The moderating effects of organizational context on the relationship between voluntary turnover and organizational performance: Evidence from Korea

Abstract Scholars have suggested that the relationship between voluntary turnover and organizational performance can be moderated by the organizational context in which turnover occurs. However, there are few empirical studies that examine such moderating effects. Using a sample of 161 firms in South Korea, this study investigates how the relationship between voluntary turnover and organizational performance is moderated by three context variables: (1) the degree of organizational usage of employee involvement practices, (2) the degree of organizational investment in employee training and development, and (3) the availability of potential workers. The results demonstrate that employee involvement practices significantly amplify the negative relationship between voluntary turnover and organizational performance, give marginal support for moderation from the availability of potential workers, and provide no support for moderation from the degree of organizational investment in employee training and development. We discuss theoretical and practical implications of this study for enriching our understanding of the relationship between voluntary turnover and organizational performance. © 2012 Wiley Periodicals, Inc.