IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v16y2025i3d10.1007_s13132-024-02383-0.html
   My bibliography  Save this article

Employee Loyalty Moderates the Relationship Between Job Satisfaction and Other Influencing Factors of Employees’ Performance

Author

Listed:
  • Md.Motahar Hossain

    (Khwaja Yunus Ali University)

  • Md.Shajedul Islam

    (North Bengal International University)

Abstract

The aim of the study is to examine the relevant factors that influence employee job satisfaction and employee performance. The moderating effect of employee loyalty, or whether there is a link between job satisfaction and employee loyalty, is also an aim of this research. This study combines exploratory and descriptive research designs, enabling in-depth description and analysis of study variables. A representative sample of 300 employees from the pharmaceutical companies operating in Bangladesh was used in the study. The survey included managers, executives, supervisors, and all other types of employees. Regression analysis, correlation analysis, and reliability testing are all done to validate our theory. The present study considers employee satisfaction and organizational performance as an independent variable, while employee loyalty acts as a moderating effect. Survey results have shown that greater employee loyalty can help keep employees satisfied. According to the analysis of the study, beta (β) value of compensation and reward, leadership, and empowerment and facilitating condition is 0.366, 0.220, and 0.170, respectively, which indicates strong positive relationship with job satisfaction. More importantly, the relationship between job satisfaction and employee performance has the highest beta value (0.554) indicating a significant positive connection between the variables. In addition, the results also indicate that loyalty contributes significantly as a mediator of employee satisfaction and organizational performance. Hence, the results indicate a favorable link with numerous aspects examined in the study. Dedicated employees generally feel satisfied working for the company and make valuable contributions to its success. Maintaining and retaining the loyalty of knowledgeable and experienced employees is a major aspect for any firm to maintain organizational performance.

