Linking Internal Communication to Organizational Commitment: The Mediating Role of Employee Retention in a Regional Public Enterprise
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Abstract
In the dynamic environment of work practice, there is a need for firms to ensure strategic management of their human resource management by ensuring that there is proper internal communication, which would facilitate organizational commitment and enhance employee retention. This research looks at how internal communication impacts on organizational commitment but considers the role of mediation by employee retention. This study employs a quantitative approach with the causal associative research design. Data for the research was collected through the use of a structured questionnaire with a five point likert scale and administered to 140 employees of Regional Public Market Company Berintan. The collected data was analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS). It was found out that internal communication has a positive impact on both employee retention and organizational commitment. In addition, it is established that employee retention is a significant mediator of organizational commitment and internal communication. This indicates that there is a positive relationship between internal communication and organizational commitment and the former mediates the latter. The research therefore recommends that firms develop effective internal communication as an approach to achieving high employee retention and organizational commitment.
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