Örgütsel Davranış Araştırmaları Dergisi
Journal Of Organizational Behavior Research
Cilt / Vol.: 9, Sayı / Is.: 2, Yıl/Year: 2024, Sayfa/Pages: 1-11
2528-9705

https://doi.org/10.51847/fN33v3jKBUSTUDYING THE PATTERN OF EMPLOYEE LOYALTY BASED ON SOCIAL CAPITAL ANDSUSTAINABLE HUMAN RESOURCE MANAGEMENT
Gabriel CACHÓN-RODRÍGUEZ1*, Alicia BLANCO-GONZÁLEZ1, Camilo PRADO-ROMÁN1, Cristina
DEL-CASTILLO-FEITO1
1Department of Business Economics, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain.

*Corresponding Author
E-mail: gabriel.cachon@urjc.es

ABSTRACTIn the management of organizations, the term employee loyalty is utilized as a key to motivating and maintaining employeeswith higher efficiency and has a significant impact on well-being, employee effectiveness, attachment and job satisfaction,and organizational performance. The current study seeks to answer the question of whether sustainable human resource
management can develop employee loyalty through social capital. In this research, a random sampling method was utilized
to select the sample. The sample size in this study was estimated to be 150 people according to Morgan's table. To collectthe desired information and measure the research variables, a standard questionnaire was used. The validity of themeasurement tool has been verified through content, and its reliability through Cronbach's alpha coefficient. Smart Pls
software was utilized to analyze the data. The results of the findings show that human resource management has a direct
effect on social capital. In addition, the results of the path analysis showed that sustainable human resources have asignificant effect on employee loyalty. Research results show that social capital has a direct impact on employee loyalty.
These results can facilitate the improvement of organizations' performance, increase employee satisfaction, and ultimately
help to achieve long-term success.
Keywords: Employee loyalty, Social capital, Human resource management, Well-being, Job satisfaction.

INTRODUCTION
In the management of organizations, the term employee loyalty is utilized as a key to motivating
and maintaining employees with higher efficiency and has a significant impact on well-being,
employee effectiveness, attachment and job satisfaction, and organizational performance.
Enthusiastic employees entirely integrate with the organization and consider the organization as
their personality, consider the success and failure of the organization as their success and failure,strengthen each other in critical and difficult times, cover the weak points of the organizationand take steps towards doing impossible things (Jones & Taylor, 2012; Guillon & Cezanne, 2014;
Osho, 2023).
Employee loyalty is defined as positive, satisfying, and work-related mental states, which are
distinguished by three indicators enthusiasm, dedication, and fascination. Enthusiasm isdistinguished by a high level of mental resilience and energy when working. Devotion refers toa person's intense involvement with meaningful work and experience. Fascination is
distinguished by concentration in work, whereby time passes quickly and it is difficult toGeliş tarihi/Recieved: 06.05.2024 – Kabul tarihi/Accepted: 16.08.2024 – Yayın tarihi/Published: 15.09.2024© 2024 Journal of Organizational Behavior Research. Open Access - This article is under the CC BY NC SA license(https://creativecommons.org/licenses/by-nc-sa/4.0/)

