JOB EMBEDDEDNESS, WORK ENGAGEMENT,

AND ETHICAL WORK CLIMATE ON

CHING SOCK LEE

UNIVERSITI SAINS MALAYSIA

2016
1
JOB EMBEDDEDNESS, WORK ENGAGEMENT,
AND ETHICAL WORK CLIMATE ON
TURNOVER INTENTION OF ACADEMIC STAFF
IN PRIVATE HIGHER EDUCATIONAL
INSTITUTIONS

by

CHING SOCK LEE

Thesis submitted in fulfilment of the requirements

APRIL 2016
2
 ACKNOWLEDGEMENT

The process of writing up this thesis is made possible through the help and support of many

people. I am grateful to all of them and wish to express my sincerest thanks.

I am grateful to Dr. Daisy Kee Mui Hung and Dr. Tan Cheng Ling, my main and co-

supervisors, for their scholarly support and guidance throughout the process of writing this thesis.

Their comments and constructive criticisms helped in the completion of this piece of work.

My sincere appreciation also goes to the internal examiners, Dr. Azura Abdullah Effendi and

Dr. Hasliza Abdul Halim for their painstaking efforts in reading through the thesis and giving valuable

comments to improve the write-up of the thesis. I thank Professor Ramayah Thurasamy, for spending

his valuable time and energy to guide the PhD students in data analyses. Without the help of Professor

Ramayah Thurasamy, it would have been impossible for me to do the data analyses, and the write-up

of other aspects of the thesis. I wish to thank all the professors, associate professors, and senior

lecturers who unselfishly transfer and share their professional knowledge through the training sessions

painstakingly organized by the Institute of Postgraduate School, Universiti Sains Malaysia, Penang.

I also would like to extend my sincere thanks to the private universities and university

colleges for granting the permission to collect valuable information from their employees. Last but not

least, I would like to thank the participants of this study who spent their valuable time in filling out

the questionnaires.

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 TABLE OF CONTENTS

Page

Acknowledgement ii

Table of Contents iii

List of Tables viii

List of Figures ix

Abstrak x

Abstract xii

CHAPTER 1 - INTRODUCTION

1.0 Introduction 1

1.1 Background of the Study 5

1.2 Problem Statement 8

1.3 Research Objectives 12

1.4 Research Questions 12

1.5 Significance of the Study 13

1.5.1 Theoretical significance 13

1.5.2 Practical significance 17

1.6 Definition of Key Terms 19

1.7 Organization of Remaining Chapters 21

CHAPTER 2 - LITERATURE REVIEW

2.0 Introduction 22

2.1 Turnover Intention 22

2.2 Development of the Study on Turnover and Turnover Intention 25

2.3 Turnover Intention in Malaysia 29

2.4 Consequences of Turnover Intention 32

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2.5 Job Embeddedness and Work Engagement as Determinants of Turnover 33

Intention

2.6 Job Embeddedness 34

2.6.1 Consequences of job embeddedness 44

2.7 Work Engagement 47

2.7.1 Approaches of engagement 50

2.7.2 Consequences of work engagement 53

2.8 Ethical Work Climate 55

2.8.1 Moral sensitivity 60

2.8.2 Moral judgment 62

2.8.3 Moral motivation 63

2.8.4 Moral character 64

2.8.5 Comparison between Victor and Cullen’s model and Arnaud’s 66

model

2.8.6 Consequences of ethical work climate 66

2.8.7 Ethical work climate as a moderator 68

2.9 Underlying Theory 71

2.10 Research Gap 74

2.11 Theoretical Framework 78

2.12 Hypotheses Development 79

2.12.1 Job embeddedness and turnover intention 79

2.12.2 Work engagement and turnover intention 81

2.12.3 Moderation effect of ethical work climate 82

2.13 Chapter Summary 84

CHAPTER 3 - METHODOLOGY

3.0 Introduction 86

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3.1 Population and Sample 86

