ISSN: 2225-8329
Open access
This paper aims at investigating the relationship between empowerment and performance. In addition, the paper examines the mediating effect of employees’ loyalty in this relationship. The current study based on developing a model based on the previous literature. The model, then, was being tested empirically by using data that have been collected through surveying 252 employees and 66 direct supervisors within SMEs in IT sector. By using structural equation modelling (SEM) the results revealed that empowerment linked to performance. Additionally, employees’ loyalty positively and significantly affects performance. Furthermore, the results have shown that employees’ loyalty partially mediates the relationship between empowerment and performance.
1. Ali, I., Rehman, K. U., Ali, S. I., Yousaf, J., & Zia, M. (2010). Corporate social responsibility influences, employee commitment and organizational performance. African journal of Business management, 4(13), 2796-2801.
2. Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), Journal of Personality and Social Psychology.
3. Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal, 39(4), 779-801.
4. Bennis, W. G., & Nanus, B. (1985). Leaders. New York: Harper & Row.
5. Blau, P. (1986). Exchange and power in social life (2nd ed.). New York: Routledge.
6. Blau, P. M. (1968). Social exchange. International encyclopaedia of the social sciences. International encyclopedia of the social sciences, 7, 452-457.
7. Bogler, R., & Somech, A. (2004). Influence of teacher empowerment on teachers’ organizational commitment, professional commitment and organizational citizenship behaviour in schools. Teaching and teacher education, 20(3), 277-289.
8. Bontis, N., Chua Chong Keow, W., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of intellectual capital, 1(1), 85-100.
9. Byrne, B. M. (2013). Structural equation modeling with AMOS: Basic concepts, applications, and programming (2nd ed.). New York: Routledge.
10. Cavana, R. Y., Delahaye, B. L., & Sekaran, U. (2001). Applied business research: Qualitative and quantitative methods. Milton, Australia: John Wiley & Sons.
11. Chen, G., Kirkman, B. L., Kanfer, R., Allen, D., & Rosen, B. (2007). A multilevel study of leadership, empowerment, and performance in teams. Journal of applied psychology, 92(2), 331-346.
12. Chen, G., Kirkman, B. L., Kanfer, R., Allen, D., & Rosen, B. (2007). A multilevel study of leadership, empowerment, and performance in teams. Journal of applied psychology, 92(2), 331-346.
13. Chen, H. F., & Chen, Y. C. (2008). The impact of work redesign and psychological empowerment on organizational commitment in a changing environment: An example from Taiwan's state-owned enterprises. Public Personnel Management, 37(3), 279-302.
14. Chi, C. G., & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial performance: An empirical examination. International Journal of Hospitality Management, 28(2), 245-253.
15. DuBrin, A. J. (2012). Leadership: Research findings, practice, and skills (7th ed.). Mason, OH: Cengage Learning.
16. Dutta, S., & Manzoni, J. (1999). Process Re-engineering, Organizational Change and Performance Improvement. Berkshire, England: McGraw Hill Publishing Company.
17. Fulford, M. D., & Enz, C. A. (1995). The impact of empowerment on service employees. Journal of Managerial Issues, 7(2), 161-175.
18. Fulford, M. D., & Enz, C. A. (1995). The impact of empowerment on service employees. Journal of Managerial Issues, 7(2), 161-175.
19. Gore, A. (1993). From Red Tape to Results: Creating a Government That Works Better & Costs Less. Report of the National Performance Review. WASHINGTON: ERIC.
20. Griffin, R. W., & Moorhead, G. (2011). Organizational behavior (9th ed.). Mason, OH, USA: Cengage Learning.
21. Hackman, J. R., & Hackman, R. J. (2002). Leading teams: Setting the stage for great performances. Boston, MA: Harvard Business Press.
22. Hair, J. F., Black, W. C., Babin, J. B., & Anderson, E. R. (2010). Multivariate Data Analysis: A Global Perspective (7th ed.). Essex, UK: Pearson Education Limited.
23. Hayes, A. F. (2009). Beyond Baron and Kenny: statistical mediation analysis in the new millennium. Communication Monographs, 76(4), 408-420.
24. Heskett, J. L., Sasser, W. E., & Schlesinger, L. (1997). The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction, and Va
Al-edenat, M., Alhawamdeh, N. (2018). The mediating effect of employee’s loyalty in the relationship between empowerment and employees’ performance: A case from Jordanian SMEs, International Journal of Academic Research in Accounting, Finance and Management Sciences 8 (4): 90-100.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode