IDEAS home Printed from https://ideas.repec.org/a/gam/jbusin/v3y2023i1p3-51d1033250.html
   My bibliography  Save this article

Psychological Contract and Young Talent Retention in Vietnam: Development and Validation of a Hierarchical Reflective Structural Model

Author

Listed:
  • Ngan Dam

    (Global Pareto, Hamilton House, 9 Hucknall Road, Nottingham NG5 1AE, UK)

  • Dieu Hack-Polay

    (Department of Graduate Studies, Crandall University, Moncton, NB E1G 3H9, Canada)

  • Mahfuzur Rahman

    (Lincoln International Business School, University of Lincoln, Lincoln LN6 7TS, UK)

  • Ali B. Mahmoud

    (The Peter J. Tobin College of Business, St. John’s University, 8000 Utopia Parkway, Queens, NY 11439, USA)

Abstract

This research investigates the relationship between relational psychological contract and the retention of young talents in Vietnam. The study surveyed young employees pertaining to (Generations Y and Z) at BBB Company. The results show an equal weight of transactional and relational psychological contracts in the job satisfaction and retention of young Vietnamese employees. The research compared the relative importance of future growth potential against existing good practices. The results indicate that these two constructs have equal importance, as the value for r square is almost equal. This suggests that from a strategic standpoint Human Resource Management (HRM) ought to prioritise the development of practices that enhance both relational and transactional psychological contracts among young talents in Vietnam. This derives from a cultural transition, which means that both the weights of national culture and globalisation are influencing the choices and loyalty of the younger generations in the workplace. These findings have significant implications for the understanding of how generational differences and culture influence how a company retains their young talents and the importance of psychological contract for young employee commitment in Vietnam in an increasingly competitive environment.

