Abstract

This study compares the factors that are inferred to directly and indirectly influence the process of determining employees’ turnover intention in Japan. This study focuses on the differences made by firm type, that is, Japanese firms vs. foreign-owned or foreign-affiliated firms. Multiple-group structural equation modeling was attempted by applying factors such as perceived organizational support, the positiveness of a worker, firm-specific skills, organizational commitment, perception of career opportunities within the current firm and in other firms, and turnover intention. It was found that the inferred determinants of turnover intention differed by firm type; specifically, career prospects, either internal or external, do not directly affect turnover intention in Japanese firms. For workers in foreign firms, positivity is significantly higher than that of Japanese firms. Positivity plays a crucial role in both firms; moreover, our study provides supporting evidence of the existence of sub-markets in Japan and shows that the transition of workers from foreign-owned to Japanese firms might be rare.

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