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MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY PADAPHONE SAYAKHOT FACTORS IMPACTING EMPLOYEE JOB SATISFACTION: EVIDENCE FROM TELECOMMUNICATION COMPANIES IN LAOS PHD DISSERTATION IN BUSINESS ADMINISTRATION HA NOI - 2024 MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY PADAPHONE SAYAKHOT FACTORS IMPACTING EMPLOYEE JOB SATISFACTION: EVIDENCE FROM TELECOMMUNICATION COMPANIES IN LAOS Major: Business Administration Code: 9340101 PHD DISSERTATION Supervisor: Assoc. Le Thi Lan Huong HA NOI - 2024 DECLARATION I have read and understood the University’s policy on plagiarism. I hereby declare on my honor that this PhD dissertation is my own work and does not violate the guidelines on good academic practices. PhD Candidate Padaphone Sayakhot i ACKNOWLEDGEMENT The work presented in this thesis would not have been possible without the genuine support and encouragement of many colleagues, family and friends.

Having Professor Le Thi Lan Huong as my primary supervisor was a great pleasure. Le Thi Lan Huong encouraged me to complete my PhD, and without this, I would not have been able to achieve this thesis. Le Thi Lan Huong, eternally optimistic, has been a constant source of inspiration, motivation, remarkable knowledge and foresight throughout my PhD. She introduced me to an outstanding research group and assisted me in all aspects of my PhD, including funding.

Ethics, research concept and design, statistics, and the somewhat tricky task of manuscript preparation. She always made herself available in times of need, regardless of the time of day. Le Thi Lan Huong provided invaluable guidance, support and encouragement throughout the thesis. She was generous with her time, offering many insightful comments on my paper, thesis, and presentations, explaining and correcting my English grammar.

She always encouraged me to complete my PhD, and I know that without her advice and comments, I would not have been able to complete this thesis. Thank you, Le Thi Lan Huong, for supervising this work, especially for your enthusiasm, constant support and expert advice. Writing this thesis was a long process as English is my second language, and without all of her expert help, I would still be struggling. Thank you to Telecommunication companies in Laos and all staff who worked at telecom in Laos to answer the question.

Thank you to the statistician team who helped me analyse the data. Thank you to the National Economics University Research Scholarship and Endeavour National Economics University Scholarship, who provided the PhD scholarship, which enabled me to complete my thesis. To my father, Padapphet Sayakhot and my mum, Khamphet Pholsena, even though my mother is gone, thank you for your true love, support and money and the very comfortable life you provided me throughout all the study phases of my life. I am fortunate to have both of you as my parents.

My sister, Padaphet Sayakhot, and my brother, Padapxay Sayakhot, would not have been able to finish my PhD without your love, support, and encouragement. ii TABLE OF CONTENTS DECLARATION. ii TABLE OF CONTENTS. iii LISTS OF FIGURES .vi LISTS OF TABLES.

