Knowledge Of State-owned Enterprise Employees Loyal Formation Mechanism And Enhance The Mechanism

In the era of knowledge economy, with the much intensified market competition, knowledge workers have become the most important assets for state-owned enterprises. To foster and improve employee loyalty is the necessary strategy for state-owned enterprise to achieve sustainable development. Therefore, how to cultivate and improve employee loyalty has increasingly become the research focus for academic circles and business management circles. Previous researches paid attention to the qualitative discussion on the meaning, influencing factors and countermeasures to improve knowledge worker's loyalty, however, it is rarely to see empirical studies on employee loyalty's concept, contents, antecedents and consequences according to specific circumstances.Employee loyalty is generally referred to a long-term, reciprocal process in which employees identify with organizational culture and values, with a sense of belonging to an organization, take the initiative to sacrifice themselves for the organization, and aim to achieve both organizational goals and their own values.The core purpose of this study is to empirically test the formation and improvement mechanism of knowledge workers' loyalty in state-owned enterprises, seven main parts are included in this study to achieve this purpose: the contents, the antecedents, the consequences, the mediation effects, and the demographic differences of employee loyalty, the evaluation mechanism and the improvement mechanism of employee loyalty degree. For these purposes, this study uses literature review, interview, and questionnaire survey methods based on the principles of the combination of qualitative and quantitative analysis, and the combination of normative and empirical research.The conclusions, distinctions and innovations are shown below:First, based on literature review, interview and plenty of questionnaire survey, this study achieves the combinations of qualitative and quantitative analysis, and empirical and normative research, not only explores what is employee loyalty, why employee loyalty forms, but also proposes how to formulate an incentive and restraint mechanism to improve the degree of employee loyalty. The innovation of this research focuses on the application of structural equation modeling to specific researches. 536 valid questionnaires replied by knowledge workers from 15 stated-owned enterprises in 8 cities, were used to make exploratory factor analysis, confirmatory factor analysis, 2-order factor analysis, full model and non-parametric tests by using SPSS13.0 and LISREL8.52 software; in addition, the game theoretical analysis of loyalty relationship between employees and enterprises was carried out, all these empirical tests contribute to the study on employee loyalty's formation and improvement mechanism in a clear and scientific way. The reliability and validity of employee loyalty scale are high enough to meet the requirements of psychometrics. This empirical study, with the help of structural equation model, strengthens the persuasion of its conclusions, expands the scope and depth of employee loyalty research. In addition. it provides a new, feasible and effective research method, which will provide favorable reference for subsequent researches.Second, the definition of employee loyalty is updated, and thecontents of employee loyalty is empirically tested. Employee loyalty isnot a completely new concept. This study aims to explore and provide thenew conceptation of knowledge workers' loyalty through in-depthinterview and specific research. This study empirically tests the contents,the antecedents, the mediation effects, the demographic differences ofemployee loyalty, and the evaluation mechanism of employee loyaltydegree, which systematically discloses the formation of employee loyalty.This study has important theoretical value, that is, it not only enrichesemployee loyalty theories and provides favorable reference for futurestudies, but also provides evidence for sustainable developmentmanagement practice of state-owned enterprises. This study empiricallytests the contents of knowledge workers loyalty in China's state-ownedenterprises, which consist of 5 factors: identify with organizationalculture, be willing to dedicate to work and sacrifice, develop professionalcapabilities, maintain interpersonal harmony and concern aboutorganizational performances. More important, employee loyalty is a2-order factor for the 5 factors, among which developing professionalcapabilities is the starting point and the driver to be loyal employees;concerning about organizational performances is the key convergingpoint of employee goals and organizational goals: while identifying withorganizational culture. maintaining interpersonal harmony, and be willing to dedicate to work and sacrifice are the important guarantees for improving organizational performances. The interactive relationship among 5 factors of employee loyalty enriches employee loyalty theories, which provides a sound base for exploring employee loyalty's formation, and offers a new perspective for the cultivation and improvement mechanism of knowledge workers' loyalty in state-owned enterprises.Third, this study empirically tests the antecedents and the consequences of employee loyalty. Different from the previous researches, this study adds two antecedent variables, faith in peers and faith in management. It shows that, as for the two individual influencing factors of employee loyalty, the positive emotion trait has a significant positive impact on the maintenance of interpersonal harmony, while the internal control trait has a significant positive impact on the development of professional capacity. Among the organizational influencing factors of employee loyalty, collectivism culture has a significant positive impact on the 5 factors of employee loyalty; organizational