Impact of Organizational Justice on Perceived Creative Performance Through Mediating Role of Innovative Climate

Transcription

1 American Journal of Business and Society Vol. 1, No. 2, 2016, pp Impact of Organizational Justice on Perceived Creative Performance Through Mediating Role of Innovative Climate Mula Nazar Khan 1, *, Muhammad Salman 2, Uzair Mufti 3, Muhammad Wajid 4 Hailey College of Commerce, University of the Punjab, Lahore, Pakistan Abstract The Organization strives for sustainability and competitive advantage in developing countries like Pakistan. In current study is to investigate the impact of organizational justice on perceived creative performance mediating role of innovate climate in the telecommunication Sector of Pakistan. A self-administrative questionnaire was used to collect the data. Adaptive technique was used with minimal interference of the researcher. The response rate was 80%. Results are exploited through Statistical Package of Social Sciences and Analysis of Moment Structures. All the variables are correlated. The results indicate that innovate climate has a significant relationship with perceived creative performance. Innovate climate is also partially mediates the relationship between organizational justice and perceive creative performance. Future implication and limitation are also discussed at last. Keywords Organizational Justice, Perceived Performance, Innovate Climate,Significnt, Sustainability Received: May 20, 2016 / Accepted: June 2, 2016 / Published online: June 20, 2016 The Authors. Published by American Institute of Science. This Open Access article is under the CC BY license Introduction Organizations are strive for development, growth and survival in developing countries. Organizations are work for sustaining competitive advantage in challenging workplace (Al-Swidi & Mahmood, 2011) stated that organizations (in developing countries) are required not only to create their competitive advantage to lead the trend, but also to be able to sustain and upgrade the created competitive advantage The latest research indicates that businesses must adapt or die (Mayson, 2011) innovate or deteriorate (Ruhanen, 2010). Perceived creative performance develop new procedures, creation of new ideas, and products which are useful for organization (Amabile, 1996). Perceived creative performance is associated with employee innovative behavior (Sarros, Cooper, & Santora, 2008). Innovative behavior comprises thinking, creating, designing, and implementing of new ideas collect form individual, and organizational performance (Scott & Bruce, 1994). Employee innovative behavior consist of five stages includes, employee behavior, producing ideas, opportunities, organization support and implementation (Kleysen & Street, 2001). The study findings indicate that leadership behavior significantly influence the employee innovative behavior. Employee innovative behavior develop through capitalize the employees ability (J. P. De Jong & Den Hartog, 2007). Previous studies findings elaborates the innovate climate has positive effect on employees innovative behavior (Lloréns Montes, Ruiz Moreno, & Miguel Molina Fernández, 2004; A. M. T. Suliman, 2001). Employees are more participative towards innovative working, thinking due to organization innovative climate (A. M. T. Suliman, 2001). Organizational justices has a direct relation with perceived creative performance. Telecommunication is a border industry to adopt new ideas, and innovative environment. A limited researcher literature is available in telecommunication sector of Pakistan. In current * Corresponding author address: Nazarkhan156@gmail.com (M. N. Khan)

