Effect of Employee Commitment on Organizational
Performance; Case of Textile Firms in Sweden
Ludvig Esteban Stackhouse, Fredrik Mikael Zaman & Karl
Walter Turner
ISSN: 2616-8421
Stratford Peer Reviewed Journals and Book Publishing
Journal of Human Resource & Leadership
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Email: info@[Link] ISSN: 2616-8421
Effect of Employee Commitment on Organizational
Performance; Case of Textile Firms in Sweden
Ludvig Esteban Stackhouse, Fredrik Mikael Zaman & Karl Walter Turner
1*
Postgraduate Student, Stockholm University
2&3
Lecturers, Stockholm University
Email of the corresponding author: ludvigesteban@[Link]
How to cite this article: Stackhouse, L., E., Zaman, F., M., & Turner, K., W. (2022). Effect of
Employee Commitment on Organizational Performance; Case of Textile Firms in Sweden.
Journal of Human Resource & Leadership 6 (2), 1-10. [Link]
Abstract
Employee commitment helps organizations perform better and achieve their goals because employees feel
connected to the organization and are more productive and dedicated to their work. Thus, the study sought
to examine the effect of employee commitment on organizational performance in the case of textile firms
in Sweden. The study adopted the descriptive research design. The collection of the data was done using
the questionnaires. The data was collected from two textile companies in Sweden, namely Meandi Holding
AB and Woodline Swedish Outdoor Co. The study conducted a pilot study to examine the validity and
reliability of the research instruments. The analysis of the data was done using descriptive and inferential
statistics. SPSS was used to generate the output. The study findings indicated that employee commitment
is positively and significantly related to organizational performance (β=.1579, p=0.013). Employee
commitment is necessary for every organization to have amazing performance on a long-term basis.
Committed employees bring added value to the organization, including determination, proactive support,
relatively high productivity and an awareness of quality. The study recommended that textile companies
should continue ensuring there is employee commitment. Organizations need to increase employee
commitment by including them in decision-making, which will ultimately increase their commitment to the
organization. Moreover, it is recommended that organizations should encourage transparency. When an
organization keeps employees informed, they feel valued and trustworthy. Further, it is recommended that
organizations should encourage open and free communication. Open and accessible communication in an
organization facilitates an environment of trust. There should be letting the employees be innovative in
providing ideas, strategies and ways of communication. The employees should be valued by the
organizations and encouraged to develop better ideas and rewards for their achievements and innovation.
Keywords: Employee commitment, organizational performance, textile firms, Sweden
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1.0 Introduction
Commitment is thought to be the psychological immersion of an individual with his institute
through the feeling of belonging, possession of business goals and preparation to accept obstacles.
Creating commitment among workers is essential because it will be tough for a company to achieve
strategic objectives without this. Organizational commitment indicates an employee's involvement
in executing his work with passion and excitement (Bedarkar & Pandita, 2018). The performance
of any firm is directly associated with the commitment level of workers. Devoted employees can
execute their duties more than management expectations. High-level commitment is indispensable
for enhancing output and obtaining sustainable competitive advantages. Preparing and retaining
committed workers is imperative for business growth, as dedicated employees work harder and
perform their jobs with devotion and commitment (Sharma & Dhar, 2019). The goal of business
growth is to enhance the capability of the company to improve its efficiency in attaining strategic
goals. Building the firm's capability is possible when every staff member understands his duty and
responsibility for results associated with his performance.
Encouraging workers play an essential role in increasing the outcomes and performance of the
organization. Motivation is both a goal and a method to aid workers in efficiently finishing their
job (Grant, 2018). A strong labour force means that every worker understands and devotes to the
values and objectives of the company. Motivation does not just assist workers in doing well but
additionally supports their struggle to accomplish the objectives. Several researches have shown
the interaction between organizational commitment and worker motivation. In the version of work
satisfaction and organizational commitment, job satisfaction is the cause impacting the
organizational commitment and hard and practical work, which are essential behaviours to the
organization. According to the study by Frey (2018), workers without significant payment for their
efforts are affected by their intrinsic motivation.
Employee commitment is a requirement for every company to have extraordinary performance in
the long run (Elnaga & Imran, 2018). Currently, the employees intend to give their outstanding
performance individually and in group work. Currently, no firm can attain its highest levels unless
each worker is committed to the company's goals. Therefore, it is essential to know the concept of
commitment and its possible result. The employees in different companies play a crucial role in
transforming theory into practice to boost company growth. The workforce nowadays is filled with
different attitudes. Recently, there has been much support for human capital growth, lifelong
learning and constant focus on soft skill growth (Theriou, Maditinos & Theriou, 2020).
