Modelling The Relationship Between Psychological Climate Factors And Organizational Profitability In Construction Organization
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Date
2018-07
Authors
Mosahab, Rahim
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The study developed and tested a model of mediation association that explains the relationship between psychological climate factors and organization profitability. The model was tested in the context of G7 group of construction companies’ professional employees in Penang State, Malaysia. Upon completion of the pilot study, with estimating a response rate of 25%, a number of 980 questionnaires were distributed to 49 participating construction companies to be completed. A total of 441 (45%) questionnaires were collected. The usable responses were 294, implying a response rate of 30%. Utilizing the Statistical Package for Social Sciences (SPSS) 23, the goodness of measure analysis procedures, which include assessments of item-to-total correlation, Cronbach’s Alpha and exploratory factor analysis indices were performed as a preliminary analysis. Finally, hypotheses that were developed to investigate the relationship between the variables and the mediator role in the model were tested. Based on the results, training and development was the only psychological climate factor that was not related to employee engagement. A positive relationship was also found between employee engagement and organizational profitability. The model underwent a mediation test and the result demonstrated that employee engagement fully or partially mediates all psychological climate factors and organizational profitability links, except for training and development. Finally, theoretical and managerial contributions are discussed.
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Keywords
Relationship between psychological climate factors , organizational profitability in construction organization