2 54 Mula Nazar Khan et al.: Impact of Organizational Justice on Perceived Creative Performance Through Mediating Role of Innovative Climate study researcher want to investigate the relationship of organizational justices with perceived employee s creative performance through a mediating effect of innovative climate. The significance of this study is to contribute in literature in telecommunication industry. The prime focus of this study is to investigate the effect of organizational justice on perceived creative performance with the mediating role of innovation climate. 2. Literature Review 2.1. Organizational Justice Organizational Justice defined as the how the organization behave with their employee. Either they are treated fairly and equally (Russell Cropanzano & Greenberg, 1997). Organizational justice theory introduced by Greenberg in Organizational justice explained that how the management treated the employees to promote innovative and productive work environment (Lee, Kim, Son, & Kim, 2015). Organizational justice is equity and fairness at work place (Byrne & Cropanzano, 2001). Employees develop their behaviors, attitudes and performance level on the basis of organizational justice (Coetzee, 2005; R Cropanzano, Bowen, & Gilliland, 2007). Organizational justice also promote job commitment, job satisfaction, and injustice crates irritation, fatigue and low level of motivation at workplace Organizational justices in income, in decision making, appreciative behavior at workplace (Hoy & Tarter, 2004). Organizational justice makes employees more coordinating, and innovative climate for potential and enthusiastic employees. On the basis of above literature researcher develop hypothesis as. H1: Organizational Justices has a significant relationship with innovative climate. H2: Organizational justice has a significant relationship with perceived creative performance Innovation Climate Innovation Climate is explained as set of employee perceptions about the organization s work environment that encourages risk-taking behavior, allocates sufficient resources and provides a challenging work environment for using a creative approach at work (Sarros et al., 2008). Innovate climate bring up new ideas, behavior, attitudes and feelings which boost up organization success and strength (Göran Ekvall, 1996). Innovate climate significantly affect the creative in any organization (Amabile, Conti, Coon, Lazenby, & Herron, 1996; R. G. Cooper, Edgett, & Kleinschmidt, 2004). Innovative climate explained as a perception of employees, risk taking behavior, challenging work environment and allocation of resources (Scott & Bruce, 1994). Employees creative behavior is developed by innovative climate (Sarros et al., 2008). An innovative climate builds after providing supporting, safe, motivational environment for innovation process (Torokoff, 2015). In previous studies the innovative environment has significantly associated with employee innovation in organization (Grau, Vallejo, & Tomás, 2004). (M.A. West, 2000) States that opportunities to develop and implement skills in the workplace and to innovate are central to the satisfaction of people at work, while innovation is vital to the effectiveness of organizations in highly demanding and competitive environments. Employee s innovative thinking will develop by taking an active participation in innovation process(king, Chermont, West, Dawson, & Hebl, 2007). Innovation climate embodies the flexibility and modification (Kelley, 2009; Kianto 2011; Kossek, Lewis, & Hammer, 2009). Organization are developed by supporting innovative climate like Google, innovation climate is essential for organizational and industrial innovation (Sarros et al., 2008). (Kesting & Parm Ulhøi, 2010) says that organizational justice, supportive behavior, encourage employees by providing time, resources and innovative climate. H2: Innovation climate plays a significant role in influencing the perceived creative performance Perceived Employee Creative Performance Perceived Employee Creative Performance means that the production of novel and useful ideas by an individual (Woodman, Sawyer, & Griffin, 1993). Employee innovative behavior means to implement the unique, valuable new ideas on services, products and other methods (Baer, 2012; R. M. Kanter, 1988; Van de Ven, 1986). Employee innovative behavior has multi stage process one-dimension model develop by (Janssen, 2000), two-dimension model purposed by (Krause, 2004), three-dimensional model suggested by (Reuvers, Van Engen, Vinkenburg, & Wilson- Evered, 2008). Employee innovative behavior helps organization to attain competitive advantage (J. R. Cooper, 1998; Janssen,2005; Kleysen & Street, 2001). The service sector like telecommunication is overlook by researchers (Oke, 2007). In previous study the innovative behavior of employees has significant on innovation (Coakes & Smith, 2007). Employee innovative behavior comprises four interactive activities 1) problem recognition 2) idea generation 3) idea promotion 4) idea realization and these activities improve or advance the employees capability to innovate (J. De Jong & Den Hartog, 2010). Creative performance of employees includes new ideas, creative thinking and real logic creativity is related to thinking

3 American Journal of Business and Society Vol. 1, No. 2, 2016, pp contrary to the conventional that results in uncommon contributory outputs for both the individual and the organization (Perry-Smith & Shalley, 2003). H3: Innovation climate mediate the relationship between organization justice and perceived creative performance. 3. Methodology In above diagram Organizational Justice is independent variable and perceived creative performance is dependent variable. Innovation climate is the mediating variable Research Design Figure 1. Theoretical Framework. interactional justice) consist of 15 items adaptive from (Niehoff & Moorman, 1993). Perceived creative performance consist of 6 item on Likert scale adapted from (Pace, 2005). In last innovate climate comprises 5 items adapted from (Daft s, 2004). A research design is a blueprint for the collection, measurement and analysis of data, based on the research questions of the study (Sekaran, 2006). This study is exploratory and descriptive in nature. In non-contrived environment a causal and correlational study is done. A unit of analysis in this study is individual and time horizon is cross sectional Target Population and Sample Size Target population of this study is telecommunication sector of Lahore, Pakistan. The five companies are selected on customer basis to collect sample size. These companies are Telenor, Warid, Zong, Ufone, and Mobilink. 470 questionnaire were distributed via , social media, and personally visit the offices. In 470 the 400 are full filled and used for analysis. The response rate is 85.10%. Nonprobability sampling to convenience sampling was used because it s comparatively cheaper Instrument Development In first section the demographics of respondents including gender, age, experience, company name, marital status. Five point Likert scale is comprises 1 is used for strongly disagree, 2 is used for disagree, 3 is used for neutral, 4 is used for agree, and 5 is used for strongly agree. The second section of the questionnaire consisting 22 items. The organizational justices (procedural, distributive, and 3.4. Procedure and Statistical Methods Results of this study are exploited through SPSS (Statistical Package for Social Sciences version 16 and AMOS (Analysis of Movement Structure) version 21. SPSS exploited descriptive results includes (mean, median, standard deviation, Skewness and kurtosis), reliability and correlation analysis. Amos helps to produce confirmatory factor analysis and structural equation model. Soble Test also used to prove the mediation. 4. Finding and Results 4.1. Descriptive Analysis In current study the 400 questionnaires was used to exploit the results. In this study 286 male are participated and 114 are female. In total used sample size 255 are married and 145 are single. The age of respondents are classify into different categories. Out of total sample size 140 respondents having age of 18 to 22 years. Two hundred and fifteen are between 22 to 26 years of age. In this study 37 respondents age is between 27 to 32 years and remaining are above 32 which are 8 in number. Sample size is collected from 116 useable questionnaires from Mobilink, 35 from Warid, 53 from Ufone, 118 from Telenor and 78 form Zong. Majority of the respondents having 2 to 3 years working experience. Table 1. Descriptive Analysis. Variables Mean Median Std. Deviation Skewness Kurtosis Organizational Justice Innovate Climate Perceived Creative Performance

