Impact of Psychosocial and Organizational Factors on Employee Turnover Intention at Large Firm Apparel Industry - Sri Lanka

Abstract

The Apparel Industry of Sri Lanka plays a vital role in the Sri Lankan economy, contributing more than 900 billion LKR to Gross Domestic Product. The industry faces contemporary challenges in the world market, with the growing trend of Employee Turnover. Understanding this red-hot management problem, the current study investigates the impact of Psychological Factors (PFs), Social Factors (SFs), and Organizational Specific Factors (OSFs) on Employee Turnover Intention (ETI) and the mediation effect of Employee Satisfaction (ES). The research was conducted based on six hypotheses. Primary data were collected from 425 ground-level workers through a well-structured questionnaire and 380 responses were selected through basic screening for further analysis. Through the analysis, it was found that PFs, SFs, and OSFs have a negative and significant impact on ETI. Further, findings explored the partial mediating effect of ES between the Independent Variables and the Dependent Variable. The study contributes to the literature by empirically grounding selected variables and providing insights to policymakers in the Sri Lankan Apparel Industry.