Nonetheless, many times, concerns are just attended to at the surface level but not to the roots of
the cause. Humans are highly related to feeling and intelligence. As a result, the need to fulfil the
human demand hierarchy is instead an essential element, particularly in satisfaction and
motivation.
Commitment has a rational component; many individuals knowingly decide to make
commitments, and then they attentively plan and perform the activities needed to accomplish them
(Schelling, 2021). Since commitments need an investment of time along with psychological and
emotional energy, most individuals make them with the expectation of reciprocation. Hence,
people presume they will certainly obtain something of value in return for their commitment like
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favours, affection, presents, interest, goods, money, and property. From this point of view, the
value of a multidimensional view of worker commitment. There is a presumption that the previous
principle of organizational commitment may not tell the whole story concerning private
performance (Lovely, Afzal & Alam, 2019). Determining multiple foci of worker commitment
beyond the organization assists in clarifying numerous inspirational bases among employees
toward performance enhancement efforts.
Organizational commitment is one of job associated attitudes that has been well studied in human
resource management by academicians and practitioners and its importance has been recorded
(Hislop, 2020). Organizational commitment is a vital business subject since high levels of
commitment brings about numerous positive organizational outcomes. It is suggested that workers
become devoted to organizations for different reasons, consisting of an affective attachment to the
organization's values, an awareness of the costs entailed with leaving the organization, and a sense
of obligation to the company. Committed employees benefit their organizations in several ways
(Shahid & Azhar, 2021). They will put forth extra efforts to accomplish their work, participate in
extra-role behaviour, and assist the company in operating efficiently. Some researchers suggest
that organizational commitment is negatively related to turnover intentions. Hence, the study
sought to determine the effects of employees' commitment on the organizational performance in
the case of the textile firms in Sweden
1.1 Research Objective
To determine the effect of employees’ commitment on organizational performance in the case of
textile firms in Sweden
2.0 Literature Review
Sigler and Pearson (2020) report that organizational commitment is crucial in an organization and
leads to high performance. Commitment to the team, feeling responsible for goals, and having a
sense of obligation to group needs can be the exact definition of commitment. Dedication to task
and job team is more considerable and eventful, particularly in unfavorable circumstances. Maybe
the best time for assessing workers' dedication is when troubles arise. The commitment of the
team's participants will be more powerful when it is anchored on human and moral values and
when it has happened as a result of conscious selection; since doing affairs under compulsion and
imposition will work in the opposite direction of commitment. Qureshi, Zaman and Shah (2018)
look at the effect of worker commitment on company performance in cement firms in Pakistan.
Most of the passion in analyzing worker commitment originates from worry about the behavior
repercussions that are assumed to arise. It concentrates on the impact of worker dedication on
organizational efficiency and workers' turnover. Both descriptive and informative research
methodologies were utilized in this research. The outcome reveals that: the degree of worker
commitment of the personnel of cement firm is very high; there is a relatively more significant
connection between worker dedication and company performance; there is likewise a high relation
between staff member commitment and workers' turnover etc. A few of the suggestions made are
that: the administration is required to hire workers that are most likely to become connected to the
company; the administration is required to develop clear and realistic work and organizational
previews.
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Anitha (2016) indicates that employee commitment plays an essential role in developing the
company's performance. Numerous firms wish to enhance their performance. Employee
commitment will increase the employee's performance in the company. The behaviour of
commitment adjustments can occur in the job fulfilment, motivation and job participation. The
data was collected from one hundred workers. It was found that workers' commitment is positively
associated with firm performance. Worker commitment is positively associated with job
satisfaction, motivation and job participation. The firm must pay more relevance to increasing the
worker's commitment to a high level of performance.
A study by Stackhouse and Turner (2019) argued that no firm could perform to high levels unless
every staff member is dedicated to the company's goals. Hence, it is essential to know the
dedication theory and its practical result. The research goal was to determine the impact of worker
commitment on the company's performance anchored upon the research of Sugar Factory. The
research identified variables that impact worker commitment in the research location and likewise
attempted to recognize the partnership and their impact between workers' commitment, elements
influencing worker's commitment, and the connection and impact between workers' dedication
models and organizational performance at Sugar Manufacturing Facility. The study is cross-
sectional research. Two hundred sixty-one workers and four monitoring participants were selected
as the research samples. Standard surveys were distributed, filled up, and gathered. SPSS was
utilized to analyze and examine the information accumulated from the participants. In addition,
workers' commitment was discovered to affect the organizational performance in the research
location. According to the regression results, workers' commitments influence performances for
the firm at Sugar Manufacturing Facility. Hence, suggestions have been given to enhance
commitment by deliberately offering motivational packages and developing a sustainable regular
training program.
