The effect of psychological contract, employer branding and job satisfaction on turnover intention: Organizational commitment as moderating variable at start-up IT company

87 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen The e ec o psychological con ac , employe b anding and job sa is ac ion on u no e in en ion: O ganiza ional commi men as mode a ing a iable a s a -up IT company Ahmad Azmy1, Iyus Wiadi2, Handy Risza3 1 Pa amadina Uni e si y, Facul y o Economic and Business, Managemen Depa men , Indonesia, ORCID: 0000-0002-5053-7733, [email p o ec ed]; 2 Pa amadina Uni e si y, Facul y o Economic and Business, Managemen Depa men , Indonesia, ORCID: 0000-0002-0723-3363, [email p o ec ed]; 3 Pa amadina Uni e si y, Facul y o Economic and Business, Managemen Depa men , Indonesia, ORCID: 0000-0003-2906-4166, handy[email p o ec ed]. Abs ac : IT-s a up is an o ganiza ion ha s a s a business in he echnology ield. The p oblem ha is o en aced is high- u no e . The eali y o business p ocesses akes a long ime o de elop in o la ge companies. One o he po en ial ac o s in business success is human esou ces. The p esen s udy analyzes he di ec and indi ec e ec s o he psychological con ac , employe b anding, and job en i onmen on u no e in en ion in IT s a -up companies. O ganiza ional commi men was employed as he mode a ing a iable. The s udy was conduc ed in se e al IT s a -up companies in Jaka a, ocusing on ou business ields: educa ional echnology, IT consul ing, so wa e and ha dwa e, and IT in as uc u e. Responden s we e 182 employees o IT s a -up companies, ec ui ed using a pu posi e sampling echnique. Applying Pa ial Leas Squa e, his s udy ound ha psychological con ac , employe b anding, and job en i onmen , di ec ly and indi ec ly, a ec u no e in en ion. O ganiza ional commi men was ound o ha e he mos signi ican di ec e ec on u no e in en ion. Meanwhile, employe b anding exhibi ed he mos signi ican indi ec e ec on u no e in en ion. IT s a -ups need o s eng hen hei psychological con ac s, employe b anding, and job en i onmen o educe high u no e . IT s a -ups mus p o ide a conduci e job en i onmen o suppo employee wo k p ocesses. This s eng hens he psychological aspec o employees o s ay a loa in he long e m. A sense o loyal y, high commi men , and p o essionalism mus be ins illed in all employees as pa o e o s o s eng hen he psychological con ac . The business success o an IT s a -up becomes a good b anding employe so ha i is able o ec ui po en ial human esou ces candida es. IT s a -up companies need o s eng hen hei psychological con ac , employe b anding, and job en i onmen in o de o minimize u no e in en ion. Employees a e a long- e m in es men o a company’s business sus ainabili y, and hei ideas, c ea i i ies, and inno a ion a e pi o al o he company. Keywo ds: Psychological con ac , employe b anding, job en i onmen , o ganiza ional commi men , u no e in en ion. JEL Classi ica ion: J63, J62. APA S yle Ci a ion: Azmy, A., Wiadi, I., & Risza, H. (2023). The e ec o psychological con ac , employe b anding and job sa is ac ion on u no e in en ion: O ganiza ional commi men as mode a ing a iable a s a -up IT company. E&M Economics and Managemen , 26(2), 87–104. h ps://doi.o g/10.15240/ ul/001/2023-2-006 E+M_2_2023_kniha.indb 87 24.5.2023 12:58:00 88 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen In oduc ion Business digi aliza ion demands people o adap o dynamic, mode n li e (Ri e & Pede - sen, 2020). Business ac i i ies ha e mo ed be- yond me e ansac ion, applica ion, and social li e, as echnology u iliza ion has inc easingly become one o he company’s needs. In o - ma ion echnology has u ned in o a business oppo uni y e e y business ac o s y o seize (Capu o e al., 2021). Technology is seen as an in es men o all business sec o s, which is an icipa ed by he eme gence o s a up com- panies in he ield o in o ma ion echnology. Technology op imiza ion is aimed a esponding o ma ke demands e ec i ely. The e m s a up e e s o a new g owing business es ablished based mainly on digi aliza- ion and echnology. I is es ablished based on new