The loyalty imperative: Understanding the link between organizational culture and employee commitment

Gugus Wijonarko, Nani Nurani Muksin, Ismi Rajiani

Article ID: 3267
Vol 8, Issue 4, 2024

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Abstract


Organizational commitment (EOC) and employee loyalty are two critical constructs that contribute to organizational success. Understanding the intricate relationship between these factors is essential for organizations seeking to cultivate a loyal and committed workforce. This study delves into the mediating effect of EOC on employee loyalty, examining the mechanisms through which organizational culture fosters a loyal workforce. To investigate the mediating role of EOC, a sample of 300 employees from the Indonesian Port Corporation was surveyed. Path analysis, a statistical technique that assesses the strength and direction of relationships between multiple variables, was employed to test the study’s hypothesis. The findings revealed a strong association between organizational culture, EOC, and employee loyalty. Organizational culture dimensions, particularly teamwork, respect for individuals, stability, attention to detail, and outcome orientation, were positively related to EOC and employee loyalty. Furthermore, EOC was found to mediate the relationship between organizational culture and employee loyalty, indicating that EOC plays a crucial role in shaping employee loyalty within a supportive organizational culture context. These findings underscore the importance of fostering EOC to enhance employee loyalty and organizational success. Organizations seeking to cultivate a loyal workforce should create a supportive organizational culture that promotes teamwork, respect for individuals, stability, attention to detail, and outcome orientation. By nurturing these cultural traits, organizations can foster a strong sense of EOC among their employees, increasing employee loyalty, productivity, and organizational growth.


Keywords


organizational commitment; loyalty; organizational culture; employee retention; Indonesia

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DOI: https://doi.org/10.24294/jipd.v8i4.3267

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