The Influence of Organizational Culture on Employee Retention in Microenterprises in Cavite, Philippines

Abstract

This study examines how organizational culture influences employee retention in microenterprises in Cavite, Philippines. The research aimed to identify the prevailing type of organizational culture, explore how specific cultural aspects of an organizational culture influence employees’ retention decisions, explore the importance of organizational culture for the employees’ retention decisions, and analyze the views of employees on how different aspects of organizational culture influence employees' retention decisions. This research contributes to exploring retention tools in resource-constrained environments. Using a qualitative approach with a constructivist paradigm, data were collected through semi-structured interviews with one employee from each of the twelve microenterprises selected to participate and analyzed using Braun and Clarke’s Thematic Analysis. Findings revealed that these enterprises operate with hybrid cultural models and influence retention through emotional (communication, belongingness), practical (workload management, flexibility), and social dimensions (team dynamics). Furthermore, employees were found to construct individual value hierarchies between cultural and financial considerations, and felt their unique needs met by organizational culture significantly influencing their decision to stay or leave the organization. The study provides insights for microenterprise owners and policymakers to develop effective retention strategies tailored to Philippine contexts, potentially benefiting a significant sector of the economy.