ma ke oppo uni ies. Technology s a up companies specializing in digi al and in o ma- ion a e exhibi ing signi ican g ow h. In 2022, Indonesia hos s 2,346 s a -up companies (www.ka ada a.com). These companies po- en ially p omo e signi ican economic g ow h and inc ease new employmen and business oppo uni ies. Technology s a up companies a e domina ed by millennials who like new challenges and oppo uni ies. One o he chal- lenges aced by echnology s a up companies is human esou ce sho age. S a up com- panies a e epo ed o ha e a high u no e a e (Naidoo, 2018; Oos huizen e al., 2019), causing subop imal wo king p ocess as new employees a e needed. A success ul wo king p ocess equi es a well-p epa ed human esou ce. E e y o ga- niza ion aces an issue o employee u no e and human esou ces unce ain y, which leads o he o ganiza ion’s in e nal ins abil- i y. This is because he o ganiza ion should es a i s human esou ce de elopmen cos s (e.g., in es men o aining, ec ui men , and de elopmen ). A high u no e a e ad e sely a ec s he company’s e ec i eness, o cing i o spend mo e ime looking o new employees sui able o i s needs (Ma ko ich, 2019). Issues wi h u no e in en ion a e one o he conce ns in many companies. The employee eplace- men p ocess akes ime and some imes ails o ind sui able candida es. One o he causes o u no e in en ion is he lack o psychological con ac s be ween employees and he company (Wang e al., 2017). An employee-company ela ionship should be buil upon high p o essionalism and commi men . On one hand, a company is esponsible o ul illing he occupa ional and i- nancial needs while app ecia ing i s employees’ con ibu ion. On he o he hand, employees a e equi ed o mee he wo king a ge and he key o he company’s business success. Mos ech- nology s a up companies a e ba ling in a na - ow ma ke and highly compe i i e en i onmen and adequa e human esou ces a e needed o espond o he ma ke oppo uni ies and e en- ually win he compe i ion. B anding has long been a discussion opic in he ma ke ing ield, and human esou ce ap- pea s o need p ope b anding o ensu e ha he designed p og am o achie ing he com- pany’s a ge and goals a e iden i iable, isible o, and suppo ed by i s employees. B anding is belie ed o play pi o al ole in displaying an o - ganiza ion as an a ac i e wo k en i onmen o employee candida es while e aining high- pe o ming employees. In his manne , o gani- za ions will likely be known as a wo kplace o highly alen ed people and ha e good images bo h in he ma ke and he labo o ce. The e m employe b anding e e s o a company’s image om he employee candi- da es’ pe spec i e, which may be a ec ed by i s epu a ion and p o essionalism (Singh, 2021). An o ganiza ion wi h poo employe b anding may cause doub abou s aying wi h he com- pany in he long e m. Company epu a ion is one o he job seeke s’ conside a ions be o e joining he company. Employe b anding is epo ed o e ec i ely educe u no e in en- ion and help companies o ind new sui able employees mo e easily (Kashyap & Ve ma, 2018). Employe b anding may se e as one o he s a egies o imp o e companies’ high pe o me s’ loyal y. In his ega d, a company needs o es ablish a p ope managemen sys- em ha p omo es employees’ well-being and de elopmen in o de o ensu e employees’ com o , loyal y, and p ide. The wo k en i onmen is one o he ac o s a ec ing u no e in en ion (Xiao e al., 2021) and signi ican ly a ec employees’ wo king ac- i i ies. (Tu ek, 2021). A suppo i e wo k en i- onmen will likely mo i a e employees o exhibi be e pe o mance. In e nal ac o s and a con- duci e wo k en i onmen a e key o success ul a ge achie emen . A com o able, lexible wo k en i onmen may p o ide employees wi h a eeling o sa e y. Gian echnology companies E+M_2_2023_kniha.indb 88 24.5.2023 12:58:01 89 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen like Google and Mic oso a e known o op imize wo k en i onmen s o igge inno a ion om hei employees. Inno a ion will likely s em om a suppo ing wo k en i onmen , an en i on- men ha could minimize employees u no e due o i s psychological com o . In o he wo ds, wo k en i