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  6. Leadership, Organizational Culture, Empo ...

Journal of Security and Sustainability Issues

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Leadership, Organizational Culture, Empowerment, and Human Relational and Values as Antecedents of Profitability of the Firm
Volume 10, Issue 2 (2020), pp. 749–762
Ni Putu Tirka Widanti   Abdullah Sumrahadi  

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https://doi.org/10.9770/jssi.2020.10.2(30)
Pub. online: 30 December 2020      Type: Article      Open accessOpen Access

Published
30 December 2020

Abstract

The basic objective of the present study is to examine the mediating role of employee loyalty among organizational leadership, organizational culture, employee empowerment, human relational values and profitability of the firm. Moreover, the present study also examined the direct impact of organizational leadership, organizational culture, employee empowerment, human relational values on employee loyalty and the effect of loyalty on profit as well. The researcher used a survey method to collect data from the employees of the cement industry of Indonesia. The valid response rate of the study was 80.5%. For the analysis of the data, the researcher used Smart PLS-3. The findings of the study revealed that organizational culture plays a mediation role between organizational leadership, organizational culture, employee empowerment, human relational values and profitability of the firm. Moreover, loyalty has a significant positive impact on firm profitability and organizational leadership, organizational culture, employee empowerment, and human relational values significantly impact employee loyalty. The present study fills the gap of limited HR studies to enhance organizational profit. The findings of the study are helpful for the policymakers to use these HR strategies to retain customers for a longer period of time.

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Keywords
employee loyalty empowerment profitability organizational culture Indonesia

JEL
M12 M15

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