A study of the impact of employee loyalty on organizational performance based on improving organizational commitment

Abstract

This study explores the intrinsic mechanism by which organizational commitment affects organizational performance. It introduces employee loyalty as a mediating variable and perceived organizational support as a moderating variable to construct a moderated mediating effect model. An empirical test was conducted using hierarchical regression and other methods based on the survey data of 335 employees of Chinese companies. The results found that: 1) all three dimensions of organizational commitment have a positive impact on employee loyalty, among which affective commitment has the strongest effect; 2) employee loyalty partially mediates the relationship between various dimensions of organizational commitment and organizational performance; 3) sense of organizational support positively moderates the relationship between organizational commitment and employee loyalty; and 4) employee loyalty promotes organizational performance improvement by enhancing employee performance and work engagement. This study expands research on the relationship between organizational commitment, employee loyalty and organizational performance. Additionally, it enriches the relevant theoretical connotation and provides useful enlightenment for enterprises to enhance employee loyalty and improve organizational performance.