Applying Structural Equation Models to Study the Influence of Job Characteristics, Organization Commitment, and Job Satisfaction: A Case of Construction Industry in Taiwan

Abstract

Since the last decade, Taiwan industry faced with economical negative growth, because insufficient domestic demand and outward moving trend to China. The headquarters staying in Taiwan have to face even more harsh conditions, which come from the global market competition structure change and industrial development in straitened circumstances. Therefore, when introducing foreign labors is important competitive strategy on the whole business environment. This research investigates the implementation between job characteristics, organizational commitment, and job satisfaction as well as strength of their manifest indicator. Based on related literatures, this research using structural equation modeling to develop a framework. Using data collected from 440 foreign labors in construction industries. The data analysis methods included descriptive statistics, alpha analysis, confirmation factor analysis and structural equation model (SEM). LISREL results revealed that two hypotheses were correct. The empirical results indicate that strong and positive relationship between job characteristics, job satisfaction and work satisfaction have a direct and indirect impact. But organization commitment from the “organizational characteristics” have an indirect impact, through the “organizational commitment” to strengthen and help improve the job satisfaction; Moreover, the findings suggest that job autonomy is better than others variable in job characteristics. Second, organization commitment is the most medicate variable in this model. Finally, organizational commitment mediates the effects of job characteristics on job satisfaction. A final structural equation model was developed yielding highly acceptable fitness statistics with X =122.99, D.F.=26, P=0.000, GFI=0.938, AGFI=0.889, RMR=0.016, RMSEA=0.078. Therefore, judged by the conventional criteria for acceptable model fitness, the research model was considered structurally fit.