vii TABLE OF ABBREVIATIONS .1 Rationale of the Study .2 Objectives of the Study .4 Data analysis method .5 Scope and Subjects of the Study .2 Scope of space .3 Scope of time .7 Structure of the Dissertation .11 CHAPTER 1: LITERATURE REVIEW AND THEORETICAL FRAMEWORK OF JOB SATISFACTION .1 Herzberg Two-Factor Theory .3 Maslow Satisfaction Theory .2 Literature review on factors influencing employee job satisfaction .2 Basic Pay and Employee Job Satisfaction .3 Training Program and Employee Job Satisfaction .4 Working Conditions and Employee Job Satisfaction .5 Empowerment and Employee Job Satisfaction .6 Summary of the research factors. 40 SUMMARY OF CHAPTER 1 .45 CHAPTER 2: RESEARCH METHODOLOGY .1 Conceptual framework variables .2 Measurement scale of variables .3 Sample and Sampling Technique .3 Data Collection Technique .5 Data analysis methods. 61 SUMMARY OF CHAPTER 2 .63 CHAPTER 3: OVERVIEW OF THE TELECOMMUNICATION INDUSTRY AND TELECOMMUNICATION COMPANIES IN LAOS .1 Development of the Telecommunication Industry .2 Human resource context and policy .72 SUMMARY OF CHAPTER 3 .74 CHAPTER 4: RESEARCH FINDINGS AND DISCUSSION .2 Age of the respondents .3 Length of continuous service with the organisation .4 Highest level of education .5 The position of the employee in the organisation.2 Descriptive statistics of Job Satisfaction variable .1 How the respondents rated telecommunication companies in measures of employees’ job satisfaction .2 Factors that affect the respondents’ job satisfaction in the organisation .3 Descriptive Statistics of Basic Pay .1 Employees Payment and Benefits Reward System .2 An Incentive Wage System .4 Descriptive Statistics of Training Programs.5 Descriptive Statistics of Working Conditions .6 Descriptive Statistics of Empowerment .1 Scale reliability test – Cronbach alpha .2 Exploratory Factor Analysis. Confirmatory factor analysis (CFA) .99 SUMMARY OF CHAPTER 4.

103 CHAPTER 5: DISCUSSION OF THE FINDINGS AND RECOMMENDATIONS .1 Discussion of the research findings .1 Recommendations for businesses .2 Recommendations for the Ministry .5 Limitations of the study. 120 SUMMARY OF CHAPTER 5 .123 LIST OF WORKS THAT THE PHD. CANDIDATE HAS PUBLISHED .144 APPENDIX 1: LETTER OF INTRODUCTION.144 APPENDIX 2: RESEARCH STUDY QUESTIONNAIRE .145 v LISTS OF FIGURES Figure 2. The gender of the respondents.

Age of the respondents. Length of continuous service. Level of education. Empoyees’ opinion toward payment and benefits reward system.

An incentive wage system. Frequently trained employees. Working conditions affecting the employee’s satisfaction. Level of Employee Empowerment.

The confirmatory factor analysis result. Summary of correlation coefficients results .102 vi LISTS OF TABLES Table 1. Summary of theoretical frameworks on employee’s job satisfaction. Summary of previous research on factors affecting employee’s job satisfaction .2: Quantity of register of PSTN, mobile and internet.

Quantity of vender companies of Telecommunication companies in Laos. Number of Internet providers. The number of subscribers uses ICT and target plane development. The gender of the respondents.

Age of the respondents. Length of continuous service. Level of education. The position of the employee.

Measurement of employees’ job satisfaction. Factors affected the respondents’ job satisfaction. Respondents’ agreement level with statements which relate to job satisfaction. Employees Payment and Benefits Reward System.

The influence of the Pay System on job satisfaction. Opportunities being offered to the employees by the organisation. The extent that the factors affected job satisfaction. Employees’ emotion exhaustion.

Working conditions that affect the employees’ job satisfaction. Employee empowerment and involvement in management and decision- making. Factors that affected employee job satisfaction. Scale reliability test results.

KMO and Barlett’s Test. Rotated component Matrix. 101 viii TABLE OF ABBREVIATIONS BP Basic Pay CFA Confirmatory Factor Analysis CFI Comparative fit index GDP Gross domestic product EMP Empowerment EFA Exploratory Factor Analysis HRM Human Resource Management HR Humann Resource JS Job satisfaction Lao PDR Lao People’s Democratic Republic RMSEA Root mean square error of approximation TLI Tucker-Lewis index TP Training Program WC Working Condition ix INTRODUCTION 1.1 Rationale of the Study The telecommunications industry in Laos has undergone significant changes and rapid development in recent years, driven by technological advancements, regulatory restructuring, and increasing competition. This dynamic and evolving landscape presents both opportunities and challenges for companies operating in the sector, particularly in terms of attracting, retaining, and motivating skilled employees.

