2.2.2. Pay and promotion potential

Pay is defined as salary or wage which employees received for their job (Gallardo et al., 2009). Pay plays a significant role at work, and is one of the fundamental components of job satisfaction. In brief, employees tend to compare themselves with their colleagues in terms of salary and their inputs to the job, and may decide to quit if they are not satisfied with te results (Nel et al., 2004). Moreover, since all employees work to earn money, a good salary and related benefits are key factors in satisfying employees (Parvin and Kabir, 2011).

Promotion occurs when an employee moves to a position with greater significance and higher compensation (Lazear, 2000; McCausland et al., 2005). It general means the upward movement of an employee in the hierarchy of an organization, and typically that leads to more responsibility and pay (Lazear, 1986). There are many studies which indicate that pay and promotion have significant. positive impact on the job satisfaction of employees (Malik et al., 2012; Hong et al., 2013). In addition, the findings from previous studies (e.g., McCausland, 2005; Pergamit and Veum, 1999; Peterson et al., 2003; Sclafane, 1999) also show that there is a direct, positive association between promotional opportunities and job satisfaction.

Therefore, this study suggests that job satisfaction is in?uenced by pay and promotion potential, stated as follows:

H2: Pay and promotion potential have direct, positive effects on job satisfaction

2.2.3 Fairness

Fairness is defined as equal treatment, when one gets the same services and benefits when compared to others (James, 2007). In a workplace context, fairness also refers to how employees perceive the "rightness" of the outcomes, procedures and interactions that occur within their organizations (Greenberg, 1990; Leventhal et al., 1980). Greater perceived fairness makes employees feel that they receive the reward that their effort and contributions to the organization deserve (Organ, 1990), and a person will be more satisfied if they perceive fairer outcomes and a fairer work environment (Carrell and Dittrich, 1978). As such, staff will expect that in a fair relationship their efforts on behalf of organization will eventually bring some personal benefits, usually in terms of promotion or pay (Lind and Tyler, 1988; Organ, 1988). In contrast, greater perceived unfairness encourages staff to decrease their efforts in the workplace in order to reestablish a sense of justice (Puffer, 1987). A number of studies thus reveal a positive relationship between the fairness of work policies and job satisfaction (Noor, 2009; Saeed et al., 2013). In other words, grater perceived fairness will lead to greater job satisfaction, as stated in the following hypothesis:

H3: Fairness has a direct positive effect on job satisfaction

2.2.4 Workplace relationships

Workplace relationships refer the various dimensions of one's co-workers and the nature of supervision at work (Yvonne et al., 2014). The relationships that exist among colleagues can be seen in how employees work with their colleagues, and whether they enjoy doing so (Yvonne et al., 2014). Workplace relationships are among the strongest determinants of job satisfaction, with Yvonne et al. (2014) focusing on the various dimensions of one's co-workers and the nature of supervision at work. The relationship between a supervisor and his or her co-workers has a positive correlation with job satisfaction (Saeed et al., 2013; Parvin and Kabir, 2011). The relationships that exist among colleagues can be seen in how employees work with their colleagues, and whether they enjoy doing so (Yvonne et al., 2014). In addition, the encouragement, guidance, help and support that can be provided by co-workers can all raise job satisfaction (Gu and Siu, 2009). Overall, good management and close staff relationships contribute to a higher level of job satisfaction (Friedlander and Margulies, 1969), with staff preferring supervisors they feel a personal bond with, and who they feel trust them, understand them and show fairness in their decisions. In contrast, if a supervisor is abusive, then their subordinated will be more dissatisfied with their jobs (Hussami, 2008). Supervisor support at work has a positive impact on satisfaction (Griffin et al., 2001), and supervisors who have a supportive personality will show interest in employees' problems as well as personal care for their staff, all of which can lead to more effective supervision and greater job satisfaction (Tierney et al., 2002; Abdullah et al., 2009). As such, this study suggests that job satisfaction is in?uenced by workplace relationships, as stated in the following hypothesis:

H4: Workplace relationships have a direct positive effect on job satisfaction

This study thus presents a new model based on a review of the literature, with five constructs chosen to represent the relationships between job satisfaction and its various dimension. The conceptual framework used in this study is shown in Figure 1.

