CAUSAL INFLUENCE OF FACTORS AFFECTING ORGANIZATIONAL COMMITMENT OF EMPLOYEES OF LAO BREWERY COMPANY, LAO PEOPLE'S DEMOCRATIC REPUBLIC

Abstract

The objectives of this study were: 1) to examine the levels of internal marketing, job satisfaction, and organizational commitment among employees of Lao Brewery Co., Ltd., Lao People’s Democratic Republic (Lao PDR); and 2) to analyze the causal pathways of factors influencing employees’ organizational commitment using path analysis. The population comprised 615 employees—including executives/managers, supervisors, and operational staff—working at three plants: Vientiane Brewery Plant, Champasack Brewery Plant, and Lao Soft Drinks Plant. Using stratified sampling with proportional allocation across strata, 250 respondents were selected. Data were collected using a structured questionnaire. Descriptive statistics (percentage, mean, and standard deviation) were employed, and path analysis was conducted using AMOS.

The results indicated that: 1) internal marketing exerted a strong positive direct effect on job satisfaction (H1; direct effect = 0.866). 2) Internal marketing had a small negative direct effect on organizational commitment (H2; direct effect = −0.063) but a substantial positive indirect effect via job satisfaction (indirect effect = 0.853). This suggests that when organizations emphasize internal marketing activities (e.g., frequent training or high-pressure internal communication) without improving employees’ actual work satisfaction and addressing basic needs (e.g., fair compensation), such activities may be perceived as burdensome or merely symbolic, potentially weakening commitment. (3) Job satisfaction showed a very strong positive direct effect on organizational commitment (H3; direct effect = 0.985). Therefore, management should prioritize internal marketing policies that ultimately enhance employees’ well-being and job satisfaction, given their critical role in strengthening organizational commitment.