2 Örgütsel Davranış Araştırmaları Dergisi

Journal of Organizational Behavior Research
Cilt / Vol.: 9, Sayı / Is.: 2, Yıl/Year: 2024, Sayfa/Pages: 1-11
separate a person from work (Amjad et al., 2021; Awwad Al-Shammari et al., 2022; NavajasRomero et al., 2022).
Research in the field of management shows that the stability of human resources plays afundamental role in employee loyalty. Man is a unique resource in the organization that has thepower to think, judge, and make decisions and is the designer and implementer of organizational
systems and processes (Abu-Mahfouz et al., 2023; Farmanesh et al., 2023). Considering that all
the activities of an organization depend on how to manage its resources, and human resources
are the main core of all resources and the focus of attention of all managers, especially humanresource managers of the organization, therefore, this human resource should be considered asa valuable factor and Irreplaceable to be managed to develop and strengthen. The discussion ofsustainability in human resource management is a complex concept that includes different
dimensions (Ahn & Kim, 2017; ul zia et al., 2023).
Thom and Zaugg (2004) consider sustainable human resource management as long-term
approaches and activities that emphasize the recruitment, selection, development, andappropriate use of employees in terms of social and economic aspects. In a more comprehensive
definition, Chams and García-Blandón (2019) introduced sustainable human resource
management to identify, select, recruit, train, and develop human resources to achieve the four
goals of the organization, including justice and equality, transparent human resource practices,and employee profitability and welfare.
Today, extensive research has emerged in the field of sustainability and human resource
management, as researchers try to collaborate in interdisciplinary groups in the field ofsustainable human resource management. Also, a wider understanding of the role of humanresource management in creating sustainable and responsible organizations from an economic,
social, and ecological point of view has been created, and the concept of social responsibility has
been emphasized. According to the latest definitions of sustainable human resource
management, it is built around multiple organizational goals, not just commercial. The focus of
this approach is the link between human resource management and sustainability. Sustainablehuman resource management seeks to achieve positive economic, social, human, andenvironmental results at the same time, in the short and long term (Ko et al., 2018; Zhao et al.,2022; Yuwono et al., 2023).
The mediating variable of this research is social capital. Today, Because of the extensive changes
in organizational operations, traditional forms of capital including equipment, buildings, andfinancial resources have been transformed and new capital has been proposed. These intangible
capitals play a big role in the growth of the organization. Among these capitals is social capital.
Unlike human capital or physical capital, social capital is a concept that goes far beyond theassets that a person possesses (Buntornwon, 2019; Pucci et al., 2020). Social capital is considereda suitable platform for the productivity of physical and human capital and a way to achieve
success and improve the performance of organizations and companies. Managers who cancreate social capital in the company pave the way for their career and organizational success.
By using social capital, we can understand why an organization or group moves successfully
and why an organization is on the path of failure.
Social capital emphasizes the cooperation and coordination of human forces of the organizationand the norms that increase cooperation and coordination in the organization. Carefully in the

3CACHÓN-RODRÍGUEZ et al.

definitions of social capital, we will find that this concept relies on and emphasizes concepts
such as trust, cooperation, and mutual relations between members of an organization and group(Basu et al., 2017). Therefore, the current study seeks to answer the question of whether
sustainable human resource management can develop employee loyalty through social capital.
MATERIALS AND METHODSIn terms of purpose, the present research is applied, and in terms of the method of data collection,
it is a correlational descriptive research. In this research, a random sampling method was
utilized to select the sample. This method provides the possibility of a random and unbiased
selection of samples and ensures a more accurate and reliable visualization of the statistical
population. The sample size in this study was estimated to be 150 people to Morgan's table.
In this research, data is collected using two methods library and field collection. The datacollection tool is a questionnaire consisting of two parts. In the first part, the individual
characteristics of the participants and in the second part, the variables of the research were
examined through the standard questionnaire. Sustainable human resources management wasused from the Osranek and Zink (2013) questionnaire with 9 items, employee loyalty from theRodríguez et al. (2019) questionnaire with 3 items, and finally social capital from the Nahapiet
and Ghoshal (1998) questionnaire with 9 items. In this research, validity was measured andconfirmed using the opinions of experts and university professors. In this way, after the final
design of the questionnaire, the original version was sent to these experts and they gave theiropinion. Cronbach's alpha method, which is an internal consistency index, was used to measure
the reliability of the tool.
In the data analysis part, the structural equation modeling technique was used using 3 smart pls
software to check the conceptual model of the research. Smart LS systems are used in the field of
data analysis and Structural Equation Modeling (SEM). As one of the common tools in data
analysis and evaluation of research models, Smart PLS offers unique capabilities.
RESULTS AND DISCUSSION

Findings Structural Equations
In this study, structural equation modeling was utilized with the help of PLS Smart software andthe partial least squares method to test the assumptions and accuracy of the main model. The
advantage of using this method is that this technique does not rely on the assumption of
normality of the population as well as the sample size. The structural equation model is divided
into two general phases: path analysis and confirmatory factor analysis. In PLS models, twomodels are tested: 1. The external model, which is equivalent to the measurement model, in
which the relationship between the indicators or the questions of the questionnaire with theconstructs is checked through the factor loadings of the observed variables, and 2. The internal
model is similar to path analysis in structural equation models.

Significance Coefficient Test
The significance coefficients of the hypotheses show the research models in the significance stateof the coefficients (t-value). This model practically tests all equations for measuring structural
equations (path coefficients) and factor loads using t-statistics. Based on the type of hypotheses4 Örgütsel Davranış Araştırmaları Dergisi

Journal of Organizational Behavior Research
Cilt / Vol.: 9, Sayı / Is.: 2, Yıl/Year: 2024, Sayfa/Pages: 1-11
expressed in the current research, naturally, the hypotheses will be approved when the relevant
path coefficient is positive and its significant number, which is the same as the t statistic, issignificant. Based on this model, the factor loading and path coefficient is significant at the 95%
confidence level if the value of the t statistic falls outside the range (-1.96 to +1.96) and if thevalue of the t statistic falls within this range, as a result, the path coefficient or load Factor is not
significant. The coefficient of path and factor loading is significant at the confidence level of 99
if the value of the statistic is outside the range (-2.58 to +2.58). Figures 1 and 2 show factor
loading values and significant coefficients for the questions of each variable.

