Employee loyalty and organizational performance: a critical survey

2014 ◽  
Vol 27 (5) ◽  
pp. 839-850 ◽  
Author(s):  
Olivia Guillon ◽  
Cécile Cezanne
Keyword(s):  
Organizational Performance ◽  
Design Methodology ◽  
Critical Survey ◽  
Employee Loyalty ◽  
Content Type ◽  
And Performance ◽  
Definition Of ◽  
The Relationship ◽  
Critical Overview

Purpose – The purpose of this paper is to clarify the relationship between employee loyalty and organizational performance. It starts with the idea that the employee loyalty creates value for the organization. This statement is widely endorsed in the literature although there is little consensus on the definition of loyalty. The paper proposes a refined synthesis of the literature on the link between employee loyalty and organizational performance. Design/methodology/approach – The paper addresses the question of whether there is a robust positive link between employee loyalty and organizational performance. The paper starts by reviewing the various, sometimes divergent, approaches to employee loyalty in the literature and then compare the different indicators of loyalty in relation to their relevance to different indicators of performance. Findings – The paper provides a critical overview of the different existing conceptions of employee loyalty. It points out ambiguity about both the theoretical contours of the concept, and practical means of making it a source of value for the organization. The paper shows that the link between employee loyalty and performance varies according to the type of indicators used. Research limitations/implications – The paper highlights a variety of indicators for employee loyalty to their firm and for organizational performance. But much research remains to be conducted, notably on the managerial levers that might consolidate or improve organizational performance. Originality/value – This paper fulfills an identified need to survey a fragmented theoretical field of analysis.

“Knowledge management practices” as moderator in the relationship between organizational culture and performance in information technology companies in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Shea ◽  
Syed Aktharsha Usman ◽  
Sengottuvel Arivalagan ◽  
Satyanarayana Parayitam
Keyword(s):  
Information Technology ◽  
Organizational Culture ◽  
Knowledge Management ◽  
Organizational Performance ◽  
Management Practices ◽  
Self Report ◽  
Content Type ◽  
And Performance ◽  
Information Technology Companies ◽  
The Relationship

Purpose The purpose of this study is to empirically examine knowledge management (KM) practices as a moderator in the relationship between organizational culture and performance. The effect of four types of organizational culture on organizational performance was studied. In addition to direct effects, most importantly, KM practices as a moderator in strengthening the culture-performance relationship were empirically examined. Design/methodology/approach A carefully crafted survey instrument was distributed and data was collected from 1,255 respondents from 10 information technology companies in India. After checking the psychometric properties of the instrument, this paper performs hierarchical regression to test hypotheses. Findings The results reveal that: cooperative culture, innovative culture, consistent culture and effectiveness culture were all positively and significantly related to organizational performance; KM practices were positively and significantly related to organizational performance, KM practices moderate the relationship between various dimensions of organizational culture and organizational performance. Research limitations/implications As with any survey-based research, the present study suffers from the problems associated with self-report measures. These are common method bias and social desirability bias. However, this study attempts to minimize these limitations by following appropriate statistical techniques. Practical implications This study contributes to both practicing managers and the literature on KM and organizational culture. The study suggests that managers use KM practices, which are all-pervasive and very important for improving organizational performance. The results highlight the importance of implementing KM practices in organizations. Originality/value This study provides new insights into the importance of KM practices in achieving sustained competitive advantage by achieving organizational effectiveness. To the knowledge, the importance of KM practices is underemphasized in organizational culture research.

