The Moderating Effect of Crossvergent Cultural Values on Turnover Intention in China

Abstract

The battle over talent is at a critical point in China. Monetary compensation and career development have ambiguous results on employee turnover in China. To explain the discrepancies within China, we investigate the effects of those HR practices on turnover intention in state-owned enterprises (SOEs) and foreign-owned enterprises (FOEs). Applying crossvergence theory, we propose that the “new” integrated working values in SOEs and FOEs are different: it could be summarized as “ wen zhong qiu jin ” (conservative self-growth orientation) in SOEs and “ ji ji qiu jin ” (aggressive self-growth orientation) in FOEs. In an investigation of 406 employees nested in 26 companies, hierarchy linear model (HLM) results show significant discrepancies exist in SOEs and FOEs. Pay-for-performance actually increase turnover intention in SOEs but decrease it in FOEs. Also, perceived career opportunity has stronger negative effect on turnover intention in FOEs. We provide some important practical implications.