Career Growth Opportunity on Turnover Intention: The Mediating Role of Organizational Commitment in Multinational Corporations

Abstract

In accelerated globalization, multinational corporations (MNCs) continually seek opportunities to expand their businesses to foreign countries. For sustainable businesses in foreign countries, it is important to retain a large number of local employees which is challenging. Based on existing literature in international human resource management, we hypothesized that organizational commitment (OC) is a mediator in the relationship between perceived career growth opportunity (CGO) and turnover intention (TO) among local employees in MNCs. We analyzed a sample from five companies affiliated with a Korean MNC located in Vietnam. From the mediation analysis, it was evident that OC is a partial mediator between CGO and TO. In particular, CGO and OC were positively correlated, OC and TO were negatively correlated, and CGO and TO were still negatively correlated when OC was adjusted in the regression model. These findings provide a new insight in the field of international human resource in growing MNCs.