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. The study introduces employee loyalty as a mediating variable, perceives organizational support as a moderating variable, and constructs a moderated mediating effect model based on these variables. We conducted an empirical test with hierarchical regression and other methods, utilizing survey data from 335 employees in Chinese companies. The results revealed that: 1) all three dimensions of organizational commitment positively influence employee loyalty, with affective commitment having the strongest effect; 2) employee loyalty partially mediates the relationship between various dimensions of organizational commitment and organizational performance; 3) the relationship between various dimensions of organizational commitment and organizational performance; 4) the sense of organizational support positively moderates the relationship between organizational commitment and employee loyalty; and 5) employee loyalty typifies 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.