Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Drivers of Loyalty among Employees of Open Online Flexible Distance Learning Higher Education Institutions

Zahir Osman, Malik Yatam

http://dx.doi.org/10.6007/IJARAFMS/v14-i2/21647

Open access

This study delves into the complex interplay of factors influencing employee loyalty within open online flexible distance-learning higher education institutions. Specifically, it examines how perceived attractiveness, perceived performance, and perceived social responsibility interact with perceived competence, acting as a mediator in this relationship. Grounded in Social Exchange Theory (SET), the research design involved meticulous data collection through a comprehensive survey questionnaire, resulting in a robust dataset comprising 369 valid responses. Employing advanced analytical tools such as SmartPLS 4, the study unveiled significant insights into the role of perceived competence as a key determinant of employee loyalty. The findings underscored the pivotal role of perceived competence in mediating the relationships between perceived attractiveness, perceived performance, perceived social responsibility, and employee loyalty. This mediation mechanism highlights the importance of employees' perceptions of their own abilities in shaping their loyalty to the organization. Moreover, the implications of these findings are far-reaching. They suggest that interventions aimed at enhancing perceived attractiveness, perceived performance, and perceived social responsibility should also prioritize the development of perceived competence among employees. By bolstering employees' confidence in their capabilities, organizations can foster a more loyal and engaged workforce. The study advocates for a holistic approach to enhancing employee loyalty in open online flexible distance learning higher education institutions. It emphasizes the need for institutions to not only promote these factors but also to consider individual differences and organizational culture in their strategies. This research contributes to the existing body of knowledge by shedding light on the complex dynamics of employee loyalty in the context of online higher education. By offering actionable recommendations and highlighting areas for further exploration, it paves the way for the development of comprehensive strategies to enhance employee loyalty in this evolving educational landscape.