onmen may p omo e a good quali y wo k ou come. Technology s a -up companies highly need c ea i i y and inno a ion o ensu e hei business sus ainabili y. O ganiza ional commi men is necessa y o educe u no e in en ion in o de o suppo a business sus ainabili y (Hung e al., 2018). In his ega d, he o ganiza ion is equi ed o p o ide acili ies, echnologies, and equipmen ha suppo s i s wo king p ocess. On he o he hand, employees a e also equi ed o be com- mi ed o suppo he company business. Com- panies in he echnology sec o highly ely on employees’ con ibu ion, and igh compe i ion and unce ain y should be he basis o e aining employees in a long e m. Tu no e in en ion is a classic p oblem aced by mos companies, especially s a -up companies. P e ious s udies show ha psychological con ac , employe b anding, and job en i- onmen a ec o ganiza ional commi men (Ahakwa e al., 2021; Al es e al., 2020; He - e a & De Las He as-Rosas, 2021). This inding implies ha a business o ganiza ion should es ablish a psychological commi men wi h i s employees. A s ong wo k men ali y may im- p o e employees’ commi men , minimizing hei u no e in en ion. A s a -up company needs o ha e good employe b anding in he labo ma - ke , as i s eng hens he company’s ba gaining powe . I may also make employees s ay longe , o e en e i e in such a company. An o ganiza- ion needs o c ea e a ha monious, conduci e, and com o able wo king en i onmen o i s employees. Such a wo king en i onmen may indi ec ly educe employee’s u no e in en ion commonly ound in IT s a -up companies. Psychological con ac , employe b and- ing, and job en i onmen may posi i ely a ec u no e in en ion (Sahu e al., 2018; Sandhya & Sulphey, 2021; Wan e al., 2018). Employees wi h s ong psychological con ac o he company will ha dly mo e o o he com- panies. The company managemen -employee ha monious ela ionship se es as he key o educing u no e in en ion. Employe b and- ing is he main conside a ion o an employee’s long- e m ca ee planning. The company’s image and epu a ion a e among he poin s aken in o conside a ion when building i s ca ee . Com o is one o he ou comes o he job en i onmen . IT s a -up companies ha e p o en ha a suppo ing wo k en i onmen will yield business inno a ion. In con as , se e al s udies show ha employe b anding, psychological con ac , and wo k en i onmen do no a ec o ganiza- ional commi men (Maia & Bas os, 2019). They also do no di ec ly a ec u no e in en ion. The company’s ailu e o build a posi i e image also cons i u es a classic p oblem, p e en ing he es ablishmen o a psychological ela ion- ship be ween he company and i s employees and hinde ing he business p ocess. A poo wo king en i onmen will likely cause an un- com o able wo king a mosphe e. These h ee a iables, i.e., psychological con ac , employe b anding, and wo k en i onmen do no exhibi indi ec e ec on u no e in en ion. This s udy examines he e ec o psycho- logical con ac , employe b anding, and job en i onmen on u no e in en ion h ough o ganiza ional commi men I ocuses on ex- amining IT s a -up companies by assuming ha hey ha e a high u no e in en ion a e. This s udy esul may s eng hen he assump- ion ha u no e in en ion could be educed h ough psychological aspec s, s eng hen- ing company b anding, and imp o ing wo k en i onmen com o s. The u no e in en ion appea s as an in e es ing issue o be analyzed om di e en business pe spec i es. This s udy is di e en om exis ing li e a u e, as i sc u i- nizes he psychological aspec s and employe b anding as an e o o educe u no e in en- ion in IT s a -up companies. 