Figure 1. Confirmatory factor analysis (factor loading) for the whole model.

Figure 2. Analysis of significant coefficients (t-values) for the entire model.

5CACHÓN-RODRÍGUEZ et al.

Confirmatory Factor Analysis
Confirmatory factor analysis is utilized to measure the validity and reliability of the measurement
scale. In confirmatory factor analysis, certain hypotheses about standardized loading and mutual
correlations between variables are tested. In confirmatory factor analysis, the closer the factor
loading is to one, it means that the questionnaire questions have a lot of relationship with thevariables, and if the standard factor loading is 0, it means there is no relationship between thequestionnaire question and the variable. The final results of the confirmatory factor analysis areshown in Table 1. Factor loadings higher than 0.4 have good validity.
Table 1. Confirmatory factor analysis of questionnaire items.
Objects

Factor load

Objects

Factor load

Objects

Factor load

Q1

0.686

Q9

0.621

Q17

0.685

Q2

0.622

Q10

0.680

Q18

0.884

Q3

0.695

Q11

0.732

Q19

0.884

Q4

0.634

Q12

0.727

Q20

0.860

Q5

0.693

Q13

0.679

Q21

0.515

Q6

0.665

Q14

0.699

Q22

0.894

Q7

0.768

Q15

0.461

Q23

-

Q8

0.702

Q16

0.591

Q24

-

According to Table 1, all the obtained numbers for factor loadings higher than 0.4 have good
validity.

Cronbach's Alpha, Convergent Validity, and Composite Reliability
Cronbach's alpha is a classic index for reliability analysis. This index provides an estimate forreliability according to the internal correlation of the indicators, and the appropriate value for
it is greater than 0.7. To determine reliability, there is another criterion that brings benefits over
the traditional method of calculating it by Cronbach's alpha, and it is called composite reliability(CR). The superiority of composite reliability over alpha is that the structure's reliability is not
calculated in absolute terms, but based on the correlation of their structures with each other. In
addition, for that, indicators with higher factor load are vital. As a result, both criteria are utilized
to better measure reliability. For the reliability of the composite, a value above 0.7 is suitable.
Convergent validity is another criterion that is applied to fit measurement models in the
structural equation modeling method. Fornell and Larker have introduced the use of AVE(Average Variance Extracted) as a measure of convergent discretion; the criterion that isdisplayed for desirability (AVE) is higher than 0.5. Table 2 shows the above values for thevariables.

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Journal of Organizational Behavior Research
Cilt / Vol.: 9, Sayı / Is.: 2, Yıl/Year: 2024, Sayfa/Pages: 1-11

Variable

Average
explained
variance (AVE ≥0.5)

Compositereliability (CR ≥0.7)

Cronbach's alpha(Alpha ≥ 0.7)

The coefficient ofdetermination(R2)

Predictive power
factor (Q2)

Table 2. Research model fit criteria.

Sustainable human resources
Social capital
Employee loyalty

0.536
0.518
0.652

0.874
0.823
0.811

0.801
0.785
0.741

0.791
0.907

0.539
0.758

According to Table 2, all the numbers obtained for Cronbach's alpha coefficient are higher than0.7, for the combined reliability coefficient higher than 0.7, and for the average combined
variance is also higher than 0.5, which indicates the fit of the model at a favorable level.

Structural Model Evaluation
After measuring the reliability and validity of the measurement model, the structural model wasstudied through the relationships between the variables. In this article, three criteria of
significance coefficient (t-values), coefficient of determination (R2), and coefficient of predictive
power (Q2) are used. The first criterion of structural model fit is significant coefficients. These
coefficients for the implemented model are shown in Table 3. Based on this, most of thesignificant coefficients are bigger than 1.96, which shows the significance of the relationships
between the variables at the 0.95% confidence level. The results obtained from the structuralmodel analysis in Table 2 show the criterion (R2) for the endogenous variable of the researchmodel. The results of this criterion show that, according to Chin, the fit of the structural model
was generally good. In addition, to check the predictive power of the model, a criterion under
the title (Q2) has been analyzed. For this purpose, considering the results of this criterion in
Table 2, it can be stated that the model has a high, moderate, and good predictive power. Finally,
for the general fit of the model, a measure called GoF has been used. Considering that thementioned criterion is equal to 0.530, therefore, according to the results, the overall fit of themodel is strongly confirmed.

