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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Trust as a Mediator in Employee Retention: Exploring Organizational Culture, Work Environment, and Corporate Image in Open Online Flexible Distance Learning Institutions

Zahir Osman, Nadzurah Kasbun, Ratna Khuzaimah Mohamad

http://dx.doi.org/10.6007/IJARBSS/v14-i9/22813

Open access

Employee retention has become critical in higher education, particularly for open online distance learning institutions. These institutions rely heavily on academicians to deliver quality education and maintain organizational stability. Retaining skilled academic personnel is essential for sustaining educational standards and fostering long-term institutional growth and reputation. The present study aimed to explore the influence of organizational culture, corporate image, and work environment on employee retention, specifically emphasising the mediating role of trust within these relationships. Data were collected through structured survey questionnaires distributed to academicians in distance learning institutions, yielding a robust sample size of 301 responses suitable for analysis. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the data, ensuring a comprehensive assessment of the hypothesized relationships. Hypotheses testing revealed significant direct effects of organizational culture and corporate image on employee retention, while trust emerged as a vital mediator that significantly enhanced retention outcomes. The findings underscore both theoretical and practical implications grounded in Social Exchange Theory. The study confirms the importance of fostering a positive organizational culture and corporate image to build and maintain employee trust, thereby enhancing retention. Institutions should create collaborative, inclusive environments aligned with employees' values to boost organizational commitment. Additionally, initiatives to improve workplace conditions can further strengthen trust and satisfaction. Future research could delve deeper into how these factors influence trust. Longitudinal studies may offer insights into the evolving nature of these relationships over time. Investigating demographic influences on these dynamics and exploring parallel studies in traditional educational settings could enhance the generalizability of the findings. Future studies can help develop tailored strategies to boost retention across diverse educational landscapes by advancing understanding in this area.