Figure 1: Conceptual framework

3. METHODOLOGY

3.1. Content validation

Based on previous studies, this work adapted existing measures to develop the model constructs, with five dimensions (Figure 1) in the conceptual framework.

After analyzing the factors gleaned from the research model, the specific hospitality industry conditions in Danang and the reference scales for the factors used in previous studies, this work was able to generate measurement items for the dimensions. In particular, five items for workplace environment were adapted from Chei et al. (2014); five measurement items were used to assess pay and promotion potential and five items were used to measure for workplace relationships, with both sets adapted from Spector (1985); nine items for fairness were from Hong et al. (2013) and Kim and Leung (2007); six items for job satisfaction were from Homburg and Stock (2005).

The measurement items of the factors need to be reliable (Allen and Yen, 1979) and internally consistent (Nunnally, 1978). Moreover, the content validity should be verified before testing or measuring the theory (Hair et al., 2010). Therefore, this work performed a preliminary study to gather ideas from the sampling respondents in order to check the scales and adjust them if needed. Once the scales were determined, the content validity was checked and a final questionnaire generated. One pilot study with a small sample of 20 respondents who have been working in the Danang hospitality industry was then conducted to test the survey questions. The results of the reliability test showed good scale reliability, with the Cronbach's alpha values of the seven dimensions all greater than 0.7 (Nunnally and Bernstein, 1994).

3.2. Research instrument

The final questionnaire was designed with 30 items covering the five factors, with most items answered using a Likert scale. The Likert scale used in this study had five levels, from 1 to 5, with 1 indicating "strongly disagree" and 5 "strongly agree". The survey was first drafted in English, translated into Vietnamese, and then translated back into English, to ensure that the items were the same as in the original. There were three parts in the questionnaire: Part 1 asked for the respondents' demographic and job profile data, such as gender, age, marital status, hometown, education level, years of experience in hospitality industry, working duration, and the number of times they had changed jobs. Part 2 evaluated factors affecting job satisfaction (workplace environment, pay and promotion potential, fairness, workplace relationship), while Part 4 dealt with the measurement of job satisfaction.

An empirical study was then conducted to collect data from respondents who had been working in the Danang hospitality industry. The questionnaires were posted online with a brief description of the research aims, and a link to the survey was distributed over the course of two months from July to August 2017, via social networks such as Facebook and Google Plus. The respondents were politely asked to complete the questionnaire. At the end of the period, after eliminating those questionnaires that contained insufficient information, a total of 315 usable questionnaires were obtained. The data gathered from these questionnaires is outlined in Table 1:

3.3. Analysis techniques

This study made use of the SPSS 16.0 and AMOS 21 software to analyze the raw data, with descriptive analysis and exploratory factor analysis (EFA) used to condense and summarize data for inclusion in the multivariate analysis procedures. The Cronbach's alpha reliability coefficient was used to check the reliability of scales, while confirmatory factor analysis (CFA) was used to examine the quality of all the measurement models with SEM. Finally, SEM and mediation tests were run to test the hypotheses.

Table 1: Sample characteristics

4. RESEARCH ANALYSIS AND RESULTS

4.1. Exploratory factor and Cronbach's alpha analyses

This study uses the method of principal component analysis with VARIMAX rotation to extract main factors. The results of EFA showed that five research concepts, namely workplace environment, pay and promotion potential, fairness, workplace environment and job satisfaction, explained 69.522% of total variance (> 50%), KMO = 0.878 (> 0.5) and Sig = 0.000 (< 0.05). As such, these five factors were retained. Moreover, following Hair et al. (1998), thirty items that factor loadings greater than 0.5 were kept (Table 2).