3.2 Questionnaire Distribution 90

3.3 Research Design 91

3.4 Pilot Test 94

3.5 Data Collection Procedures 96

3.6 Instruments 97

3.6.1 Job embeddedness scale 100

3.6.2 Work engagement scale 101

3.6.3 Ethical work climate scale 101

3.6.4 Turnover intention scale 103

3.6.5 Demographic variables 103

3.7 Data Analyses 104

3.7.1 Descriptive statistics 104

3.7.2 Test for common method bias 105

3.7.3 Smart Partial Least Squares 106

3.7.4 Validation of formative and reflective measures 107

3.7.5 Assessment of measurement model 110

3.7.6 Assessment of structural model 111

3.7.7 Assessment of moderation effect 113

3.8 Chapter Summary 113

CHAPTER 4 - RESULTS

4.0 Introduction 115

4.1 Demographic Profile of Respondents 116

4.2 Common Method Variance 117

4.3 Goodness of Measurement Model 117

4.3.1 Assessment of measurement model 120

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 4.3.1.1 Assessment of formative indicators 121

4.3.1.2 Assessment of reflective measures and measurement model 123

4.3.2 Discriminate validity 125

4.4 Structural Model Results 128

4.5 Moderating Effects: The Two-Stage Approach 130

4.5.1 Interpreting moderating effects 131

4.5.2 Determining the strength of moderating effects 134

4.7 Chapter Summary 137

CHAPTER 5 - DISCUSSION AND CONCLUSION

5.0 Introduction 139

5.2 Recapitulation 139

5.3 Discussion of Findings 141

5.3.1 The relationship between job embeddedness and turnover 141

intention

5.3.2 The relationship between work engagement and turnover intention 143

5.3.3 Moderation effect of ethical work climate on job embeddedness 144

and turnover intention

5.3.4 Moderation effect of ethical work climate on work engagement 145

and turnover intention

5.4 Implications of the Study 149

5.4.1 Theoretical contributions 149

5.4.2 Practical contributions 152

5.5 Limitations of the Study 158

5.6 Directions for Future Research 159

5.7 Conclusion 160

REFERENCES 162

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APPENDICES

Appendix A Ethics and Confidentiality Statement 188

Appendix B Questionnaire 190

Appendix C Cover Letter 196

Appendix D Output of Data Analyses 197

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 LIST OF TABLES

Page

Table 2.1 A Summary of Respresentative Studies on Turnover and Turnover 28

Intention

Table 2.2 Conceptualization of Work Engagement 53

Table 3.1 List of Private Higher Educational Institutions in Malaysia (2014) 88

Table 3.2 Distribution of Questionnaires 91

Table 3.3 Survey Schedule 91

Table 3.4 Amendments to the Questionnaire after Pilot Test 95

Table 3.5 Summary of the Instruments Employed in the Present Study 99

Table 3.6 Items for Demographic Variables 104

Table 3.7 Nature of Measurement Model for Constructs 109

Table 4.1 Response Rate 116

Table 4.2 Respondents’ Profile 116

Table 4.3 Cronbach’s Alpha and Composite Reliability 118

Table 4.4 Descriptive Statistics 119

Table 4.5 Collinearity Statistics for Formative Measures 122

Table 4.6 Measurement Model Results 124

Table 4.7 Latent Variable Correlations 125

Table 4.8 Loadings and Cross Loadings 126

Table 4.9 Path Coefficients 129

Table 4.10 Path Coefficients with Moderation Effect 133

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 LIST OF FIGURES

Page

Figure 2.1 Theoretical Framework 78

Figure 4.1 Structural Model (Direct Effect) 130

Figure 4.2 Structural Model (Moderation Effect) 131

Figure 4.3 Interaction Plots 135

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 PERIKATAN KERJA, PENGLIBATAN KERJA DAN

PERSEKITARAN KERJA BERETIKA ATAS NIAT TUKAR KERJA

DALAM KALANGAN STAF AKADEMIK

INSTITUSI PENDIDIKAN TINGGI SWASTA

ABSTRAK

Institusi pendidikan tinggi swasta (IPTS) menghadapi masalah kadar

pertukaran kerja yang tinggi dalam kalangan staf akademik. Kajian ini bertujuan

mengkaji pengaruh variabel perikatan kerja dan penglibatan kerja serta persekitaran

kerja beretika atas niat tukar kerja staf akademik IPTS. Kajian ini amat diperlui

kerana dapatan kajian lepas menunjukkan hubungan yang lemah atau tidak konsisten

antara variabel perikatan kerja dan penglibatan kerja dengan niat tukar kerja.

