Impact of organizational culture traits on employee intention to stay in the IT services sector: An empirical analysis

Type of the article: Research ArticleAbstractEmployee retention poses a significant challenge in the Indian IT services sector, where frequent turnover leads to the loss of organizational knowledge and reduced productivity. This study assesses the impact of organizational culture on employees’ intention to stay in Indian-origin IT services companies in Bengaluru. We used Denison’s Organizational Culture Model to measure culture across four dimensions, namely involvement, consistency, adaptability, and mission, and the Michigan Organizational Assessment Questionnaire to measure intention to stay. Using purposive sampling, we collected data from 384 employees of major Indian-origin IT firms between July 2023 and March 2024. Data were analyzed using factor analysis, linear regression, and Hayes’s PROCESS macro in SPSS 20.0. The results indicate that organizational culture has a significant and positive impact on employees’ intention to stay (β = 0.286, p < .001), accounting for 8.2% of the variance (R² = 0.082). Path analysis confirms a strong positive effect (effect size = 0.486, 95% CI [0.322, 0.650], p < .001). The factor analysis demonstrates that stronger cultural dimensions – especially empowerment, coordination and integration, organizational learning, and goals and objectives – enhance employee retention in IT services firms. The study recommends that HR policies integrate cultural development to strengthen employee commitment and retention. Future studies should explore additional job and organizational factors that influence employee loyalty.