THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND EMPLOYEE LOYALTY: A STUDY OF ABC COMPANY IN CHINA
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This study investigated the relationship between organizational culture and employee loyalty at ABC Company, a tool-making enterprise in China. The research employed total population sampling, inviting all 129 employees to participate, and utilised a structured questionnaire as the primary instrument. The questionnaire assessed four types of organizational culture—power-oriented, role-oriented, achievement-oriented, and support-oriented—together with employee loyalty, measured on a 5-point Likert scale. Reliability testing confirmed internal consistency, with Cronbach’s alpha values exceeding 0.70 for all constructs. Data were analysed using multiple regression analysis. The findings revealed that organizational culture significantly influences employee loyalty. Support-oriented culture exerted the strongest positive effect on loyalty (ß = 0.2994, p = 0.005), while role-oriented culture demonstrated a modest positive effect (ß = 0.0622, p = 0.005). Conversely, power-oriented culture (ß = -0.1254, p = 0.030) and achievement-oriented culture (ß = -0.1825, p = 0.037) negatively affected loyalty. The regression model accounted for 45.6% of the variance in employee loyalty (R² = 0.456). These results suggest that supportive and structured organizational cultures enhance employee commitment, whereas an excessive emphasis on power and achievement may diminish loyalty. The study provides practical implications for managers in the machinery parts industry, underscoring the importance of fostering a positive organizational environment to strengthen employee loyalty and ensure sustainable organizational success.
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