Tambahan lagi, kebanyakan kajian lepas dilaksanakan di negara Barat, dalam

industri lain dari sektor pendidikan, yang mempunyai sifat demografi yang sangat

berbeza berbanding Malaysia. Data dikutip secara purposif dari 276 staf akademik

yang bekerja di IPTS melalui soal selidik. Instrumen yang digunakan dalam kajian

ini ialah skala Perikatan Kerja yang dibina oleh Mitchell et al. (2001), skala

Penglibatan Kerja Utrecht yang disedia oleh Schaufeli dan Bakker (2003), serta skala

Persekitaran kerja beretika yang dihasil oleh Arnaud (2006). SPSS versi 20 dan

SmartPLS versi 2.0 digunakan untuk menganalisis data. Beberapa ujian, termasuk

Ujian Satu Faktor Harmon telah dibuat untuk memastikan kesahihan data yang

dikutip. SmartPLS Dua Peringkat digunakan untuk membuat analisis data, iaitu,

Peringkat Pertama untuk menguji model asas, dan Peringkat Kedua untuk menguji

model penuh. Hasil kajian menunjukkan bahawa perikatan kerja dan penglibatan

kerja adalah signifikan dalam mempengaruhi niat tukar kerja staf akademik IPTS.
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Manakala untuk model penuh, dimensi keputusan moral dan motivasi moral

persekitaran kerja beretika mempunyai kesan signifikan atas hubungan perikatan

kerja dan penglibatan kerja dengan niat tukar kerja staf akademik IPTS. Implikasi

dapatan kajian secara teori dan praktik dibincang, berserta batasan kajian dan

cadangan untuk kajian masa hadapan. Kajian ini menyumbang kepada

perkembangan teori berkaitan dengan niat tukar kerja kerana ia menunjukkan

bahawa persekitaran etika kerja berupaya mempengaruhi tahap perikatan kerja dan

penglibatan kerja dan seterusnya mengubah tahap niat tukar kerja pekerja. Ia juga

memberi faedah kepada para pentadbir IPTS kerana kajian ini berjaya mengesan

variabel baru yang boleh digunakan dalam pengurusan sumber manusia untuk

memastikan staf akademik kekal dengan institusi tempat kerja.

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 JOB EMBEDDEDNESS, WORK ENGAGEMENT, AND ETHICAL

WORK CLIMATE ON TURNOVER INTENTION OF

ACADEMIC STAFF IN PRIVATE HIGHER

EDUCATIONAL INSTITUTIONS

ABSTRACT

The private higher education institution (PHEI) faces high turnover rate

among its staff. The main objective of this study is to investigate the relationship

among job embeddedness, work engagement, ethical work climate and turnover

intention of academic staff in PHEI in Malaysia. There is a need to conduct the study

because of inconsistency or weak relationship between job embeddedness and work

engagement with turnover intention. Additionally, previous studies focus mainly in

the Western context and in industries other than education sector, where the

demographic profile varies greatly from that of Malaysia. This research uses

purposive sampling and survey method to collect data from 276 academic staff of

PHEI. The instruments used in this study were Job Embeddedness scale by Mitchell

et al. (2001), Utrecht Employee Engagement scale by Schaufeli and Bakker (2003),

and Ethical Work Climate scale by Arnaud (2006). A number of tests, including

Harmon’s Single Factor Test was performed to void the data of the influence of

common method bias. Data analyses were done using SPSS version 20 and

SmartPLS version 2.0. A two-stage PLS was carried out to obtain the results of the

study. The findings revealed that in the original model, both job embeddedness and

work engagement were found to have significant and negative impact on turnover

intention of academic staff. In the full model, results demonstrated that moral

judgment and moral motivation had significant impact on the direct paths. This
13
means that the moral motivation and moral judgment influenced the relationship

between job embeddedness and turnover intention, as well as between work

engagement and turnover intention. Theoretical and practical implications of the

study were discussed, and limitations of the study, as well as suggestions for future

research were given. All in all, this study has enriched the existing literature on

turnover intention, and is helpful to existing policy makers and administrators of

PHEI to improve their efforts in retaining their academic staff.

