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

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

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Official URL: http://dx.doi.org/10.6007/IJAREMS/v11-i3/14976

Abstract

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.

Item Type: Article
Uncontrolled Keywords: Employee Engagement, Corporate Image, Employee Loyalty, BusinessPerformance, Structural Equation Modeling
Subjects: H Social Sciences > HF5549.5 Personnel management
Divisions: Faculty of Business & Management
Depositing User: Shahril Effendi Ibrahim
Date Deposited: 08 Feb 2023 04:01
Last Modified: 08 Feb 2023 04:01
URI: http://library.oum.edu.my/repository/id/eprint/1532

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