Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations

This study is very crucial for private business organizations to achieve business performanceby formulating short and long-term strategies and plans to achieve the set businessperformance. The topic being studied is important for private organizations because it willallow organizations to improve th...

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Main Authors: Zahir Osman, Rose Ruziana Samad, Noral Hidayah Alwi, Bibi Nabi Ahmad Khan
Format: Article
Published: 2022
Subjects:
Online Access:http://dx.doi.org/10.6007/IJAREMS/v11-i3/14976
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author Zahir Osman,
Rose Ruziana Samad,
Noral Hidayah Alwi,
Bibi Nabi Ahmad Khan,
author_facet Zahir Osman,
Rose Ruziana Samad,
Noral Hidayah Alwi,
Bibi Nabi Ahmad Khan,
author_sort Zahir Osman,
building OUM Institutional Repository
collection Online Access
description This study is very crucial for private business organizations to achieve business performanceby formulating short and long-term strategies and plans to achieve the set businessperformance. The topic being studied is important for private organizations because it willallow organizations to improve their performance and business sustainability in the future.The purpose of this study is to measure the direct and indirect relationship betweenemployee engagement, employee loyalty, corporate image, and business performance. Thisstudy uses a quantitative approach by using primary data for data analysis. A total of 329clean data were used in data analysis using the Structural Equation Modeling (SEM)technique. This study uses Smartpls3 software to analyze multivariate data and the proposedhypotheses. Furthermore, model measurement and structural model assessment procedureswere also carried out by using Smartpls3. An assessment of construct reliability and validitywas done to confirm the existence of convergent validity and reliability. Then, discriminantvalidity is assessed by calculating cross-loadings and Hetrotrait-Monotrait (HTMT) ratios.Next, the inner model was assessed and from the results of hypotheses testing, it was foundthat employee engagement does not have a direct relationship with business performance,while employee loyalty and corporate image have a direct relationship with businessperformance. On the other hand, employee loyalty and corporate image have a significantmediating effect on the relationship between employee engagement and businessperformance. Findings from the analysis show that employee loyalty and corporate image areimportant mediators in the relationship between employee engagement and businessperformance. For future studies, it is suggested that other variables such as leadership style.Organizational commitment and peer influence are to be included in the model so that it will better perspective on the factors influencing the business performance of privateorganizations business performance.
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publishDate 2022
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spelling oai:eprints.oum.edu.my:15322023-02-08T04:01:49Z Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations Zahir Osman, Rose Ruziana Samad, Noral Hidayah Alwi, Bibi Nabi Ahmad Khan, HF5549.5 Personnel management This study is very crucial for private business organizations to achieve business performanceby formulating short and long-term strategies and plans to achieve the set businessperformance. The topic being studied is important for private organizations because it willallow organizations to improve their performance and business sustainability in the future.The purpose of this study is to measure the direct and indirect relationship betweenemployee engagement, employee loyalty, corporate image, and business performance. Thisstudy uses a quantitative approach by using primary data for data analysis. A total of 329clean data were used in data analysis using the Structural Equation Modeling (SEM)technique. This study uses Smartpls3 software to analyze multivariate data and the proposedhypotheses. Furthermore, model measurement and structural model assessment procedureswere also carried out by using Smartpls3. An assessment of construct reliability and validitywas done to confirm the existence of convergent validity and reliability. Then, discriminantvalidity is assessed by calculating cross-loadings and Hetrotrait-Monotrait (HTMT) ratios.Next, the inner model was assessed and from the results of hypotheses testing, it was foundthat employee engagement does not have a direct relationship with business performance,while employee loyalty and corporate image have a direct relationship with businessperformance. On the other hand, employee loyalty and corporate image have a significantmediating effect on the relationship between employee engagement and businessperformance. Findings from the analysis show that employee loyalty and corporate image areimportant mediators in the relationship between employee engagement and businessperformance. For future studies, it is suggested that other variables such as leadership style.Organizational commitment and peer influence are to be included in the model so that it will better perspective on the factors influencing the business performance of privateorganizations business performance. 2022 Article PeerReviewed http://dx.doi.org/10.6007/IJAREMS/v11-i3/14976 Zahir Osman, and Rose Ruziana Samad, and Noral Hidayah Alwi, and Bibi Nabi Ahmad Khan, (2022) Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations. nternational Journal of Academic Research in Economics andManagement and Sciences, 11 (3). pp. 483-498. ISSN 483–498 https://library.oum.edu.my/repository/1532/
spellingShingle HF5549.5 Personnel management
Zahir Osman,
Rose Ruziana Samad,
Noral Hidayah Alwi,
Bibi Nabi Ahmad Khan,
Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations
title Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations
title_full Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations
title_fullStr Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations
title_full_unstemmed Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations
title_short Direct and Indirect Relationship of Employee Engagement, Corporate Image, Employee Loyalty, and Business Performance among Private Business Organizations
title_sort direct and indirect relationship of employee engagement, corporate image, employee loyalty, and business performance among private business organizations
topic HF5549.5 Personnel management
url http://dx.doi.org/10.6007/IJAREMS/v11-i3/14976
http://dx.doi.org/10.6007/IJAREMS/v11-i3/14976