scholarly journals Corporate reputation

2018 ◽  
Vol 25 (1) ◽  
pp. 47-64 ◽  
Author(s):  
Vanessa Pires ◽  
Guilherme Trez
Keyword(s):  
Organizational Performance ◽  
Corporate Reputation ◽  
Research Field ◽  
Social Implication ◽  
Public Companies ◽  
Content Type ◽  
Theoretical Paper ◽  
The Difference ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to discuss the different approaches to the corporate reputation construct, in order to identify a comprehensive definition that can be used for measurement purposes, gaps identified by previous literature identified. Design/methodology/approach This is a theoretical essay. The authors analyzed studies that involve the relationship between corporate reputation and organizational performance, and the attributes of national and international corporate reputation ratings. Findings The authors identified a more comprehensive definition for the reputation construct, and indicated courses for the construct’s measurement, by considering: the judgment by the stakeholders (internal, suppliers, clients and the financial market); periodical evaluations under different organizational perspectives; attention to theoretical assumptions, among other aspects. Research limitations/implications The study is a theoretical paper that presents that the research field has many definitions that cannot be used interchangeably. It indicated how the reputation construct should be operationalized for measurement purposes. This study presented a reflection on the relationship between corporate reputation and performance, showing that it is not a settled topic in the academy. Practical implications The study advances the understanding of the reputation construct measurement, considering the adopted definition and the discussion of the attributes of the main ratings on corporate reputation. The adoption of a measurement method that takes into account the definition used in this study and the features of the methodologies discussed will improve the corporate reputation assessment. Social implications Literature indicates that a good corporate reputation can affect organizational performance and the inverse relationship is also true. As a social implication, it is extremely relevant to improve the understanding the definition and measurement methods of this construct. Originality/value This study discusses one of the most important intangible resources for organizations, contributing to the understanding of the difference between the market value and the book value of public companies. Besides it should be considered that there is one lack of a definition directly related to the measurement of the reputation construct in the literature, a gap in which this study contributes.

Employee loyalty during slowdown of Covid-19: Do satisfaction and trust matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
I Nengah Aristana ◽  
I Wayan Edi Arsawan ◽  
Ni Wayan Rustiarini
Keyword(s):  
Design Methodology ◽  
Hotel Industry ◽  
Employee Loyalty ◽  
Content Type ◽  
Hotel Employees ◽  
Leader Support ◽  
Tourism Sector ◽  
Quantitative Design ◽  
The Relationship

Purpose This research aims to test employee loyalty in the hotel industry, particularly during the Covid-19 pandemic. This study examines the relationship between leader support in building job satisfaction, trust and employee loyalty. Also, this research aims to test and explain the role of satisfaction and trust as mediator variables. Design/methodology/approach This research used a quantitative design by distributing questionnaires to 206 employees of the 97 hotels in Bali, Indonesia, particularly during pandemic Covid-19. The research data were then analyzed by using WarpPLS software. Findings The results revealed that leader support did not have a significant effect on loyalty. Satisfaction and trust act as double mediators in leaders’ support and loyalty relationships. Research limitations/implications Employees need leaders’ support to remain loyal to their organization in a slowdown situation due to the Covid-19 pandemic and its various challenges. Originality/value Research on the effects of the Covid-19 pandemic on various sectors has been comprehensive. However, the research that invests in employee loyalty in the hospitality industry is still rare. This study analyzes the loyalty of hotel employees, particularly when the tourism sector is experiencing a slowdown. This study also examines the role of trust and satisfaction as mediating relationships between leaders’ support and loyalty, which have not been widely analyzed in previous studies.

Effects of market orientation, innovation strategies and value-based pricing on market performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deonir De Toni ◽  
Ricardo Antonio Reche ◽  
Gabriel Sperandio Milan
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Design Methodology ◽  
Market Performance ◽  
Academic Research ◽  
Hierarchical Regression ◽  
Content Type ◽  
Moderating Variables ◽  
Innovation Strategies ◽  
The Relationship

