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The impacts of perceived

organizational prestige and
organization identification on turnover
intention: the mediating effect of
psychological empowerment
a b
Yilmaz Akgunduz & Ovunc Bardakoglu
a
Faculty of Tourism, Gastronomy and Culinary Arts Department,
Mersin University, Mersin, Turkey
b
Seferihisar Fevziye Hepkon Vocational School of Social Sciences,
Tourism and Hotel Management Programme, Dokuz Eylül
Click for updates University, Izmir, Turkey
Published online: 17 Apr 2015.

To cite this article: Yilmaz Akgunduz & Ovunc Bardakoglu (2015): The impacts of perceived
organizational prestige and organization identification on turnover intention: the mediating effect
of psychological empowerment, Current Issues in Tourism, DOI: 10.1080/13683500.2015.1034094

To link to this article: http://dx.doi.org/10.1080/13683500.2015.1034094

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 Current Issues in Tourism, 2015
http://dx.doi.org/10.1080/13683500.2015.1034094

The impacts of perceived organizational prestige and organization

identification on turnover intention: the mediating effect of
psychological empowerment
∗
Yilmaz Akgunduza and Ovunc Bardakoglub
a
Faculty of Tourism, Gastronomy and Culinary Arts Department, Mersin University, Mersin,
Turkey; bSeferihisar Fevziye Hepkon Vocational School of Social Sciences, Tourism and Hotel
Management Programme, Dokuz Eylül University, Izmir, Turkey
Downloaded by [New York University] at 02:39 05 June 2015

(Received 16 January 2015; accepted 22 March 2015)

This study examined the attitudes of workers employed at hotels in Turkey. An

integrated model was developed to highlight the relationship between organizational
prestige and organizational identification with turnover intention as mediated through
psychological empowerment. Using a sample of 332 employees, structural equation
modelling was conducted to establish this relationship by analysing the responses of
employees of hotels in Turkey. The findings of the study reveal a strong relationship
between organizational identification/organizational prestige and hotel employees’
turnover intention. The study discusses the implications of the presented findings and
suggests potential practical applications.
Keywords: turnover intention; identification; prestige; hotels; Turkey

Introduction
Because of the structural properties of the tourism sector (low wages, long working hours,
the seasonal nature of the job, heavy workloads, etc.), the employee turnover rate in the
hotel industry is very high. The direct consequences of this high rate include issues
related to recruitment and training of employees, and indirect consequences, such as the
demoralization of other employees and customer dissatisfaction, which may give rise to
costs in thousands of dollars (Tracey & Hinkin, 2008). For this reason, the high employee
turnover rate is considered to be one of the most important problems affecting hotel
businesses (Ghiselli, Lalopa, & Bai, 2001). In gaining a competitive advantage by ensuring
hotel customer satisfaction and thereby keeping this advantage going, hotels’ retention of
qualified employees is as important as their attraction and recruitment. In order to
succeed in this, the factors affecting voluntary employee turnover must be controlled by
the managers.
An employee’s accordance with the individual purposes and cultural characteristics of
the business ensures his or her integration with the organization (Riketta, 2005). Those
employees who accept themselves as an integral part of their business organizations
accept the success/failure of the organization as their own (Mael & Ashforth, 1992).
According to the social identity theory, individuals tend to classify the society in which
they live as themselves and others (Asforth & Mael, 1989; Bergami & Bagozzi, 2000).

∗
Corresponding author. Email: yilmazakgunduz@hotmail.com

# 2015 Taylor & Francis

 2 Y. Akgunduz and O. Bardakoglu

The first perception of the individuals is the harmony between their values and the society to
which they belong; if there is harmony, they become integrated with the society, and if there
is no harmony, they isolate themselves from the society. For these reasons, when employees
begin to define the characteristics of their organizations as their own, the organizational
identification comes into being (Dutton, Dukerich, & Harquail, 1994). With the forming
of the organizational identification, the internalization of the employees (Asforth &
Mael, 1989) begins to emerge, which is a consequence desired by the organizations.
In the hotel business, in which success depends on customer satisfaction, it is important
to respond to customer complaints quickly; therefore, empowering the employees (De
Zilwa & Wong, 2012) may encourage them to demonstrate behaviours that extend
beyond their expected roles (Thomas & Velthouse, 1990). Empowering employees may
be realized structurally through giving authority and responsibility to the employees and
by psychologically improving their perceptions of meaning, competence, impact, and
self-determination with respect to their professions. In this way, the employees who
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become empowered psychologically will satisfactorily respond to the complaints they

