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Small, local, and loyal: How firm attributes affect workers’ organizational commitment

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  • Katie L Halbesleben
  • Charles M Tolbert

Abstract

We explore how firm size and local ownership influence employees’ organizational commitment. Using a civic community perspective, we hypothesize that small and locally owned businesses engender more employee loyalty in a representative national sample of workers. That hypothesis is supported for all workers and is most clearly evident in a subsample of rural workers. Our results show that working at small businesses and locally owned businesses significantly increases an employee’s organizational commitment. Furthermore, individuals who work at small businesses that are also locally owned are found to have the highest level of organizational commitment. Our study provides insight into how structural elements of an organization, such as small businesses and locally owned businesses, are associated with an improved quality of life and a more robust civil society. Moreover, this paper highlights the need for further research on how structural attributes of businesses affect the attitudes and opinions of workers.

Suggested Citation

  • Katie L Halbesleben & Charles M Tolbert, 2014. "Small, local, and loyal: How firm attributes affect workers’ organizational commitment," Local Economy, London South Bank University, vol. 29(8), pages 795-809, December.
    • Handle: RePEc:sae:loceco:v:29:y:2014:i:8:p:795-809
    DOI: 10.1177/0269094214556980
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    References listed on IDEAS

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    1. F. Carson Mencken & Hristopher Bader & Edward Clay Polson, 2006. "Integrating Civil Society and Economic Growth in Appalachia," Growth and Change, Wiley Blackwell, vol. 37(1), pages 107-127, March.
    2. Louis Amato & Christie Amato, 2007. "The Effects of Firm Size and Industry on Corporate Giving," Journal of Business Ethics, Springer, vol. 72(3), pages 229-241, May.
    3. repec:cai:poeine:pope_405_0567 is not listed on IDEAS
    4. Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August.
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    Cited by:

    1. Rybaczewska, Maria & Sparks, Leigh, 2020. "Locally-owned convenience stores and the local economy," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).

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