1. Theo e ical backg ound 1.1 Psychological con ac on o ganiza ional commi men and indi ec e ec on u no e in en ion The e m psychological con ac e e s o an implici ag eemen be ween a company and i s employees, con aining expec a ions and hopes in hei p o essional ela ionship (Rogozińska-Pawełczyk, 2020). I is impo an since he company and i s employees should ha e a mu ual symbiosis. While he company expec s employees’ op imal con ibu ion and p oduc i i y, employees expec hei com- pany o ensu e hei well-being, ca ee , and compensa ion ha is wo h hei con ibu ion. E+M_2_2023_kniha.indb 89 24.5.2023 12:58:02 90 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen Psychological con ac e lec s an indi idual’s belie in a wo king ag eemen be ween hem and he company (Suazo e al., 2009). I con- ains igh s and esponsibili ies bo h pa ies should exe cise. This con ac is unw i en, as i is es ablished by psychological a ach- men be ween employees and hei companies (Ma his e al., 2015). Indica o s ep esen ing psychological con ac include ansac ional, ela ional, balance, dynamic pe o mance, and mis us (Bo ha & S eyn, 2021). These indica o s may e lec he psychologically es- ablished employee-company ela ionship. A p e ious s udy epo s ha psychological con ac a ec s o ganiza ional commi men (He e a & Las He as-Rosas, 2021; Ng & Feld- man, 2008; Thomas e al., 2010). S a -up companies in IT sec o s a e es ablished based on p o essionalism, inno a ion, and c ea i i y hei ma ke needs. In his ega d, employees and companies es ablish a psychological bond based on o ganiza ional commi men in o de o achie e he business a ge . Wi hin his ela ion- ship, he company pays a en ion o i s employ- ees’ wo king p ocess and pe o mance in o de o ensu e ha employees a e p o essional, dis- ciplined, and highly commi ed o op imal busi- ness a ge achie emen se by he company. Psychological con ac is assumed o posi i ely a ec o ganiza ional commi men . I may indi ec ly educe employees’ u no e in en ion (Wang e al., 2017; Zhao e al., 2022). P e ious s udies epo he indi ec e ec o hese a iables on u no e in en ion (Khan e al., 2022; Malik e al., 2018; Xiong e al., 2017). The company-employee mu ualism may posi i ely a ec he business quali y because employees will likely ocus on suppo ing he company’s business g ow h. O ganiza ional commi men is buil based on p o essionalism h ough human esou ce quali y imp o emen . Howe e , a di e en condi ion appea s o eme - ge among IT s a -up companies. The high u no e in en ion a e in his sec o s ill ac s as a classic issue in e e y business pe iod. The e o e, i is assumed ha psychological con ac may posi i ely a ec o ganiza ional commi men , which may indi ec ly posi i ely a ec u no e in en ion. H1: Psychological con ac posi i ely a ec s o ganiza ional commi men . H2: Psychological con ac indi ec ly posi- i ely a ec u no e in en ion. 1.2 Employe b anding on o ganiza ional commi men and indi ec e ec on u no e in en ion Employe b anding e e s o a company’s iden- i y, which is unique and di e en om o he companies (Biswas & Sua , 2016; Theu e e al., 2018). An IT s a -up company needs o ha e a di e en ia ing powe and iden i y o i s employee candida es. Employe b anding ep esen s a company’s image and epu a ion be o e he labo ma ke . I may a ac employ- ee candida es who sui he company’s needs. A highly e icien ec ui men p ocess may e- duce employees’ u no e in en ion signi ican - ly. Employe b anding op imiza ion is epo ed o educe u no e in en ion by 28% (Mosley, 2015). Companies wi h posi i e employe b anding a e epo ed o signi ican ly educe u no e in en ion (Da e n, 2021; Yada e al., 2020). This a iable may be ep esen ed by in- e es , social, economic, de elopmen , and ap- plica ion alues (Be hon e al., 2005; Edwa ds, 2009). These alues a e capable o measu e employees’ pe cei ed employe b anding. P e ious s udies ind ha employe b and- ing a ec s o ganiza ional commi men (Al es e al., 2020; Bo ella-Ca ubi e al., 2021; Hanin e al., 2013). Being commi ed o he o gani- za ion, employees will likely exhibi op imal con ibu ion o he company’s business a ge . Employees wi h a posi i e pe cep ion o em- ploye b anding may posi i ely a ec o gani- za ional commi men and a e mo e mo i a ed o p omo e he company’s success. Business o ien a ion o cus ome s could be a ained h ough pe cei ed employe b anding. Hence, i is impo an o a company o build a posi i e image in bo h business and labo ma ke s. Employe b anding is also epo ed o ha e a posi i e, indi ec e ec on u no e in en ion (Kashyap & Ve ma, 2018; Sahu e al., 2018). Employees’ posi i e pe cep ion o he company image may p