JOURNAL OF THE ASIATIC SOCIETY OF MUMBAI, ISSN: 0972-0766, Vol. XCVI, No.

1(V), 2023

Mediating role of organizational citizenship behavior on Job Satisfaction and

employee retention Intentions using Structural Equation Modeling

Dr. D.Rose Mary1 , Dr. Ravi Sankar Kummeta2

1,2
Associate Professor, School of Management Studies, Guru Nanak Institutions Technical Campus,
Hyderabad
Mail: rosemary.dara@gmail.com1, ivar.shankar@gmail.com2

Abstract
Job satisfaction at the place of work is incredibly significant aspect of employee’s life. Employees feel more
comfortable and motivated when they are satisfied with their jobs. The performance of employees is bent by
the portrayal of their perspective towards their work and response to their work. This main aim of thestudy is
to examine the influence of Job satisfaction on employee Retention Intensions with the mediating role of
Organizational citizenship behaviour using Structural Equation Modeling (SEM). This study has also
highlighted that citizenship behaviour is a significant attribute to promote employee retention through the
inclusion of Job Satisfaction elements.This study focusedin theIT sector of Hyderabad.Because IT sectors are
the growing sector in India and the contributions to the Economy in ITsector is also rapidly increasing. So,IT
sector is selected for the further study.
An employee is more comfortable when he is satisfied with his job. In order to test the hypothesis, this study
used a quantitative strategy and cross-sectional survey method for collecting the data. Data was collected
from 146 employees through a structured questionnaire from employees of selected IT/ITES companies of
Telangana state, as IT sector is rapidly growing sector in India and also contributing more to the Indian
economy.
Key Words: Job satisfaction, Organizational Citizenship Behaviour, Employee Retention intensions,
Mediation, IT organizations.

Introduction
Turnover intention denotes the likelihood of employeesleaving the organization within a specific time (Chao
et al., 2015). Employees who have inflated turnover intentions will normally be implicated in ineffective
behaviours such as augmented absence, lethargy, amplified violations of code of conduct at work place and
show disagreement towards superiors(Griffeth, Gaertner & Hom, 2000).As it is true that that high employee
attrition can have an unfavourable influence on the performance of the company and the labour market
extensively, it is essential to comprehend the factors leading employees leave the organisation.
Previous research studies identified job satisfaction as one of the unswerving factors resulting in employee
turnover intentions in course of time (Saeed, Waseem, & Sikander, 2014;Mudor&Tooksoon, 2011; Susskind,
Kacmar, Borchgrevink &Brymer, 2000). By investigating into employees’job satisfaction, an organisation
can reduce high employee turnover (Anwar, 2017).
“Job satisfaction is a form of pleasedand efficacious feeling emanating by the individual employees for their
experience at work(Luthan, 2005). The locution job satisfaction implies the stances and feelings employees
possess concerning their work. Enthusiasm and productive approach for the job expresses the job
satisfaction. Contentious and unproductive approach to the job expressesthe job dissatisfaction (Armstrong-
2006).
However some previous researches established that job satisfaction hasminor correlation coefficients with
turnover intentions (ranging from r = 0,17 – 0,29) (Foluso, Azeez& Adeoye, 2016; Asegid,
Belachew&Yiman, 2014; Amah, 2009), signifying the existence of a mediator between job satisfaction and
turnover intentions. This study inspected the mediating role of Organisational Citizenship Behavior (OCB)
between job satisfaction and turnover intentions.

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Generally, Employers and superiors in the hierarchy, would desire their employees to go an extra mile
beyond their prescribed roles, exhibiting civic virtue and promoting a sense of community by sustaining
good and healthy working atmosphere within the organization. These discretionary actions displayed by
employees outside their formal job description are called “Organizational Citizenship Behaviour”.
Researches predominantly focus on the capacity of thesebehaviours, dimensions instigatingthis behaviour
(Ehtiyar et al., 2010). The Organisational Citizenship Behaviournotion, as well-defined by Organ (1988. p.
4) states that, “individual behaviorexhibited voluntarily, not directly or overtly acknowledged by the
prescribed reward system, and that in the comprehensive promotes the efficient performance of the
organization has been studied at entrepreneurial level (Podsakoff et al., 2009 & Smit et al., 1983).
Hence. We can say that, the behaviour is not an imposable requirement on the job role or the job description,
that can be specified in the individuals’ employment contract with the organization; instead, it is a personal
choice, as a result of which though it is omitted, itis not typicallytaken as
punishable.(SubrahmanianMuthuraman& , Mohammed Al-Haziazi, 2017)
Organ (1988) described that employees who are satisfied will likely exhibit high OCBs as a token of
appreciation towards the employer. Organ‘s contention was endorsed by later studies that have also
established a positive relationship between job satisfaction and OCB (Mohammad, 2016; Maio & Kim,
2010; Ulndag, 2011; Chiboiwa ,M. E. , CrispenChipunza and Michael O. Samuel, 2011).

