The Impact of Caring Climate, Job Satisfaction, and Organizational Commitment on Job Performance of Employees in a China’s Insurance Company

  • 5756 Accesses

  • 78 Citations


This research uses structural equation modeling (SEM) to examine the direct and indirect relationships among caring climate, job satisfaction, organizational commitment, and job performance of 476 employees working in a Chinese insurance company. The SEM result showed that caring climate had a significant direct impact on job satisfaction, organizational command, and job performance. Caring climate also had a significant indirect impact on organizational commitment through the mediating role of job satisfaction, and on job performance through the mediating role of job satisfaction and organizational commitment. In addition, job satisfaction had significant direct impact on organizational commitment, through which it also had a significant indirect impact on job performance. Finally, organizational commitment had a significant direct impact on job performance.

This is a preview of subscription content, log in to check access.

Access options

Buy single article

Instant unlimited access to the full article PDF.

US$ 39.95

Price includes VAT for USA

Subscribe to journal

Immediate online access to all issues from 2019. Subscription will auto renew annually.

US$ 199

This is the net price. Taxes to be calculated in checkout.

Fig. 1


  1. Alonderiene, R. (2010). Enhancing informal learning to improve job satisfaction: Perspective of SMEs managers in Lithuania. Baltic Journal of Management, 5(2), 257–287.

  2. Arbuckle, J. L., & Wothke, W. (1999). AMOS 4.0 User’s Guide. Chicago: SmallWaters Corporation.

  3. Asumeng, M. (2013). The effect of employee feedback-seeking on job performance: An empirical study. International Journal of Management, 30(1), 373–388.

  4. Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74–94.

  5. Biong, H., Nygaard, A., & Silkoset, R. (2010). The influence of retail management’s use of social power on corporate ethical values, employee commitment, and performance. Journal of Business Ethics, 97, 341–363.

  6. Caillier, J. G. (2010). Factors affecting job performance in public agencies. Public performance & Management Review, 34(2), 139–165.

  7. Cellucci, A. J., & Devries, D. L. (1978) Measuring managerial satisfaction: A manual for the MJSQ. Technical Report 11.

  8. Chen, S., & Liu, P. (2012). Effects of internal marketing, organizational commitment, job involvement and job satisfaction on work performance: A study of the elderly care institutions in Taiwan. Marketing Review, 9(3), 277–302.

  9. Chi, Y. (2013). Analysis of insurance consumer protection. Available at Accessed July 10, 2013.

  10. Chu, K. T. (2013). China: A billion strong but short on workers. Available at May 4, 2013.

  11. CIRC. (2005). A Panorama of the Chinese Insurance Market. Available at Accessed April 4, 2013.

  12. Cullen, J. B., Parboteeah, K. P., & Victor, B. (2003). The effects of ethical climates on organizational commitment: A two-study analysis. Journal of Business Ethics, 46, 127–141.

  13. Dale, C. (2005). 5 ways to show employees how much you care. Printing News, 154(20), 16.

  14. Darolia, C. R., Kumari, P., & Darolia, S. (2010). Perceived organizational support, work motivation, and organizational commitment as determinants of job performance. Journal of the Indian Academy of Applied Psychology, 36(1), 69–78.

  15. Deshpande, S. P. (1996). The impact of ethical climate types on facets of job satisfaction: An empirical investigation. Journal of Business Ethics, 15, 655–660.

  16. Edwards, B. D., & Bell, S. T. (2008). Relationships between facets of job satisfaction and task and contextual performance. Applied Psychology: An International Review, 57(3), 441–465.

  17. Elci, M., Kitapci, H., & Erturk, A. (2007). Effects of quality culture and corporate ethical values on employee work attitudes and job performance in Turkey: An integrative approach. Total Quality Management, 18(3), 285–302.

  18. Filipova, A. A. (2011). Relationships among ethical climates, perceived organizational support, and intent-to-leave for licensed nurses in skilled nursing facilities. Journal of Applied Gerontology, 30(1), 44–66.

  19. Fry, M. D., Kim, M., Gano-overway, L. A., Guivernau, M., Newton, M., & Magyar, T. M. (2012). Youth perceptions of a caring climate, emotional regulation, and psychological well-being. Sport, Exercise, and Performance Psychology, 1(1), 44–57.

  20. Fu, W., & Deshpande, S. P. (2012a). Factors impacting ethical behavior in a Chinese state-owned steel company. Journal of Business Ethics, 5, 231–237.