o ide a sense o secu i y o s ay wi h he company in he long e m. Thus, hey will likely exhibi op imal con ibu ion and p o- duc i i y o he company. This s udy expec s ha employe b anding posi i ely a ec s o ga- niza ional commi men , and indi ec ly posi i ely a ec s u no e in en ion. H3: Employe b anding posi i ely a ec s o ganiza ional commi men . H4: Employe b anding indi ec ly posi i ely a ec s u no e in en ion. E+M_2_2023_kniha.indb 90 24.5.2023 12:58:02 91 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen 1.3 Job en i onmen on o ganiza ional commi men and indi ec e ec on u no e in en ion The wo k en i onmen is a condi ion di ec ly pe cei ed by employees and a ec s he wo k- ing p ocess (Dessle , 2020). This componen may a ec employees’ emo ional esponse o he wo king p ocess, which di ec ly a ec s he e ec i eness and job achie emen (John- son e al., 2021). The wo k en i onmen ep- esen s a p o essional ela ionship be ween subo dina es, supe io s, and cowo ke s. Wo k en i onmen e e s o a place whe e employees wo k, which may di ec ly a ec hei psychologi- cal, men al, and pe cep ion o wo king p essu e (Robbins & Judge, 2017). IT s a -up compa- nies ealize ha he wo k en i onmen may di ec ly a ec hei employee’s inno a ion and c ea i i y. Hence, c ea ing a wo k en i onmen ha sui s he company’s business cha ac e is- ics is necessa y by designing a lexible layou and p o iding suppo ing acili ies o employ- ees. The indica o s o he wo k en i onmen a e wo k ela ionships, wo k a mosphe e, ules, ligh ing, en ila ion, and secu i y (Colqui e al., 2018; Seda mayan i, 2016). The wo k en i on- men is belie ed o signi ican ly a ec IT s a up companies’ business quali y, and inno a i e business ideas would s em only om a com o - able, conduci e wo k en i onmen . P e ious s udies show ha wo k en i on- men posi i ely a ec s o ganiza ional com- mi men (Se en In epele e al., 2019). In an IT s a -up company con ex , he wo k en i on- men may cons i u e a company’s sho - e m in- es men ha de e mines he business success (Lee, 2016; Maa a i e al., 2021). The ini ial s age o a business is o de e mine he o ga- niza ion’s long- e m sus ainabili y. This will help employees o build hei o ganiza ional commi men , which may indi ec ly educe hei u no e in en ion. P e ious s udies show ha he wo k en i onmen signi ican ly and indi- ec ly a ec s u no e in en ion (Al Sabei e al., 2020; Su bak i e al., 2021; Wan e al., 2018)). A business o ganiza ion commi ed o p o iding a clean, com o able, and suppo i e wo k en- i onmen will indi ec ly a ec employees’ com- mi men o s ay in he company and gi e a high con ibu ion o he business achie emen . Wo k en i onmen se es as he suppo ing ac o o employees’ wo king p ocess. I ep esen s a company’s commi men o suppo ing em- ployees’ success. An ideal wo k en i onmen should be able o es ablish a good, p o essional wo king en i onmen , e en ually esul ing in wo k e ec i eness. Thus, i is assumed ha he wo k en i onmen posi i ely a ec s o ga- niza ional commi men and indi ec ly a ec s u no e in en ion. H5: Wo k en i onmen posi i ely a ec s o ganiza ional commi men . H6: Wo k en i onmen posi i ely indi ec ly a ec s u no e in en ion. 1.4 O ganiza ional commi men on u no e in en ion as in e ening a iable The o ganiza ional commi men ep esen s employees’ pe cep ion o iden i y and engage- men wi h he o ganiza ion’s achie emen (Knippenbe g & Sleebos, 2006; Yahaya & Eb a- him, 2016). This commi men implies employ- ees’ endency o be pa o he o ganiza ion’s business quali y imp o emen . An IT s a -up company is he ini ial s age o a business oun- da ion. A newly es ablished o ganiza ion needs o ha e s ongly commi ed, dedica ed, and loyal human esou ces o suppo i s business de elopmen p ocess. Since his de elopmen p ocess is ela i ely ime-consuming and isky, he e is a high isk o u no e in en ion. O ga- niza ional commi men e e s o a psychological bond be ween employees and he company, e lec ed by us , o ganiza ional alue accep- ance, and in en ion o s ay wi h he o ganiza- ion (Bodj enou e al., 2019). O ganiza ional commi men is commonly ep esen