Literature Review
Job Satisfaction and Citizenship behaviour
Several scholars (e.g., Rahman et al., 2014; Talachi et al., 2014; Organ & Lingl, 1995) investigated the
correlation between job satisfaction and organizational citizenship behavior. These studies also concluded
that there is a momentous correlation between job satisfaction and organizational citizenship behaviour
among employees (Saxena et al., 2019; Talachi et al., 2014; Rahman et al., 2014; Koys, 2001; Organ &
Lingl, 1995; Podsakoff et al., 1990;). One of the most appropriate concepts of job satisfaction is its impact on
organizational citizenship (Wagner, Rush, 2000: 379; Kose, Kartal and Kayali, 2003:7). It has been uttered
that job satisfaction expedites to organizational citizenship behavior (Kaskel, 2000); there is a substantial
relationship among these two variables (Yesilyurt and Kocak, 2014:316; Gurbuz and Yuksel, 2008:186) and
they influence each other mutually in the literature which deals with these two variables
Hence, job satisfaction of the employees represents that they like and exhibit the fondness by adopting the
organization, which can positively influence organizational citizenship behaviours of employees manifested
as voluntary additional duty behavior.
Citizenship behaviour and Employee Retention Intensions
A study by Oren et al. (2011) contended thatOCB andturnover intentions are negatively related as OCB is
known to display behavior that will benefit the organization compared to turnover intention which is
considered as a withdrawal behavior in a form of resentment towards the organization. Therefore it is simply
understood that employees with high OCB dimensions are less likely to withdraw from job than those who
have low OCB, it is also found that turnover intentions and job satisfaction are inversely related
Sharma, et al (2011).
Citizenship Behaviour as a mediator between Job Satisfaction and Retention Intensions
Yafang Tsai et al.(2010) study disclosed that job satisfaction has a considerably positive correlation with
organisational citizenship behaviour and a negative correlation with turnover intention. Job dissatisfaction
results in undesirable behaviors such as employee turnover, skiving, unpunctuality, plagiarism, violent
behaviour, and low citizenship behavior (Vecchio, 2006: 273;Newstrom and Davis, 2002: 213). Job
satisfaction is a preferable predictor of Organisation Citizenship Behaviours’ which was also been
highlighted in the past. (Smith et al., 1983). Study by Fazi Gisele Pivi and Zubair Hassan concluded that
OCB elementspossess a remarkable relationship with Employees’ job satisfactio and turnover intentions and
also affects these twoelements.Ackfeldta A. and Cooteb L. (2005) explained the potential antecedents of
organizational citizenship behaviors (OCBs) and proposed Job attitudes (job satisfaction and organizational

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commitment) as direct antecedents of OCBs in a retail setting. Olendo O.P. and Muindi F. (2017) explored
the relationship between OCB and employee retention practices at D.T. Dobie. The outcome concluded that
there was a significant relationship between employee retention practices and OCB dimensions and also
affirmed that progressive and attractive employee retention practices were correlated with OCB dimensions
and leads to employee retention at D.T. Dobie.

Research model

Citizenship Behavior
H2 H3

Job Satisfaction Retention Intentions

H1
In the above model Job Satisfaction (JS) is taken as independent while citizenship Behaviour (CB) is the
mediator and Retention Intensions (RI) as a dependent variable.

Relationshipofvariables
It ispresumed that the two variables Job Satisfaction being Independent variable (X) and Retention
Intensions being dependent variable (Y)have relationship between them. Orvariable X can be called
asacausal variable and variable Y can be called as the outcome variable.A simple relationship between these
two constructs without any mediation is depicted below.

