Determinants of Attitude and the Intention to Stay of Employees in Low-Cost Carriers: Using Justice Theory

ABSTRACT

The purpose of this research is to examine the influential attributes of employees' attitudes and intentions to stay in the domain of human resources management in a low-cost carrier business. Using justice theory as a theoretical underpinning, financial compensation, nonfinancial compensation, coworker relationships, and procedural fairness were derived. The explained attributes of this research were attitude and intention to stay. This study used a survey and collected data on 233 employees in low-cost carriers as survey participants. To test the hypotheses, this study employed structural equation modeling. The results showed that attitude was positively impacted by financial compensation, nonfinancial compensation, coworker relationships, and procedural fairness. The results also revealed the positive effect of coworker relationships and attitudes on the intention to stay. This study sheds light on the literature by ensuring the explanatory power of justice theory in the area of low-cost carrier business.