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 CHAPTER 1

INTRODUCTION

1.0 Introduction

Organizations always try to retain their best employees due to its substantial

costs related to voluntary turnover. As noted in Lucas (2012) jobs that pay under

$50,000 per year, the cost of voluntary turnover per employee is approximately 20%

of an employee’s annual salary. In addition, turnover may result in both direct and

indirect costs (Ali, 2009). Direct costs are those related to the cost of recruitment,

selection, induction, and training of new employees. Indirect costs are costs related

to reduced morale, work pressure on existing employees, and loss of social capital

such as loss of reputations and goodwill, customer loyalty, and reduced branding

trust. Furthermore, studies revealed that those who turnover are usually the most

talented employees (Abassi & Hollman, 2000). Therefore the primary concern of

organizations is to keep their talented workers and minimize voluntary turnover

In the education industry in Malaysia, the average turnover rate is reported as

around 29.28% between July 2010 to June 2011 (Kelly Services, 2011), being the

third highest rate after IT/communication sector (75.12%) and hotel/restaurant sector

(32.4%). Most of the turnover in the education industry occurred within the private

education institutions, such as private higher education institutions (Jantan, Shahnon,

Chan, & Sibly, 2006; Morris, Yaacob, & Wood, 2004).

Traditional models of turnover proposed that both job attitudes and

alternative employment opportunities are the best predictors of turnover intention

(Mobley, 1977). They argued that employees left their organizations because they

are not happy with their jobs, and alternative employment opportunities are available.

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However, the relationship between job attitude and job alternatives to turnover was

found to be consistent but weak in several studies (Griffeth, Hom, & Gaertner, 2000;

Hom & Griffeth, 1995). Mitchell, Holtom, Lee, Sablynski, and Erez (2001) proposed

an alternative theory that includes work and non-work aspects as antecedents for

intention to stay with the organization. They suggested that job embeddedness,

which is situational aspects of an individual’s life space, will help individuals to

remain with the organization. Mitchell et al. (2001) posited that job embeddedness

predicts turnover intention above and beyond job satisfaction and organizational

commitment. It determines the extent to which social, personal, and economic forces

bind a person to a job. It is the psychological forces that act “like a net or a web in

which an individual can become stuck” (Mitchell et al., 2001, p. 1104). Since most

researches focus on attitudinal influences on turnover intention, it is interesting to

examine how job embeddedness impacts on turnover intention. Around the same

time, the concept of work engagement came into being.

Work engagement is noted to bring about positive organizational outcomes,

such as job satisfaction, lower turnover, as well as higher individual and group

performance (Bakker, Demerouti, & Euwema, 2005; Harter, Schmidt, & Keyes,

2002). Work engagement refers to the extent to which employees are physically,

emotionally, and cognitively committed to and satisfied in the organization (Saks,

2006). It is a motivational concept that involves the active allocation of personal

resources towards work, and comprises of features such as high involvement,

affective energy, and self-presence at work (Sonnentag, Mojza, Binnewies, & Scholl,

2008). It ensures that employees are highly involved, both affectively and physically,

at work (Sonnentag et al., 2008). Both embeddedness and engagement are found to

have negative relationship with turnover intention. Since most research on turnover

16
intention in Malaysia focus mainly on the attitudinal variables found in the turnover

studies, it is interesting to examine the relationship between these two

comprehensive constructs, and examine how they influence turnover intention of

academic staffs in private higher educational institutions in Malaysia.

Business ethics became a popular topic after corporate scandals such as

Enron, Tyco, and WorldCom were disclosed. Organizational ethical climate is found

to have a strong influence on employees’ behavior (Treviño, Weaver, and Reynolds,

2006, p. 951). As explained by Victor and Cullen (1987), who coined the ethical

climate construct, ethical climate is “the socio-cultural environment, organizational

form, and organization” of a company (Victor & Cullen, 1988, p. 101). It is “the

shared perception of what is correct behavior and how ethical situations should be

handled in an organization” (Victor & Cullen, 1987, p. 51). Ethical climate is

determined by the organization’s value system (Denison, 1996), and the top

management is responsible for the generation of the ethical climate (Deal &

Kennedy, 1982; Schein, 1985), which is presented in the form of codes of conduct to

influence employees’ ethical decision-making (Hegarty & Sims, 1979).

