Impact of employee loyalty on job performance: Mediating role of job satisfaction on the example of Zain company, Bahrain

Abstract

The study aims to examine the effect of employee loyalty on job performance in Bahrain. Further, it investigates the mediating effect of job satisfaction on the relationship between employee loyalty and job performance. One hundred two participants employed by Zain company were selected through an online convenience sampling technique. The study chose Zain, a telecommunication company in Bahrain, due to easy access to employees, interest in studying company culture/methods, collaboration opportunities, and Zain’s reputation for innovation. SmartPLS4 was used to investigate potential correlations between employee loyalty and job performance and how job satisfaction indirectly affects employee loyalty and job performance. Findings show that employee loyalty significantly influences job performance and job satisfaction. Further, job satisfaction is significantly associated with job performance. In terms of mediating effect, the study found that job satisfaction significantly influences the relationship between employee loyalty and job performance. Every variable studied had an impact on job performance. As a result, the current study’s hypotheses are all confirmed. The model of the study is well fit, as the R-square is greater than 51%. The main contribution of this study is the insight that job satisfaction is a substantial mediator of the relationship between employee loyalty and job performance. Through theoretical and practical contributions, this study offers valuable implications that might benefit managers at companies, including Zain company, as well as interested readers and researchers.