Testing Research Hypotheses
After checking the fit of the measurement and structural model and having the proper fit of themodels, we will examine and test the research hypotheses. The standardized coefficients of thepaths related to each of the hypotheses, the results of the significant coefficients for each of the
hypotheses, and the results of the hypothesis testing are presented in Table 3.
Table 3. The results of statistical tests of research hypotheses.
Conceptual model
relationships
Sustainable humanresourcesPatht statisticcoefficientSocial capital

0.890

Result52.840 Confirmed

7CACHÓN-RODRÍGUEZ et al.
Conceptual model
relationships
Social capital
Conceptual model
relationships

Through the role ofmediator

Employee loyalty

0.743

15.461 Confirmed

Employee loyalty

0.229

4.468

Confirmed

Employee loyalty

0.324

8.751

Confirmed

The results of the findings show that human resource management has a direct effect on social
capital. Human resource management has direct effects on social capital in organizations. These
direct impacts are manifested through measures and strategies implemented by the HR
department, particularly in areas such as employee communications, professional development,
and creating a positive work culture. One of the main ways that human resource management
has a direct impact on social capital is communication between employees. Human resource
management strategies that encourage and promote effective communication in theorganization can create positive and reciprocal relationships between employees. These effective
connections can lead to the sharing of knowledge and experiences, facilitate the performance ofgroup tasks, and strengthen the sense of belonging to a work community, all of which are
effective in building social capital. In addition to communication, attention to the professional
development of employees is also an important factor in the direct impact of human resource
management on social capital. Facilitating opportunities for training and career growth canincrease the skills and abilities of employees, which ultimately leads to the strengthening of social
capital and communication of employees. In general, research shows that human resource
management through communication strategies, professional development, and creating a
positive work culture have a direct impact on the social capital of organizations (Stankevičiūtė
& Savanevičienė, 2018; Piwowar-Sulej, 2021; Järlström et al., 2023). These direct effects canhelp strengthen communication among employees, create an atmosphere of trust and belonging
to the organization, and ultimately strengthen employee loyalty.
The results of the findings show that human resource management has a direct effect on
employee loyalty. In these studies, the positive and significant effects of human resource
management on creating and strengthening employee loyalty are observed. Human resource
management strategies and measures that improve working conditions, professional
development, promotion of participation, and encouraging employee commitment lead tostrengthening the relationship of loyalty between employees and the organization. Human
resource management is closely related to increasing employee loyalty by creating training andprofessional development programs, increasing career growth opportunities, and creating a
positive work culture. By improving the skills and capabilities of employees, they are encouraged
to feel a deeper connection and belonging to the organization, which ultimately leads toincreased loyalty and commitment to the organization. In summary, research results emphasizethat human resource management has a direct and significant impact on employee loyalty
through the use of strategies that improve working conditions, and professional development,
and create a positive work culture (Mohiuddin et al., 2022; Apostu & Gigauri, 2023; PiwowarSulej et al., 2024).
These results emphasize the importance of human resource management measures in creating
positive relationships with employees and creating sustainable relationships between them and8 Örgütsel Davranış Araştırmaları Dergisi

Journal of Organizational Behavior Research
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the organization. Research results show that social capital has a direct impact on employee
loyalty. In these studies, observations show that there is a close and positive relationship betweensocial capital and employee loyalty. Social capital includes relationships between employees,
relationships between groups, and a sense of belonging to the organization, which is directly
related to employee loyalty. Effective communication in organizations increases social capital.
Creating opportunities for interaction and encouraging the sharing of knowledge andexperiences strengthens social capital and creates creative connections among employees. These
connections can gradually strengthen the feeling of close connection and belonging to theorganization, which will increase employee loyalty to the organization (Boon et al., 2019; Azizi
et al., 2021). Research shows that social capital has a direct impact on employee loyalty bycreating effective communication and strengthening the sense of belonging to the organization.
This result is consistent with the research of Liang et al. (2020).
CONCLUSION
The current study seeks to answer the question of whether sustainable human resource
management can develop employee loyalty through social capital. The results of the findings
show that human resource management has a direct impact on social capital. In addition, theresults of the path analysis showed that sustainable human resources have a significant effect on
employee loyalty. Research results show that social capital has a direct impact on employee
loyalty. These results can facilitate the improvement of organizations' performance, increase
employee satisfaction, and ultimately help to achieve long-term success.
ACKNOWLEDGMENTS: None
CONFLICT OF INTEREST: None
FINANCIAL SUPPORT: None
ETHICS STATEMENT: None
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