face in a shorter time and thus contribute to customer satisfaction, which is crucial for
the organization.
One of the most important primary factors of organizational identification is perceived
organizational prestige, a concept that may be defined as ‘the evaluation of the employees
by other people outside the organization’ (Dutton & Dukerich, 1991). Organizational
identification and prestige are concepts that are formed in the perceptions of the employees
(Dutton et al., 1994; Mael & Ashforth, 1992). When the employee perceives both of these
concepts to be at high levels, the result is a more meaningful job. Moreover, it is known that
organizational prestige is directly related to the employee’s level of self-respect and stems
from the employee’s membership within the organization.
The purpose of this study was to determine the mediator effect of the psychological
empowering perceptions of organizational prestige and organizational identifications on
employee turnover intentions of the employees. In this context, the hypothetical frame
and the hypotheses, which are based on psychological empowerment variables, are first
explained. Then, in the method section of the study, the universal set, exemplification,
data collection tool, and the validity and reliability of the measurement model are presented.
The article concludes with a description of the hypothetical and practical applications based
on structural equation modelling (SEM). Although the effect of organizational prestige and
organizational identification on employee turnover intentions has been examined in various
studies, in this study, the combined effects of organizational prestige and organizational
identification on turnover intentions are discussed. Moreover, psychological empowerment
is defined and explained as a mediator effect in this context. The study is beneficial in that
the model proposed will contribute to the literature; in addition, suggestions for future study
are provided.

Theoretical foundation and hypothesis formulation

Psychological empowerment
The fact of giving the work to be applied to the employee and of the manager retaining the
sole control authority, which dominates the traditional management understanding, has lost
its validity today (Lashley, 2000). An employee not using initiative due to not having
responsibility may cause the smallest problem to expand (Lashley, 1995). Whereas,
enabling the employee responsibility, flexibility and decision-making opportunities
 Current Issues in Tourism 3

through reinforcement ensures that the customer’s needs are met very quickly. Empower-
ment (Lashley, 2000) is a management policy that supports the employee in order for
her/him to reach the goals, and it aims to ensure that he/she controls the performance. For-
mation of the feeling of reinforcement is a psychological process that is based on motivation
(Conger & Kanungo, 1988). Psychological empowerment is an individual’s feelings of ade-
quacy about the work he/she does (Conger & Kanungo, 1988; Spreitzer, 1996; Thomas &
Velthouse, 1990). The psychological empowering concept consists of four dimensions:
meaning, competence, impact, and self-determination (Thomas & Velthouse, 1990). The
more these four dimensions positively influence the employee, the higher will be the
employee’s levels of motivation and efficiency. Any of these dimensions being at lower
levels, as perceived by the employee, decreases the empowering level. If the manager
shares his or her power and authority with the employees and permits them to express
their ideas to the management, their empowering level will be increased (Conger &
Kanungo, 1988). Determining and addressing the employees’ areas for improvement is
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also included in the psychological empowering process (Spreitzer, 1996).

Empowering the employees may be considered a pre-condition in ensuring the quality
of their work. The basic aim of empowering employees in the tourism business is to accom-
modate the needs of customers in a reasonable amount of time (George & Hancer, 2003).
For this reason, psychologically empowered employees must be included in the service
process in order to meet customer needs and to respond to complaints. Empowering the
employees will ensure that employees are proud of their jobs and thus serve in a more effec-
tive manner (Brymer, 1991). Employees who believe they are psychologically empowered
by their organization (Spreitzer, 1996) will have more positive feelings for their organiz-
ation, and their job-satisfaction levels will increase (Tett & Meyer, 1993). Job satisfaction
is an important organizational output that is reached thanks to empowerment (Bordin,
Bartram, & Casimir 2007). The sense of psychological empowerment is positively per-
ceived by the employees (Spreitzer, Kizilos, & Nason, 1997). This is because employees
who believe they are working in senseless jobs cannot be satisfied. A high level of job sat-
isfaction enabled through empowerment makes senior management’s work easier and
enables them to make more effort towards customer satisfaction (Ugboro & Obeng,
2000). That the organizational support perceived by the employees is on two levels posi-
tively affects the development of job satisfaction (Armeli, Eisenberger, Fasolo, & Lynch,
1998; Rhoades & Eisenberger, 2002). Four dimensions of psychological reinforcement
(meaning, competence, impact, and self-determination) are directly related with job satis-
faction (Liden, Wayne, & Sparrowe, 2000). In developing the feeling of job satisfaction,
the employees must be enabled to acquire competence, to undertake responsibility, to
feel the job as theirs, and as a result, to use initiative through psychological empowerment
(Bordin et al., 2007; Erstad, 1997).
The employees who are empowered psychologically care for the organizational structure
that enables them to perform the requirements of their jobs (Spreitzer, 1995). This is because
they feel that their organization cares for them. Therefore, their motivation increases, and they
become devoted to their organizations; as a result, the satisfaction level of the customers
increases (Kluska, Laschinger, & Kerr, 2004). When the organization begins to empower
its employees, it also initiates a social change in them (Emerson, 1976). According to the
social change theory, employees who believe that they are empowered will have more posi-
tive feelings about their organization (Eisenberger, Huntington, Hutchison, & Sowa, 1986). In
return, they will exhibit positive organizational behaviours that contribute to the organiz-
ation’s efficiency (De Zilwa & Wong, 2012). In this context, the employees who have psycho-
logical empowerment perceptions more often trust their organization (Spreitzer, 1996). Also,
 4 Y. Akgunduz and O. Bardakoglu

