The Role of Identity and Career Interest Alignment in Building Affective Commitment and Intention to Stay in Indonesian Small and Medium Family Business

Abstract

In Indonesia, family employees from the junior generation are often recruited to fill up the rank in the business organization. Their primary motivation to enroll as employees are often affected by the cultural aspect as an obligation to serve the clan. Nevertheless, it needs to be tested whether this sense of cultural obligation could lead to higher turnover intention or, in contrast, strengthen their motivation to serve for the greater good of the clan as it is in line with their identity and career interest. This study aims to test the effect of identity alignment and career interest alignment to strengthen affective commitment and intention to stay in the family business. Quantitative analysis is used to assess the hypotheses in this study, using purposive sampling of 270 junior generation family business employees who responded to a questionnaire survey. The study uses Partial Least Square-Structural Equation Modelling (PLS-SEM) analysis by SmartPLS software. The test result shows that identity alignment has a positive effect on affective commitment, career interest alignment has a positive effect on affective commitment, and affective commitment has a positive effect on the intention to stay. The study illustrates the importance of culturally related motivation from a family employee to build commitment and intention to stay in the family business.