ABSTRACT

The objective of this study was to explore and identify important constructs and develop propositions of the employment relationship, turnover, and organizational performance in garment factories context. The apparel revenue of garment and textile industries in Indonesia achieved was approximately USD 16 billion in 2018. However, a study showed that the industry is weakened by poor working conditions and abusive practices. Those poor working conditions give rise to costs for the company in the form of accidents, injuries, absenteeism, lower productivity, and high employee turnover. Employee turnover has been an important issue to study the antecedents and consequences of organizational performance. We summarize the employment relationship, turnover, and organizational performance as a system that is divided into antecedents, processes, and outcomes. Propositions are provided on potential antecedents of turnover and possibly associated with organizational performance.