” Industrial Relations, vol. 51, no. 4, pp. 811 - 844, 2012. Crossref, https://doi.org/10.1111/j.1468-232x.2012.00702.x
[40] J. Westover, and J. Taylor, “International Differences on Job Satisfaction the Effects of Public Service Motivation, Rewards and Work Relations,” International Journal of Productivity and Performance Management, vol. 59, no. 8, pp. 811-828, 2010. Crossref, http://dx.doi.org/10.1108/17410401011089481
[41] Ronald C. Nyhan, “Development and Psychometric Properties of the Organizational Trust Inventory,” Evaluation Review, vol. 21, no. 5, pp. 614 - 635, 1997. Crossref, https://doi.org/10.1177/0193841x9702100505
[42] Schrita Osborne, and Mohamad S. Hammoud, “Effective Employee Engagement on the Workplace,” International Journal of Applied Management and Technology, vol. 16, no. 1, pp. 50 - 67, 2017. Crossref, https://doi.org/10.5590/Ijamt.2017.16.1.04
[43] Joseph F. Hair, Jr, A Primer on Partial Least Squares Structural Equation Modeling (Pls-Sem), Thousand Oaks, Ca: Sage, 2016.
[44] Jr. Hair, et al., “Pls-Sem or Cb-Sem: Updated Guidelines on Which Method to Use,” International Journal of Multivariate Data Analysis, vol. 1, no. 2, pp. 107 - 123, 2017b. Crossref, https://doi.org/10.1504/ijmda.2017.087624
[45] Claes Fornell, and David F. Larcker, “Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics,” Journal of Marketing Research, vol. 18, no. 3, pp. 382 – 388, 1981. Crossref, https://doi.org/10.2307/3150980
[46] Jörg Henseler et al., “A New Criterion for Assessing Discriminant Validity on Variance-Based Structural Equation Modeling,” Journal of the Academy of Marketing Science, vol. 43, no. 1, pp. 115 – 135, 2015. Crossref, https://doi.org/10.1007/s11747-014-0403-8
[47] S. Geisser, “A Predictive Approach to the Random Effect Model,” Biometrika, vol. 61, no. 1, pp. 101 – 107, 1974. Crossref, https://doi.org/10.1093/biomet/61.1.101
[48] M. Stone, “Cross-Validatory Choice and Assessment of Statistical Predictions,” Journal of the Royal Statistical Society, vol. 36, no. 2, pp. 111 – 147, 1974. Crossref, https://doi.org/10.1111/j.2517-6161.1974.tb00994.x
[49] William A. Kahn, “Psychological Conditions of Personal Engagement and Disengagement at Work,” Academy of Management Journal, vol. 33, no. 4, pp. 692 - 724, 1990. Crossref, https://doi.org/10.5465/256287
[50] Jacob Cohen, Statistical Power Analysis for the Behavioral Sciences, 2 nd Edition Hillsdale, Nj: Lawrence Erlbaum Associates, 1988.
[51] Li‐Tze Hu, and Peter M. Bentler “Cutoff Criteria for Fit Indexes on Covariance Structure Analysis: Conventional Criteria Versus New Alternatives,” Structural Equation Modeling, vol. 6, no. 1 pp. 1 – 55, 1999. Crossref, https://doi.org/10.1080/10705519909540118
[52] Jörg Henseler et al., “Common Beliefs and Reality About Pls: Comments on Rönkkö & Evermann (2013),” Organizational Research Methods, vol. 17, no. 2, pp. 182 – 209, 2014. Crossref, https://doi.org/10.1177/1094428114526928
[53] Jörg Henseler, and Marko Sarstedt, “Goodness-of-Fit Indices for Partial Least Squares Path Modeling,” Computational Statistics, vol. 28, no. 2, pp. 565 – 580, 2013. Crossref, https://doi.org/10.1007/s00180-012-0317-1
[54] M. Tenenhaus, S. Amato, and Esposito V. Vinzi, “A Global Goodness-of-Fit Index for PLS Structural Equation Modelling,” Proceedings of the Xlii Sis Scientific Meeting, pp. 739 - 742, 2004.
[55] Martin Wetzels et al., “Using PLS Path Modeling for Assessing Hierarchical Construct Models: Guidelines and Empirical Illustration,” Article on MIS Quarterly, vol. 33, no. 1, pp. 177 - 196, 2009.
