How can organizational social capital contribute to commitment profiles: evidence from Pakistani financial firms

Abstract

Purpose. This study aims to extend the knowledge on the relationship between organizational social capital (OSC), characterized by information sharing, trust, and shared vision within the company and organizational commitment, by testing the impact OSC on OC constructed as a series of latent profiles. Methodology. The data were collected from 585 employees working for two Pakistani financial services firms regulated by the Pakistani State Central Bank and analyzed via confirmatory factor analysis, latent profile analysis and multinomial logistic regression. Findings. Results revealed six latent profiles of organizational commitment among staff members. Weakly committed employees were mostly those whose careers plateaued. Highly committed workers were divided into two groups, lack of job alternatives serving as a dissimilarity indicator. OSC affects the development of commitment profiles in different ways. Information sharing and shared vision in the firm positively predict membership in more desirable commitment profiles, while trust is critical only for moderately and highly committed employees. Implications for practice. The study provides empirical evidence concerning how managers can foster desirable commitment profiles through the development of OSC dimensions in non-Western organizational settings. Value of the results. This study extends social capital theory and its cross-cultural studies by demonstrating new relationships between commitment profiles and the dimensions of OSC. The findings highlight the importance of separating continuance commitment into high sacrifices and the perceived lack of job alternatives in developing countries.