their performance (Carmeli, Gershan, & Woldman, 2007), job satisfaction (Chiang & Jang,
2008), and organizational commitment (Meyer & Allen, 1984), as well as other positive
organizational outcomes, increase. On the other hand, their negative organizational outcomes,
such as feelings of exhaustion (Kim, Shin, & Umbreit, 2007) and turnover from work,
decrease (Koberg, Boss, Senjem, & Goodman, 1999).

Organizational identification and psychological empowerment

The integration of employees with their organization – in other words, their identification
with the organization – translates into their solidarity with the organization, under any con-
dition, and while considering themselves to be a part of the organization (Mael & Ashforth,
1992). It has been observed that the employee who is integrated with his/her organization
also becomes devoted to the organization on the psychological level (O’Reilly & Chatman,
1986). In this way, the behaviour appears in which the employee adopts the organization’s
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values and goals as if they were his or her own. The employees’ perception that they are
valuable to the organization, which occurs with psychological empowerment, will increase
their motivation for success and make it easier for them to identify with their organization
(Prati & Zani, 2013). When employees are more efficient and more effective, customer sat-
isfaction and loyalty will also increase (Mael & Ashforth, 2001). It has been proven that
employee turnover intentions decrease as their identification with their organizations
increases (Riketta, 2005).
According to the social exchange theory, organizational identification will increase for
those employees who consider their jobs important within their organizations (Spreitzer,
1996; Thomas & Velthouse, 1990), who think that they have an effect on their jobs (Spreit-
zer, 1995), and who perceive that their roles within the organization allow them to demon-
strate their proficiencies. Also according to this theory, parties (the organization/manager/
employee) in an interactive relationship ‘pay back’ in return for the opportunities provided
to them (Cook & Rice, 2003). Otherwise, the social exchange is not possible to be experi-
enced in the long term. Studies conducted in both tourism and non-tourism sectors show
that employees may become integrated with the organization by being empowered.
Based on the precepts of the social exchange theory and on the empirical evidence reported
above, the following hypothesis is proposed:

H1. Organizational identification is related positively to psychological empowerment.

Perceived organizational prestige and psychological empowerment

Organizational prestige, or organizational image, is the employee’s belief about how he or
she is perceived by individuals outside the organization (Dutton & Dukerich, 1991; Mael
& Ashforth, 1992). Prestige is directly related to employees’ levels of self-respect in terms
of their membership within the organization (Dutton & Dukerich, 1991). The employee
cares about the opinions of other people and groups, such as customers, who are
outside the organization, the organization’s competitors, suppliers, and the social environ-
ment (Dutton et al., 1994), and merges these opinions with his or her beliefs to form the
organizational prestige (Carmeli, 2005). For this reason, organizational prestige is con-
sidered one of the most important precepts of organizational identification (Dutton &
Dukerich, 1991).
In the conservation of resources theory, employees strive to protect the sources they
care about (Hobfoll, 1989, 2001). According to this theory, these sources are classified
 Current Issues in Tourism 5

under the following four categories: material sources, conditions, personal characteristics,
and energy. This theory also maintains that employees will begin to identify with their
organization and develop an intention to stay in the organization in order to ensure
the continuity of the prestige and self-confidence provided to them by the organization.
When employees face the possibility of losing the provided resources, or when they actu-
ally lose those resources, their stress levels increase (Hobfoll, 1989). For this reason, in
order to continue to work in an organization with a high prestige level and to contribute
to the organization’s success, they will increase the level of their performance, which is
not surprising. It has been observed that the seniority factor, which is one of the four
basic fundamentals of the conservation of resources theory, affects the perception of
the organizational identification together with the organizational image, at a good level
and in a positive way (Buoncore, 2009). Moreover, it is expected that employees who
have positive organizational prestige levels will continue to work in the organization
and show positive behaviours in order to protect the self-respect provided to them by
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their membership in the organization (Kim, Lee, Lee, & Kim, 2010). Consequently, it
is expected that the prestige perceived by the employees will decrease their turnover
intentions and that they will consider the authority and responsibilities given to them
as being empowered by the organization. Based on the precepts of conservation of
resources theory and on the empirical evidence reported above, the following hypothesis
is proposed:

H2. Perceived organizational prestige is related positively to psychological empowerment.

