Small, local, and loyal: How firm attributes affect workers’ organizational commitment

Abstract

We explore how firm size and local ownership influence employees’ organizational commitment. Using a civic community perspective, we hypothesize that small and locally owned businesses engender more employee loyalty in a representative national sample of workers. That hypothesis is supported for all workers and is most clearly evident in a subsample of rural workers. Our results show that working at small businesses and locally owned businesses significantly increases an employee’s organizational commitment. Furthermore, individuals who work at small businesses that are also locally owned are found to have the highest level of organizational commitment. Our study provides insight into how structural elements of an organization, such as small businesses and locally owned businesses, are associated with an improved quality of life and a more robust civil society. Moreover, this paper highlights the need for further research on how structural attributes of businesses affect the attitudes and opinions of workers.

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