A reliability test using the Cronbach's alpha statistic was used to test whether the factors were consistent and reliable. As shown in Table 2, the Cronbach's alpha of workplace environment was 0.893, that of pay and promotion potential was 0.880, fairness was 0.901, workplace relationship was 0.927 and job satisfaction was 0.952. In addition, the item-to-total correlations were all greater the threshold of 0.30 for each component. In summary, the Cronbach's alpha values for the constructs were all greater than 0.7 (Nunnally and Burnstein, 1994), the level considered adequate for a satisfactory degree of reliability in basic research (Hair et al., 1998).

Table 2: Exploratory factor analysis and Cronbach's alpha analysis

4.2. Confirmatory factor analysis

Confirmatory factor analysis (CFA) is applied to check the quality of all measurement models of an SEM, examining both convergent and discriminant validities. The overall fit statistics of the measurement model, as obtained via model CFA (?2 (395) = 912.122), were as follows: ?2/df = 2.309 (< 3); p < 0.01; IFI = 0.922 (> 0.9); TLI = 0.913 (> 0.9); CFI = 0.921 (> 0.9); PNFI = 0.790 (> 0.5); RMSEA = 0.065 (< 0.08). Therefore, all the criteria met the recommended values in the measurement model.

According to Hair et al. (1998), the convergent validity of any measurement model should be supported by its item reliability, construct (composite) reliability, and average variance extracted. Item reliability (Table 3) is indicated by standardized loadings equal to or greater than 0.7, although standardized loadings greater than 0.5 are acceptable (Bagozzi and Yi, 1988); the square multiple correlations (SMC) were equal to or greater than 0.5 in this study, while the t-values associated with each of the standardized loadings were found to be signi?cant (p < 0.01), ensuring item reliability (Hair et al., 1998). Hair et al. (1998) stated that construct reliability estimates should be equal or greater than 0.7, while the average variance extracted, which measures the amount of variance explained by the focal construct, should be above 0.5. In this research, the average variance extracted (AVE) (varying from 0.507 to 0.768) and composite reliability (CR) (from 0.880 to 0.952) values were higher than 0.5 and 0.7, respectively (Table 3), indicating that the measurement items used in this work have both reliability and validity (Bagozzi and Yi, 1988).

Table 3: Convergent validity of the measurement model

Note: *** denotes p < 0.001

After checking the convergent validity to see if the items within each construct converged, discriminant validity was then assessed to make sure there was enough discrimination between constructs. The most common method to examine discriminant validity is the AVE method, as proposed by Fornell and Larcker (1981). As shown in Table 4, the numbers along the diagonal indicate the AVE of a variable. The number in one cell is the square of the inter-correlation between the variable labeled in the row and the one labeled in the column. When the square of the inter-correlations is smaller than the AVE from each construct, then this indicates that discriminant validity between these constructs has been achieved. The results of the discriminant validity tests indicate that all the correlations among factors are significant and discriminant.

Table 4: Discriminant validity of the measurement model

4.3. An assessment of the structural model

The structural model shown in Fig. 2 is tested using the five focal constructs. More specifically, SEM analysis is performed against the proposed conceptual model by applying a correlation matrix among the 30 measurement items. The SEM results depicted in Fig. 2 are ?2= 998.761 (p = 0.00), df = 401, ?2/df = 2.491 (< 3), IFI = 0.909 & TLI = 0.901 (> 0.9), PNFI = 0.790 (> 0.5), RMSEA = 0.069 (< 0.08). Overall, these results show a good ?t for the proposed structural model.

Figure 2: The SEM finalized model and results

Table 5 shows the results of the direct relationships, and the results here were used to test the proposed hypotheses. Four hypotheses, including H1, H2, H3 and H4, were found to be significant at p < 0.05. As hypothesized, workplace environment (SEs = 0.160; p = 0.006) has a direct, positive effect on job satisfaction, as identified by previous studies (e.g., Upchurch et al., 2000; Moyes et al., 2006; Gallardo et al., 2009; Pelit et al., 2011). In addition, pay and promotion potential directly impact job satisfaction (SEs = 0.206; p = 0.000), also consistent with earlier research (e.g., Lam et al., 2001; Moyes et al., 2006; Gu and Siu, 2009; Gallardo et al., 2009). In addition, job satisfaction is positively impacted by fairness (SEs = 0.163; p = 0.005), also confirming previous studies (e.g., Nadiri and Tanova, 2010), and as well as workplace relationships (SEs = 0.175; p = 0.002), consistent with other works (e.g., Mazler and Renzl, 2007; Gu and Siu, 2009; Pelit et al., 2011; Arasli and Baradarani, 2014).