Psychological empowerment and its relationship to employee turnover intention

Turnover intention, or the desire of a person working in an organization to leave his or her
job within a short time (Parasuraman, 1982), may be considered the precept of carrying out
one’s intention to quit the job voluntarily. There are two factors that drive individuals to quit
their jobs (Felps et al., 2009): (1) lower levels of job satisfaction and organizational com-
mitment; and (2) the emergence of better job opportunities for the employee. The employ-
ee’s decision to quit a job is a rational decision – or a wrong one – and is based on whether
he or she is content with the present job after evaluating the factors (Cotton & Tuttle, 1986).
It is crucial for the intention of an employee to quit his or her job to be noticed by the organ-
ization and that necessary precautions are taken, and solutions found, in order to eliminate
the problem(s) (Tett & Meyer, 1993).
The social exchange theory expresses the mutual obligations associated with the expec-
tations based on the relationship between the employee and the organization (Cropanzano
& Mitchell, 2005; Emerson, 1976). The more the employees believe that the organizational
activities are beneficial for them, the more they identify with the organization (Asforth &
Mael, 1989) and the more their intentions to leave their work decrease (Parasuraman,
1982; Tett & Meyer, 1993). According to the social change theory, if organizations
invest in the happiness of their employees, the social exchange process will continue as
long as the situation is clearly understood by the employees (Cook & Rice, 2003). Thus,
the employees initiate a change in their relationship with the organization and want to
increase their awards and decrease their costs; therefore, they work with more enthusiasm
and reverse their intention to leave their job.
The perception of the employees regarding the organization as being a prestigious insti-
tution prevents them from developing turnover intentions (Carmeli & Freund, 2002). More-
over, the emotional commitment of the employee who is empowered psychologically by his
 6 Y. Akgunduz and O. Bardakoglu

or her organization will increase (Liu, Chiu, & Fellows, 2007). Thus, a give-and-take
relationship similar to that in the social exchange theory emerges, the employee’s perform-
ance improves, which demonstrates that he or she wants to stay in the organization (Shore,
Lynch, Tetrick, & Barksdale, 2006). Empowered employees identify with their organiz-
ation, and as a result of this, the intention to quite their job decreases (Benkhoff, 1997;
O’Reilly & Chatman, 1986). When psychological empowerment, which is an important
human resources management policy, is considered in a positive way by the employees,
a serious decrease is observed in the turnover intentions (Eisenberger et al., 1986). Based
on the precepts of the social exchange theory and on the empirical evidence reported
above, the following hypothesis is proposed:

H3. Employees’ psychological empowerment reduces their turnover intentions.

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The mediating effects of psychological empowerment

The employees’ perceptions that they are being cared for and that their opinions are being
given importance within their organizations are important consequences of psychological
empowerment behaviour (Thomas & Velthouse, 1990). Employees who have this percep-
tion adopt the values and purposes of the organization as if they were their own and, with
the help of empowerment, emotionally identify and devote themselves to the organization
(Asforth & Mael, 1989). Employees’ identification with their organization and the pride
they have in the organization increase the outer prestige levels that express the opinions
formed in relation to the perceptions of those individuals external to their organizations
(Carmeli & Freund, 2002). Employees who exhibit all these positive emotions will be
inclined to stay with the organization and will do their best to work more efficiently on
its behalf. Therefore, the psychological empowerment implemented by the organization
will give rise to positive organizational outcomes, such as employee identification with
the organization and an increase in the perceived organizational prestige level and conse-
quently to a decrease in, or even the disappearance of, turnover intentions. Based on this
research, the following hypotheses are proposed:

H4a: Psychological empowerment mediates the relationship between organizational identifi-

cation and turnover intention.

H4b: Psychological empowerment mediates the relationship between perceived organizational

prestige and turnover intention.

The model (Figure 1) as hypothesized is shown below.

Research method
Sample and data collection
Data were collected from six 5-star and four 4-star hotel businesses in Izmir, Turkey, during
April 2014.The questionnaire was translated from English to Turkish, and back-translated
to English, with the help of three bilingual experts to ensure the quality of the questionnaire
(Brislin, 1970). To accurately extract research topic variables from hotel staff, the study
approach should take into account the various hotel departments. In line with this, and in
order to ensure representation of the features present in 4-star and 5-star hotel environments,
 Current Issues in Tourism 7

Figure 1. Hypothesized model.