Laos, a developing country in Southeast Asia, has recognized the critical role that telecommunications play in driving economic growth, promoting social development, and improving the quality of life for its citizens. The government has implemented policies to liberalize the market, encourage foreign investment, and foster innovation in the industry. As a result, the sector has experienced rapid expansion, with the introduction of new technologies such as 4G and 5G networks, and the emergence of multiple service providers competing for market share. However, this rapid growth and increasing competition have also brought about significant challenges for telecommunications companies in Laos.

The industry's workforce has been impacted by changes in job roles, skill requirements, and potential job losses due to restructuring and automation. At the same time, the demand for skilled workers with expertise in areas such as network engineering, digital services, and customer support has increased, leading to intense competition for talent. In this context, employee job satisfaction has become a critical issue for telecommunications companies in Laos. With the high cost of employee turnover and the need to maintain a skilled and motivated workforce to remain competitive, companies must find ways to attract, retain, and engage their employees.

This has led to a greater focus on factors such as compensation, benefits, training and development, work-life balance, and organizational culture, as companies seek to create a supportive and attractive work environment. Furthermore, the cultural and socio-economic context of Laos presents unique challenges and opportunities for understanding and addressing employee job satisfaction in the telecommunications industry. As a developing country, Laos faces issues such as income inequality, limited access to education and training, and a relatively small pool of skilled workers. These factors can impact employees' expectations, priorities, and perceptions of job satisfaction, and may require companies to adopt tailored strategies that take into account the specific needs and constraints of the local context.

Despite the growing importance of employee job satisfaction in the telecommunications industry in Laos, there is currently limited research on this topic 1 in the specific context of the country and the sector. This presents a significant gap in the literature, as the findings and insights from studies conducted in other countries and industries may not be directly applicable or relevant to the unique challenges and opportunities faced by telecommunications companies in Laos. Employee job satisfaction has been a topic of interest for many researchers across various industries and countries. While there is limited research specific to the telecommunications industry in Laos, several studies have explored the factors influencing job satisfaction in related contexts, providing valuable insights and methodological approaches that can inform the current research.

One of the seminal works in this field is the study by Mosadegh Rad (2009), who investigated the factors affecting job satisfaction among employees in the healthcare sector. Using a cross- sectional survey design, the researcher identified several key determinants of job satisfaction, including pay, promotion opportunities, benefits, work nature, supervision, and relationships with colleagues. This study highlights the importance of considering both intrinsic and extrinsic factors when examining employee job satisfaction and provides a useful framework for categorizing and analyzing these factors. Building on this work, Heneman et al.

(2002) and Hackman and Oldman (2005) have further explored the role of specific factors in shaping employee job satisfaction and performance. Heneman et al. (2002) focused on the impact of extrinsic rewards, such as pay and benefits, on employee satisfaction and motivation. Using a mixed-methods approach, combining surveys and interviews, the researchers found that employees who were satisfied with their extrinsic rewards were more likely to perform better and be committed to their organizations.

This study underscores the importance of fair and competitive compensation practices in promoting employee satisfaction and retention. Hackman and Oldman (2005), on the other hand, examined the influence of intrinsic factors, such as job characteristics and autonomy, on employee satisfaction and motivation. Through a series of experiments and surveys, the researchers demonstrated that employees who experienced a high degree of task variety, significance, and autonomy in their work were more likely to be satisfied and motivated. This study highlights the importance of job design and empowerment in fostering employee engagement and satisfaction.

Another important contribution to the literature on employee job satisfaction is the work of Walumbwa et al. (2005), who investigated the impact of leadership styles on organizational commitment and job satisfaction. Using a sample of employees from various industries in Kenya, the researchers found that transformational leadership behaviors, such as inspirational 2 motivation, individualized consideration, and intellectual stimulation, had a positive and significant impact on employee job satisfaction and commitment. This study emphasizes the crucial role of effective leadership in creating a supportive and engaging work environment that promotes employee satisfaction and retention.