ed in h ee ca ego ies, a ec i e, no ma i e, and con inu- ance commi men s (Meye e al., 2002). These h ee indica o s accoun o he o ganiza ional commi men alue o an o ganiza ion. Tu no e in en ion is ep esen ed by hough s o qui - ing, in en ion o qui , and in en ion o sea ch o ano he job (Mobley e al., 1978; Skel on e al., 2020). A he ini ial s age o a business, an IT s a -up company needs employees who a e willing o accep i s alue, loyal, and gi e an op imal con ibu ion o he company’s business. P e ious s udies show ha o ganiza ional commi men posi i ely a ec s u no e in en ion (Ga ling e al., 2016; Haque e al., 2019; Kang e al., 2015). Employees’ a i ude may lead o high o ganiza ional commi men . O ganiza- ional commi men is o en s udied as he mod- e a ing a iable o u no e in en ion (He ny, 2021; Waheed Akh a e al., 2017). I is capable o explaining he di ec and indi ec e ec s E+M_2_2023_kniha.indb 91 24.5.2023 12:58:03 92 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen in he esea ch model. The di ec e ec es shows ha psychological con ac , employe b anding, and wo k en i onmen exhibi a di- ec e ec . O ganiza ional commi men se es as he media ing a iable o he indi ec e ec on u no e in en ion. Thus, i is assumed ha o ganiza ional commi men posi i ely a ec s u no e in en ion and se es as he media ing a iable in he p oposed model. H7: O ganiza ional commi men posi i ely a ec s u no e in en ion. 2. Resea ch me hodology This explo a o y quan i a i e s udy ocused on analyzing he di ec and indi ec e ec s o he esea ch model. Psychological con ac , employe b anding, and job en i onmen we e s udied as independen a iables. Mean- while, o ganiza ional commi men , ac ing as he mode a ing a iable on u no e in en ion, was examined as he dependen a iable. Psychological con ac was measu ed using ansac ional, ela ional, balance, dynamic pe - o mance, and mis us (Bo ha & S eyn, 2021). Meanwhile, employe b anding was measu ed using in e es , social, economic, de elopmen , and applica ion alues (Be hon e al., 2005; Edwa ds, 2009). The wo k en i onmen was measu ed using wo k ela ionships, wo k a mo- sphe e, ules, ligh ing, en ila ion, and secu i y (Colqui e al., 2018). O ganiza ional commi - men was measu ed using a ec i e, no ma i e, and con inuance commi men s (Meye e al., 2002). The u no e in en ion was measu ed using hough s o qui ing, in en ion o qui , and in en ion o sea ch o ano he job (Mobley e al., 1978; Skel on e al., 2020). The p oposed model p esen s he di ec and indi ec e ec s o psychological con ac , employe b anding, and wo k en i onmen we e measu ed o hei indi ec e ec on u no e in en ion h ough o ganiza ional commi men . Fig. 1 p esen s he p oposed esea ch mode. The p oposed esea ch model shows ha psychological con ac , employe b anding, and job en i onmen a e assumed o posi i ely a - ec o ganiza ional commi men . They a e also assumed o ha e indi ec e ec on u no e in en ion (H2, H4, and H6). O ganiza ional commi men se es as he media ing a iable o he indi ec e ec o he h ee a iables on u no e in en ion. The da a we e collec ed using Google Fo m. The s udy objec s we e IT s a -up companies, comp ising educa- ional echnology, IT consul an , so wa e and ha dwa e companies, and IT in as uc u e. Fig. 1: Resea ch model Sou ce: own E+M_2_2023_kniha.indb 92 24.5.2023 12:58:14 93 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen The ques ionnai e employed a 4-poin Like scale, om 1 (s ongly disag ee) o 4 (s ongly ag ee). One hund ed eigh y- wo esponden s we e ec ui ed using he pu posi e sampling echnique. They we e employees o IT s a -up companies in ou p e iously men ioned sec- o s wi h wo yea s o wo king expe ience and minimum posi ion o s a o echnician. This s udy applied Pa ial Leas Squa e (PLS) o analyze he di ec and indi ec e ec s in his s udy. This me hod is capable o p o iding mo e speci ic and de ailed esul s o he s udy indica o s. The i s s age o he analysis is ex- amining indica o s wi h an ou e loading alue o a leas 0.7 (Hai e al., 2019). I was ollowed by he eliabili y es . The da a we e deemed eliable i he C onbach