PurposeThis study aims to propose and test a theoretical model that contemplates antecedent constructs of organizational performance, as well as the interaction among them.Design/methodology/approachA survey was conducted with 151 Brazilian exclusive stores in the planned furniture segment. The data analysis was performed using two statistical techniques, focused on hierarchical regression and mediation and moderation tests.FindingsAmong the main results of the survey are the direct and significant effects of value-based pricing and innovation strategies and the indirect effect of market orientation on market performance. As for moderation, the authors identified that profitability moderates the relationship between value-based pricing and market performance, and the degree of sales projection moderates the relationship between market orientation and market performance.Originality/valueThe insertion of value-based pricing as a variable in quantitative analysis of market performance meets the lack of academic research. When the constructs are combined or interacted with each other, they have a stronger and more significant effect on performance. In addition, this work proposes two moderating variables that can interfere in the relationship between the analyzed constructs (profitability and sales projection). It was identified that the relationships between the constructs and that the orientation towards the market (despite not directly impacting market performance) interfere with the relationship based on mediation of variable innovation strategies and value-based pricing.

Value that matters: intellectual capital and big data to assess performance in healthcare. An empirical analysis on the European context

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ginevra Gravili ◽  
Francesco Manta ◽  
Concetta Lucia Cristofaro ◽  
Rocco Reina ◽  
Pierluigi Toma
Keyword(s):  
Big Data ◽  
Organizational Performance ◽  
Healthcare System ◽  
Healthcare Sector ◽  
Healthcare Organizations ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
The Relationship

PurposeThe aim of this paper is to analyze and measure the effects of intellectual capital (IC), i.e. human capital (HC), relational capital (RC) and structural capital (SC), on healthcare industry organizational performance and understanding the role of data analytics and big data (BD) in healthcare value creation (Wang et al., 2018). Through the assessment of determined variables specific for each component of IC, the paper identifies the guidelines and suggests propositions for a more efficient response in terms of services provided to citizens and, specifically, patients, as well as predicting effective strategies to improve the care management efficiency in terms of cost reduction.Design/methodology/approachThe study has a twofold approach: in the first part, the authors operated a systematic review of the academic literature aiming to enquire the relationship between IC, big data analytics (BDA) and healthcare system, which were also the descriptors employed. In the second part, the authors built an econometric model analyzed through panel data analysis, studying the relationship between IC, namely human, relational and structural capital indicators, and the performance of healthcare system in terms of performance. The study has been conducted on a sample of 28 European countries, notwithstanding the belonging to specific international or supranational bodies, between 2011 and 2016.FindingsThe paper proposes a data-driven model that presents new approach to IC assessment, extendable to other economic sectors beyond healthcare. It shows the existence of a positive impact (turning into a mathematical inverse relationship) of the human, relational and structural capital on the performance indicator, while the physical assets (i.e. the available beds in hospitals on total population) positively mediates the relationship, turning into a negative impact of non-IC related inputs on healthcare performance. The result is relevant in terms of managerial implications, enhancing the opportunity to highlight the crucial role of IC in the healthcare sector.Research limitations/implicationsThe relationship between IC indicators and performance could be employed in other sectors, disseminating new approaches in academic research. Through the establishment of a relationship between IC factors and performance, the authors implemented an approach in which healthcare organizations are active participants in their economic and social value creation. This challenges the views of knowledge sharing deeply held inside organizations by creating “new value” developed through a more collaborative and permeated approach in terms of knowledge spillovers. A limitation is given by a fragmented policymaking process which carries out different results in each country.Practical implicationsThe analysis provides interesting implications on multiple perspectives. The novelty of the study provides interesting implications for managers, practitioners and governmental bodies. A more efficient healthcare system could provide better results in terms of cost minimization and reduction of hospitalization period. Moreover, dissemination of new scientific knowledge and drivers of specialization enhances best practices sharing in the healthcare sector. On the other hand, an improvement in preventive medicine practices could help in reducing the overload of demand for curative treatments, on the perspective of sharply decreasing the avoidable deaths rate and improving societal standards.Originality/valueThe authors provide a new holistic framework on the relationship between IC, BDA and organizational performance in healthcare organizations through a systematic review approach and an empirical panel analysis at a multinational level, which is quite a novelty regarding the healthcare. There is little research focussed on healthcare industries' organizational performance, and, specifically, most of the research on IC in healthcare delivered results in terms of theoretical contribution and qualitative analyzes. The authors even contributed to analyze the healthcare industry in the light of the possible existence of synergies and networks among countries.

