Measuring Organizational Commitment : Scale Validation for Indian Financial Services Sector

Organizational commitment has been researcher's topic of interest for many years now due to its evident impact on the individual and firm performance. Fast paced changes in the service industry of India have evolved and changed employees' work related attitudes and behaviors. Considering this fact, the prevailing constructs might have undergone changes and evolved further based on environmental dynamicity. Thus, this paper aims at determining the key dimensions of commitment and also at validating the most widely used three-component model of Allen and Meyer (1990) for the Indian banks and insurance firms. A sample of 154 employees from top four banks and insurance firms has revealed the emergence of three distinct factors in commitment construct using exploratory factor analysis. Further, three-factor measurement model was developed and tested for construct validity and reliability using confirmatory factor analysis. The goodness of fit for the model was determined using various reliable model fit indices. The findings of the study revealed significant fit of the tested model. The presence of all three components of commitment, viz., affective, normative and continuance, was similar to the theorized model. The results have highlighted the good fit and applicability of the model in the Indian financial service sector