The Mediating Effect of Employee’s Loyalty in the Relationship Between Empowerment and Employees’ Performance: A Case from Jordanian SMEs

Abstract

This paper aims at investigating the relationship between empowerment and performance. In addition, the paper examines the mediating effect of employees’ loyalty in this relationship. The current study based on developing a model based on the previous literature. The model, then, was being tested empirically by using data that have been collected through surveying 252 employees and 66 direct supervisors within SMEs in IT sector. By using structural equation modelling (SEM) the results revealed that empowerment linked to performance. Additionally, employees’ loyalty positively and significantly affects performance. Furthermore, the results have shown that employees’ loyalty partially mediates the relationship between empowerment and performance.