Alpha, Rho A, and com- posi e eliabili y alues we e abo e 0.7 (Ve ma e al., 2021). In he second s age, he disc imi- nan alidi y es was pe o med wi h a minimum A e age Va iance Ex ac ed (AVE) alue o 0.5 (Sa s ed & Cheah, 2019). The da a ha passed he second s age p oceeded o he hypo hesis es . The hypo hesis es began by iden i ying he coe icien o de e mina ion o he R-squa e alue ha is close o he absolu e alue (100%). The R-squa e alue ep esen s he magni ude o he simul aneous e ec o independen and mode a ing a iables on he dependen a i- able. In he nex s ep, he p oposed hypo heses we e pe o med. A hypo hesis was accep ed i he p- alue < 5% and T-s a is ic < T- able. 3. Resea ch esul s 3.1 Responden p o ile This s udy in ol ed 182 esponden s, whose p o iles a e displayed in Tab. 1. Tab. 1 displays i e esponden s’ p o iles: gende , age, job enu e, posi ion, and business ield. Mos pa icipan s we e male (73%). Rega d- ing age, mos pa icipan s we e 21–30 yea s o age (43%), below 20 yea s o age (43%), and abo e 30 yea s o age (20%). Mos pa - icipan s ha e wo ked o 6–10 yea s (48%), 0–5 yea s (36%), and mo e han 10 yea s (16%). They we e mos ly in middle managemen posi- ions (45%), low-le el managemen (36%), and op managemen (19%). Rega ding he business ield, mos s a -up companies in his s udy we e in he so wa e and ha dwa e busi- ness (32%), IT consul an (30%), educa ional echnology (41%), and IT in as uc u e (15%). In o ma ion Desc ip ion To al Pe cen age (%) Gende Male 133 73 Female 49 27 Age < 20 yea s 67 37 21–30 yea s 79 43 >30 yea s old 36 20 Job enu e 0–5 yea s 66 36 6–10 yea s 88 48 >10 yea s old 28 16 Posi ion Top managemen 35 19 Middle managemen 81 45 Low managemen 66 36 Business ield Educa ional echnology 41 23 IT consul an 55 30 So wa e and ha dwa e 59 32 IT in as uc u e 27 15 Sou ce: own Tab. 1: Responden s’p o ile E+M_2_2023_kniha.indb 93 24.5.2023 12:58:15 94 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen Mos esponden s we e millennials. Middle-le el managemen in his s udy equals o: supe iso o manage assis an . Low-le el managemen in his s udy equals o: s a , echnicians, da a analys s, and senio s a . Meanwhile, op man- agemen equals o b anch head and manage . 3.2 Pa ial leas squa es The i s s age o he analysis is examining indi- ca o s wi h an ou e loading alue o a leas 0.7. Tab. 2 p esen s he ou e loading alues. Tab. 2 showed ha all indica o s used in he ques ionnai e could be used as he e- sea ch da a since hei ou e loading alues we e abo e 0.7. In o he wo ds, indica o s used in his s udy we e capable o ep esen ing a iables in he esea ch model. In he second s age, he alidi y, eliabili y, and disc iminan alidi y es s we e pe o med. The esul is p e- sen ed in Tab. 3. As shown in Tab. 3, employe b anding, wo k en i onmen , o ganiza ional commi men , psychological con ac , and u no e in en ion me he alidi y and eliabili y equi emen , as indica ed by C onbach-Alpha, Rho A, and composi e eliabili y alues o highe han 0.7. The AVE alues o all a iables we e highe han 0.5, indica ing ha hey me he dis- c iminan alidi y equi emen . C onbach- Alpha, Rho A, Composi e Reliabili y, and A e age Va iance Ex ac ed alues indica ed ha he da a me he alidi y, eliabili y, and disc iminan alidi y equi emen s. The nex s ep was o es he hypo heses and coe icien o de e mina ion h ough R-squa e. P io o he hypo hesis es , he R-squa e alue o all Indica o Code Ou e loading Psychological con ac PC1 0.723 PC2 0.784 PC3 0.762 PC4 0.826 PC5 0.801 PC6 0.787 PC7 0.726 Employe b anding EP1 0.793 EP2 0.740 EP3 0.816 EP4 0.858 EP5 0.776 EP6 0.742 EP7 0.780 EP8 0.707 EP9 0.834 EP10 0.785 EP11 0.756 EP12 0.747 EP13 0.766 EP14 0.756 EP15 0.734 Tab. 2: Ou e loading – Pa 1 E+M_2_2023_kniha.indb 94 24.5.2023 12:58:15 95 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen a iables was examined o see he e ec size, as shown in Tab. 4. Tab. 4 shows ha psychological con ac , employe b anding, and wo k en i onmen si- mul aneously a ec o ganiza ional commi men by 60.1%, while he o he 39.9% was a ec ed by o he a iables ou side he p oposed model. O ganiza ional