  21. Fu, W., & Deshpande, S. P. (2012b). Antecedents of organizational commitment in a Chinese construction company. Journal of Business Ethics, 109, 301–307.

  22. Fu, W., Deshpande, S. P., & Zhao, X. (2011). The impact of ethical behavior and facets of job satisfaction on organizational commitment of Chinese employees. Journal of Business Ethics, 104, 537–543.

  23. Gano-Overway, L. A., Newton, M., Magyar, T. M., Fry, M. D., Kim, M., & Guivernau, M. R. (2009). Influence of caring youth sport contexts on efficacy-related beliefs and social behaviors. Developmental Psychology, 45, 329–340.

  24. Goldman, A., & Tabak, N. (2010). Perception of ethical climate and its relationship to nurses’ demographic characteristics and job satisfaction. Nursing Ethics, 17(2), 233–246.

  25. Grdinovac, J. A., & Yancey, J. B. (2012). How organizational adaptations to recession relate to organizational commitment. The Psychologist-Manager Journal, 15, 6–24.

  26. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis. New Jersey: Prentice Hall.

  27. Hira, A., & Waqas, I. (2012). A Study of job satisfaction and IT’s Impact on the performance in the banking industry of Pakistan. International Journal of Business and Social Science, 3(19), 174–180.

  28. Hu, Y. (2013). China to be most dynamic insurance market. Available at Accessed May 3, 2013.

  29. Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6, 1–55.

  30. Huang, X., & Bond, M. H. (2012). Handbook of Chinese organizational behavior: Integrating theory, research. Northampton, MA: Edward Elgar Publishing.

  31. Iqbal, M. T., Latif, W., & Naseer, W. (2012). The impact of person job fit on job satisfaction and its subsequent impact on employees performance. Mediterranean Journal of Social Sciences, 3(2), 523–530.

  32. Jamal, M. (2011). Job stress, job performance and organizational commitment in a multinational company: An empirical study in two countries. International Journal of Business and Social Science, 2(20), 20–29.

  33. Jaramillo, F., Mulki, J. P., & Marshall, G. W. (2005). A meta-analysis of the relationship between organizational commitment and salesperson job performance: 25 years of research. Journal of Business Research, 58, 705–714.

  34. Jaramillo, F., Mulki, J. P., & Solomon, P. (2006). The role of ethical climate on salesperson’s role stress, job attitudes, turnover intention, and job performance. Journal of Personal Selling & Sales Management, 3, 271–282.

  35. Kang, D., Stewart, J., & Kim, H. (2011). The effects of perceived external prestige, ethical organizational climate, and leader-member exchange (LMX) quality on employees’ commitments and their subsequent attitudes. Personnel Review, 40(6), 761–784.

  36. Khan, M. R., Ziauddin, Jam, F. A., & Ramay, M. I. (2010). The impacts of organizational commitment on employee job performance. European Journal of Social Sciences, 15(3), 292–298.

  37. Kim, W. C., & Brymer, R. A. (2011). The effects of ethical leadership on manager job satisfaction, commitment, behavioral outcomes, and firm performance. International Journal of Hospitality Management, 30, 1020–1026.

  38. Locke, E. A. (1976). The nature and causes of job satisfaction. In N. D. Dunnette (Ed.), Handbook of industrial and organizational psychology (pp. 1297–1349). Chicago, IL: Rand McNally.

  39. Malik, M. E., Nawab, S., Naeem, B., & Danish, R. Q. (2010). Job satisfaction and organizational commitment of university teachers in Public sector of Pakistan. International Journal of Business and Management, 5(6), 17–26.

  40. Meeusen, V. C. H., Dam, K. V., Brown-Mahoney, C., Zundert, A. J. V., & Knape, H. T. A. (2011). Work climate related to job satisfaction among Dutch nurse anesthetists. AANA Journal, 79(1), 63–70.

  41. Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–90.

  42. Newton, M., Watson, D. L., Gano-Overway, L., Fry, M. D., Kim, M., & Magyar, M. (2007). The role of a caring-based intervention in a physical domain. The Urban Review, 39, 281–299.

  43. Nusair, T. T. (2013). The role of climate for innovation in job performance: Empirical evidence from commercial banks in Jordan. International Journal of Business and Social Science, 4(3), 208–217.

  44. Nygaard, A., & Biong, H. (2010). The influence of retail management’s use of social power on corporate ethical values, employee commitment, and performance. Journal of Business Ethics, 97, 87–108.

