The effects of education and allocentrism on organizational commitment in Chinese companies

Purpose – As Chinese companies move to the world stage of business, they must leverage a more knowledgeable and collaborative workforce to meet new challenges. The purpose of this paper is to investigate how two prominent individual attributes, education, and allocentrism, create work tension for human capital practices in Chinese companies. Design/methodology/approach – Surveying nearly 500 workers in four Chinese companies and using multi-level methodology. Findings – The authors found that higher levels of education work to the detriment of employees’ affective organizational commitment (AOC) and positively influence seeking-to-leave behavior. In addition, this study suggests a positive relation between allocentrism and AOC. Personalized leadership, a common leadership style in high-power distance cultures such as China, further exacerbates the problems with higher levels of education and diminishes the commitment benefits of allocentrism. Conversely, regardless of leadership style, if supervisors involve workers in decision-making activities, those workers who are more educated will become more committed to the organization and less likely to leave. Research limitations/implications – The data were collected using self-reported questionnaires, which may cause common method variance. The reliability for personalized leadership was slightly below 0.70. This may be due to the multiple dimensions that are reflected in leadership styles. Another limitation of this study is its focus on allocentrism without considering other personal expression of cultural values. This approach could be too narrow (Gelfand et al., 2007). Practical implications – This study suggests that members who endorse allocentrism might be more likely to have high-affective commitment. If managers can select individuals high on the allocentrism scale, there is a higher likelihood these individuals will attach emotionally to the organization. Managers should not simply conclude that idiocentrics are “worse” employees than allocentrics. Instead, managers may utilize effective management tactics to cultivate more socialized leadership visions among their supervisors. Finally, the authors find that independent of whether leadership is more or less personalized, managers can retain valued educated workers by including them in decision-making activities. Social implications – The authors have found that education may serve as a double edged sword for employers. As hypothesized, the findings suggested that employees’ level of education negatively relates to their affective commitment for their organizations. This study also contributes to the knowledge on the role of culture at the individual level (i.e. allocentrism) and how it affects employees’ attitudes and behavior. The authors found that workers who more highly value the group that they function within (allocentrics) tend to be more affectively committed to their organization. Originality/value – It is one of the first studies to examine educational level and cultural orientation as antecedents to affective commitment, especially in Chinese businesses where workers’ education level is a growing phenomenon and allocentrism is a traditional characteristic of Chinese workers. Also, understanding the dynamics of group-individual linkages is generally most helpful to understanding organizational phenomenon (House et al., 1995). This meso framework is a hallmark feature of the study, given the hierarchical nature of the research inquiry and data set.