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as well as those present in employees of a comparable standard, the stratified sampling tech-
nique (Hair, Black, Babin, & Anderson, 2010), a random sampling method, is the ideal
application. However, under research conditions in which it is nearly impossible to
obtain a list of staff members working in 4-star and 5-star hotels in Turkey, quota sampling,
a method of non-random sampling, had to be applied. In the creation of quotas, a pro-
portional distribution of the employees in 4-star and 5-star hotels is taken into account
according to the department. In this context, it was based on the distribution rates of
labour specified by Olalı and Korzay (1993). Therefore, the sample was determined as
follows: administrative staff 3.7% (14 staff members); front desk staff 10.3% (40 staff
members); food and beverage staff 53.4% (205 staff members); housekeeping staff
26.8% (103 staff members); and maintenance/repair staff 5.8% (22 staff members).
In total, 450 questionnaires were distributed, and 336 were returned. Four question-
naires were eliminated because they were returned only partially completed, so 332 valid
questionnaires were collected for a response rate of 75%. As shown in Table 1, 207 partici-
pants (63%) were male. The mean average age of the participant respondents was 32 years,
with 90% of them being older than 26. Education levels were mostly college (43%) or uni-
versity (35%). Most employees had previously served in the hotel industry for less than five

Table 1. Respondents’ profile.

Sample Sample
Gender (n ¼ 332) Percentage Department (n ¼ 332) Percentage
Male 207 63 Front office 64 21
Female 120 37 Housekeeping 77 25
Period working in Maintenance 32 10
the hotel industry services
5 year and below 147 48 Administration 10 3
6–10 years 87 28 Food and beverage 126 38
11 year and above 74 24 Education
Age Junior high 31 10
25 and below 29 10 Senior high 31 10
26 –35 150 49 College 137 43
36 –45 80 26 University 115 35
46 and above 46 15 Graduate school 7 2
 8 Y. Akgunduz and O. Bardakoglu

years. They worked mainly in three departments: front office, housekeeping, and food and
beverage; 126 employees (38%) were from the food and beverage department.

Measures
Standard scales were used in this study and measured on a five-point Likert scale, ranging
from 1 ¼ strongly disagree to 5 ¼ strongly agree. The Psychological Empowerment Ques-
tionnaire (Spreitzer, 1995) is a 12-item scale that measures an individual’s experience of
psychological empowerment. The scale consists of four sub-dimensions of psychological
empowerment with three items each (e.g. ‘My job activities are personally meaningful to
me’).
The Turnover Intention Scale (Boshoff and Allen, 2000) was used to measure respon-
dents’ intention to leave the hotel. The scale consisted of three items and an example of an
item is ‘I often think about leaving this organization’.
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The six-item scale in the organizational identification section (e.g. ‘If a story in the
media criticized the hotel, I would feel embarrassed’) was adopted from Mael and Ashforth
(1992). All items used the organization in which respondents worked as the referent.
Respondents were asked to report their levels of perceived oneness with their hotel.
Organizational prestige, indicating the ‘degree to which the institution is well regarded
both in absolute and comparative terms’, was measured by eight items from the perceived
organizational prestige scale used by Mael and Ashforth (1992).

Analytical approach
The analysis of the data was done using the Lisrel 8.8. A confirmatory factor analysis (CFA)
was carried out in order to verify the fitness of all the scales. To assess the fitness of the
proposed model, the following measures were used: goodness-of-fit index (GFI), adjusted
goodness-fit-index (AGFI), root mean square error of approximation (RMSEAX), and the
normed fit index (NFI).

Results
Confirmatory factor analysis
The means, standard deviations, and correlations among the variables are presented in Table 2.
The first step in analysing the data was the analysis of the measurement model through a CFA.
Several items were dropped in light of the initial CFA results (e.g. items with standardized
loading below 0.50). Specifically, two items from the psychological empowerment measure
and one item from the perceived organizational prestige measure were removed from

Table 2. Descriptive analyses.

Mean (SD) 1 2 3 4
(1) Turnover intention 3.8937 0.73 1
(2) Psychological empowerment 3.8515 0.54 20.57 1
(3) Organizational identification 3.6662 0.60 20.65 0.58 1
(4) Organizational perceived prestige 3.4861 0.77 20.59 0.37 0.48 1
Note: Denotes significance level of 0.01.
 Current Issues in Tourism 9

Table 3. Results of confirmation factor analysis.