The growth of private university colleges and private colleges in Malaysia

has attracted many investors to invest in education. Some institutions operate the

business in an ethical manner, while some is trying to reap as much as profit as

possible from the students and participants. There are a number of complaints related

to the unethical practices of some of the higher institutions of learning with regards

to the courses offered, lecturers employed, and false information on accreditation of

courses, provision of poor facilities, and the poor implementation of programs. For

example, the Deputy Minister of Higher Education, Datuk Fu Ah Kiow, mentioned

that the ministry has been receiving an average of 20 complaints a day, mostly about

17
private institutions of higher learning. Some Higher educational institutions advertise

themselves as "world-class" despite being nowhere near the required standards (New

Straits Times, 2006 March 21). Parents were urged not to fall for false information

from colleges (The Star, Nation news, 2014 March 26). The Malaysia Ministry of

Education has been urging private higher educational institutions to follow and

maintain standards set by Malaysia Quality Agency (The Star, Education News,

2014 February 23).

In addition, a number of studies (Baker, Demerouti, & Dollard, 2008; Hunt,

Wood, & Chonko, 1989; Schwepker, 2001; Treviño, Butterfield, & McCabe, 1998;

Valentine et al., 2006) had been carried out on the role of organizational ethics in the

management of various employee responses. Unethical organizational environment

is found to result in higher turnover intention among workers (Eisenberger,

Stinglhamber, & Vandenberghe, Sucharski, & Rhoades, 2002; Peterson, 2002).

Unethical issues tend to increase the level of conflicts within an organization, which

leads to lower organizational commitment and higher turnover intent (Mulki,

Jaramillo, & Locander, 2006). Studies by Pettijohn, Pettijohn, and Taylor (2008)

revealed that if employees identify ethical inconsistencies in a company in

organizations, their satisfaction level will be lower and this will lead to lower job

satisfaction and higher turnover intention

There are many studies on attitudinal variables and its impact on turnover

intention, but few studies investigate the effect of work and non-work factors on

turnover intent of workers. Furthermore, researches on work engagement focus

mainly on its antecedents and consequences. Most research on ethical issues examine

the relationahip between organizational form, structure, and organizational climate,

and the research concentrates mainly on the food, health and marketing sectors,

18
neglecting the educational institutions. Additionally, ethical work climate is seldom

investigated as a moderator in influencing the direct relationship of other variables.

Most research on job embeddedness, work engagement, and turnover intention were

carried out in the western societies where the dominant culture is individualistic.

There is a need to examine the responses of respondents with collective orientation.

Hence, the purpose of this research is to examine the relationship between job

embeddedness, work engagement, and turnover intention of academic staff in private

higher educational institutions, and the moderation effect of ethical climate on

turnover intention of academic staff in private higher educational institutions.

1.1 Background of the Study

Private higher education in Malaysia experienced a phenomenal growth in

the 1980s and 1990s (Tan & Raman, 2009). In the 1980s, the first two private

colleges that appeared in the Malaysia scenario were Goon Institute and CYMA

College, which offered semi-professional qualifications granted by City and Guilds

of London and London Chamber of Commerce (Lee, 1991). By 2005, the number of

institutions increased to 559, which consists of 11 private universities, 11 private

university colleges, 5 foreign university offshore campuses and 532 private colleges

(Malaysia Higher Education Division, 2006). The latest consensus carried out by the

Malaysian Higher Education Division in 2014 showed that there are a total of 476

private higher educational institutions (PHEI); of which 23 PHEI with their 24

branches have university status, 5 foreign university offshore campuses, 21 PHEI

with university college status, and 403 PHEI without university status. In 1985, the

number of students enrolled in PHEI was 170,000, but the number had increased

tremendously over the last 23 years, for example, the number of students in PHEI

19
stood at 230,000 in 1990; 294,600 in 2002, and 730,000 in 2005 (Jantan, Chan,

Shahnon, & Sibly, 2006). In 2010, the total number of enrolment in PHEI stood at

541,629, of which 478,924 were local student, and 62,705 were international student;

compared to 462,780 enrolments at public universities in Malaysia (Malaysian

Ministry of Higher Education, 2011). In fact, in 2002 the number of students enrolled

in PHEI was already more than the total number of student enrolment in the public

universities (Morshidi, 2004, 2005).