Organizational capability for change and performance in artisanal businesses in Mexico

2020 ◽  
Vol 33 (2) ◽  
pp. 415-431
Author(s):  
Patricia S. Sánchez-Medina
Keyword(s):  
Environmental Performance ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Organizational Changes ◽  
Organizational Capability ◽  
Content Type ◽  
Face To Face ◽  
And Performance ◽  
Performance Results ◽  
The Relationship

PurposeBusinesses in Mexico, particularly small and mid-sized companies, are faced with numerous challenges: a lack of competition, difficulty in positioning and maintaining oneself in the market, irrational use of natural resources, and poverty in the environment in which they develop. In spite of these problems, many are able to succeed; however, there is limited knowledge about how these businesses could implement organizational changes that would positively impact their results.Design/methodology/approachUsing dynamic capabilities theory and survey data obtained from pottery businesses in several artisan communities in Mexico through the application of face-to-face interviews, this paper analyzes the relationship between organizational capability for change (OCC) and economic and environmental performance.FindingsThis research proves that OCC positively and significantly impacts economic and environmental performance. Results contribute to the existing literature on OCC in the context of poverty.Originality/valueThis study offers empirical research that illustrates the relationship between OCC and the environmental and economic performance of pottery businesses. Additionally it contributes to a field of knowledge in progress; that is, OCC in contexts of subsistence where poverty is a constant issue. Artisans living in this context can also develop business capabilities that contribute to the permanence of their business in the market.

Is cybersecurity eating internet governance? Causes and consequences of alternative framings

2017 ◽  
Vol 19 (6) ◽  
pp. 415-428 ◽  
Author(s):  
Milton Mueller
Keyword(s):  
Design Methodology ◽  
Structural Features ◽  
Joint Production ◽  
Internet Governance ◽  
Security Dilemma ◽  
Content Type ◽  
Governance Models ◽  
Definition Of ◽  
The Relationship ◽  
The Way

Purpose The purpose of this paper is to clarify the relationship between cybersecurity governance and internet governance and to explore the effects of the current tendency for cybersecurity-related discourse to dominate and change the way we approach the established problems of internet governance. Design/methodology/approach The paper demonstrates the centrality of internet connectivity to any definition of cyberspace and to cybersecurity, which clarifies the way internet governance and cybersecurity governance are interdependent. Drawing on classic notions of a security dilemma, the paper also argues for distinguishing between national cybersecurity and societal cybersecurity. Findings Major structural features of the governance problem in cybersecurity and internet governance are analogous. Joint production of internet services and cybersecurity makes them heavily interdependent. This means that cybersecurity governance and internet governance models need to be compatible, and the approach we take to one will influence how we approach the other. Originality/value The interdependence of cybersecurity governance and internet governance has not been carefully examined before, and the relationship is not well understood. These two strands of thinking about cyberspace governance have not been properly connected. This paper bridges the gap and makes policymakers more aware of the potential tensions between a cybersecurity perspective and an internet governance perspective.

Supply chain agility: a systematic review of definitions, enablers and performance implications

2020 ◽  
Vol 50 (2) ◽  
pp. 287-312 ◽  
Author(s):  
Eias Al Humdan ◽  
Yangyan Shi ◽  
Masud Behnia
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Full Potential ◽  
Research Directions ◽  
Content Type ◽  
Supply Chain Agility ◽  
Performance Dimensions ◽  
And Performance ◽  
Definition Of ◽  
Selection Of

