1. Introduction
The Saudi banking sector, a cornerstone of the nation’s economy, faces a critical challenge: the issue of employee turnover intention. This phenomenon, often accompanied by a decline in employee performance, not only threatens the industry’s stability but also carries substantial economic implications for Saudi Arabia’s growth [
1]. High turnover rates incur substantial costs, strain employee morale, and impede overall productivity, ultimately impacting customer service quality [
2,
3,
4].
In this context, diminishing employee performance in the banking sector can have severe repercussions, affecting profitability, customer trust, and organizational efficiency [
5,
6]. Furthermore, it can lead to increased turnover rates in the banking sector. Only 50% of banking industry employees are highly engaged, with 35% being a retention risk. Organizations with highly engaged workforces report decreased turnover. This can make it more challenging for financial institutions to find, hire, and keep talented people. It may also cause customers to feel less committed to the bank, which might have an effect on the institution’s bottom line [
7].
It is essential to foster organizational commitment and identification among employees to address the critical challenge of employee turnover intention and performance in the Saudi banking sector. Organizational commitment, encompassing emotional attachment and engagement, plays a significant role. Organizational identification, which pertains to a sense of belonging, is equally essential. Corporate social responsibility directed toward employees can bolster their identification and commitment to the organization, ultimately benefiting the bank. These factors profoundly impact profitability and competitive positioning [
8,
9]. Hence, fostering these attributes among employees is pivotal.
Numerous studies have investigated various factors that influence the Saudi banking sector. These factors include rewards and motivation [
10], occupational stress, psychological stress, and burnout [
11,
12]; internal marketing [
13], human resources management strategy [
14,
15], employee job satisfaction, and human resource management practices Cherif [
16,
17]; and emotional intelligence [
18]. However, there is a paucity of research examining the role of organizational identification (OI) and commitment (OC) as mediators of the relationship between corporate social responsibility (CSR), employee performance (EP), and turnover intention (TI). Due to the scarcity of research exploring the mediating roles of OI and OC in these relationships, this study proposes that employing OC and OI as mediators will facilitate a deeper understanding of the link between the independent variable (CSR) and the dependent variables (EP and TI) in this specific context. The mechanisms through which OC and OI impact TI and EP have largely remained uncharted territory, especially within the Saudi Arabian banking sector, and have not garnered sufficient attention. Consequently, an urgent imperative exists to broaden the theoretical and empirical underpinnings to grasp the essence of the relationship between CSR, EP, TI, and the mediating factors of OI and OC. Thus, this leads us to the central research question: How do organizational identification (OI) and commitment (OC) mediate the relationship between corporate social responsibility, employee performance, and turnover intention among employees in the banking sector?
5. Discussion
This research endeavor sought to unravel the multifaceted impact of corporate social responsibility (CSR) on key organizational facets, including organizational identification, organizational commitment, employee performance, and turnover intention. In the forthcoming discussion, this study scrutinizes the findings through various lenses, drawing upon previous literature and culminating in practical recommendations for organizations. By exploring these dimensions, we aim to comprehensively understand the intricate relationship between CSR, employee performance, and turnover intention.
Our findings support H1, as we observed a significant positive relationship between CSR and EP. Employees who perceived their organization as socially responsible demonstrated higher levels of job performance. This result aligns with previous research [
24,
25,
26], which suggested that employees tend to be more motivated and engaged when they believe their company is committed to ethical and socially responsible practices. The positive impact of CSR on employee performance can be attributed to the social identity theory. This theory posits that employees identifying with a socially responsible organization are more likely to internalize its values and mission, leading to increased effort and dedication in their roles [
25].
In H2, this study found a significant positive relationship between CSR and OI. Employee engagement in CSR initiatives has the potential to enhance employee satisfaction through these activities, consequently leading to an increase in the level of organizational identification. These results align with prior studies that have noted the importance of CSR in improving OI [
29,
30,
35,
37,
38]. When employees perceive their companies as socially responsible organizations, their sense of belongingness can be improved, positively impacting their self-concepts [
31].
In H3, consistent with previous research [
33,
41,
42], our results revealed a significant correlation between CSR and OC. Existing empirical research has consistently supported a positive relationship between CSR and OC [
41,
43,
44,
45,
46,
47]. Strong and reliable employee–employer relationships serve as the foundation for thriving corporations. Companies must cultivate an environment that attracts and retains talented and dedicated employees to achieve sustainable success in today’s highly competitive business landscape.
