The multi-level effects of developmental opportunities, pay equity, and paternalistic leadership on organizational commitment

Abstract

Purpose The purpose of this study is to examine the effects of developmental opportunities and perceived pay equity-and paternalistic leadership on affective organizational commitment and the moderating role of paternalistic leadership at the team level in a Korean context. Design/methodology/approach Hierarchical linear modeling with a two-level design was used to analyze data collected from 844 employees and 59 work teams. Findings The study identified that developmental opportunities and perceived pay equity were significantly associated with affective organizational commitment. However, paternalistic leadership was not significantly related to affective organizational commitment. The results also showed that the moderation effect of paternalistic leadership on the relationship between pay equity and organizational commitment was non-significant, and paternalistic leadership moderated the relationship between developmental opportunities and organizational commitment. In particular, the relationship of developmental opportunities with organizational commitment became weaker when the supervisor’s paternalistic leadership was stronger. Research limitations/implications The results of this study supported the applicability of organizational support theory and previous empirical studies supporting the relationships between human resource (HR) practices and commitment, particularly in the Korean cultural context. The results have several practical implications for employers, mangers and HR practitioners in an East Asian cultural context. Originality/value This study extends the body of knowledge in leadership research by investigating the influences of two key factors of HR practices and a Confucianism-based indigenous leadership theory on organizational commitment. More importantly, the results can guide future cross-national or cross-organizational studies exploring the relationships among leadership, organizational culture and organizational effectiveness. This study also offers clearer empirical evidence for why and how developmental opportunities and perceived pay equity need to be enhanced in an East Asian cultural context.