PurposeSupply chain agility (SCA) has recently received considerable attention in the literature and in practice. Despite its popularity, the concept of SCA seems to be vaguely defined and loosely structured. More specifically, definitional ambiguity and conceptual fragmentation have prevented the concept of SCA from reaching its full potential. The time is ripe to address these issues through a systematic literature review.Design/methodology/approachA review and synthesis of the literature on SCA was undertaken. The authors selected 56 top-tier related articles for further analysis after applying rigorous filtering procedures.FindingsThe results of the review confirm that several key themes surround SCA's definition and enablers. In addition, consensus needs to be reached in terms of its performance dimensions and measures. Accordingly, this study constructed an encompassing definition, scrutinized SCA enablers and outcomes and thus developed an original framework for SCA, providing a unique conceptual contribution. Several research directions were also addressed accordingly.Originality/valueThe novelty of this research lies in the selection of highly recognized publications. It also provides an encompassing definition of SCA, consolidates its enablers for better communication and synthesizes its performance implications.

Negligent retention of counterproductive employees

2014 ◽  
Vol 56 (3) ◽  
pp. 216-230 ◽  
Author(s):  
Dennis R. Self ◽  
Terry B. Self
Keyword(s):  
Design Methodology ◽  
Disciplinary Action ◽  
Content Type ◽  
Fiduciary Responsibility ◽  
Potential Risks ◽  
Negligent Retention ◽  
And Performance ◽  
Definition Of ◽  
Practical Implications ◽  
Selection Of

Purpose – The purpose of this article is to encourage organizations to recognize the potential risks of retaining counterproductive employees on their payrolls and the steps they should take to prevent and/or correct the situation should it exist within their organizations. Design/methodology/approach – Literature examining a broader definition of the negligent retention doctrine, which includes employees who lack the qualifications for the positions they hold, those who are nonperformers, and/or those who exhibit toxic behaviours, and the consequences for retaining these counterproductive employees on the payroll. By using a multilayered approach, the article discusses the efforts organizations can use to identify potentially counterproductive employee behaviour and the steps the organizations should take to provide appropriate developmental strategies/programs to assist counterproductive employees, as well as, provide appropriate disciplinary action, as the situation dictates. Findings – The review highlights the potential financial drain and performance threats counterproductive employees create for organizations; offers explanations as to why counterproductive employees are often allowed to stay on the payroll; and provides suggestions for preventing the selection of counterproductive employees, for providing appropriate developmental. Practical implications – The article offers practical insights and suggestions to organizations that are interested in upholding their fiduciary responsibility to their stakeholders, while providing counterproductive employees opportunity to improve their performance/behaviours or to exit the organization. Originality/value – The article expands the definition of the negligent retention doctrine to include the often-ignored financial and emotional dangers of retaining unfit or counterproductive employees on the payroll.

scholarly journals Exploring the mediating effects between transformational leadership and organizational performance

2018 ◽  
Vol 40 (2) ◽  
pp. 412-432 ◽  
Author(s):  
Lorena Para-González ◽  
Daniel Jiménez-Jiménez ◽  
Angel Rafael Martínez-Lorente
Keyword(s):  
Transformational Leadership ◽  
Organizational Performance ◽  
Leadership Style ◽  
Transformational Leaders ◽  
Mediating Effects ◽  
Content Type ◽  
Industrial Companies ◽  
Mediating Mechanisms ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to study the possible mediating mechanisms (human resource management (HRM), learning and innovation) that could exist in the relationship between transformational leadership and organizational performance. This topic has been studied only by a few groups of researchers and these researchers have not analyzed all these concepts jointly. Design/methodology/approach This research explores the relationships using partial least squares with data from 200 Spanish industrial companies. Analyzing the mentioned relationships in the Spanish context has been done by few researchers before. Findings The study reveals that the adoption of transformational leadership styles improves performance when specific systems of HRM practices, learning and innovation are developed in an organization. Originality/value This study, therefore, contributes to the understanding of the link between transformational leaders and performance by proposing a model in which it is evinced that this leadership style produces synergies between HRM, learning and innovation, which in the end, affect performance.

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