While in H4, the research findings indicated a strong negative connection between CSR and TI, these findings were found to be negatively statistically significant. These findings align with earlier research [
50,
51,
52]. If an organization’s workers believe their employer prioritizes internal corporate social responsibility, they are more committed to their jobs and less inclined to seek other employment opportunities. On the other hand, if workers believe that their employer is engaging in hypocrisy, this may inversely impact their behavior and raise their desire to leave the company. After that, in H5, the current research results found a positive significant relationship between the OC and EP. These results aligned with previous research [
55,
57,
58,
59,
60]. The connection between organizational commitment and job performance tends to be stronger than in individualistic cultures. Organizational commitment contributes significantly to improving job performance among male skilled professionals. Organizational commitment has also been found to considerably influence performance and moderate the association between total job stress and performance. Previous research has shown that workers’ perceptions of their organizations’ support are favorably associated with their organizational commitment and adversely related to their desire to leave their current positions and turnover intention [
63,
64,
65]. Thus, H6 explains the observed relationship between OC and TI.
In H7, our findings revealed a significant positive relationship between OI and EP. These results are consistent with previous studies [
68,
69,
70]. Employees with a strong sense of organizational identification are inclined to invest extra effort in fulfilling their roles. Their strong connection to the organization fosters a high valuation of their organizational membership. This, in turn, makes them more inclined to adhere to organizational rules and act in their best interests.
In H8, there is a relationship between organizational identification and turnover intention, as employees who identify more strongly with their organization are less likely to have turnover intentions. These results aligned with many researchers [
72,
73,
74]. According to Otaye Otaye [
72], organizational identification was positively related to organizational citizenship behavior, which predicts turnover intention [
72].
The link between CSR, EP, and TI is mediated by organization identification in both H9 and H10 of the model. These two hypotheses are supported by the findings, which indicate that organizational identification is a partial mediator of the link between CSR and employee performance as well as turnover intention. This research suggests that when workers consider their firm socially responsible, they are more likely to identify with the organization. This, in turn, improves their job performance and reduces the likelihood that they would want to quit the organization. This study is consistent with social identity theory, which suggests that organizational identification is a psychological mechanism that ties CSR attitudes to employee performance [
130].
As implications of mediation, H9 suggests that when employees perceive their organization as socially responsible, they are more likely to connect with it emotionally, resulting in improved job performance. This emotional attachment motivates employees to excel in their roles and reduces the likelihood of them considering leaving the organization. This finding aligns well with social identity theory (SIT), which posits that employees derive a significant part of their identity from affiliation with a particular organization. Similarly, Hypothesis 10 (H10) reveals that when employees view their organization as socially responsible, they tend to identify with it more strongly, fostering a sense of belonging and attachment. This heightened sense of affiliation translates into reduced intentions to quit, as employees who identify with the organization are less inclined to seek employment elsewhere.
Similarly, the association between CSR, EP, and TI is mediated by organizational commitment in H11 and H12, respectively. According to our findings, organizational commitment does play a major role in the process of partial mediation. According to this result, an employee’s impression of corporate social responsibility (CSR) positively impacts their commitment to the firm, affecting their work performance and desire to quit the organization. This conclusion is compatible with the SIT theory, which is generally acknowledged as the fundamental theory used to grasp and foresee the link between CSR and its related effects, such as OC. Specifically, this result is consistent with the SIT theory in the following way [
41,
48]. According to the theory, an individual or group’s perceptions of their identity and beliefs regarding their organization can strengthen their identification with that organization. This holds whether the individual or group is the one doing the perceiving or the group is the one doing the believing [
131].
As implications of mediation, in this scenario of (H11), CSR activities positively influence an employee’s commitment to the organization. This heightened commitment, in turn, leads to enhanced job performance. Committed employees are more likely to go the extra mile to contribute to their organization’s success, and when CSR initiatives align with their values and beliefs, it reinforces their commitment. Lastly, in (H12), when employees perceive CSR efforts positively, it strengthens their commitment to the organization, reducing their intention to leave. This finding underscores the notion that organizational commitment is a strong bond that ties employees to their workplace. When CSR activities resonate with employees, they reinforce their commitment and discourage thoughts of leaving the organization.
