Employee Participation in Decision Making, Psychological Ownership and Knowledge Sharing: Mediating Role of Organizational Commitment in Taiwanese high-tech Organizations

Presenter : Kuei -Yuan Betty LiInstructor: Dr. Pi-Ying Teresa HsuDate : April 07,2014

Contents

2.

1. Introduction

3. 4.

1. Introduction

2. Literature Review

3. Methods

5. Conclusions Critiques & Suggestions

2

4. Results

Citation

Han, T. S., Chiang, H. H., & Chang A. (2010). Employeeparticipation in decision making, psychological

ownership and knowledge sharing: Mediating role of organizational commitment in Taiwanese high-techorganizations. The International Journal of HumanResource Management, 21(12), 2218-2233.

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Prof. Tzu-Shian Han

Background

Literature review

Gap

Purpose

Contribution

Introduction

4

Introduction

Background The knowledge-based economy Knowledge management

5

Introduction

Literature review A sense of belonging influences altruistic spirit

through organizational commitment and thus affects knowledge-sharing behavior.

(Vande Walle, Van Dyne, & Kostpva,1995)

Employee participation in decision making could contribute to a sense of belonging.

(Tannenbaum, Weschler, & Massarik, 1961)

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Introduction

Gap The research on the implementation of

knowledge management

The mechanism that turn knowledge into competitive advantage

The relationship between employee participation in decision making and knowledge sharing, and its intermediating factors.

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Introduction

Purpose To investigate the relationships among

employee participation in decision making (EPDM), psychological ownership (PO), organizational commitment (OC) and knowledge sharing (KS) behavior

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Introduction

Value To reveal that psychological ownership and

organizational commitment are conductive to knowledge-sharing behavior on the part of employees

To design a proper mechanism (i.e. EPDM) that enhance employees’ psychological ownership and organizational commitment

To stimulate knowledge sharing

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Literature

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Literature review

Employee Participation in Decision Making

Psychological Ownership

Organizational Commitment

Knowledge Sharing

Literature

Employee participation in decision making (EPDM)

Employee have rights to participate in organizational decision making.

(Tannenbaum et al., 1961)

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Literature

Psychological ownership (PO)

Psychological ownership is experienced by individuals via psychological feelings toward tangible and intangible objects which are closely associated with individuals.

(Pierce et al., 2001)

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Literature

Employees who have a say in decision making may develop a sense of psychological ownership that makes them feel that the organization is theirs.

(McGregor, 1986)

Hypothesis 1 A positive relationship exists between employee

participation in decision making and individuals’ psychological ownership.

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Literature

Organizational commitment (OC)It is an attitude through which employees identify organizational goals and invest themselves in the organization for the sake of staying in the organization.

(Mowday, Steers, & Porter, 1979)

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Literature

Organizational identity and psychological ownership may be highly correlated.

(Masterson, & Stamper, 2003)

Hypothesis 2 A positive relationship exists between psychological

ownership and organizational commitment.

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Literature

Knowledge sharing (KS)

High-tech organizations have to carefully negotiate with internal power relations in order to ensure that tacit knowledge is shared and produces innovation.

(Anand et al., 2007)

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Literature

Employees who have a sense of psychological ownership may display altruistic spirit which has been viewed as one of the crucial antecedents for knowledge sharing behavior.

(Van Dyne, & Pierce, 2004)

Hypothesis 3 A positive relationship exists between psychological

ownership and individuals’ knowledge-sharing behavior.

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Literature

Employees with high job satisfaction and organizational commitment can produce altruistic spirit, thus contributing to positive behavior, such as knowledge sharing.

(Podsakoff et al. 2000; Jones 2002)

Hypothesis 4 A positive relationship exists between

organizational commitment and individual knowledge-sharing behavior.

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Literature

Psychological ownership is positively associated with organizational commitment. (Van Dyne and Pierce, 2004)

Employees with high organizational commitment can evoke the spirit of altruism. (Podsakoff et al., 2000)

Psychological ownership affects altruistic spirit through organizational commitment and then affects knowledge sharing behavior. (Vande Walle et al., 1995)

Hypothesis 5 Organizational commitment mediates the relationship

between psychological ownership and knowledge-sharing behavior.

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Literature

Research Framework

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Mediator

Methods

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Sample and procedures

Measures

Instrument

Methods

Sample and procedures Self-report questionnaire 8 high-tech companies in Taiwan in 2007 600 questionnaires distributed 239 valid questionnaires

Male: 54.% Fmale : 47.6% Bachelor’s degrees: 62% Master’s degree: 38% Organizational tenures: less 9 years:83 %

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Methods

Measures Structural equation modeling (SEM)

LISREL 8.52 A panel of experts

Majored in organizational behavior

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Methods

Instrument A five-point Likert scale

1= strongly disagree 5=strongly agree

Total 13 items Knowledge Sharing: 3 Employee Participation Decision Making : 4 Psychological ownership: 3 Organizational Commitment: 3

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Results

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Statistic fit and stability

Construct validity

Means, stand deviations, and correlations

Structural model

Examination of mediating effect

Results

Statistic fit and stability CFA

X²/D.F<5, GFI>0.9, CFI>0.9, AGFI>0.8, RMSR<0.05 An adequate fit

This study X²/D.F=1.99, GFI=0.93, CFI=0.93,

AGFI=0.89, RMSR=0.049 Reliability 0.74~0.88

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Results

Construct validity-The discriminate validity

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F 1.96Standardized error excluded 1

Results

Construct validity- convergent validity

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Results

Means, standard deviations, and correlations

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r =0.194 - 0.471,All p 0.05

Results

Structural model

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H 1 +H 2 +

H 4 +H 3 -

Results

Examination of mediating effect

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H1

H2

H3H4

Results

Examination of mediating effect

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H5 + OC mediating POKS

Conclusions

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Conclusions

Limitation and future research

Implications and suggestions

Conclusions

Conclusions Organizations should adopt practices of EPDM, which is compatible with the philosophy of Confucianism as it is concerned with employees’ humanistic needs, achievements and interests, contributing to employees’ psychological ownership, organizational commitment and knowledge-sharing behavior.

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Critiques

Limitation and future research 1 single source different sources The biases caused by simultaneous data a longitudinal design A sense of belonging

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Suggestions

Implication and suggestions Positive relationship EPDM PO OC mediating PO KS

Organizational empowerment KS EPDM PO & OC EPDM vs. Confucian altruism

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Thank You !

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