Standardized t-
Scale items loadings Value AVE CR
Psychological empowerment 0.52 0.92
I am self-assured about my capabilities to perform my – –
work activities
I have mastered the skills necessary from y job – –
I have considerable opportunity for independence and 0.73 16.21
freedom in how I do my job
The work I do is very important to me 0.61 16.09
My job activities are personally meaningful to me 0.70 12.04
The work I do is meaningful to me 0.86 3.72
I am confident about my ability to do my job 0.79 5.90
I have significant autonomy in determining how I do 0.51 9.92
my job
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I can decide on my own how to go about doing my 0.69 10.38

work
My impact on what happens in my department in large 0.73 3.92
I have a great deal of control over what happens in my 0.80 7.03
department
I have significant influence over what happens in my 0.75 5.67
department
Turnover intentions 0.62 0.83
I often think about leaving this hotel 0.82 12.07
It would not take much to make me leave this hotel 0.79 10.68
I will probably be looking for another job soon 0.75 4.04
Organizational identification 0.53 0.87
If a story in the media criticized the hotel, I would feel 0.66 14.12
embarrassed
When someone criticizes the hotel, it feels like a personal 0.68 14.59
insult
I am very interested in what others think about the hotel 0.79 17.98
When I talk about this school, I usually say ‘we’ rather 0.80 15.15
than ‘they’
This hotel’s successes are my successes 0.65 13.72
When someone praises this school, it feels like a personal 0.75 11.61
compliment
Perceived organizational prestige 0.55 0.89
People from other hotel look down at this hotel (R) – –
Former employees of this hotel would be proud to have 0.68 14.72
their children work here
This hotel does not have a good reputation in my 0.76 3.00
community (R)
A person seeking to advance his/her career in this area of 0.74 15.35
employment should downplay his/her association with
this hotel (R)
When other hotels are recruiting new employees, they 0.81 18.86
would not want to employees from this hotel. (R)
People in my community think highly of this hotel 0.80 18.20
It is considered prestigious in the religious community to 0.72 2.28
be a former employee of this hotel
This hotel is considered one of the best 0.67 14.41
( –) Dropped during CFA
 10 Y. Akgunduz and O. Bardakoglu

Table 4. Discriminant validity.

1 2 3 4
(1) Turnover intention 0.62
(2) Psychological empowerment 0.32 0.52
(3) Organizational identification 0.42 0.34 0.53
(4) Organizational perceived prestige 0.35 0.14 0.23 0.55
Notes: The numbers in the cells of diagonal line are AVE. The numbers in the cells of off-diagonal line are squared
correlation coefficients of one factor with another factor. Denotes significance level of 0.01.

further analysis. The final results of the CFA revealed the following fit statistics: X2 ¼
1276.26; df ¼ 293; GFI ¼ 0.91; AGFI ¼ 0.88; CFI ¼ 0.94; and NFI ¼ 0.92.
Table 3 indicates that all the measures’ coefficients were higher than 0.51, therefore
confirming that all measures were sufficiently reliable. Also, composite or construct
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reliabilities varied from 0.83 (turnover intentions) to 0.92 (psychological empowerment).

The factor loading of all measures was significant (p , 0.01), as well as within the accep-
table limits. The results revealed high values of construct reliabilities and significant
factor loadings, thereby confirming the convergent validity of the model (Anderson &
Gerbing, 1988; Bagozzi & Yi, 1988). Moreover, the average variance extracted (AVE)
values were greater than 0.50, and the composite reliabilities were greater than the
AVE values. Hence, these results again confirm the convergent validity model (Hair
et al., 2010).
In this study, the discriminant validity was also assessed. Fornell and Larcker (1981)
suggest that the AVE value of every construct should be greater than the squared correlation
coefficient with other constructs. Table 4 confirms the discriminant validity.

Structural equation model

In this study, the hypotheses were tested using SEM. After comparing the direct effects, full
mediation, and partial mediation models (see Table 5), fit indices GFI, CFI, NFI, and
RMSEA of the partial mediation model reported better values. Therefore, the fit indices
values of the appropriate model, that is, the partial mediation model, were X2/df ¼ 4.35,
GFI ¼ 0.81, AGFI ¼ 0.77, CFI ¼ 0.89, NFI ¼ 0.96, and RMSEA ¼ 0.091.
The values for path estimates are shown in Table 6. Organizational identification
reduces turnover intention (b ¼ 20.51, p , 0.001), which supports H1. Perceived organ-
izational prestige negatively influences turnover intention (b ¼ 20.24, p , 0.01), which
supports H2. Furthermore, psychological empowerment negatively influences turnover
intention (b ¼ 0.28, p ? 0.01), thereby supporting H3.
The next step was to examine the mediation nature of psychological empowerment
using Baron and Kenny’s (1986) method. The proposed model fulfilled all the conditions
of the authors’ method (see Table 6). According to the partial mediation model (see
Table 6), perceived organizational prestige does not significantly influence turnover inten-
tion through the influence of psychological empowerment (p , 0.05); however, perceived
organizational prestige reduces turnover intention directly (b ¼ 0.20), thereby fully sup-
porting H4a.
Organizational identification has a significant negative influence on turnover intention
through the influence of psychological empowerment 0.15 (b ¼ 0.53 × 0.28); in addition,
organizational identification has a significant direct influence on turnover intention 0.36
 Current Issues in Tourism 11

Table 5. Results for fit indices of structural models.

