Impact of employee loyalty on job performance: Mediating role of job satisfaction on the example of Zain company, Bahrain
-
DOIhttp://dx.doi.org/10.21511/ppm.21(2).2023.44
-
Article InfoVolume 21 2023, Issue #2, pp. 470-481
- Cited by
- 1129 Views
-
862 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The study aims to examine the effect of employee loyalty on job performance in Bahrain. Further, it investigates the mediating effect of job satisfaction on the relationship between employee loyalty and job performance. One hundred two participants employed by Zain company were selected through an online convenience sampling technique. The study chose Zain, a telecommunication company in Bahrain, due to easy access to employees, interest in studying company culture/methods, collaboration opportunities, and Zain’s reputation for innovation. SmartPLS4 was used to investigate potential correlations between employee loyalty and job performance and how job satisfaction indirectly affects employee loyalty and job performance. Findings show that employee loyalty significantly influences job performance and job satisfaction. Further, job satisfaction is significantly associated with job performance. In terms of mediating effect, the study found that job satisfaction significantly influences the relationship between employee loyalty and job performance. Every variable studied had an impact on job performance. As a result, the current study’s hypotheses are all confirmed. The model of the study is well fit, as the R-square is greater than 51%. The main contribution of this study is the insight that job satisfaction is a substantial mediator of the relationship between employee loyalty and job performance. Through theoretical and practical contributions, this study offers valuable implications that might benefit managers at companies, including Zain company, as well as interested readers and researchers.
- Keywords
-
JEL Classification (Paper profile tab)O15, J24, J53, K38, M54
-
References54
-
Tables7
-
Figures3
-
- Figure 1. Conceptual framework
- Figure 2. Effect size f2
- Figure 3. Path coefficient bar chart
-
- Table 1. Reliability and composite reliability
- Table 2. Convergent validity analysis
- Table 3. Discriminant validity analysis
- Table 4. Coefficient of determination result R²
- Table 5. Effect size f2
- Table 6. Mean, STDEV, t-values, p-values, decision
- Table 7. Mediation analysis
-
- Abdullah, M. I., Huang, D., Sarfraz, M., Ivascu, L., & Riaz, A. (2021). Effects of internal service quality on nurses’ job satisfaction, commitment and performance: Mediating role of employee well-being. Nursing Open, 8(2), 607-619.
- Adamopoulos, I. P., & Syrou, N. F. (2022). Associations and correlations of job stress, job satisfaction and burn out in public health sector. European Journal of Environment and Public Health, 6(2), em0113.
- Agegnehu, W., Abdissa, D., & Alemayehu, D. (2022). Confirmatory and exploratory factor analysis for validating Allen and Meyer organizational commitment questionnaire for health professionals in Ethiopia – Amharic language. Journal of Healthcare Leadership, 14, 99-111.
- Al Balushi, F. S. M., Ali, A. A. A., & Alzoraiki, M. (2022). The impact of forecasting strategy and training and development strategy on preparing leadership competencies administrative support in the Sultanate of Oman. International Journal of Intellectual Human Resource Management (IJIHRM), 3(01), 34-41.
- Al Kurdi, B., Alshurideh, M., & Alnaser, A. (2020). The impact of employee satisfaction on customer satisfaction: Theoretical and empirical underpinning. Management Science Letters, 10(15), 3561-3570.
- Al-refaei, A. A.-A., Ali, H. B. M., Ateeq, A. A., & Alzoraiki, M. (2023). An integrated mediating and moderating model to improve service quality through job involvement, job satisfaction, and organizational commitment. Sustainability, 15(10), 7978.
- Ali, A. A. A. (2022). The relationship between Islamic work ethics and employee performance among medical staff in the public health sector in Bahrain: Employee commitment as mediating variable. Universiti Sains Islam Malaysia.
- Ali, A. A. A., AlZgool, M., Alzoraiki, M., Milhem, M., & Al-Absy, M. S. M. (2023). Moderating effect of strategic planning on the relationship between career path planning and job performance. Sustainability, 15(11), 8490.
- Ali, A. A. A., Alzoraiki, M., & Al Aghbas, N. S. M. (2022). Working remotely, social isolation and access to support and communication during Covid-19 its influence on job performance. International Journal of Intellectual Human Resource Management (IJIHRM), 3(1), 23-33.
- Ali, A. A. A., Alzoraiki, M., Al-shaibah, M., & Almaamari, Q. (2023). Enhancing contextual performance through Islamic work ethics with mediating role of normative commitment. Journal of Intellectual Human Resource Management (IJIHRM), 3(02), 52-59.
- Almaamari, Q. A., Ali, B. M., & Almeer, S. (2022). Factors influencing organizational performance at petroleum products distribution company in Yemen. Journal of Business Research, 142.
