Hassan, Nik Hasfizul
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Process Fairness as a Mediator of the Relationship between Reward Communication and Organisational Attachment Ismail, Azman; Rauf, Ummu Ajirah Abdul; Razak, Muhammad Ajib Abd; Hassan, Nik Hasfizul
The South East Asian Journal of Management Vol. 20, No. 2
Publisher : UI Scholars Hub

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Abstract

Research Aims: The study examines the mediating role of process fairness in the relationship between reward communication and organisational attachment. Design/Methodology/Approach: Cross-sectional data were collected from 437 employees at Malaysian public tertiary education institutions using purposive sampling. The data were analyzed using SmartPLS to examine both the measurement and the structural equation models. Research Findings: Process fairness is a crucial mediating variable between reward communication and organisational attachment. Theoretical Contribution/Originality: This study extends Leventhal’s (1976) Self-Interest Model and Shapiro’s (1993) Model of Procedural Justice by examining the role of process fairness as a mediating variable between reward communication and organisational attachment in the tertiary education sector. The inclusion of process fairness in the mediating model testing accounted for 30 percent of the variance in organisational attachment, exceeding the benchmark threshold of 0.26. This result demonstrates a significant effect. In terms of mediating effect type, process fairness shows partial mediation, as both direct and indirect effects are significant and aligned in the same direction. This result supports and extends prior studies in Southeast Asia. Managerial Implications in the South East Asian Context: The results help practitioners understand the multifaceted nature of process fairness and formulate innovative reward policies that encourage employees to sustain and enhance their organisations' strategies and objectives. Research Limitation & Implications: The use of cross-sectional data limits causal inference, and survey data collected through non-probability sampling may compromise the representativeness of the study population. Furthermore, as the data were collected exclusively from Malaysian public tertiary education institutions, the generalizability of the results to other contexts is constrained.