Relationship between Organizational Climate and Service Performance in South Korea and China

Abstract

Both South Korea and China have collective cultures; however, there are significant differences in employee behavior due to cultural, economic, and environmental factors. This study explores the influence of organizational climate on employee innovative behavior and service performance using a competitive value model, as well as the mediating effects of social capital and organizational silence. Adopting the interpersonal relationship, rational goal, and internal process approaches, it focuses on three aspects: supervisory support, pressure to produce, and formalization. A total of 773 valid questionnaires were collected from four- and five-star hotels in South Korea and China, and the data were analyzed using SPSS and AMOS. The results showed that supervisory support and pressure to produce positively affected employee social capital, thereby affecting their service performance. Formalization positively affected organizational silence and negatively affected employees’ innovative behaviors. This study confirmed the mediating effects of social capital and organizational silence in the organizational environment. The positive effects of supervisory support and pressure to produce on social capital were similar in South Korea and China. However, among the effects of organizational silence, Korean employees were more likely to benefit from formalization. This study identified the differences in organizational climate and organizational performance between South Korea and China and provides implications for enterprises’ sustainable development.