The Structural Equation Model of Leadership Affecting Employee Loyalty in Company A’s Tourism Service Business through Organizational Support and Internal Communication as Moderating Variables
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Abstract
This research aimed to (1) examine the levels of leadership, organizational support, internal communication, and employee loyalty, and (2) study the structural equation model of leadership affecting employee loyalty through organizational support and internal communication as moderating variables. This is a quantitative study. The research instrument used was a questionnaire, and data were collected from a sample of 500 employees working in the tourism service sector of Company A under concept of Comrey and Lee (1992). The sample was selected using probability sampling and simple random sampling methods. The statistical tools used in this research included mean, standard deviation, coefficient of variation, and structural equation modeling (SEM) analysis using the ADANCO 2.7 software.
The research findings revealed that: (1) The overall level of the variables used in the study was at a high level (4.04, S.D.=.549). Specifically, leadership, organizational support, internal communication, and employee loyalty had mean scores of 4.04, 3.99, 4.07, and 4.06, respectively, with standard deviations of .584, .533, .526, and .553, respectively, and (2) The structural equation model demonstrated that leadership influences employee loyalty in the tourism service business of Company A through organizational support and internal communication as mediating variables. The total empirical influence (TE), ranked from highest to lowest, was internal communication (TE=0.858), organizational support (TE=0.812), and leadership (TE=0.803). This implies that internal communication plays a more significant role in employee performance in the tourism service business of Company A than leadership and organizational support. Therefore, the company should enhance communication methods to improve effectiveness, ensuring clarity in employee operations. Furthermore, effective communication must result from both organizational support and leadership.
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