- Ateeq, A., Ebrahim, S., & Al-Ghatam, R. (2022). The impact of stress and its influencing factors among dentists during the COVID-19 pandemic in Kingdom of Bahrain. F1000Research, 11, 930.
- Avey, J. B., Reichard, R. J., Luthans, F., & Mhatre, K. H. (2011). Meta-analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance. Human Resource Development Quarterly, 22(2), 127-152.
- Bălăceanu, A., Vîrgă, D., & Sârbescu, P. (2022). Psychometric evaluation of the proactive vitality management scale: Invariance, convergent, and discriminant validity of the Romanian version. Evaluation & the Health Professions, 45(3), 303-312.
- Blanco-Gonzalez, A., Diéz-Martín, F., Cachón-Rodríguez, G., & Prado-Román, C. (2020). Contribution of social responsibility to the work involvement of employees. Corporate Social Responsibility and Environmental Management, 27(6), 2588-2598.
- Book, L., Gatling, A., & Kim, J. (2019). The effects of leadership satisfaction on employee engagement, loyalty, and retention in the hospitality industry. Journal of Human Resources in Hospitality & Tourism, 18(3), 368-393.
- Brydges, C. R. (2019). Effect size guidelines, sample size calculations, and statistical power in gerontology. Innovation in Aging, 3(4), igz036.
- Budrienė, D., & Diskienė, D. (2020). Employee engagement: Types, levels and relationship with practice of HRM. Malaysian E-Commerce Journal, 4(2), 42-47.
- Chicco, D., Warrens, M. J., & Jurman, G. (2021). The coefficient of determination R-squared is more informative than SMAPE, MAE, MAPE, MSE and RMSE in regression analysis evaluation. PeerJ Computer Science, 7, e623.
- Cohen, J. (2013). Statistical power analysis for the behavioral sciences. Academic Press.
- Davidescu, A. A., Apostu, S.-A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees – Implications for sustainable human resource management. Sustainability, 12(15), 6086.
- Dawwas, M. I. (2022). Employee perception of talent management practices and employee engagement: A multiple mediator model. Specialusis Ugdymas, 1(43), 2105-2134.
- Dhir, S., Dutta, T., & Ghosh, P. (2020). Linking employee loyalty with job satisfaction using PLS-SEM modelling. Personnel Review, 49(8), 1695-1711.
- Djordjevic, P., Panic, M., Arsic, S., & Zivkovic, Z. (2020). Impact of leadership on strategic planning of quality. Total Quality Management & Business Excellence, 31(5-6), 681-695.
- Egenius, S., Triatmanto, B., & Natsir, M. (2020). The effect of job satisfaction on employee performance through loyalty at Credit Union (CU) Corporation of East Kutai District, East Kalimantan. International Journal of Multicultural and Multireligious Understanding, 7(10), 480-489.
- Farrukh, M., Kalimuthu, R., Farrukh, S., & Khan, M. S. (2020). Role of job satisfaction and organizational commitment in employee loyalty: Empirical analysis from Saudi hotel industry. International Journal of Business and Psychology, 2(1), 1-20.
- Flake, J. K., Davidson, I. J., Wong, O., & Pek, J. (2022). Construct validity and the validity of replication studies: A systematic review. American Psychologist, 77(4), 576-588.
- Habtoor, N. H., & Ali, E. S. (2023). Human side of total quality management: A critical review. International Journal of Intellectual Human Resource Management (IJIHRM), 3(02), 27-32.
- Haryanti, H., & Zulganef, Z. (2023). The influence of transformational leadership style and employee loyalty on employee performance Pt. Smart Talenta Multitama. International Journal of Global Operations Research, 4(1), 13-18.
- Huynh, T. N., & Hua, N. T. A. (2020). The relationship between task-oriented leadership style, psychological capital, job satisfaction and organizational commitment: Evidence from Vietnamese small and medium-sized enterprises. Journal of Advances in Management Research, 17(4), 583-604.
- Javed, M., Balouch, R., & Hassan, F. (2014). Determinants of job satisfaction and its impact on employee performance and turnover intentions. International Journal of Learning and Development, 4(2), 120-140.
- Kalkbrenner, M. T. (2023). Alpha, Omega, and H internal consistency reliability estimates: Reviewing these options and when to use them. Counseling Outcome Research and Evaluation, 14(1), 77-88.
- Katebi, A., HajiZadeh, M. H., Bordbar, A., & Salehi, A. M. (2022). The relationship between “job satisfaction” and “job performance”: A meta-analysis. Global Journal of Flexible Systems Management, 23(1), 21-42.
