Volume 8, Issue 3, Summer 2019

The Role of Organizational Leadership in Customer Loyalty through Managing Conflict between Employees and Customers

Samad Aali; Abdulhamid Ibrahimi; Vahid Reza Mirabi; Shahram Zare

International Journal of Organizational Leadership, 2019, Volume 8, Issue 3, Pages 1-16
DOI: 10.33844/ijol.2020.60479

The trends in the business world such as the transition to a service-based economy and the development of ICTs have significantly increased the importance of relationship-based loyalty for firms. In line with these changes, a long-term relationship with the customer has become a vital strategy in banking industry. The purpose of this paper is to show the role of organizational leadership in customer loyalty by examining the association between managing conflict, relationship quality and customer loyalty in banking services. In this respect, Agriculture bank of Iran was selected as the target population of the suggested theoretical model of this study and 417 customers of the bank have participated as the statistical samples to achieve the goals of this paper. Samples were selected using simple random sampling and research hypotheses were tested using structural modeling technique and AMOS software. The results showed that the managing conflict has an indirect and positive effect on customer loyalty through relationship quality. Furthermore, the managing conflict had a direct and positive effect on Trust, commitment, and customer satisfaction. In addition, an increase in trust, commitment and customer satisfaction with the bank led to increases in customer loyalty. Findings revealed that the organizational leadership by managing conflict between employees and customers can improve the quality of the customer-company relationship and lead to customer loyalty.

Authentic Leadership and Work Engagement: The Mediatory Role of Employees’ Trust and Occupational Self-efficacy

Syeda Amna Khalil; Danish Ahmed Siddiqui

International Journal of Organizational Leadership, 2019, Volume 8, Issue 3, Pages 17-42
DOI: 10.33844/ijol.2020.60481

This study examines the effect of authentic leadership on employee trust, occupational self-efficacy and work engagement. it also explores the mediating role of employees’ trust and occupational self-efficacy on the relationship between authentic leadership and work engagement. The sample size of this study was 200 employees from different organizations of Pakistan and the quantitative method was used which includes questionnaires with close ended questions. Smart PLS software was used to measure the relationship among variables and different techniques for the analysis were adopted such as SEM Path Analysis and Confirmatory factor analysis. The results indicated a strong relationship among variables and supported that there is a direct and positive relationship between authentic leadership and work engagement and employee trust and occupational self-efficacy act as mediating tool to mediate and strengthen the relationship between authentic leadership and work engagement. This research found a strong and positive relationship among the variables and highlights the vital role that authentic leaders play in motivating employees to bring positive change in employee’s attitude and behavior. The conclusions drawn will help to develop strategies so that the leaders may develop positive traits and workers may perform effectively and efficiently to enhance the productivity of an organization.

Analysis of Product Innovation Performances in Terms of Competitive Strategies of Companies in Production Sector Under the Influence of Technology Orientation

Mehmet Celikyay; Zafer Adiguzel

International Journal of Organizational Leadership, 2019, Volume 8, Issue 3, Pages 43-59
DOI: 10.33844/ijol.2020.60480

Innovation is considered to be one of the most important research areas in the field of science and technology policies in recent years and it is seen as the main driving force of economic growth and welfare increase. In today's competitive global economy, a firm's product innovation capability determines its competitiveness and effectiveness in national or international production and trade networks. Companies that follow a cost leadership strategy can mainly compete at a lower price, which they can do by reducing their costs through efficient resource/production/distribution and scale economies The sustainability of the companies in this competitive environment with sustainable profitability depends on the determination of the competitive strategies to be put into practice and the strategy they implement in the most rational way. In this study, 383 white collar (engineer) employees were surveyed. The factor analysis (explanatory and confirmatory) and reliability analysis of the scales was conducted using SPSS 25 and AMOS Program. The correlation and regression analysis, and sobel and Hayes process tests were performed to examine the effect of mediator variable. The results showed that there is a statistically positive and meaningful relationship between technology orientation and product innovation. In addition, it was found that the cost leadership and differentiation strategies have a mediation effect in this relationship.

The Influence of Corporate Reputation on Affective Organizational Commitment: The Role of Value Congruence as Mediator

Vildan Esenyel

International Journal of Organizational Leadership, 2019, Volume 8, Issue 3, Pages 60-70
DOI: 10.33844/ijol.2020.60482

This study focuses on the relationship between perceived corporate reputation and employees' affective organizational commitment with the mediating role of value congruence between the employee and the organization. A quantitative questionnaire-based survey is used to test the research model with a descriptive approach. The data were collected from employees across multiple private small and medium-sized enterprises and sectors operating in North Cyprus. In order to test the conceptual framework, partial least square (PLS) was used. Some empirical indicators are conducted by using PLS-SEM to examine the reliability and validity of the study. The results revealed that value congruence partially mediates the relationship between perceived corporate reputation and affective organizational commitment. Furthermore, the results showed that perceived positive corporate reputation has a positive impact on affective organizational commitment. This study fills the gap by analyzing the impact of corporate reputation on affective commitment from the employees' perspective. The results led to theoretical and managerial implications related to strategic management.