Techno-Structural Interventions on Organizational Performance and Commitment in the National Capital Region (NCR) Retail Sector: A Talent Retention Strategic Model
Keywords:
Asia-Pacific retail, McKinsey 7S Model, Organizational commitment, Talent retention, Techno-structural interventionsAbstract
The retail industry faces one of the highest turnover rates globally, with the Philippine National Capital Region (NCR) reflecting this crisis as nearly half of retail employees intend to leave within a year. While organizations have invested in compensation and modernization, retention challenges persist due to entrenched practices, generational divides, and limited structural support. Thus, the study examines the nexus among Organizational Performance, using the McKinsey 7S Framework, Techno-Structural Interventions (TSI), and Organizational Commitment, with TSI as a mediator in transforming performance into commitment, and develops a Strategic Talent Retention Model. Using a sequential mixed-methods design, quantitative data from 300 respondents in the National Capital Region’s retail sector were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM), complemented by eight qualitative interviews with retail executives to identify implementation barriers. Results confirm that Organizational Performance significantly drives both TSI (β = .72, p < .001) and Organizational Commitment (β = .46, p < .001). Notably, TSI specifically job enrichment and simplification positively influence commitment and serve as a significant partial mediator (β = .31, p < .001) in the performance-commitment relationship. Qualitative findings underscore that the “nakasanayan” (entrenched) mindset, generational divides, and resource constraints inhibit the adoption of these initiatives.
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