The impact of equity sensitivity on mental health, innovation orientation, and turnover intention in the Hungarian and Indian contexts

Abstract

Purpose Economic turbulence brings a significant impact in the mental health of workforce on both developed and developing countries. The purpose of this paper is to explore the impact of equity sensitivity on employee mental health. Innovation is considered to be among the critical drivers for the success and future of organizational existence, therefore this paper also investigates how the equity sensitivity impacts innovation orientation and turnover intentions across two geographies India and Hungary. Design/methodology/approach An online survey was carried out among Hungarian and Indian students. Students were selected only on the basis of having two to three years of work experience and also from good business and economics colleges from India and Hungary. Findings The results were analyzed using partial least square–structural equation modelling method to test the hypotheses and it showed that equity sensitivity has a positive effect on employee mental health. The findings of the study highlight that even with significant cultural differences equity sensitivity perception does not differ between Hungary and India. Research limitations/implications The relationship between equity sensitivity and employee mental health is an important area to understand in a volatile economy. Innovation orientation and turnover intention both are important to understand the productivity of any organization; this paper is an effort to understand the impact of both variables bringing in the positive or negative impact on the growth of an organization. Limitations of this study include the sample size, cross-sectional data. Future studies can be based on a larger sample size from wider cross-sections and cultures. Practical implications Managers need to give importance to understand the equity sensitivity of employee and how it impacts their mental health and well-being. Knowing the volatile nature of economy this becomes very relevant and important for managers and organizations. Social implications This study is important to understand that how two countries that are significantly different in cultural values still have no difference in equity sensitivity perception. Therefore, equity sensitivity is an important determinant to bring innovation and productivity in organizations across cultures. Originality/value These findings contribute to literature of equity sensitivity by exploring the impact of equity sensitivity on employee mental health in the context of two countries. Mental health is a concern not only in India but also in Hungarian context as well.