Impact of corporate purpose and product attractiveness on job satisfaction and turnover: Evidence from Japanese industries

Abstract

ABSTRACT While some individuals prefer to work for empathic companies, others may be attracted to those with appealing products or services. This study compares the effects of company purpose and products on job satisfaction and turnover intention in internal marketing. Propensity score matching was applied to data from an online survey of full-time employees across 10 industries in Japan. We found that an empathic purpose positively affects satisfaction, supporting the effectiveness of purpose redefinition, which has recently attracted attention. Considering organizational scale, the impact was significant for small and medium-sized enterprises, but not for large ones. Contrary to our assumptions, attractive products positively affect turnover intentions. As large enterprises with diverse businesses commonly have an abstract purpose, an overarching purpose should be established and shared by all business domains and a hierarchical structure with sub-purposes should be created. Furthermore, employees working on attractive products may be more likely to switch jobs, as it is easier for them to appeal to outsiders.