THE RELATIONSHIP OF PERCEIVED ORGANIZATIONAL INNOVATIVENESS (PORGI) ON IS&T EMPLOYEE CONTINUANCE: A LISREL MODEL

Hy Sockel () and Brenda Mak ()
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Hy Sockel: Department of Management, Williamson College of Business Administration, Youngstown State University, Youngstown, Ohio 44555, USA
Brenda Mak: Department of Information Systems, College of Business, San Francisco State University, 1600 Holloway Avenue, San Francisco, California 94132, USA

International Journal of Innovation and Technology Management (IJITM), 2004, vol. 01, issue 04, 393-414

Abstract: This paper explores how employees' perception of an organization's innovativeness impacts their desire to continue an association with the organization. The study uses Structural Equation Modeling — LISREL to explore the relationship between latent constructs of the employees' Perceived Job Satisfaction, and Perceived Organizational Innovativeness (PORGI) with their desire for (employment) Continuance with the organization. PORGI is measured through perceived innovation management, organizational career culture, personnel and innovation management policies. The latent construct of "Employee Continuance" is measured through loyalty and a desire to stay. The latent construct of Job Satisfaction is measured by the perceived job satisfaction of the employees.A survey was conducted among Information Systems and Technology (IS&T) employees and the data was analyzed using LISREL confirmatory factor analysis. The results indicate that Perceived Organizational Innovativeness and Job Satisfaction have significant impact on employee retention. Employees that perceived the organization as being innovative demonstrated higher levels of loyalty and had a higher desire to stay connected with their organization. The study concludes that it behooves organizations to support innovative technologies, if only to improve employee retention. Additional organizational implications and technological adoption strategies to strengthen employee retention are discussed.

Keywords: Perceived organizational innovativeness; PORGI; employee continuance; retention; career culture; innovation management; loyalty; commitment (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1142/S0219877004000295

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