Senior managers’ governance and commitment: Driving employee satisfaction in Vietnam’s garment industry amid technological disruption

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Abstract

Senior managers’ commitment is pivotal in fostering employee satisfaction within labor-intensive industries, navigating technological disruption. This study investigates its role as a governance mechanism in Vietnam’s garment sector, a critical hub for global textile exports. Drawing on data from firms affiliated with the Vietnam Textile and Apparel Association (VITAS), we explore how commitment shapes satisfaction through human resource management practices and awareness of smart technology, artificial intelligence, robotics, and algorithms (STARA). Structural equation modeling (SEM) demonstrates that commitment significantly drives human resource management (HRM), particularly performance evaluation, enhancing employee satisfaction. Intriguingly, STARA awareness positively influences satisfaction, suggesting workers perceive automation as a distant prospect, fostering optimism. Conversely, remuneration negatively impacts satisfaction, reflecting context-specific challenges tied to piece-rate systems and job insecurity concerns. These findings enrich governance and HRM literature by illustrating how managerial strategies can mitigate technological uncertainties in developing economies. Practically, the study offers actionable insights for managers and policymakers to bolster satisfaction through governance-focused human resource practices, tailored to labor-intensive sectors. By addressing cultural and economic nuances, this research underscores the importance of adaptive leadership in sustaining workforce morale amidst global technological shifts, contributing to both theoretical and practical advancements in the field.

Keywords: Governance, Commitment, Employee Satisfaction, Textile Industry, Vietnam, STARA

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M10, L00, L67

Received: 17.12.2024
Revised: 01.04.2025; 30.06.2025; 07.11.2025
Accepted: 01.12.2025
Published online: 03.12.2025

How to cite this paper: Nguyen, D. H. (2025). Senior managers’ governance and commitment: Driving employee satisfaction in Vietnam’s garment industry amid technological disruption [Special issue]. Journal of Governance and Regulation, 14(4), 382–389. https://doi.org/10.22495/jgrv14i4siart14