[56] Imam Ghozali, and Hengky Latan, Partial Least Squares: Concepts, Techniques and Applications Using SmartPLS 3, 2 nd Edition Publisher: Diponegoro University Press, 2015. 
[57] H. M. Jogiyanto, Concepts and Application Based Structural Equation Modeling Variants on Business Research, Yogyakarta: Upp Stim Ykpn, 2011.
[58] N. S. Natasya, and R. Awaluddin, “The Effect of Quality of Work Life, Organizational Culture and Job Satisfaction on Employee Engagement,” Bina Bangsa International Journal of Business and Management (BBIJBM), vol. 1, no. 2, pp. 158 - 165, 2021. Crossref, https://doi.org/10.46306/Bbijbm.V1i2.16
[59] Ni Putu Ratna Sari, I Komang Gde Bendesa, and Made Antara, “The Influence of Quality of Work Life on Employees’ Performance with Job Satisfaction and Work Motivation as Intervening Variables on Star-Rated Hotels on UBUD Tourism Area of Bali,” Journal of Tourism and Hospitality Management, vol. 7, no. 1, pp. 74 – 83, 2019. Crossref, https://doi.org/10.15640/jthm.v7n1a8
[60] Parvathy R Nair, and Dr. T. Subash, “Quality of Work Life and Job Satisfaction: A Comparative Study,” International Journal of Business and Management Invention, vol. 8, no. 2, pp. 15 - 21, 2019.
[61] Nicolas Gillet et al., “The Mediating Role of Organizational Justice in the Relationship between Transformational Leadership and Nurses' Quality of Work Life: A Cross-Sectional Questionnaire Survey,” International Journal of Nursing Studies, vol. 50, no. 10, pp. 1359 – 1367, 2013. Crossref, http://doi.org/10.1016/j.ijnurstu.2012.12.012
[62] Hedy Acosta Antognoni, Marisa Salanova, and Susana Llorens Gumbau, “How Organizational Practices Predict Team Work Engagement: The Role of Organizational Trust,” Science & Work, vol. 14, pp. 7 - 15, 2012.
[63] Hsiao-Yen Mao, and An-Tien Hsieh, “Perceived Job Insecurity and Workplace Friendship,” European Journal of International Management, vol. 7, no. 6, pp. 646 – 670, 2013. Crossref, https://doi.org/10.1504/EJIM.2013.057113
[64] Blossom Yen-Ju Lin et al., “Job Autonomy, its Predispositions and its Relation to Work Outcomes in Community Health Centers in Taiwan,” Health Promotion International, vol. 28, no. 2, pp. 166-177, 2013. Crossref, https://doi.org/10.1093/heapro/dar091
[65] Katrina J. Lawson, Andrew J. Noblet, and John J. Rodwell, “Promoting Employee Wellbeing: The Relevance of Work Characteristics and Organizational Justice,” Health Promotion International, vol. 24, no. 3, pp. 223 - 233, 2009. Crossref, https://doi.org/10.1093/heapro/dap025
[66] T. Rattanamanee, and S. Kamthornphiphatthanakul, “Authentic Leadership Effects Job Satisfaction and Work Engagement on the Operation Staff of Ruamthavorn Transport Co., Ltd.,” RMUTT Global Business and Economics Conference (RTBEC) 2020, RMUTT Innovation & Knowledge Center, Bangkok, Thailand, 2020.
[67] I Made Darmawan, and I Made Artha Wibawa, "The Role of Job Satisfaction in Mediating the Effect of Job Stress and Competence on Work Engagement," SSRG International Journal of Economics and Management Studies, vol. 8, no. 6, pp. 33-42, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I6P105
[68] Fabian O Ugwu, Ike E. Onyishi, and Alma Maria Rodríguez-Sánchez, “Linking Organizational Trust with Employee Engagement: The Role of Psychological Empowerment,” Emerald, vol. 43, no. 3, pp. 377-400, 2014. Crossref, https://doi.org/10.1108/PR-11-2012-0198
[69] Helena Bulińska-Stangrecka, and Y Anuradha Iddagoda, “The Relationship between Inter-Organizational Trust and Employee Engagement and Performance,” Academy of Management, vol. 4, no. 1, pp. 8 – 25, 2020.