Collier and Esteban (2017) show that employee commitment constantly plays an essential duty in
enhancing firm performance. The firm performance can be gauged with many means like business
financial performance, worker turnover, return on equity and others. Worker commitment can be
increased through their participation in evaluation construction and providing them with an
opportunity for much better attention to the entire process of the firm performance dimension like
worker commitment. According to the information accumulated from the three big cities of
Pakistan, it was discovered that firm performance could be boosted by including workers in
decision-making, which will eventually enhance their commitment to the firm. Gul (2019)
conducted a study to examine the effect of worker commitment on company development. The
study population consisted of middle-level supervisors of all telecommunication businesses in
Pakistan's Khyber Pakhtunkhwa district. Primary data was gathered from 370 supervisors. A set
of questions was carried out to gather primary information. Company growth and worker
commitment were used as dependent and independent variables specifically. Correlation and
regression evaluation tests were examined to know whether there is a connection between worker
commitment and business growth and, likewise, to learn the forecaster of company growth.
Research exposed a high correlation between worker dedication and its elements and company
growth. Regression analysis verified that worker commitment is a forecaster of company growth.
The research has great value for the supervisors and scholars as it will undoubtedly assist them in
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making an incorporated and thorough system for developing commitment amongst the workers to
increase the company's performance.
Evangelista (2019) researched the effects of organizational commitment on employee motivation
via two moderating aspects of opportunistic behaviour and expertise sharing in Vietnamese
business. The samples were picked by the non-probability sampling approach followed by
practical sampling, moderately stratified by areas in Vietnam. The sample dimension was 636
workers in Vietnamese businesses. The number of gathered online surveys was 379, while the
variety of legitimate surveys was 329. In the direct survey, the variety of distributed sets of
questions was 750, while the variety of gathered sets of questions was 421 and the number of valid
sets of questions was 307. The total number of legitimate sets of questions utilized for analysis
was 636. The research utilized quantitative methods with structural formula modelling evaluation.
The outcome shows that among the parts of business dedication, normative commitment has both
straight and indirect influence on worker motivation with two mediating aspects: opportunistic
actions and understanding sharing. On the other hand, effective dedication indirectly affects
worker motivation with these moderating aspects. Continuance dedication has both direct and
indirect effects; nevertheless, it has only an indirect influence on worker motivation via
opportunistic behaviour. On top of that, the results reveal opportunistic behaviours have an
unfavourable effect on the understanding sharing of workers in businesses.
A study by Pang and Lu (2018) checks out the influence of organizational performance due to
employee commitment in the Taiwan hospitality sector. The research utilized a descriptive survey
study, while a structured set of questions and individual interviews were utilized to gather
information from 75 participants in the chosen resorts in Taiwan. Outcomes disclosed that
affective commitment and continuance commitment have favourable but irrelevant influences on
task efficiency. Outcomes likewise suggest that normative commitment has an adverse but
insignificant influence on organizational performance. The research concludes that practical and
continuance dedication have a weak effect on task efficiency, while normative commitment has
an inverted impact on organizational performance. Ultimately, research suggests that monitoring
needs to meet its obligation by inspiring its workers with inspiring variables that significantly
affect worker organizational performance.
Meyer, Becker and Vandenberghe (2018) state that employee commitment is just one of the many
elements that impact performance; however, it is an essential element and comprises one of the
many methods available to a firm to enhance performance. As a result, worker commitment and
organizational performance work together as the company's performance is considerably figured
out by the dedication that workers have. Commitment assists in attaining the planned goals,
therefore, causing high organizational efficiency. The study's goal was to take a look at the factors
that influence worker dedication. That is, to particularly access the effect of employee dedication
on company efficiency. The study has a sampled population of 40 participants. The study tools
utilized in information gathering were interviews and surveys comprised of both open and closed-
ended questions. The research shows that worker commitment has a counterproductive impact on
enhanced productivity, performance, worker morale, performance, and efficiency and lowers
absence as a dissatisfying factor in the workplace. The method through which worker dedication
is enhanced and dealt with is additionally an issue of the research. The study focuses on how team
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building, company society, incentives, involvement and participation affect worker dedication.
The research also recognized just how external and innate variables affect worker dedication. The
research findings were that incentives as external factors to a significant level impact worker
commitment. Participation and worker involvement as an innate aspect to a relative extent
influence staff member dedication. The research revealed that teamwork, to an extent, influences
worker dedication. Culture is a rarely recognized aspect that has small or no impact on worker
commitment. All the aspects discussed over to have a counteractive result on efficiency,
performance and effectiveness in organizations.
3.0 Research Methodology
The study adopted the descriptive research design. The collection of the data was done using the
questionnaires. The data was collected from two textile companies in Sweden, namely Meandi
Holding AB and Woodline Swedish Outdoor Co. The study conducted a pilot study to examine
the validity and reliability of the research instruments. The analysis of the data was done using
descriptive and inferential statistics. SPSS was used to generate the output.
