An empirical study of employee loyalty, service quality, cost reduction and company performance

Abstract

The focus of this study was on investigating the relationships among employee loyalty, service quality, cost reduction and company performance, with the aim to investigate the impact of employee loyalty to company performance. The research model was developed and empirically tested on the sample of 100 service companies with 317 questionnaire surveys conducted in the Republic of Serbia and Bosnia and Herzegovina. Using different statistical analysis (the Kolmogorov-Smirnovljev statistic, Path analysis, A.M.O.S. statistic software and lavaan software) leads to the conclusion that employee loyalty is significantly related and has a positive influence on company performance.