Perceived External Prestige and Employee Outcomes: Mediation Effect of Organizational Identification

Abstract

The study investigates the linkage of perceived external prestige with emotional exhaustion and turnover intention. On the basis of a sample of 484 medical sales employees, the present study found support for the assertion that employees’ perception about the external prestige of their organization is negatively related to both emotional exhaustion and turnover intention. The finding indicated a partial mediation effect of organizational identification on the relationship between perceived external prestige and turnover intention. However, there was a complete mediation effect of organizational identification on the relationship between perceived external prestige and emotional exhaustion. The study argues that organizations need to focus their external prestige toward their employees. The study adds to the existing literature by explaining the path in which perceived external prestige influences employees’ emotional exhaustion and turnover intention.