4.0 Research Findings and Discussion
The discussion in the study was based on the research findings. The presentation of the findings
and discussion are those of correlation and regression analysis.
4.1 Correlation Analysis
The correlation analysis showed the association between the variables. The association shows the
movement in which a positive association indicates movement in the same direction, while a
negative association shows the movement in the opposite direction. There is no correction if the
coefficient is zero. Table 1 summarizes the correlation analysis.
Table 1: Correlation Analysis
Organizational Employee
Performance Commitment
Organizational Pearson
Performance Correlation 1.000
Sig. (2-tailed)
Employee Pearson
Commitment Correlation .539 **
Sig. (2-tailed) 0.000 0.000
The correlation results from Table 1 indicate that employee commitment is positively and
significantly associated with organizational performance (r=.539, p=0.000). Hence, employee
commitment and organizational performance move in the same direction. The results concur with
Anitha (2016), who found that worker commitment is positively associated with job satisfaction
and motivation. The firm must pay more relevance to increase the worker’s commitment to a high-
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performance level. Employee commitment increases the overall performance in both the short and
long run.
4.2 Regression Analysis
The section consisted of model fitness, analysis of variance and regression of coefficient. The
results in Table 2 show the model's fitness.
Table 2: Model Fitness
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .115 a 0.285 0.213 0.15425
The results from Table 2 show that employee commitment was satisfactory in explaining
organizational performance. This was supported by the coefficient of determination, also known
as the R square of 0.285. This signified that employee commitment explains 28.5 % of the
variations in organizational performance. The study results of the analysis of variance is presented
in Table 3
Table 3: Analysis of Variance
Model Sum of Squares df Mean Square F Sig.
1 Regression 2.485 1 2.285 727.33 .000b
Residual 1.087 346 0.003
Total 3.572 347
The results in Table 3 show that the overall model was statistically significant. The results reveal
that employee commitment is a good predictor in explaining the organizational performance
among the organizations in Sweden, as the reported p-value was 0.000, which was less than the
conventional probability significance level of 0.05. Hence, the managers can work on increasing
employee commitment to increase the organizational performance of the textile firms within the
county. The regression of the coefficient is presented in Table 4
Table 4: Regression of Coefficient
Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
(Constant) 0.0161 0.002 8.050 0.005
Teacher quality 0.1579 0.071 0. 237 4.079 0.013
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According to the results presented in Table 4, it was discovered that employee commitment is
positively and significantly related to organizational performance (β=.1579, p=0.013). This was
supported by a calculated t-statistic of 4.079, larger than the critical t-statistic of 1.96. The results
implied that when the employee commitment is increased by one unit, the organizational
performance will increase by 0.1579 units while holding other factors constant. Stackhouse and
Turner (2019) articulated that workers' commitment influences the firm's performance; hence there
is a need to enhance commitment by deliberately offering motivational packages and developing
a sustainable regular training program in the firm. Organizational commitment is a vital business
subject since high levels of commitment brings about numerous positive organizational outcomes.
5.0 Conclusion and Recommendations
Based on the study's findings, it is concluded that employee commitment has a positive and
significant impact on organizational performance. Employee commitment is necessary for every
organization to have amazing performance on a long-term basis. It was discovered that when the
employee commitment is increased by one unit, the organizational performance will increase by
0.1579 units while holding other factors constant. The results revealed that employee commitment
is a good predictor in explaining the organizational performance among the organizations in
Sweden, as the reported p-value was 0.000, which was less than the conventional probability
significance level of 0.05. The committed employees benefit organizations in numerous ways as
they present additional efforts to accomplish their tasks. Committed employees bring added value
to the organization, including determination, proactive support, relatively high productivity and an
awareness of quality. Employees committed to work are also less likely to call in sick or leave the
organization. Employee commitment helps organizations perform better and achieve their goals
because employees feel connected to the organization and are more productive and dedicated to
their work.
The study recommended that textile companies should continue ensuring there is employee
commitment. Organizations need to increase employee commitment by including them in
decision-making, which will ultimately increase their commitment to the organization. High levels
of employee satisfaction in an organization are related to work commitment. Moreover, it is
recommended that organizations should encourage transparency. When an organization keeps
employees informed, they feel valued and trustworthy. This increases their sense of belonging and,
in turn, increases commitment to work. Further, it is recommended that organizations should
encourage open and free communication. Open and accessible communication in an organization
facilitates an environment of trust. There should be letting the employees be innovative in
providing ideas, strategies and ways of communication. The employees should be valued by the
organizations and encouraged to develop better ideas and rewards for their achievements and
innovation.
[Link]
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