Model X2 df X2/df DX2 GFI AGFI CFI NFI RMSEA
∗∗
Direct models 337.98∗ ∗ 101 3.45 – 0.91 0.87 0.95 0.92 0.076
Full mediation model 1379.07∗ ∗ 295 4.7 1041.09 0.79 0.75 0.88 0.85 0.095
Partial mediation model 1276.26 293 4.35 102.81 0.81 0.77 0.89 0.86 0.091
Note: DX2 represents discrepancies between model and the following model.∗∗ p-Value , 0.001.

Table 6. Path estimates of structural models.

Standardized path coefficients value
Direct Partial
effects Full mediation mediation
model model model
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Organizational  Turnover intention 20.51 20.36

identification (23.83) (22.94)
Perceived  Turnover intention 20.24 20.20
organizational (22.72) (22.32)
prestige
Psychological  Turnover intention 20.70 20.28
empowerment (23.17) (22.61)
Organizational  Psychological 0.58 (8.30) 0.53 (7.76)
identification empowerment
Perceived  Psychological 0.19 (3.10) 0.12 (1.88)
organizational empowerment
prestige

Figure 2. Path results of structural model.

(increased b coefficient), thereby fully supporting H4b. The values for path estimates can
also be seen in Figure 2; Table 7 shows the results of the proposed hypothesis.

Discussion and implications

In the tourism sector, where the services of employees are of key importance, the employee
turnover rates are fairly high due to personal, organizational, and environmental factors
 12 Y. Akgunduz and O. Bardakoglu

Table 7. Hypothesis results.

Hypothesis 1 Organizational identification is related negatively to turnover Supported
intention
Hypothesis 2 Perceived organizational prestige is related negatively to turnover Supported
intention
Hypothesis 3 Employees’ psychological empowerment negatively affects their Supported
turnover intention
Hypothesis 4a Psychological empowerment mediates the relationship between Fully
organizational identification and turnover intention supported
Hypothesis 4b Psychological empowerment mediates the relationship between Fully
perceived organizational prestige and turnover intention supported

(Fallon & Rutherford, 2010; Horner & Swarbrooke, 2004; Lashley, 2000). Thus, in order to
ensure customer satisfaction and provide a sustainable competitive advantage, hiring qua-
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lified employees is as important as keeping them working in the organization. Related to

this, researchers claim that the employees’ perceptions about their organization decrease
their intention to leave their job (Mignonac, Herrbach, & Guerrero, 2006; Mohsin et al.,
2013). In this study, the identification of employees working in the city of Izmir in
Turkey with their organization, the effect of their perceived organizational prestige in
this process, and the mediatory role of psychological empowerment are explained as
factors that decrease their intention to leave.
Findings of this study put forward that employees’ organizational identifications reduce
their turnover intention. This finding is similar to the results of the previous studies (Cho &
Ryu, 2009; Cole & Bruch, 2006; Harris & Cameron, 2005). This finding shows that hotel
employees will not demand to leave the job if they see themselves as a part of their organ-
ization. When the employees realize that their own values and those of their organization
are in harmony, their turnover intention reduces regarding the increase in organizational
identification when employees join an organization, and they learn the present values
and targets of the organization over time. When they discover that the mentioned values
and targets are in harmony with their own values and targets, organizational identifications
occur. In this case, they accept the values of the organization as their own values. Accord-
ingly, they will demand that those present values are preserved and they will continue to
work within the organization in order to reach the targets and to contribute to the organiz-
ational performance. So, while voluntary turnover intention decreases, their intention to
stay at work will increase. Otherwise, it can be said that employees who discover that
values and targets of the organization do not comply with their own will be willing to evalu-
ate alternative job opportunities.
According to Tracey and Hinkin (2008), turnover expenses are as pre-turnover, finding
an employee, choosing an employee, orientation, and efficiency loss. On the other hand,
leaving the job may negatively affect the modes of the remaining employees, as well as
the service presentation (Tanova & Holtom, 2008; Yang, Wan, & Fu, 2012). For this
reason, it is necessary to reduce the employee turnover rate in order to enable customer sat-
isfaction and to save competitive power. As not determined in this study, turnover intentions
of the employees with a high level of organizational identification are lower than for those
without organizational identification. For this reason, with the exception of the properties of
the job stated in the job definitions during the employee supply, the harmony between the
values and targets of the employee and of the organization will contribute to a decrease in
the employee turnover rate and to an increase in the organization’s performance.
 Current Issues in Tourism 13