In conclusion, this study offers valuable insights into the significant influence of corporate social responsibility (CSR) on various aspects of employee engagement and retention within organizations. Our findings underscore several key takeaways: firstly, CSR positively impacts employee performance (EP), as employees who perceive their organization as socially responsible tend to exhibit higher job performance. Secondly, CSR fosters organizational identification (OI) by enhancing employee satisfaction and a sense of belonging to the organization. Thirdly, CSR bolsters organizational commitment (OC), contributing to the foundation of thriving organizations. Lastly, CSR reduces turnover intention (TI), encouraging employee commitment and reducing the desire to seek alternative employment.
To translate these findings into practical recommendations for organizations, it is crucial to prioritize CSR initiatives that align with the organization’s values and mission. Actively involving employees in CSR activities and emphasizing their engagement can strengthen their sense of identification with the organization. Promoting a culture of commitment, valuing employee contributions, and ensuring CSR efforts resonate with employees can enhance organizational commitment. Additionally, organizations should maintain transparency and consistency in CSR efforts to address perceptions of hypocrisy that can negatively impact employee attitudes. Regular measurement and monitoring of the impact of CSR initiatives on employee performance, identification, and commitment are essential for refining and improving CSR strategies. By implementing these recommendations, organizations can enhance their CSR practices and cultivate a more engaged and committed workforce, ultimately leading to improved organizational performance and reduced turnover rates.
6. Conclusions
In conclusion, this research aimed to assess the roles of organizational identification and commitment as mediators in the relationship between corporate social responsibility and employee performance, as well as employees’ intention to leave their current positions (turnover intention). The study tested 12 hypotheses, with 8 involving direct relationships and 4 exploring mediated relationships. The findings indicate that all hypotheses were thoroughly examined and evaluated. As a result of this empirical research conducted within the banking industry in Saudi Arabia, the study yields significant implications, both theoretical and practical, based on the precise results obtained.
6.1. Theoretical Contributions
The study makes a significant theoretical contribution to the existing literature by examining the roles of organizational identification and commitment as mediators in the relationship between corporate social responsibility and employee performance, as well as turnover intention among employees in the Saudi Arabian banking sector. Furthermore, this research highlights the crucial significance of organizational identification and commitment as essential mediators in linking corporate social responsibility initiatives to employee performance and their inclination to stay with the organization. Overall, this study enhances our theoretical understanding of the factors influencing employee performance and turnover intention within the context of the banking industry in Saudi Arabia.
6.2. Practical Implications
The research findings can serve as a valuable resource for firms within the banking industry in Saudi Arabia, aiding them in creating and implementing corporate social responsibility programs. These initiatives have the potential to boost employee performance while reducing employees’ intentions to leave their positions. The research underscores the paramount importance of fostering a sense of organizational identification and commitment among staff members. Furthermore, these findings can be leveraged in the development of tailored training programs for employees in the Saudi Arabian banking sector. These programs should strongly emphasize enhancing employees’ identification with the organization and their commitment to its mission and values.
6.3. Limitations of Study
Despite this study’s numerous contributions, future researchers must consider several limitations. The research design employed here is cross-sectional, meaning it collects data at a specific moment. This design hinders the establishment of causal linkages between variables, potentially missing relationship changes over time. Consequently, longitudinal studies are better suited to capture these temporal changes, providing a deeper and more comprehensive understanding of the linkages.
This study primarily focuses on the Saudi Arabian banking industry, which limits the generalizability of its results to other industries or nations. The conclusions drawn are particularly relevant within Saudi Arabia and the banking sector. To assess the results’ applicability to different cultural settings or fields and to enhance external validity, researchers may explore cross-cultural studies that compare findings with similar industries in other countries. Collaboration with experts in those regions or industries can offer valuable insights for tailoring recommendations to specific needs.
While this research investigates organizational identification and commitment as potential mediators, it is crucial to consider other potential mediators or moderators that may influence the relationship between corporate social responsibility and employee performance, as well as turnover intention. Variables such as leadership styles, organizational culture, and job satisfaction should also be taken into account. In addition, future research could potentially explore the legislative aspects of the manager-employer relationship and labor law issues, as these are important factors that many studies recommend addressing [
132,
133,
134].