THE IMPACT OF EMPLOYEE COMMITMENT AND LOYALTY ON ORGANIZATIONAL PERFORAMCE: AN EMPIRICAL STUDY FROM THE VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

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THE IMPACT OF EMPLOYEE COMMITMENT AND LOYALTY ON ORGANIZATIONAL PERFORAMCE: AN EMPIRICAL STUDY FROM THE VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

Abstract: Sustainable human resource management is critical for banks as any other organizations.Furthermore, human resource development in an organization must be linked to its performance that remains achallenge for the bankers. Therefore, it is crucial to investigate the relationship between employee commitment,employee loyalty, and banking performance. In this study, we employed the Partial Least Squares-StructuralEquation Model (PLS-SEM) approach to examine our research hypotheses on the abovementioned relationship.We particularly used the data surveyed from 315 employees coming from the Vietnam Bank for Agricultural andRural Development, Binh Thuan branch. The findings confirm that both employee commitment and loyaltyimpact positive on organizational performance. Factors that drive employee commitment include careerdevelopment, belongingness, employee salaries and benefits, co-worker, and work motivation. Overall, wesuggest important managerial implications to the bankers, and others in banking industry in general.

Keywords: Employee commitment; Employee loyalty; Organizational performance; the Partial Least Squares-Structural Equation Modeling; Vietnam Bank for Agriculture and Rural Development

JEL classification: M100, M120, L200, C830

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