The Effects of Organizational Culture on Organizational Commitment of Millennials in Selected Small and Medium Companies in the Information Technology Industry

 page 45-56

Mary Anne D. Mendiola  

Master of Science in Management

University of Asia and the Pacific

Keywords: Culture, commitment, millennials, Information technology, small and medium enterprises

ABSTRACT

The growing information technology-business process management (IT-BPM) industry has faced several issues, such as high turnover rates that are attributed to the millennial generation. With this, it is important to identify what areas of culture that can encourage commitment in the company are favored by millennials.

This study identifies the effects of organizational culture on the organizational commitment of millennials. Organizational culture was measured through the Denison model, which focuses on involvement, consistency, adaptability, and mission, while Allen and Meyer’s organizational commitment theory identified three levels, namely affective, normative, and continuance commitment.

The samples included nine small and medium IT companies, with a total of 211 millennial employees surveyed. The researcher triangulated the results through interviews and observation. The statistical tools used were descriptive statistics, Pearson R correlation, and multiple linear regression models.

Results showed that millennials in the IT industry focused on involvement as the most important cultural trait. Affective and normative commitments were prioritized with the increasing options available to employees globally. More importantly, the commitment of millennial employees increases with the interaction of internal and external focus cultural traits. Also, increase in tenure with a balance of internal and external culture has the most influence on increasing commitment.