Social power and organizational commitment in banks: the mediating aspect of procedural justice

Ikramul Hasan () and Nadim Jahangir
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Ikramul Hasan: Independent University, Bangladesh (IUB)
Nadim Jahangir: Independent University, Bangladesh (IUB)

SN Business & Economics, 2024, vol. 4, issue 1, 1-19

Abstract: Abstract Organizational commitment is crucial for empowering employees to tackle institutional challenges and remain competitive. Bangladesh is an emerging economy, and banks face intense competition while serving their customers. It is imperative for banks to adopt social power bases in their daily processes and ensure procedural justice to confirm organizational commitment. This study aims to explore the impact of social power on organizational commitment while examining procedural justice as a potential mediator. A structured questionnaire survey was conducted among various commercial banks in Bangladesh, and the data were analyzed using a structural equation model (SEM) to test the hypotheses. The study shows that legitimate, expert, referent, and coercive power have no significant association with organizational commitment (OC) when observed directly. However, reward power was found to have a positive association with OC. In addition, procedural justice was found to be significant in confirming commitment among bank employees. The study also suggests that procedural justice partially mediates the overall impact of power on OC. It was found that managers’ legitimate, expert, referent, and coercive power confirm PJ’s significant association with OC in their day-to-day work process. The study sheds light on the current practices of commercial banks in Bangladesh. It provides valuable insights for academics, experts, and administrators involved in the banking industry, helping them understand the power base that managers need to develop to increase employee commitment levels. This study is one of the few conducted on the Bangladesh banking sector. The study model can be used in similar economies or Asian countries to expand the understanding of the subject.

Keywords: Organizational commitment; Procedural justice; Social power; Bangladesh (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s43546-023-00594-2

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