Suggested Citation

  • Md.Motahar Hossain & Md.Shajedul Islam, 2025. "Employee Loyalty Moderates the Relationship Between Job Satisfaction and Other Influencing Factors of Employees’ Performance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12481-12503, September.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02383-0
    DOI: 10.1007/s13132-024-02383-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-02383-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-02383-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Athar Waqas & Umair Bashir & Muhammad Fahad Sattar & Hafiz Muhammad Abdullah & Imtiaz Hussain & Waqas Anjum & Muhammad Aftab Ali & Rizwan Arshad, 2014. "Factors Influencing Job Satisfaction and Its Impact on Job Loyalty," International Journal of Learning and Development, Macrothink Institute, vol. 4(2), pages 141-161, June.
    2. Tran Thi Kim Phuong & Tran Trung Vinh, 2020. "Job Satisfaction, Employee Loyalty and Job Performance in the Hospitality Industry: A Moderated Model," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(6), pages 698-713.
    3. Masooma Javed & Rifat Balouch & Fatima Hassan, 2014. "Determinants of Job Satisfaction and its impact on Employee performance and turnover intentions," International Journal of Learning and Development, Macrothink Institute, vol. 4(2), pages 120-140, June.
    4. Adedeji, Abosede O. & Ugwumadu, Obianuju C., 2018. "Factors Motivating Employee Loyalty and Employee Retention in Deposit Money Banks in Nigeria," International Journal of Human Resource Studies, Macrothink Institute, vol. 8(3), pages 300313-3003, December.
    5. Homburg, Christian & Stock, Ruth, 2005. "Exploring the Conditions Under Which Salesperson Work Satisfaction Can Lead to Customer Satisfaction," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35543, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Sonia Ben Slimane & Régis Coeurderoy & Hatem Mhenni, 2022. "Digital transformation of small and medium enterprises: a systematic literature review and an integrative framework," International Studies of Management & Organization, Taylor & Francis Journals, vol. 52(2), pages 96-120, April.
    7. Alpaslan Baki Ertekin & YeÅŸim Avunduk, 2021. "The Relationship between Job Satisfaction and Job Performance: A Study on Sports Industry," Journal of Educational Issues, Macrothink Institute, vol. 7(2), pages 133145-1331, December.
    8. Aftab Hameed Memon & Shabir Hussain Khahro & Nafees Ahmed Memon & Zubair Ahmed Memon & Ahmed Mustafa, 2023. "Relationship between Job Satisfaction and Employee Performance in the Construction Industry of Pakistan," Sustainability, MDPI, vol. 15(11), pages 1-21, May.
    9. Susan Linz & Linda K Good & Michael Busch, 2015. "Promoting worker loyalty: an empirical analysis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(2), pages 169-191, May.
    10. Susan Linz & Linda K Good & Michael Busch, 2015. "Promoting worker loyalty: an empirical analysis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(2), pages 169-191, May.
    11. Alexander Kofi Preko & John Adjetey, 2013. "A Study on the Concept of Employee Loyalty and Engagement on the Performance of Sales Executives of Commercial Banks in GHANA," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 4(2), pages 51-62, June.
    12. Homburg, Christian & Stock, Ruth, 2005. "Exploring the Conditions Under Which Salesperson Work Satisfaction Can Lead to Customer Satisfaction," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60481, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grace Orinda & Dr. Patrick Limo & Joel Chepkwony, 2020. "Organizational Learning and employee performance. An Indirect Effect Model of Employee Loyalty," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(9), pages 75-84, September.
    2. Gordon Liu & Catherine Liston-Heyes & Wai-Wai Ko, 2010. "Employee Participation in Cause-Related Marketing Strategies: A Study of Management Perceptions from British Consumer Service Industries," Journal of Business Ethics, Springer, vol. 92(2), pages 195-210, March.
    3. Simona-Mihaela TRIF, 2012. "Antecedents and consequences of relationship quality. A case study of banking sector in Romania," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 5(18), pages 253-271.
    4. Besser, T. & Mann, S., 2015. "Which farm characteristics influence work satisfaction? An analysis of two agricultural systems," Agricultural Systems, Elsevier, vol. 141(C), pages 107-112.
    5. Basant Kumar Purohit, 2010. "Leveraging the Integration of Sales Career Cycle with Brand Life Cycle in Indian Pharmaceutical Firms," Working Papers id:2725, eSocialSciences.
    6. Tran Thi Kim Phuong & Tran Trung Vinh, 2020. "Job Satisfaction, Employee Loyalty and Job Performance in the Hospitality Industry: A Moderated Model," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(6), pages 698-713, June.
    7. Kalra, Ashish & Briggs, Elten & Schrock, Wyatt, 2023. "Exploring the synergistic role of ethical leadership and sales control systems on salesperson social media use and sales performance," Journal of Business Research, Elsevier, vol. 154(C).
    8. Ch. V. V. S. N. V. Prasad, 2018. "An Empirical Study on TQM Practices and its Influence on Employee Satisfaction and Performance in Technical Institutions: Teachers' Perspectives," GATR Journals jmmr195, Global Academy of Training and Research (GATR) Enterprise.
    9. Zhang, Yun & Li, Xia & Liu, Rongqin & Shuai, Qinghong & Huang, Caiyan, 2025. "How facial cues of streamers drive purchase intention in live streaming commerce: Based on a lens model," Journal of Business Research, Elsevier, vol. 190(C).
    10. Brown, Steven P. & Lam, Son K., 2008. "A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses," Journal of Retailing, Elsevier, vol. 84(3), pages 243-255.
    11. Vishal Bindroo & Xin He & Raj Echambadi, 2016. "Satisfaction—Repurchase Intentions Relationship: Exploring the Contingent Roles of Consideration Set Size and Price Consciousness," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(3), pages 115-125, December.
    12. Wendelien Van Eerde & Paul Peper, 2008. "Deviant service behaviour: coming soon to a theatre near you?," The Service Industries Journal, Taylor & Francis Journals, vol. 28(1), pages 85-93, January.
    13. Burmann, Christoph & Jost-Benz, Marc & Riley, Nicola, 2009. "Towards an identity-based brand equity model," Journal of Business Research, Elsevier, vol. 62(3), pages 390-397, March.
    14. Purohit, Basant Kumar, 2010. "Leveraging the Integration of Sales Career Cycle with Brand Life Cycle in Indian Pharmaceutical Firms," IIMA Working Papers WP2010-07-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    15. Melnyk, Valentyna, 2014. "Resisting temptation: gender differences in customer loyalty in the presence of a more attractive alternative," Australasian marketing journal, Elsevier, vol. 22(4), pages 335-341.
    16. Wangenheim, Florian v. & Evanschitzky, Heiner & Wunderlich, Maren, 2007. "Does the employee-customer satisfaction link hold for all employee groups?," Journal of Business Research, Elsevier, vol. 60(7), pages 690-697, July.
    17. Collier, Joel E. & Barnes, Donald C. & Abney, Alexandra K. & Pelletier, Mark J., 2018. "Idiosyncratic service experiences: When customers desire the extraordinary in a service encounter," Journal of Business Research, Elsevier, vol. 84(C), pages 150-161.
    18. Brexendorf, Tim Oliver & Mühlmeier, Silke & Tomczak, Torsten & Eisend, Martin, 2010. "The impact of sales encounters on brand loyalty," Journal of Business Research, Elsevier, vol. 63(11), pages 1148-1155, November.
    19. Jacob, Frank & Kleipaß, Ulrich & Pohl, Alexander, 2014. "Nature and role of customer satisfaction in the solution business," European Management Journal, Elsevier, vol. 32(3), pages 487-498.
    20. Evanschitzky, Heiner & Wangenheim, Florian v. & Wünderlich, Nancy V., 2012. "Perils of Managing the Service Profit Chain: The Role of Time Lags and Feedback Loops," Journal of Retailing, Elsevier, vol. 88(3), pages 356-366.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02383-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.