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Challenges in the Era of Globalization - iaabd

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Discussion and Conclusion<br />

<strong>Challenges</strong> <strong>in</strong> <strong>the</strong> <strong>Era</strong> <strong>of</strong> <strong>Globalization</strong><br />

Edited by Emmanuel Obuah<br />

The purpose <strong>of</strong> this study was to exam<strong>in</strong>e <strong>the</strong> <strong>in</strong>fluence <strong>of</strong> POJ (PJ and IJ) and MC on <strong>the</strong> HF. We also<br />

explore <strong>the</strong> mediat<strong>in</strong>g role <strong>of</strong> MU on <strong>the</strong> relationship between PJ and HF on <strong>the</strong> one hand, and IJ and HF<br />

on <strong>the</strong> o<strong>the</strong>r hand. Us<strong>in</strong>g social exchange perspective, we tested our hypo<strong>the</strong>ses us<strong>in</strong>g data from Ghana<br />

from sub-Saharan Africa and India from Asia. The f<strong>in</strong>d<strong>in</strong>gs show that both employees’ perceptions <strong>of</strong> PJ<br />

and IJ <strong>in</strong>fluence MC and HF <strong>in</strong> <strong>the</strong> samples from <strong>the</strong> two countries. Moreover, employees’ perceptions <strong>of</strong><br />

MU also <strong>in</strong>fluence <strong>the</strong> HF <strong>in</strong> <strong>the</strong> two countries. The f<strong>in</strong>d<strong>in</strong>gs fur<strong>the</strong>r show that mutual commitment<br />

mediates <strong>the</strong> relationship between organizational justice and <strong>the</strong> HF. However, <strong>the</strong> mediat<strong>in</strong>g effect <strong>of</strong><br />

MC on <strong>the</strong> l<strong>in</strong>k between POJ and HF is different <strong>in</strong> <strong>the</strong> two countries. While we found full support for <strong>the</strong><br />

mediat<strong>in</strong>g effects <strong>of</strong> <strong>the</strong> relationships <strong>in</strong> <strong>the</strong> Indian sample, <strong>the</strong> Ghana sample provided partial support.<br />

These f<strong>in</strong>d<strong>in</strong>gs are <strong>in</strong>trigu<strong>in</strong>g consider<strong>in</strong>g that both Ghana and India’s national culture are classified as<br />

be<strong>in</strong>g low on <strong>in</strong>dividualism and high on power distance (H<strong>of</strong>stede, 1980).<br />

The f<strong>in</strong>d<strong>in</strong>gs from both Ghana and India, which are high on collectivism, power distance and mascul<strong>in</strong>ity,<br />

<strong>in</strong>dicate that perceptions <strong>of</strong> fair procedural and <strong>in</strong>teractional justice can engender employees’ attachment,<br />

loyalty and identification with <strong>the</strong>ir organizations even <strong>in</strong> high power distance cultural environments.<br />

Thus, <strong>in</strong> societies and cultures with high power distance as <strong>in</strong> Ghana and India, employees may tolerate<br />

unfair treatment from organizational procedures and people <strong>in</strong> authority, but that does not mean that <strong>the</strong>y<br />

accept <strong>the</strong> legitimization <strong>of</strong> <strong>in</strong>equality created <strong>in</strong> <strong>in</strong>stitutions and organizations as suggested by H<strong>of</strong>stede<br />

(1980). In those societies, <strong>the</strong> existence <strong>of</strong> high power distance may be a sign <strong>of</strong> respect and reverence<br />

for those <strong>in</strong> authority but employees also demand cur<strong>in</strong>g, nurtur<strong>in</strong>g and fair treatment by organizations<br />

and <strong>the</strong>ir leadership.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs <strong>the</strong> two countries show that POJ can contribute to improv<strong>in</strong>g employee<br />

attitudes and behaviors <strong>in</strong> organizations, <strong>in</strong> addition to leverag<strong>in</strong>g <strong>the</strong>ir skills and capabilities to <strong>the</strong><br />

benefit <strong>of</strong> <strong>the</strong>ir organizations. The f<strong>in</strong>d<strong>in</strong>gs from <strong>the</strong> Ghana sample <strong>in</strong>dicate that IJ enhances <strong>the</strong><br />

behavioral qualities embodied <strong>in</strong> <strong>the</strong> four HF dimensions <strong>of</strong> MOCAP, HBEHAV, HUCAP, and<br />