Job Satisfaction Retention Intensions

Relationshipwithoutmediation

It is also presumed that thisrelationshipbetween Job Satisfaction and Retention Intensions

couldbemediatedbyanotherconstruct calledthe mediator and here mediator is Citizenship Behavior.
Considering the relationship between independent X and dependent Y variables, in the presenceofamediator
M, pictureisdepicted below.

Citizenship Behavior
a b

Job Satisfaction Retention Intentions

C’
Relationship with mediation

Reliability
Reliability is a measure which measures the internal consistency of the constructs of the study. A construct is
accepted to be reliable if the value of Alpha (α) exceeds 0.70 (Haier et al., 2013). Reliability was obtained
using Cronbach’s Alpha. The resulting valuesapprised that the Job Satisfaction with five items (α =.876) and
Organizational Citizenship Behaviour scale with four items got =.804, were found reliable. Also, Employee

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Retention Intensions scale containing three items was as well found to be reliable with α =.772. The results of
Reliability are summarized in the table below.
Table1: Reliability statistics
Latentvariables Number of Items Alpha(α)

JS 5 .876
CB 4 .804
RI 3 .772

Research Methodology
This study focused on Job Satisfaction, Citizenship Behaviour, and its impact on Retention Intensions of
employees. The explanatory research is considered to portray the characteristics of the study population or of
a phenomenon (Zikmund, 2003) by exploring a conceptual model. To collect the primary data, awell
structured and deliberate questionnaire with 12 items was administered to IT employees and collected
responses from a random sample of 146 employees of IT sector in Hyderabad, Telangana state. Essential
secondary data for the study was also utilized.
The Measurement scale for each construct specify the level to which the respondents of the study (IT sector
employees) concur with each statement of the questionnaire, by using a Likert scale with 5= strongly agree,4-
Agree, 3-Neutral, 2-Disagree and 1-Strongly Disagree. Job satisfaction measured by 5 items by Thompson
and Phua (2012) and citizenship behavior (Organ(1988)) considered by four items. Moreover, for dependent
variable, Retention Intensions of employees, the questions are from Jun et al., (2006) with 3 items. In this
study, data is analyzed using structural equation modelling (SEM) technique in SPSS AMOS, version 23. In
particular, AMOS facilitates researcher to specify, calculate approximately, evaluate and exhibit models to
demonstrate presumed relationships between variables. It also facilitates the researcher to construct the
models more accurately rather than with standard multivariate statistical analysis techniques.

Research Objectives
 To study the relationship between Job Satisfaction and Citizenship behavior.
 To explore the relationship among the constructs, citizenship behavior and Retention Intensions of
employees.
 To study the mediation influence of Citizenship behavior on the Job Satisfaction and Retention
Intensions of employees.
 To explore relationship between the Job Satisfaction and Retention Intensions.
Structural Equation Model: Mediation ofcitizenship behavior on Job Satisfaction and Employee retention
Intensions.
Fig 1: Mediation Model

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Fig 1 above is the SPSS Amos path diagram exhibiting Structural Equation model on Job satisfaction and
Citizenship Behaviour, influencing Employee Retention Intensions. The SEM Model explicates the
contextual significance of Job Satisfaction on Retention Intensions through Citizenship behaviour. The
elements (items) of Independent variable Job Satisfaction include Fair policies, working conditions,
Leadership, Reward system and Succession planning. The dependant variable Retention Intensions of
employees includes Work satisfaction, Succession line and Career Satisfaction. The items of Mediating
variable Employee Citizenship Behaviour include Conscientousness, sportsmanship, Altruism and Civic
Virtue.
RMSEA value fit is 0.061, which is regarded as best fit value(Brown and Cudeck, 1993). The path in the
figuredepicts that Citizenship Behaviour mediates Job Satisfaction and Retention Intensions.
Citizenship Behaviour (CB) and Job Satisfaction activities, Fair policies, working conditions, Leadership,
Reward system and Succession planning have a negligible path divergence. Citizenship Behaviour, Job
Satisfaction and Retention Intensions have a momentousassociation. Citizenship Behaviour, a mediating
construct, and Retention Intensions, being output factor, have a considerable relationship.The values of the
regression table envisage that the relationships between the latent constructs are significant and positively
correlated.Also, the values in covariance table depicts relation between different dimensions are significantly
correlated.
Assessment of Model Fit
Chi-square, comparative fit index (CFI), normal fit index (NFI), and root mean square error of
approximation (RMSEA)have all been made use of inthis study to measurethe model fit. The goodness-of-
fitindices indicate the "rules of thumb" to derivethe recommended cut-off standards for estimating data-
model fit.To summarize Hu and Bentler's (1999) approach is utilised to combining GOF indices to create a
robust model fit evaluation. For evaluating the fit in structural equation modelling, the criteria value stated
for a good fit model is with CFI > 0.90, RMSEA <0.08, and SRMR< 0.08. Hu and Bentler proposed the
revised rules for utilising GOF indices, and the information for this study followed the new guidelines with
adequate care and bounds. Furthermore, other few researchers namely- Marsh, Hau, & Wen, 2004,
Beauducel& Wittmann, 2005; Fan &Sivo, 2005; specified that these cut-off standards are too meticulous and
the consequences should be lithe in allowing limited general ability to degree of experience in seasonal
practice. In general, a befitting or rudiments approach is (such as CFI, GFI, NFI, and TLI), cutoff values
should be above 0.90 yardstick and for fit indices based on residuals matrix values usually considered
adequate below 0.10 or 0.05. this assessment was performed in the SPSS Amos software.
Table 2- Goodness of Fit indices
CMIN DF CMIN/DF P GFI CFI TLI NFI RMSEA SRMR

