Journal of Human Resource Management

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The Impact of Employee Loyalty on the Success of Commercial Organizations: A Case Study on the Dealerships of Heavy Equipment in Iran

Received: 06 March 2015    Accepted: 22 May 2015    Published: 05 June 2015
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Abstract

Nowadays, regardless of what industry they are in, all organizations and managers are vigorously pursuing success, and the basic touchstone to achieve success in any organization, particularly a commercial organization, is having satisfied and loyal customers. Nonetheless, this ideal condition would never be met unless the organization enjoys a team of loyal staff. That is to say keeping satisfied and loyal customers will only be feasible in case of having satisfied and loyal staff, seeing that it is the latter who play the key role in conferring value to the organization and earning the loyalty and consent of the former. This study aimed at evaluating the role of employee loyalty in the success of commercial organizations in the field of heavy equipment dealerships. To this end, data was collected through library resources as well as a survey. The sample was comprised of 280 employees of heavy equipment dealerships and 280 customers who had referred to these dealers. This study involved 7 hypotheses, which were analyzed and checked through Pearson Correlation Coefficient and Regression. The findings show that organizational successful directly affected by loyalty of staff. Besides, positive correlations were reported between employee loyalty and services quality, between services quality and customer satisfaction and loyalty as well as between customer satisfaction and loyalty and success of organizations.

DOI 10.11648/j.jhrm.20150303.12
Published in Journal of Human Resource Management (Volume 3, Issue 3, June 2015)
Page(s) 27-32
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Customer Loyalty, Employee Loyalty, Organizational Success, Service Quality

References
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[2] Boltanski, L., & Chiapello, E. (2001). Le nouvel esprit du capitalisme. Revue Francaise de Sociology , 42 (1), 171-176.
[3] Daboeian, M., & Gharechi, M. (2012). Employee Loyalty Interacy with Customer Loyalty. Modern Marketing Research (3), 27-46.
[4] Dadkhah, M. R. (2010). Customer Orientation. Tehran, Iran: Shahr Ashoob. [In Persian]
[5] Davidhizar, R., & Shearer, R. (1998). Rewarding with dignity. Hospital materiel management quarterly , 20 (2), 84-89.
[6] Graham, B. W. (1996). The business argument for flexibility. HR Magazine , 41 (5), 104.
[7] Gronholdt, L., & Martensen, A. (2001). Linking Employee Loyalty, Customer Loyalty and Profitability. Proceedings of the 6th World Congress for Total Quality Management, (pp. 332-339). Saint Petersburg.
[8] Guillon, O., & Cezanne, C. (2014). Employee loyalty and organizational performance:a critical survey. Journal of Organizational Change Management , 27 (5), 839-850.
[9] Guzman, M., Rodriguez, B., & Manautou, P. (n.d.). The Link between Customer Satisfaction and.
[10] Heskett, J. L., Jones, T. O., Loveman, G. W., Earl Sasser, W., & Schlesinger, L. A. (1994). Putting the Service-Profit Chain to Work. Harvard Business Review , 72 (2), 164-174.
[11] Ineson, E. M., Benke, E., & Laszlo, J. (2013). Employee loyalty in Hungarian hotels. International Journal of Hospitality Management , 32, 31-39.
[12] Jung, H. S., & Yoon, H. H. (2013). The effescts of employee satisfaction on customers satisfaction and Loyalty in a family resturant. International Journal of Hospitality Management , 34, 1-8.
[13] Kaplan, R. S., & Norton, D. P. (2008). Strategy- Focused Organization: how balanced scorecard companies thrive in the environment. (P. Bakhtiari, Trans.) Tehran, Iran: Industrial Management Organization. [In persian]
[14] Kavoosi, M. R., & Saghaee, A. (2010). Methods for Measuring Customer Satisfaction. Tehran, Iran: Ame. [In Persian]
[15] Najafbagy, R. (2010). Change Management: A Glance at Iran Public Administration. Tehran, Iran: Science and Research Branch, Islamic Azad University. [In Persian]
[16] Pourezat, A. A., Ehsanimoghadam, N., Yazdani, H. R., & Faez, K. (2013). Comparative Analyze of the Impact of Several Dimensions of Organizational Justice on Organizational Climate and Organizational loyalty: (A Research on an IT Based Organization). Public Administration Journal , 5 (13), 65-88. [In persian]
[17] Robbins, S. P. (2012). Organiational Behavior. (A. Parsayan, & M. A'arabi, Trans.) Tehran, Iran: Cultural Research Office. [In Persian]
[18] Saboori, S. (2014, July 6). Retrieved from http://www.managementportal.ir/2607. [In Persian]
[19] Spinelli, M. A., & Canavos, G. C. (2000). Investigating the Relationhip between Employee Satisfaction and Guest Satisfaction. Cornell Hotel and Resturant Administration Quarterly , 41 (6), 29-33.
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Author Information
  • Department of Business management, Science and Research Branch, Islamic Azad University, Tehran, Iran