The phenomenal growth of private higher education sector in Malaysia is due

to some regulatory enactment on higher education, such as the Private Higher

Educational Act 1996 by Malaysian Parliament (Morshidi, 2005). Prior to 1996,

delivery of higher education was monopolized by the public sector. Legislative

changes in 1996 resulted in the coexistence and complementary relationship between

public and private higher educational institutions.

The introduction of legislative amendments to higher education in Malaysia

is linked directly to economic and social issues in Malaysia. The National Economic

Advisory Council (2010) observed that Malaysia faces a number of economic and

social problems, for example insufficient skilled labors, non-productive workers, and

lack of innovation among the laborers. Organizations in Malaysia face difficulties in

getting technical, supervisory and managerial level skilled workers (National SME

Development Council, 2012). Many organizations in Malaysia reported vacancies for

skilled production workers, and they have to wait for an average of four weeks’ time

to fill a vacancy (World Bank, 2009). Malaysia Ministry of Higher Education (2011)

reported that 58% of Malaysian labor had studied only up to secondary school level,

13.2% studied up to primary level and another 2.6% had never entered the education

system at all (OECD, 2013). In addition, about three-quarters (73.8%) of Malaysia

20
labor force were low-skilled. As a reesult, the National Transformation Framework

was introduced in the 10th Malaysia Plan (2011-2015), through which the New

Economic Model and the Economic Transformation Program were introduced into

the Malaysian economy. Through strengthening the higher education sector, the

Malaysian government hopes that quality education system can help to overcome

skill shortages, and to develop a highly skilled, creative and innovative workforce.

Malaysia also aspires to be a leader for excellent transnational education and

a major education provider in South-East Asia (National Higher Education Strategic

Plan, 2007). As a result, the National Higher Educational Action Plan 2007-2010 was

launched to transform the higher education sector in Malaysia. In August 2007,

another comprehensive plan—the National Higher Education Strategic Plan was

launched. These plans targeted foreign international students from every corner of

the world as potential sources of Malaysia’s foreign earnings. In 2007, Malaysia

earned approximately RM50 million annually from foreign students in higher

educational institutions (Uda Nagu, 2007). International students stood at 58,294 in

2009 and 62,705 in 2010, with students originating from China, Iran, Indonesia,

Nigeria, Yemen, Libya, Botswana, Sudan, Saudi Arab, Bangladesh, Pakistan,

Maldives and India (Statistics of Higher Education, 2010).

In general, there are two categories of PHEI, that is, non-university status,

and university status. Non-university status PHEI are private colleges which offer

mainly internal (home-grown) diploma level programs, and some basic degree or

twining programs to students (Ministry of Higher Education Malaysia, 2013).

Contraly, PHEI with university status can confer its own degree to students, and are

made up of private institutions with university status, such as university colleges,

branch campuses of PHEI, and branch campuses of foreign-owned universities.

21
University colleges are former colleges, owned by private sector, and had been

upgraded to the status of university and hence enjoy the same privileges of private

universities.

In terms of funding, the PHEI can be divided into five categories: public

sector funded universities and colleges (such as University Selangor and University

Kuala Lumpur), universities funded by large public corporations (such as Multi-

Media University, University Tenaga National, and University PETRONAS), big

university colleges or colleges that are publicly listed (such as INTI, Taylor,

Stamford, and University College Management and Technology), joint venture or

foreign-owned universities (such as Sunway-Monash, Curtin, Nottingham and

Reading), and other private colleges. This study focuses on PHEI with university

status, that is, private universities, university colleges, branch campuses of privately-

owned universities, and branch campuses of foreign-owned universities. These PHEI

are bigger, more structured, and have better infrastructure and facilities.