Suggested Citation

  • Ngan Dam & Dieu Hack-Polay & Mahfuzur Rahman & Ali B. Mahmoud, 2023. "Psychological Contract and Young Talent Retention in Vietnam: Development and Validation of a Hierarchical Reflective Structural Model," Businesses, MDPI, vol. 3(1), pages 1-16, January.
    • Handle: RePEc:gam:jbusin:v:3:y:2023:i:1:p:3-51:d:1033250
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-7116/3/1/3/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-7116/3/1/3/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jean-Yves Le Corre & Thierry Burger-Helmchen, 2022. "Managerial Control in an Online Constructivist Learning Environment: A Teacher’s Perspective," Post-Print hal-03806698, HAL.
    2. Diep Thi Ngoc Nguyen & Stephen T. T. Teo & Marcus Ho, 2018. "Development of human resource management in Vietnam: A semantic analysis," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 241-284, March.
    3. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    4. Iles, Paul & Chuai, Xin & Preece, David, 2010. "Talent Management and HRM in Multinational companies in Beijing: Definitions, differences and drivers," Journal of World Business, Elsevier, vol. 45(2), pages 179-189, April.
    5. P. Matthijs Bal & Dorien T. A. M. Kooij & Simon B. De Jong, 2013. "How Do Developmental and Accommodative HRM Enhance Employee Engagement and Commitment? The Role of Psychological Contract and SOC Strategies," Journal of Management Studies, Wiley Blackwell, vol. 50(4), pages 545-572, June.
    6. Festing, Marion & Schäfer, Lynn, 2014. "Generational challenges to talent management: A framework for talent retention based on the psychological-contract perspective," Journal of World Business, Elsevier, vol. 49(2), pages 262-271.
    7. Hiltrop, Jean-Marie, 1999. "The quest for the best: human resource practices to attract and retain talent," European Management Journal, Elsevier, vol. 17(4), pages 422-430, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cristina Robledo-Ardila & Juan Pablo Román-Calderón, 2022. "Potential: in search for meaning, theory and avenues for future research a systematic review," Management Review Quarterly, Springer, vol. 72(1), pages 149-186, February.
    2. Ramazan Özkan Yildiz & Soner Esmer, 2021. "Talent management related concepts and debates in container shipping industry by an emerging market perspective," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-30, December.
    3. Mostafa Mohamed Ahmed AlKerdawy, 2016. "The Relationship between Human Resource Management Ambidexterity and Talent Management: The Moderating Role of Electronic Human Resource Management," International Business Research, Canadian Center of Science and Education, vol. 9(6), pages 80-94, June.
    4. Tatoglu, Ekrem & Glaister, Alison J. & Demirbag, Mehmet, 2016. "Talent management motives and practices in an emerging market: A comparison between MNEs and local firms," Journal of World Business, Elsevier, vol. 51(2), pages 278-293.
    5. Mai, Nhat Chi, 2021. "Talent Conceptualisation and Talent Management Practices within the Banking Sector in Vietnam," OSF Preprints y6r4q, Center for Open Science.
    6. James Kwame Mensah, 2019. "Talent Management and Employee Outcomes: A Psychological Contract Fulfilment Perspective," Public Organization Review, Springer, vol. 19(3), pages 325-344, September.
    7. Md Asadul Islam & Amer Hamzah Jantan & Md Adnan Rahman & Abu Bakar Abdul Hamid & Fariha Binte Mahmud & Ashikul Hoque, 2018. "Talent Management for Organisational Performance Development in Bangladesh Private Industry Context," International Journal of Human Resource Studies, Macrothink Institute, vol. 8(4), pages 2134-2134, December.
    8. Charbel El Ammar, 2021. "Talent Management Philosophy in Public Sector: A Key for Managing Conflicts and Contradictions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 69-92.
    9. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    10. Liu, Qian & Shao, Zhen & Fan, Weiguo, 2018. "The impact of users’ sense of belonging on social media habit formation: Empirical evidence from social networking and microblogging websites in China," International Journal of Information Management, Elsevier, vol. 43(C), pages 209-223.
    11. Alba Manresa & Andrea Bikfalvi & Alexandra Simon, 2018. "The Use And Determinants Of Training And Development For Creativity And Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-28, October.
    12. Philippe Cohard, 2020. "Information Systems Values: A Study of the Intranet in Three French Higher Education Institutions," Post-Print hal-02987225, HAL.
    13. Saad Salman & Asif Mahmood & Faisal Aftab3 & Atif Mahmood, 2016. "Impact Of Safety Health Environment On Employee Retention In Pharmaceutical Industry: Mediating Role Of Job Satisfaction And Motivation," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 12(1), pages 185-197.
    14. Joan-Lluis Capelleras & Ignacio Contín-Pilart & Martin Larraza-Kintana, 2011. "Publicly Funded Prestart Support for New Firms: Who Demands it and How it Affects Their Employment Growth," Environment and Planning C, , vol. 29(5), pages 821-847, October.
    15. Kusa, Rafał & Suder, Marcin & Duda, Joanna, 2023. "Impact of greening on performance in the hospitality industry: Moderating effect of flexibility and inter-organizational cooperation," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    16. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    17. Deng, Qian (Claire) & Messinger, Paul R., 2022. "Dimensions of brand-extension fit," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 764-787.
    18. Schneider, Christian O. & Bremen, Philipp & Schönsleben, Paul & Alard, Robert, 2013. "Transaction cost economics in global sourcing: Assessing regional differences and implications for performance," International Journal of Production Economics, Elsevier, vol. 141(1), pages 243-254.
    19. Sony, Michael & Naik, Subhash, 2020. "Industry 4.0 integration with socio-technical systems theory: A systematic review and proposed theoretical model," Technology in Society, Elsevier, vol. 61(C).
    20. Nikola Milicevic & Ines Djokic & Nenad Djokic & Aleksandar Grubor, 2022. "Social Marketing in Promoting Sustainable Healthy Lifestyle among Student Population," Sustainability, MDPI, vol. 14(3), pages 1-14, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jbusin:v:3:y:2023:i:1:p:3-51:d:1033250. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.