In this study, it is stated that organizational prestige reduces the turnover intention of the
employees. This finding is similar to the results of previous studies (Al-Sakarnah & Alhaw-
ary, 2009; Herrbach, Mignonac, & Gatignon, 2004; Mignonac et al., 2006). The way in
which customers, competitors, suppliers, family, and friends perceive the organization is
important for the employees. Employees working in a high-prestige organization will
have higher self-esteem as they think that they contribute to that prestige. For this
reason, employees will demand to continue working in an organization with a prestigious
organization image according to other people and entities. Even if financial gain presented
by the highly prestigious organization is below the satisfactory level, employees may
demand to stay in the organization due to provided self-esteem.
It can be said that managers who give consideration to shareholder satisfaction and
social responsibility will be useful in raising the prestige of an organization. So, it will
be possible for the organization to join the ranks of other highly prestigious organizations
over time. When employee candidates have the opportunity to choose the organization, they
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will demand to work in highly prestigious organizations that are also appreciated by other
people, as well as preferring organizations with values and targets that comply with their
own. The main reason is that highly prestigious organizations have higher work safety,
and they see those organizations as a good reference on their career path. This enables
the employee candidate pool of the highly prestigious organizations to be larger. Employees
within a highly prestigious organization will not have an intention to leave the organization.
Another finding of this study is that employees’ intention to leave the job decreases
when they believe that they are supported by the organization. This finding is similar to
the study findings in which it is stated that psychological empowerment reduces the turn-
over intentions of the employees (Bhatnagar, 2012; Klerk & Stander, 2014; Seibert, Wang,
& Courtright, 2011). Self-esteem and job satisfaction of the employees who believe they are
empowered psychologically will increase (Laschinger, Finegan, Shamian, & Wilk, 2001).
Furthermore, when employees realize that they are supported and empowered by their man-
agers, they have more confidence in their managers (Ergeneli, Arı, & Metin, 2007). For this
reason, it will not be surprising that empowerment, which increases the employees’ self-
esteem, their confidence in their managers, and their job satisfaction, decreases their turn-
over intention. In order to raise the employees’ perception of psychological empowerment,
employees are required to increase their impact, competence, meaning, and self-determi-
nation regarding the job. In order to do this, the job should be valuable for the employees;
they are required to have an effect on resolutions made regarding the job; they are required
to have the necessary skill to perform the job and to have the power to choose the processes
regarding the job. It is possible to say that hotel managers who enable this empower the
employees psychologically. So, it can be enabled to meet the customer needs and to
resolve quickly the customer complaints, which are the main purposes in reinforcing the
employees.
In this study, it is stated that psychological empowerment has a role of mediator in the
relation of both organizational prestige and turnover intention. When perceptions of the
employees relating to organizational prestige and organizational identification are positive,
their perceptions of psychological empowerment affect the turnover intentions. When
employees discover that they are reinforced within the organization, their voluntarily inten-
tion to leave the organization, which they see as highly prestigious and something with
which they identify, will decrease.
As a result, and as the findings of this study empirically prove, psychological empow-
erment has a mediator role in the effect of organizational prestige and identification on turn-
over intention of the employees in the tourism sector. Findings of this study, realized in its
 14 Y. Akgunduz and O. Bardakoglu

sampling of 4-star and 5-star hotel employees, show that organizational prestige, identifi-
cation, and psychological empowerment perceptions must be regarded in order to decrease
the turnover intentions of the employees.

Limitations and directions for future research

This study has several limitations. First, in this study, the hotels surveyed were limited to 5-
star hotels operating in Izmir, Turkey. Hence, the presented findings cannot be generalized to
other industries. In order to generalize the findings, it is recommended that future studies
collect data from different industries. Second, the study used a random sampling method.
Considering the research conditions in Turkey, the determination of a sampling-method
size suitable for generalizing the 5-star hotels in Turkey would be rather challenging if
using random sampling methods. Therefore, in future research, a study to be conducted on
the employees of a national or international chain of hotels may offer the opportunity to
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implement the random sampling method and thus to reach more generalized and valid con-
clusions. Additionally, performing similar studies in tourism businesses other than hotels may
offer opportunities to comparatively examine the issues of psychological empowerment,
organizational identification, turnover intention, and perceived organizational prestige in
terms of the tourism industry. Thus, utilizing the classification of tourism businesses in a
study may result in the development of valuable recommendations for managers.
This study was performed within the scope of the following variables: psychological
empowerment, organizational identification, turnover intention, and perceived organiz-
ational prestige. In future studies, giving place to statements related to these variables,
together with personality traits and organizational silence, will help to test different hypoth-
eses and make new inferences. Thus, in the sphere of hotel management, where service is
key, inferences regarding various organizational behaviours of the employees can be
obtained, and making practically oriented and employee-driven decisions that do not
ignore organizational objectives at the managerial level can be supported.

Disclosure statement
No potential conflict of interest was reported by the authors.

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