Organizational commitment in an intense competition environment

Abstract

Purpose– The purpose of this paper is to investigate the effect of market orientation (MO) on organizational performance (OP) through organizational commitment (OC) in the intensely competitive environment of high-tech industrial clusters. The relationships among MO, OC, and OP are also examined. Design/methodology/approach– Structural equation modeling (SEM) was used to analyze the questionnaires completed by employees of 91 high-tech enterprises (n=335) located in the four science parks in northern, central, and southern Taiwan. Findings– The results indicate that MO and OC have positive and direct effects on OP. The effect of MO on OP is significantly increased by enhanced OC. Practical implications– This study provides corporate managers with valuable knowledge, which can enhance OC and OP. That is, successful organizations must combine the strengths and motivations of internal employees and respond to external changes and demands promptly to demonstrate the organization's value. Social implications– Regardless how the industrial environment becomes increasingly complex and diverse, OC of employees is still crucial. Only long-term retention of human capital can sustain operations and enhance OP. Originality/value– The most valuable contribution of this study is the understanding of OC as a mediator of MO and OP. This indicates that the only factors that guarantee OP are the talents who are willing to commit to the organization. Faced with increasingly severe challenges in the future, the results of this study contribute to existing literature by demonstrating that MO can sustain competitive advantages.