  • Department of Public management, Science and Research Branch, Islamic Azad University, Tehran, Iran

  • Department of Health Services management, Science and Research Branch, Islamic Azad University, Tehran, Iran

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  • APA Style

    Shahram Nasiri, Reza Najafbagy, Amir Ashkan Nasiripour. (2015). The Impact of Employee Loyalty on the Success of Commercial Organizations: A Case Study on the Dealerships of Heavy Equipment in Iran. Journal of Human Resource Management, 3(3), 27-32. https://doi.org/10.11648/j.jhrm.20150303.12

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    ACS Style

    Shahram Nasiri; Reza Najafbagy; Amir Ashkan Nasiripour. The Impact of Employee Loyalty on the Success of Commercial Organizations: A Case Study on the Dealerships of Heavy Equipment in Iran. J. Hum. Resour. Manag. 2015, 3(3), 27-32. doi: 10.11648/j.jhrm.20150303.12

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    AMA Style

    Shahram Nasiri, Reza Najafbagy, Amir Ashkan Nasiripour. The Impact of Employee Loyalty on the Success of Commercial Organizations: A Case Study on the Dealerships of Heavy Equipment in Iran. J Hum Resour Manag. 2015;3(3):27-32. doi: 10.11648/j.jhrm.20150303.12

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  • @article{10.11648/j.jhrm.20150303.12,
      author = {Shahram Nasiri and Reza Najafbagy and Amir Ashkan Nasiripour},
      title = {The Impact of Employee Loyalty on the Success of Commercial Organizations: A Case Study on the Dealerships of Heavy Equipment in Iran},
      journal = {Journal of Human Resource Management},
      volume = {3},
      number = {3},
      pages = {27-32},
      doi = {10.11648/j.jhrm.20150303.12},
      url = {https://doi.org/10.11648/j.jhrm.20150303.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jhrm.20150303.12},
      abstract = {Nowadays, regardless of what industry they are in, all organizations and managers are vigorously pursuing success, and the basic touchstone to achieve success in any organization, particularly a commercial organization, is having satisfied and loyal customers. Nonetheless, this ideal condition would never be met unless the organization enjoys a team of loyal staff. That is to say keeping satisfied and loyal customers will only be feasible in case of having satisfied and loyal staff, seeing that it is the latter who play the key role in conferring value to the organization and earning the loyalty and consent of the former. This study aimed at evaluating the role of employee loyalty in the success of commercial organizations in the field of heavy equipment dealerships. To this end, data was collected through library resources as well as a survey. The sample was comprised of 280 employees of heavy equipment dealerships and 280 customers who had referred to these dealers. This study involved 7 hypotheses, which were analyzed and checked through Pearson Correlation Coefficient and Regression. The findings show that organizational successful directly affected by loyalty of staff. Besides, positive correlations were reported between employee loyalty and services quality, between services quality and customer satisfaction and loyalty as well as between customer satisfaction and loyalty and success of organizations.},
     year = {2015}
    }
    

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    AU  - Shahram Nasiri
    AU  - Reza Najafbagy
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    AB  - Nowadays, regardless of what industry they are in, all organizations and managers are vigorously pursuing success, and the basic touchstone to achieve success in any organization, particularly a commercial organization, is having satisfied and loyal customers. Nonetheless, this ideal condition would never be met unless the organization enjoys a team of loyal staff. That is to say keeping satisfied and loyal customers will only be feasible in case of having satisfied and loyal staff, seeing that it is the latter who play the key role in conferring value to the organization and earning the loyalty and consent of the former. This study aimed at evaluating the role of employee loyalty in the success of commercial organizations in the field of heavy equipment dealerships. To this end, data was collected through library resources as well as a survey. The sample was comprised of 280 employees of heavy equipment dealerships and 280 customers who had referred to these dealers. This study involved 7 hypotheses, which were analyzed and checked through Pearson Correlation Coefficient and Regression. The findings show that organizational successful directly affected by loyalty of staff. Besides, positive correlations were reported between employee loyalty and services quality, between services quality and customer satisfaction and loyalty as well as between customer satisfaction and loyalty and success of organizations.
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