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194.902 101 1.93 0 0.910 0.901 0.898 0.902 0.062 0.053

Table 3: REGRESSION values TABLE – Structural Model of Citizenship Behaviour, mediating Job
Satisfaction and Employee Retention
Estimate S.E. C.R. P Label
ECB_MV <--- JS_IV .428 .089 4.794 *** par_11
RI_DV <--- JS_IV .179 .094 1.902 .057 par_6
RI_DV <--- ECB_MV .687 .122 5.626 *** par_10
JS_4 <--- JS_IV 1.000
JS_3 <--- JS_IV .839 .071 11.849 *** par_1
JS_1 <--- JS_IV .777 .103 7.560 *** par_2
RI1 <--- RI_DV 1.000
RI2 <--- RI_DV 1.146 .125 9.149 *** par_3
RI4 <--- RI_DV .707 .108 6.547 *** par_4
JS_2 <--- JS_IV .997 .069 14.423 *** par_5
CB_2 <--- ECB_MV 1.000
CB_3 <--- ECB_MV 1.021 .105 9.680 *** par_7
CB_4 <--- ECB_MV .868 .106 8.218 *** par_8
CB_5 <--- ECB_MV .673 .107 6.307 *** par_9
JS_5 <--- JS_IV .910 .089 10.203 *** par_12

Table 4.MediationEffect
Citizenship Behaviour Retention Intensions
Direct Total Direct Indirect Total
Job Satisfaction 0.43* 0.43* 0.18** 0.296** 0.476**
Citizenship Behaviour -- -- 0.69* - 0.69*

Totaleffect=Directeffect +Indirect effect

Indirect effectshowsthemediationeffect

Citizenship Behaviour

0.43* 0.69*

Job Satisfaction 0.18**

Retention Intentions
Indirect effect = a x b = 0.43 X 0.69 = 0.296
Total effect = 0.18 + 0.296 = 0.476

Findings
 A significant relationshipis establishedamong Job Satisfaction and Citizenship Behaviors of
employees.
 A significant relationship exists between Citizenship Behaviours of employees and employees
Retention Intensions.
 Citizenship behavior is proved as a mediating factor between Job Satisfaction and Retention Intensions.
 The path from the mediating construct, Citizenship Behaviour anddependent construct, Retention
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Intensions isproved to be significantly related.

 Full mediation is established as the direct path relationship between Independent construct, Job
satisfaction and independent construct, Retention Intensions is insignificant.

Conclusion
This research was conducted to figure out the mediation effect of Citizenship Behaviour of the IT
employees on Job satisfaction and Retention Intensions of employees. For this, a sample of 146
employees from IT companies in Hyderabad, Telangana state were taken as the sample and a Structural
Equation model is build using spss Amos, where Job Satisfaction was taken as Independent variable,
Citizenship Behavior was taken as mediating variable and Retention Intensions was taken as dependent
variable. Model was established with good fit Indices and the mediation was identified as Full mediation.
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