justice has a significant positive impact on the willingness of dedicating to the work and sacrifice, identifying with organizational culture, and concerning about organizational performance; perceived organizational support has a significant positive impact on the development of professional capabilities; faith in management has a significant positive impact on the willingness to dedicating to work and sacrifice; organizational justice has a significant indirect and positive impact on the development of professional capabilities through perceived organizational support and faith in colleagues; organizational justice has a significant indirect andpositive impact on the willingness to dedicating to work and sacrificethrough faith in management; and faith in management has a significantpositive impact on the perceived organizational support; The researchperspectives, from individual and organizational levels, replenish theresearch on the antecedents of employee loyalty. This, of course, providesa new perspective for the cultivation, promotion and integration researchon employee loyalty, and provides valuable reference for the recruitmentand development of human resources management practices. This studyempirically also tests the consequences of employee loyalty. The effectsof different demographic variables on the 5 factors of employee loyaltyshow that, the demographic variables, such as sex, age, marital status,education level, work types, have significant different impacts on the 5factors of employee loyalty. Apart from the two commonly studiedconsequence variables, job satisfaction and turnover intention, thisresearch adds two consequence variables, work performance andsupervisory support. It shows, job performance and supervisory supporthave significant positive impact on job satisfaction; job satisfaction has asignificant positive impact on turnover intention; the development ofprofessional capabilities has a significant positive impact on supervisorysupport; identifying with organizational culture has significant positiveimpacts on supervisory support and satisfaction; the maintenance ofinterpersonal harmony and concerning about organizational performanceshave significant positive impact on work performance: the willingness to dedicating to the work and sacrifice has a significant positive impact on work performance and turnover intention. This research not only comprehensively reflects the influences of employee loyalty on individuals and organizations, more important, it deeply and greatly discloses the values of employee loyalty on them.Fourth, the study explores the mediation effects of employee loyaltywith the help of structural equation modeling. It shows that, the 5 factorsof employee loyalty play different mediation roles among the otherorganizational influencing factors and consequences. Apart from nomediation effects of employee loyalty between collectivism culture andjob satisfaction, faith in peers and work performance, faith in peers andjob satisfaction, faith in management and work performance.organizational justice and work performance, organizational justice andjob satisfaction, organizational justice and supervisory support. Thisresearch further integrates the relationship among employee loyalty, itsorganizational antecedents and its consequences, deeply delves into theformation mechanism of employee loyalty, and greatly enriches employeeloyalty theories.Fifth, with the application of structural equation model, the evaluation of employee loyalty degree is carried out, and an incentive and restraint mechanism to improve employee loyalty is constrcuted. Based on the evaluation results of organizational influencing factors. calculate the theoretical value of employee loyalty, and then, based on the evaluation results of the 5 factors of employee loyalty, calculate the actual value of employee loyalty, compare these two figures, if the actual valueis higher than the theoretical one, it implies a higher degree of employeeloyalty; or vice verse. This research provides a relatively feasible andeffective method for the evaluation of employee loyalty degree, whichhas valuable reference for the decision-making on selection andpromotion of knowledge workers in state-owned enterprises. And thisstudy shows, employees and enterprises will fall into Prisoner's Dilemma(no loyalty, no trust) in a complete information static game. The coldstrategy in an infinitely repeated game can help employees andenterprises getting out of Prisoner's Dilemma. The reputation motivationin a limited times repeating game helps to induce employee to work withhigh degree loyalty. This provides a new perspective for the improvementof employee loyalty. This study finally constructs an incentive andrestraint mechanism to improve employee loyalty, which includes: theremuneration-based fundamental security mechanism, the organizationalculture-based long-term incubation mechanism, the organizationaljustice-based long-term guarantee mechanism, the interpersonalcommunication-based long-term maintenance mechanism, the careerdevelopment-based dynamic upgrading mechanism, and theorganization's internal competition-based effective driving mechanism.This research sets up an improvement mechanism for employee loyalty ina relatively scientific and systematic way, and this is the integration andsublimation of the whole dissertation, which is of much importantpractical value, and provides rational evidence, scientific directions and feasible methods for business loyalty management practice.In sum, this study not only provides important theoretical value which enriches and expands employee loyalty theories, knowledge worker's management theories and organizational behavior theories, but also has important practical value which offers positive implications on loyalty management, especially proposes the feasible and valuable reference for the loyalty-based knowledge workers' management in state-owned enterprises.