commi men was ound o mod- e a ely a ec u no e by 37.4%. O ganiza ional commi men , as he mode a ing a iable, was Indica o Code Ou e loading Job en i onmen JE1 0.697 JE2 0.818 JE3 0.802 JE4 0.831 JE5 0.766 JE6 0.722 O ganiza ional commi men OC1 0.877 OC2 0.850 OC3 0.731 OC4 0.798 Tu no e in en ion TI1 0.819 TI2 0.782 TI3 0.808 Sou ce: own Va iable C onbach’s alpha Rho AComposi e eliabili y A e age a iance ex ac ed (AVE) Employe b anding 0.958 0.960 0.962 0.571 Job en i onmen 0.866 0.874 0.899 0.599 O ganiza ional commi men 0.831 0.844 0.888 0.666 Psychological con ac 0.880 0.885 0.907 0.582 Tu no e in en ion 0.884 0.813 0.781 0.641 Sou ce: own Va iable R-squa e O ganiza ional commi men 0.601 Tu no e in en ion 0.374 Sou ce: own Tab. 2: Ou e loading – Pa 2 Tab. 3: Validi y, eliabili y, and disc iminan alidi y Tab. 4: R-squa e E+M_2_2023_kniha.indb 95 24.5.2023 12:58:16 102 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen Se en In epele , S., Es e gil, G., Yilmazmis, F., Bengu, N., Gunes Dinc, N., Ile i, S., A aman, Z., & Di ik, H. 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Jou nal o Manage- men and O ganiza ion, 1–18. h ps://doi.o g/ 10.1017/jmo.2022.16 E+M_2_2023_kniha.indb 102 24.5.2023 12:58:22 103 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen Appendix Va iable Indica o I em Re e ences Psychological con ac T ansac ional con ac Employees pe o m hei job acco ding o he con ac (Bo ha & S eyn, 2021) Rela ional con ac (s abili y) Employees in end o wo k in a long- e m in he company Balanced con ac (ex e nal employabili y) Employees a emp ed o build hei ne wo k o enhance hei po en ial ca ee Balanced con ac (unce ain y) Employees pe cei e job insecu i y in he wo kplace Balanced con ac (in e nal ad ance) Employees seek o oppo uni ies o aining and de elopmen in he company Dynamic pe o mance Employees a e capable o accep ing wo k challenges acco ding o he business dynamics and company expec a ion Mis us Employees do no us he company Employe b anding In e es alue The company deli e s an inno a i e p oduc s/se ices (Be hon e al., 2005; Edwa ds, 2009) The company deli e s a high-quali y p oduc s/se ices Social alue I ha e a good ela ionship wi h cowo ke s I ha e a good ela ionship wi h my supe io s Economic alue The company p o ides an in e es ing compensa ion package o me The company p o ides p omo ion oppo uni ies The company p o ides in e -depa men expe ience ( ask o a ion) De elopmen alue I am con iden being a pa o his company I am happy o wo king in his company I gain a ca ee -imp o ing expe iences I eel being app ecia ed by he managemen Applica ion alue I am gi en oppo uni ies o sha e my knowledge wi h cowo ke s This company is cus ome -o ien ed I eel being accep ed in his company Wo k en i onmen Wo k ela ionship All employees ha e a ha monious ela ionship among cowo ke s (Colqui e al., 2018). Wo k a mosphe e The wo k en i onmen is com o able and conduci e, suppo ed by i s cleanliness Wo k egula ion The company se wo king ules o suppo p oduc i i y Ligh ing The oom ligh ing adequa ely suppo s employees wo king ac i i ies Ai ci cula ion The oom empe a u e highly suppo s he ac i i ies and is ai -condi ioned Secu i y Employees eels sa e o wo k in a oom equipped wi h CCTV Tab. A1: Ques ionnai e – Pa 1 E+M_2_2023_kniha.indb 103 24.5.2023 12:58:23 104 2023, olume 26, issue 2, pp. 87–104, DOI: 10.15240/ ul/001/2023-2-006 Business Adminis a ion and Managemen Va iable Indica o I em Re e ences O ganiza ional commi men A ec i e commi men Employees a e p oud o be he pa o he company (Meye e al., 2002) Employees a e happy o spend hei ca ee in he company No ma i e commi men Employees pe cei e loyal y o he company as impo an poin o he wo king p ocess Con inuance commi men Employees ind i di icul o lea e he company Tu no e in en ion Though s o qui ing I begin o hink o lea e his company (Mobley e al., 1978; Skel on e al., 2020) In en ion o qui I hink abou mo e in e es ing job han his cu en job In en ion o sea ch o ano he job I wan o ind be e job Sou ce: own Tab. A1: Ques ionnai e – Pa 2 E+M_2_2023_kniha.indb 104 24.5.2023 12:58:24