Moderating effect of perceived inflation on dual commitment to organization and professional association

Abstract

Purpose – The purpose of this paper is to draw upon exchange theory to test the moderating effect of perceived inflation on dual commitment among a sample of health professionals in Ghana. The authors test this effect on the unilateral contributions of commitment to the organization and commitment to the professional association. Design/methodology/approach – Survey questionnaires were used to elicit responses from 141 health professionals in Ghana. Least square moderated regression analysis was employed to test the hypothesized relationships. Findings – The authors found that respondents do exhibit dual commitment to the organization and the professional association. The findings also supported the hypothesized moderating effect of perceived inflation on the contribution of the unilateral commitments to dual loyalty. Perceived inflation alters the contributions from the predictors, hence, reducing dual commitment. Research limitations/implications – The study sampled only public sector employees, but the authors do not consider this a fatal flaw since the public sector in Ghana employs a large percentage (51 percent) of the workforce. Future research should focus on the private sector to increase the generalizability of the perceived inflation construct. Practical implications – Perceived inflation can have adverse effects on workplace attitudes, including dual loyalty to the organization and to the union. But the finding also suggests that, in periods of inflationary pressures, high affective commitment can benefit the organization. The perceived reduction in the value of the economic exchange clearly has implications for compensation policy for the public sector in Ghana. Originality/value – Researchers have examined the perception of inflation on consumer behavior, but none has investigated the inflationary influence on workplace attitudes. This study extends the conceptualization of the index of perceived inflation and the psychology of inflation to the management literature. This study is the first to investigate the effect of perceived inflation on commitment.