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Scientific Magazines: Esic Market

Num. 162 Vol. 50 Issue 1
Effect of Relational Coordination on Employee Turnover Intentions through Job Satisfaction: The use of Structural Equation Modeling and Monte Carlo Simulation
DOI: 10.7200/esicm.162.0501.1

Munir Ahmed, ORCID: 0000-0002-7952-002X; Muhammad Ali Asadullah, ORCID: 0000-0002-5977-1809; Shaheen Anwer, ORCID: 0000-0003-3757-7957; Muhammad Aslam, ORCID: 0000-0003-2290-2307; Sajid Haider, ORCID: 0000-0003-1542-2540

Purpose: This study sought to examine the mediating effect of job satisfaction on the relationship between relational coordination and turnover intentions. Methodology: Partial least squares structural equation modeling (PLS-SEM) was used to analyze data a cross-sectional survey of 262 employees banking sector. The capacity of this study’s theoretical model was demonstrated in a Monte Carlo simulation that created a simulated data set the underlying true effects were established. Results: The findings of this study suggest that relational coordination negatively affects turnover intentions, and job satisfaction mediates this relationship. The simulation results indicate fluctuation in path coefficients for different correlations and sample sizes. The values of path coefficients smooth out for all levels of correlations, as sample size increases. Limitations: This research used cross-sectional design which limits its ability to determine the true causal relationships. The external viability of results may be limited due to the sample selection banking sector. Although the empirical results support our theoretical model, other descriptions of these results need to be tested. Practical implications: Managers can reduce employees’ turnover intentions by promoting relational coordination among their employees.Social implications: Reduced turnover intentions may result in reduced actual turnover, which provides stability to organizations and to the lives of individual employees. It may reduce social discontent and instability. Originality/value: No prior research has empirically tested the relationship between relational coordination and turnover intentions. Moreover, this research is first to test mediation between above mentioned relationship. It also provides a greater generalizability of theoretical model by using Monte Carlo simulation.

JEL Code: C15, C31

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