Amoako, G. K., Doe, J. K., & Dzogbenuku, R. K. (2021). Perceived firm ethicality and brand
loyalty: the mediating role of corporate social responsibility and perceived green marketing. Society and Business Review, 16(3), 398-419.
Amzat, I. H., Mohd Ali, H., Ibrahim, M. B., Othman, A., Bin Salleh, M. J., & Alade Najimdeen,
A. H. (2023). Internationalization of Higher Education, University Quality Service, and International Students’ Loyalty in Malaysia. SAGE Open, 13(4), 21582440231210498.
Belanche, D., Casaló, L. V., Schepers, J., & Flavián, C. (2021). Examining the effects of robots'
physical appearance, warmth, and competence in frontline services: The Humanness?Value?Loyalty model. Psychology & Marketing, 38(12), 2357-2376.
Budur, T., & Poturak, M. (2021). Employee performance and customer loyalty: Mediation
effect of customer satisfaction. Middle East Journal of Management, 8(5), 453-474.
Chang, Y. P., Hu, H. H., & Lin, C. M. (2021). Consistency or hypocrisy? The impact of internal
corporate social responsibility on employee behavior: a moderated mediation model. Sustainability, 13(17), 9494.
Chikazhe, L., & Makanyeza, C. (2022). Self-perceived job performance as a mediator of the
effects of academic satisfaction and quality on loyalty. Journal of Marketing and Consumer Behaviour in Emerging Markets, (2 (15), 37-52.
Damberg, S., Liu, Y., & Ringle, C. M. (2024). Does culture matter? Corporate reputation and
sustainable satisfaction in the Chinese and German banking sector. Journal of marketing analytics, 12(1), 6-24.
Damberg, S., Schwaiger, M., & Ringle, C. M. (2022). What’s important for relationship
management? The mediating roles of relational trust and satisfaction for loyalty of cooperative banks’ customers. Journal of Marketing Analytics, 10(1), 3-18.
Das, S., Ghani, M. U., Rashid, A., Rasheed, R., Manthar, S., & Ahmed, S. (2021). How customer
satisfaction and loyalty can be affected by employee’s perceived emotional competence: The mediating role of rapport. International Journal of Management (IJM), 12(3), 1268-1277.
Fetriah, D., & Hermingsih, A. (2023). The effect of perceived organizational support, work
motivation, and competence on employee performance mediated by employee engagement. Dinasti International Journal of Management Science, 5(1), 22-33.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand
Oaks, CA: SAGE.
Hair, J. F., Sarstedt, M., Ringle, C. M., and Gudergan, S. P. (2018). Advanced issues in partial
least squares structural equation modeling. Thousand Oakes, CA: Sage Publications
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3 ed.). Thousand Oaks, CA: Sage.
Henseler, J., Ringle, C. M., and Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling, Journal of the Academy of Marketing Science, 43(1): 115-135.
Hosseini, S. A., Moghaddam, A., Damganian, H., & Nikabadi, S. M. (2022). The effect of
perceived corporate social responsibility and sustainable human resources on employee engagement with the moderating role of the employer brand. Employee Responsibilities and Rights Journal, 1-21.
Jaeger, J., & Fifka, M. (2024). The relationship between perceived corporate social
responsibility and perceived organisational performance in professional sports organisations. European Sport Management Quarterly, 24(1), 222-245.
Kervyn, N., Fiske, S. T., & Malone, C. (2022). Social perception of brands: Warmth and
competence define images of both brands and social groups. Consumer Psychology Review, 5(1), 51-68.
Kim, G., Duffy, L. N., & Moore, D. (2023). Importance of residents’ perception of tourists in
establishing a reciprocal resident-tourist relationship: An application of tourist attractiveness. Tourism Management, 94, 104632.
Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for
Information Systems, 13(7), 546-580.
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach.
International Journal of e-Collaboration, 11(4), 1-10.
Kolvereid, L., & Åmo, B. W. (2021). Quality and performance in small accounting
firms. International Journal of Productivity and Quality Management, 32(1), 129-145.
Kumar, V., Jain, S., & Singh, A. K. (2021). A nomological network study of employer branding
with CSR, motivation and intention to stay. Asia-Pacific Journal of Business Administration, 13(4), 553-573.
Le, T. T. (2023). Corporate social responsibility and SMEs' performance: mediating role of
corporate image, corporate reputation and customer loyalty. International Journal of Emerging Markets, 18(10), 4565-4590.
Liengaard, B. D., Sharma, P. N., Hult, G. T. M., Jensen, M. B., Sarstedt, M., Hair, J. F., &
Ringle, C. M. (2021). Prediction: Coveted, Yet Forsaken? Introducing a Cross-
validated Predictive Ability Test in Partial Least Squares Path Modeling. Decision Sciences, 52(2), 362-392.
Mari?, S., Berber, N., Slavi?, A., & Aleksi?, M. (2021). The mediating role of employee
commitment in the relationship between corporate social responsibility and firm performance in Serbia. Sage Open, 11(3), 21582440211037668.
Schwaiger, M.(2004) Components and parameters of corporate reputation –an empirical
study, Schmalenbach Bus. Rev. 56, 46–71, doi: 10.1007/BF03396685 .
Oh, K. S., Han, J. R., & Park, S. R. (2021). The influence of hotel employees’ perception of CSR
on organizational commitment: The moderating role of job level. Sustainability, 13(22), 12625.
Ooi, L., Ng, K. L., Heng, W. C., Chua, Y. F., & Lim, Y. H. (2022). Human resource practices and
employee engagement: A study among academicians in Malaysian private higher education institutions. International Journal of Management Studies, 29(2), 71-100.
Rashid, S., & Mustafa, H. (2022). Corporate reputation antecedents and stakeholder loyalty
in Malawi higher education institutions: employees’ and students’ perspectives. Tertiary Education and Management, 28(1), 101-117.
Ringle, C. M., and Sarstedt, M. (2016). Gain more insight from your PLS-SEM results: The
importance-performance map analysis. Industrial Management & Data Systems. 116: 1865–1886.
Ringle, C. M., Wende, S., & Becker, J-M. (2022). SmartPLS 4. Oststeinbek:
SmartPLS. Retrieved from https://www.smartpls.com
Shareef, R. A. (2023). Employee perception of ethical corporate social responsibility on
organizational performance. Cihan University-Erbil Journal of Humanities and Social Sciences, 7(1), 98-106.
Shmueli, G., Ray, S., Estrada, V. J. M., and Chatla, S. B. (2016). The elephant in the
room: predictive performance of PLS models. Journal of Business Research, 69: 4552–4564.
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., and Ringle, C. M.
(2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict.
European Journal of Marketing. 53: 2322–2347.
Sherwani, K., Bala, H., & Khatoon, G. (2023). Perceived Organizational Support and Employee
Loyalty as Mediators in the Relationship Between Leadership Effectiveness and Task Performance: A Study of Nurses in Erbil City.
Silva, P., Moreira, A. C., & Mota, J. (2023). Employees' perception of corporate social
responsibility and performance: the mediating roles of job satisfaction, organizational commitment and organizational trust. Journal of Strategy and Management, 16(1), 92-111.
Srivastava, S., & Singh, N. (2021). Do Corporate Social Responsibility (CSR) initiatives boost
customer retention in the hotel industry? A moderation-mediation approach. Journal of Hospitality Marketing & Management, 30(4), 459-485.
Tosun, P., & Tav?an, N. (2024). The impact of perceived corporate social responsibility on
consumer happiness and brand admiration. Management Decision, 62(2), 665-684.

(Osman & Yatam, 2024)
Osman, Z., & Yatam, M. (2024). Drivers of Loyalty among Employees of Open Online Flexible Distance Learning Higher Education Institutions. International Journal of Academic Research in Accounting Finance and Management Sciences, 14(2), 525–541.