  45. Okpara, J. O., & Wynn, P. (2008). The impact of ethical climate on job satisfaction, and commitment in Nigeria. Journal of Management Development, 27(9), 935–950.

  46. Qureshi, J. A., Hayat, K., Ali, M., & Sarwat, N. (2011). Impact of job satisfaction and organizational commitment on employee performance, evidence from Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 3(4), 642–657.

  47. Sabir, M. S., Iqbal, J. J., Rehman, K. U., Shah, K. A., & Yameen, M. (2012). Impact of corporate ethical values on ethical leadership and employee performance. International Journal of Business and Social Science, 3(2), 163–171.

  48. Samad, S., & Selangor, S. A. (2005). Unraveling the organizational commitment and job performance relationship: exploring the moderating effect of job satisfaction. The Business Review, 4(2), 79–84.

  49. Saunders, M. V. T., & Lu, E. (2004). China’s insurance market- The giant awakens. Available at Accessed May 4, 2013.

  50. Schneider, B. (1975). Organizational climate: An essay. Personnel Psychology, 28, 447–479.

  51. Schwepker, C. H. (2001). Ethical climate’s relationship to job satisfaction, organizational commitment and turnover in the sales force. Journal of Business Research, 54(1), 39–52.

  52. Schwepker, C. H., & Ingram, T. N. (1996). Improving sales performance through ethics: The relationship between salesperson moral judgment and job performance. Journal of Business Ethics, 15, 1151–1160.

  53. Sharma, D., Borna, S., & Stearns, J. M. (2009). An investigation of the effects of corporate ethical values on employee commitment and performance: Examining the moderating role of perceived fairness. Journal of Business Ethics, 89, 251–260.

  54. Sheraz, A., Zaheer, A., Rehman, K., & Mohammad, N. (2012). Enhancing employee performance through ethical leadership, transformational leadership and organizational culture in development sector of Pakistan. African Journal of Business Management, 6(4), 1244–1251.

  55. Sommer, K. L., & Kulkarni, M. (2012). Does constructive performance feedback improve citizenship intentions and job satisfaction? The roles of perceived opportunities for advancement, respect, and mood. Human Resource Development Quarterly, 23(20), 177–201.

  56. Springer, G. J. (2011). A study of job motivation, satisfaction, and performance among bank employees. Journal of Global Business Issues, 5(1), 29–42.

  57. Towers Watson. (2012). Turn headwinds to tailwinds- adjust strategies to benefit from the continued growth of the Chinese insurance industry. Available at Accessed May 31, 2013.

  58. Tsai, M., & Huang, C. (2008). The Relationship among Ethical Climate Types, Facets of Job Satisfaction, and the three components of organizational commitment: a study of nurses in Taiwan. Journal of Business Ethics, 80, 565–581.

  59. Valentine, S., & Barnett, T. (2003). Ethics code awareness, perceived ethical values, and organizational commitment. Journal of Personal Selling & Sales Management, 23(4), 359–367.

  60. Valentine, S., Varca, P., Godkin, L., & Barnett, T. (2010). Positive job response and ethical job performance. Journal of Business Ethics, 91, 195–206.

  61. Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33, 101–125.

  62. Victor, B., & Cullen, J. B. (1990). A theory and measure of ethical climate in organizations. In W. C. Frederick & L. L. Preston (Eds.), Research in corporate social performance (pp. 77–91). Greenwich, CT: JAI.

  63. Wang, Y., Lo, H., & Hui, Y. V. (2003). The antecedents of services quality and product quality and their influences on bank reputation: Evidence from the banking industry in China. Managing Service Quality, 13, 72–83.

  64. Weeks, W. A., Loe, T. W., Chonko, L. B., & Wakefield, K. (2004). The effect of perceived ethical climate on the search for sales force excellence. Journal of Personal Selling & Sales Management, 24(3), 199–214.

  65. Wheaton, B., Muthen, B., Alwin, D. F., & Summers, G. F. (1977). Assessing reliability and stability in panel models. In D. R. Heise (Ed.), Sociological methodology 1977 (pp. 84–136). San Francisco: Jossey Bass.

Download references

Author information

Correspondence to Weihui Fu.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Fu, W., Deshpande, S.P. The Impact of Caring Climate, Job Satisfaction, and Organizational Commitment on Job Performance of Employees in a China’s Insurance Company. J Bus Ethics 124, 339–349 (2014) doi:10.1007/s10551-013-1876-y

Download citation


  • Caring climate
  • China
  • Job performance
  • Job satisfaction
  • Organizational commitment