HCAPAB. However, PJ only leads to proactive moral behaviors from employees. In fact, it h<strong>in</strong>ders<br />

employees’ behavior towards improv<strong>in</strong>g <strong>the</strong>ir human capital. Conversely, <strong>the</strong> Indian f<strong>in</strong>d<strong>in</strong>gs suggest that<br />

employees’ perceptions <strong>of</strong> PJ encourage that demonstration <strong>of</strong> all <strong>the</strong> dimensions <strong>of</strong> <strong>the</strong> HF (MOCAP,<br />

HBEHAV, HUCAP, and HCAPAB). This is consistent with <strong>the</strong> study by Moon et al (2008) which<br />

showed that employees <strong>in</strong> India are more likely to engage <strong>in</strong> tak<strong>in</strong>g charge behaviors when <strong>the</strong>y perceive<br />

that <strong>the</strong>ir organizations are procedurally just. Also, IJ leads <strong>the</strong>m to reciprocate <strong>in</strong> pro-social behaviors<br />

and <strong>the</strong> leverag<strong>in</strong>g <strong>of</strong> <strong>the</strong>ir capabilities for <strong>the</strong> benefit <strong>of</strong> <strong>the</strong>ir organizations. These f<strong>in</strong>d<strong>in</strong>g are reflections<br />

<strong>of</strong> <strong>the</strong> collectivistic cultural orientation <strong>of</strong> <strong>the</strong> Ghanaian and Indian societies (H<strong>of</strong>stede, 1980). PJ, is<br />

however, more important to employees from India than those from Ghana because it elicits more positive<br />

behaviors, knowledge bases and skills <strong>in</strong> India than Ghana.<br />

The f<strong>in</strong>d<strong>in</strong>gs from <strong>the</strong> two countries clearly show that MC <strong>in</strong>fluences all <strong>the</strong> components on HF except<br />

HUCAP <strong>in</strong> Ghana. The f<strong>in</strong>d<strong>in</strong>gs <strong>in</strong>dicate that HF reflects a covenantal relationship such that employees<br />

may develop and utilize positive social behaviors and capabilities <strong>in</strong> response to MC to demonstrate HF<br />

qualities. The f<strong>in</strong>d<strong>in</strong>gs from <strong>the</strong> mediat<strong>in</strong>g relationships show that IJ crucial <strong>in</strong> understand<strong>in</strong>g <strong>the</strong> HF<br />

behavioral qualities <strong>in</strong> Ghana. IJ <strong>in</strong>fluences HF <strong>in</strong> two ways: first, directly affect<strong>in</strong>g <strong>the</strong> extent to which<br />

employees engage <strong>in</strong> proactive behaviors and utilize <strong>the</strong>ir capabilities which underlie <strong>the</strong> HF, and second,<br />

<strong>in</strong>directly by <strong>in</strong>fluenc<strong>in</strong>g <strong>the</strong> reciprocal relationships that employees have with <strong>the</strong>ir organizations.<br />

Though <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs from <strong>the</strong> Indian sample with respect to <strong>the</strong> mediat<strong>in</strong>g effect <strong>of</strong> MC on <strong>the</strong> IJ-HF l<strong>in</strong>k<br />

were consistent with <strong>the</strong> Ghana sample, MC fully mediated <strong>the</strong> relationship for MOCAP, HBEHAV and<br />

HCAPAB. The f<strong>in</strong>d<strong>in</strong>gs fur<strong>the</strong>r <strong>in</strong>dicate that PJ enhances MC, which <strong>in</strong> turn <strong>in</strong>fluences <strong>the</strong> HF <strong>in</strong> <strong>the</strong><br />

Indian sample. On <strong>the</strong> o<strong>the</strong>r hand, MC fully mediated <strong>the</strong> PJ-HBEHAV and PJ- HCAPAB, but MC<br />

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