4 56 Mula Nazar Khan et al.: Impact of Organizational Justice on Perceived Creative Performance Through Mediating Role of Innovative Climate In Table 1 descriptive values (mean, median, standard deviation, Skewness and kurtosis) are shown that the data is normally distributed because the means Skewness and kurtosis values are in normal range. Table 2. Reliability and Correlation. Variables Reliability Organizational Justice Innovate Climate Perceived Creative Performance Organizational Justice Innovate Climate ** 1 Perceived Creative Performance **.188 ** 1 In Table 2 reliability and correlation values are shown. Overall reliability of the instrument is.804. In above table the factor wise reliability are also shown OJ, IC, PCP is 0.791,.752,.899 respectively. Person correlation value also shown significant relationship between all the variables Confirmatory Factor Analysis Confirmatory factor analysis is used to check the fitness of purposed model. CFA also explain the validity and reliability of the instrument scale. Table 3. Model fit Indices. Index of Fit Chi-Square /(df) CMIN/DF GFI AGFI CFI RMSEA Value / In current study chi-square is and degree of freedom is 138, CMIN is 2.67, Goodness of fit index is 0.86, Adjusted Goodness fit index is.84, Comparative fit index is 0,87 and Route Mean Square Error of Approximation is shows that the overall model is good fit. Figure 2. Confirmatory Factor Analysis.

5 American Journal of Business and Society Vol. 1, No. 2, 2016, pp Structural Equation Model (SEM) Structural equation model is used to test the dependence and independence and association. it is also used to check the covariance between the design variables. Table 4. SEM. Index of Fit Chi-Square /(df) CMIN/DF GFI AGFI CFI RMSEA Value / Structural Equation Modem Measurement Indices In Table 4 the model fit measurement are shown. The measurement values of chi- square value is /159, CMIN is 2.69, GFI us 0.88, AFGI is 0.85, CFI is 0.84 and RMSEA is The values are shown that the measurement model is good fit. Figure 3. Structural Equation Model Mediating Testing In current study innovate climate is a mediator between organizational justice and perceived creative performance. To test the hypothesis researcher used the Online Soble test Calculator to proof the mediation. First researcher run the regression analysis on organizational justices on perceived creative performance significant value is P=0.000 with beta value of and std. error is Secondly regression is run on innovate climate and perceived creative performance the P=0.001 level of significant with beta value of and std. error is 0.87 a positive significant. After running online Soble calculator the t statistics= The results shows that the innovative climate partially mediate the relationship of organizational justice and perceived creative performance. Table 5. Statistics of Soble Test. Variable Sobel Test Value Direct β P-value Two Tailed Observed Mediation Innovate Climate Partially mediation 5. Conclusion and Future Recommendations In current study the researcher want to investigate the relationship between organizational Justices and perceived creative performance. To meet the research objective researcher develop hypothesis. Hypothesis I is accepted on the basis of confirmatory factor analysis, correlation and structural equation model. Organizational justice has a significant influence on innovate climate in the organization like the finding of (Kumari et al., 2013). Organizational justice is also significant relationship with perceived creative performance of employees. Hypothesis II shows a significant relationship with innovative climate and perceived creative performance. Hypothesis III is also accepted because results indicate that innovate climate partially mediates the relationship of organizational justice and perceived creative performance the value of t= and P= shows the mediation in Online Soble Calculator. This study elaborates that the innovative climate and organizational justice develop innovative behavior, critical thinking of employees and sustain and achieve a competitive advantage. Practical implication of this study is that the organization should provide organizational justice to motivate the employees and also give worth in decision making process. Organizational justice is the vital element in employee creative performance. This study is also provides practical practices in Telecommunication sector of Pakistan. Future researcher will use mixed method for data collection and also conduct comparative study of manufacturing and service sector.

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