1.2 Problem Statement

Private higher education institution (PHEI) is identified by the Malaysian

government as one major area that can help in the transformation of Malaysia

(Education Development Blue Print, 2006-2010; Education Development Master

Plan, 2015-2023). In an effort to turn Malaysia into an advanced nation by the year

2020, the Malaysian government proposes that the main duty of the education

industry is to produce human capital with the right skills, knowledge, and attitude to

bring Malaysia to success, and that the PHEI are to complement public higher

educational institutions in achieving Malaysia’s Vision 2020 (Education

Development Blue Print 2006-2010).

22
 In view of the vital role played by PHEI, it is essential that these institutions

are staffed by academic staffs that are willing to perform and remain with PHEI.

However, Raemah and Rosli (2013) indicated that the level of commitment of

academic staff working in public and private universities in Malaysia varies

significantly. Organizational commitment has been found to influence turnover

intention among employees (Meyer & Allen, 1991). In addition, local PHEI have

continued to face the problem of high turnover rate among its staff (Chong, Khor,

Lee, Ooi, & Tan, 2013; Jantan et al., 2006; Nurul Nadia & Hafizal, 2010). The

average turnover rate for all categories of PHEI was found to be 9.2% for academic

staff with PhD, and 3.6% for those without PhD (IPPTN, 2004). Academic staff of

private universities had the highest turnover rate, that is, averaged 12% for those

with PhD (IPPTN, 2004). Another study on turnover intention of three public

universities in Malaysia revealed that the turnover intention of academic staff in

public universities had a mean of 2.48 out of 5 Likert scale (Khairunneezam, 2011).

While a case-study on one of the private universities recently found that the mean of

turnover intention is 2.85 (out of 5 Likert scale), which is higher than that of the

public universities (Chong et al., 2013). In Nurul Nadia and Hafizal’s (2010) study, it

was observed that 9.4% of academic staff agreed that they often have intention to

leave their jobs. On top of that, an alarming 20.31% of academic staff revealed that

they will voluntarily leave the organization if family members ask them to do so.

Approximately 29.7% of academic staff confessed that if they have a chance to work

in other organizations, they will do so, and 28.1% of respondents daydreamed about

what it would be like to work in other organizations. In the same study,

approximately 13.3% of academic staff claimed that they will leave the organization

voluntarily sometime within the next five years, while about half (49.2%) of

23
respondents disagreed with the statement that they plan to stay in the organization

forever. These results suggest that turnover intention issue of academic staff should

be treated seriously, particularly in PHEI.

Overall, in the Malaysian education industry, the average turnover rate is

reported as around 29.28% between July 2010 to Jun 2011 (Malaysia Employee

Federation, 2011), being the third highest rate after Information

Technology/communication sector (75.12%) and hotel/restaurant sector (62.4%).

Most of the turnover in the education industry occurred within PHEI (Chong et al.,

2013; IPPTN, 2004; Jantan et al., 2006; Morshidi, 2006; Nurul Nadia & Hafizal,

2010; Siti Aisyah, Azizah, Roziana, Ishak, Hamidah, & Siti Khadijah, 2012).

Factors affecting turnover of academic staff are found to be related to work

environment (such as organization policies, academic climate/culture, compensation,

and reward system), personal characteristics (such as demographics, achievement

motivation, self-efficacy, locus of control, and self-esteem) and external environment

(such as job market and reward system) (IPPTN, 2004). Many academic staffs are

not satisfied with the limited career development and promotion opportunities in

PHEI, unattractive remuneration, high workload, and inadequate support for research

activities (Arokiasamy et al., 2009; Nurul Nadia & Hafizal, 2010; Siti Aisyah et al.,

2012). Other determinants of the high rate of turnover intention are supervision,

training opportunities and distributive justice (Chughtai & Zafar, 2006); job

satisfaction (Mohd. Nasurdin, Ramayah, Abdullah Hemdi, & Seow, 2003); perceived

external prestige of the organization (Fuller, Hester, Barnett, Frey, & Relyea, 2006)

and procedural justice (Yusof & Shamsuri, 2006).

In addition, the changing nature of academic job has caused many academic

staff to consider leaving the job (Nurul Nadia & Hafizal, 2010). In a case study in

24