- Kezios, K. L., Suglia, S. F., Doyle, D. M., Susser, E., Bradwin, G., Cirillo, P., Cohn, B., Link, B., & Factor-Litvak, P. (2022). Comparing different operationalizations of allostatic load measured in mid-life and their patterning by race and cumulative life course socioeconomic status. Psychoneuroendocrinology, 139, 105689.
- Krekel, C., Ward, G., & De Neve, J. E. (2019). Employee wellbeing, productivity, and firm performance (Working Paper No. 2019-04). Saïd Business School.
- Lăzăroiu, G., Ionescu, L., Andronie, M., & Dijmărescu, I. (2020). Sustainability management and performance in the urban corporate economy: A systematic literature review. Sustainability, 12(18), 7705.
- Lee, B., Lee, C., Choi, I., & Kim, J. (2022). Analyzing determinants of job satisfaction based on two-factor theory. Sustainability, 14(19), 12557.
- Liza, U. H., Naji, G. M. A., Ghaleb, E. A., & Alzoraiki, M. (2021). A study on customer loyalty, customer trust, and market orientation towards online business in Saudi Arabia. The 2021 International Conference on Sustainable Islamic Business and Finance.
- Loan, L. T. M. (2020). The influence of organizational commitment on employees’ job performance: The mediating role of job satisfaction. Management Science Letters, 10(14), 3307-3312.
- Mahaputra, M. R., & Saputra, F. (2021). Literature review the effect of headmaster leadership on teacher performance, loyalty and motivation. Journal of Accounting and Finance Management, 2(2), 103-113.
- Mahmoud, A. M. R., Gaafar, H. A. A., & Zeid, R. M. A. (2022). Impact of economic organizational sustainability on employees’ satisfaction in airlines. Journal of the Faculty of Tourism and Hotels-University of Sadat City, 6(2/2).
- Muff, S., Nilsen, E. B., O’Hara, R. B., & Nater, C. R. (2022). Rewriting results sections in the language of evidence. Trends in Ecology & Evolution, 37(3), 203-210.
- Murtza, M. H., Gill, S. A., Aslam, H. D., & Noor, A. (2021). Intelligence quotient, job satisfaction, and job performance: The moderating role of personality type. Journal of Public Affairs, 21(3), e2318.
- Mustajab, D., Bauw, A., Rasyid, A., Irawan, A., Akbar, M. A., & Hamid, M. A. (2020). Working from home phenomenon as an effort to prevent COVID-19 attacks and its impacts on work productivity. TIJAB (The International Journal of Applied Business), 4(1), 13-21.
- Naji, G. M. A., Isha, A. S. N., Alazzani, A., Saleem, M. S., & Alzoraiki, M. (2022). Assessing the mediating role of safety communication between safety culture and employees safety performance. Frontiers in Public Health, 10.
- Navia, P., & Umpiérrez de Reguero, S. (2021). CREO: The rise and consolidation challenges of the emerging rightwing political party in Ecuador (2013–2021). Revista Uruguaya de Ciencia Política, 30(1), 49-77.
- Paul, J., & Barari, M. (2022). Meta-analysis and traditional systematic literature reviews – What, why, when, where, and how? Psychology & Marketing, 39(6), 1099-1115.
- Phuong, T. T. K., & Vinh, T. T. (2020). Job satisfaction, employee loyalty and job performance in the hospitality industry: A moderated model. Asian Economic and Financial Review, 10(6), 698-713.
- Phuong, T. T., & Ha, N. T. L. (2022). Knowledge management, employee satisfaction, Employees loyalty and job performance: A proposed study. International Journal of Information, Business and Management, 14(1), 1-16.
- Raaper, R., & Brown, C. (2020). The Covid-19 pandemic and the dissolution of the university campus: Implications for student support practice. Journal of Professional Capital and Community, 5(3/4), 343-349.
- Ren, H., Cheah, C. S., Zong, X., Wang, S., Cho, H. S., Wang, C., & Xue, X. (2022). Age-varying associations between Chinese American parents’ racial–ethnic socialization and children’s difficulties during the COVID-19 pandemic. Asian American Journal of Psychology, 13(4), 351-363.
- Yang, N., & Ha-Brookshire, J. E. (2019). Truly sustainable or not? An exploratory assessment of sustainability capability of textile and apparel corporations in China from the moral responsibility perspective. Fashion and Textiles, 6, 15.
- Yuniningsih, Y., Taufiq, M., Wuryani, E., & Hidayat, R. (2019). Two stage least square method for prediction financial investment and dividend. Journal of Physics: Conference Series, 1175, 012212.
- Yvonne, W., Rahman, R. H. A., & Long, C. S. (2014). Employee job satisfaction and job performance: A case study in a franchised retail-chain organization. Research Journal of Applied Sciences, Engineering and Technology, 8(17), 1875-1883.