Table 5: Hypotheses testing

Note: *** denotes p < 0.001

5. CONCLUSIONS

The Danang hospitality industry has boomed in recent years and is one of the main sectors contributing the development of Danang City, Vietnam. Employees play a key role in this service industry, and thus considerable attention has been paid to job satisfaction in this sector. Therefore, this study aims to achieve a better understanding of the factors impact on job satisfaction among hospitality employees working in Danang. Based on thorough reviews of prior research in the field of services, and particularly tourism, this study developed integrative models and tested hypotheses with 315 employees who had been working in different lodging enterprises in Danang. The results revealed that the model had a suitable fit with the sample, and the results can thus provide reliable references for organizations aiming to improve employee job satisfaction. If this is achieved, then hotel owners and supervisors can better motivate their employees to carry out their work proficiently and effectively. In addition, this would also help to attract more workers into the Danang hospitality industry, to overcome the current shortage of staff.

5.1. Managerial implications

The findings show that, among the four factors, pay and promotion potential (SEs = 0.206) had the greatest impact on the job satisfaction of employees in the Danang hospitality industry. These results indicate that the importance of money and official status in this context should not be underestimated. Therefore, lodging enterprises should consider offering more competitive salaries compared to other firms, as well as creating more promotion opportunities for employees in order to attract more staff and retain the best workers, and so ultimately offer better service to customers.

The results also demonstrated that workplace relationships (SEs = 0.175) have a positive effect on job satisfaction. This indicates that workers in the Danang hospitality industry tend to agree that it is easy to get along with their colleagues and they help each other in their work. Moreover, they receive the support, respect and fair supervision they want from their supervisors. These results thus reaffirm that working relationships with co-workers and supervisors have a great influence on job satisfaction. If the staffs of an organization have friendly, cheerful relationships with each other, then they will feel more satisfied, and then they work harder to achieve organization's goals. In terms of the hospitality industry, if employees are more satisfied with their jobs, they will serve customers better, thus enhancing the competitiveness of the business. In order to make employees more satisfied with their jobs, the company could organize more team building activities, such as travelling together or holding events for special anniversaries and dates.

The results also revealed that fairness (SEs = 0.163) and workplace environment (SEs = 0.16) have direct, positive effects on job satisfaction. These relationships indicate that when employees work in the hospitality business, they expect to be treated fairly. Moreover, such employees are quite satisfied when their organizations create recognition package and fair policies focused on things such as salaries, benefits, rewards, and the division of work. Therefore, fairness also plays an important role in raising the job satisfaction of employees, and firms should work on creating more reward programs, give promotions when warranted, as well as offering higher salaries, in order to increase employee satisfaction. Besides, the workplace environment was also shown to have a significant influence on job satisfaction, and a healthy work environment can make employees feel good, and so increase their job satisfaction. A healthy working environment could be provided by offering employees the use of facilities like a gym, room for breaks, and so on.

5.2. Limitations

The research provides makes some contributions to the Danang hospitality industry by investigating factors impacting job satisfaction. However, this study also has some limitations. First, the sample used was quite small and not representative enough, and thus does not allow generalization of the model beyond the context of the Danang hospitality industry. Second, the subjects of this study were all staff working in the hospitality industry in Danang City, Vietnam, with the specific characteristics, demands, and diverse expectations. However, this study did not consider the relationships that the various demographic characteristics (e.g., gender, age, education level, experience, and so on) had with job satisfaction.

Further research should thus be carried out with a larger sample to get more generalized results and examine the impacts of the different demographic characteristics, to find out how different groups perceive their working environment, pay and promotion potential, fairness and workplace relationships, all of which may affect the job satisfaction of employees.

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