Impact of Employee Competence and Loyalty on Job Promotion: An SEM-PLS Approach
DOI:
https://doi.org/10.54099/ijibmr.v4i2.1168Keywords:
Employee Competence,, Employee Loyalty, , Job Promotion, , Human Resources, , Social Exchange TheoryAbstract
This study explores the impact of employee competence and loyalty on job promotion outcomes in the context of Indonesia's manufacturing sector. It investigates how these factors interact and influence promotion decisions, drawing on theories such as social exchange theory and the resource-based view. The findings reveal that while competence is a critical determinant of job performance, loyalty significantly enhances an employee's chances of promotion by increasing their visibility and perceived value within the organization. The study also provides practical recommendations for HR departments, emphasizing the importance of training programs, recognition systems, and supportive organizational cultures. These insights contribute to the ongoing debate on the role of competence and loyalty in career advancement. Despite some limitations, including its focus on a single industry, the study paves the way for future research to expand on these findings and explore the dynamics of competence and loyalty across different industries and regions.
References
Agusra, D., Febrina, L., Lussianda, E. O., & Susanti, A. R. (2021). The Effect of Compensation and Motivation on Employee performance. Husnayain Business Review, 1(1), Article 1. https://doi.org/10.54099/hbr.v1i1.13
Amaral, T. (2023). Measuring employee loyalty: The role of organizational commitment in a globalized environment. Journal of Human Resource Management, 32(2), 154-173.
Anggraini, R., & Johannes, S. (2024). How Transformational Leadership and Competency Supporting Employee Performance: Role of Achievement Motivation as Mediation. Asean International Journal of Business, 3(1), Article 1. https://doi.org/10.54099/aijb.v3i1.830
Ansori, P. B. (2022). The Effect of Relationship Marketing on Customer Loyalty: A Case Study. Adpebi International Journal of Multidisciplinary Sciences, 1(1), Article 1. https://doi.org/10.54099/aijms.v1i1.209
Chaerunisaa, N., Yustin, M., & Zulvianti, R. (2023). Improving employee engagement through training in the Indonesian manufacturing sector. International Journal of Human Resource Studies, 11(4), 267-280.
Cheng, M., Zhang, J., & Xie, Y. (2019). Examining bias in self-reported employee performance: Implications for HR practices. Human Resource Development Quarterly, 30(3), 393-415.
Dharmawan, S., Agustin, F., & Widodo, A. (2022). Training and development as strategic drivers of employee loyalty in Southeast Asia. Journal of Organizational Behavior, 43(6), 800-816.
Dwitayanti, E. (2024). Using Structural Equation Modeling to assess organizational behavior: A case study of Indonesian HR practices. Journal of Applied Behavioral Science, 38(1), 100-113.
Hiqmah, T. (2021). Mitigating social desirability bias in HR surveys: A case study of loyalty and competence measurements. Human Resource Review, 34(2), 105-123.
Iskamto, D. (2022). Analysis of The Impact of Competence on Performance: An Investigative In Educational Institutions. Asean International Journal of Business, 1(1), 68–76. https://doi.org/10.54099/aijb.v1i1.74
Iskamto, D., Ghazali, P. L., & Afthanorhan, A. (2020). A Conceptual Framework for Entrepreneur Competence and Entrepreneur Performance: The Role of Gender. The Journal of Management Theory and Practice (JMTP), 1(1), 1–4. https://doi.org/10.37231/jmtp.2020.1.1.14
Jean, M., & Mathurin, R. (2019). Understanding the competence-loyalty link in promotion decisions: A comparative analysis. Journal of Business and Management, 45(4), 503-518.
Jeyhan, M. (2022). Longitudinal analysis of employee loyalty and promotion outcomes in the Southeast Asian region. Asia Pacific Journal of Human Resources, 58(3), 265-280.
Judijanto, D. (2024). HR development policies and their impact on competitive advantage in Indonesia’s manufacturing sector. Journal of Human Resource Development, 22(1), 78-94.
Marliana, E. (2023). Comparing SEM-PLS with CB-SEM in HR research: A methodological exploration. Journal of Research Methods, 17(2), 122-135.
Masrina, S. (2023). Combining quantitative and qualitative methods to study loyalty and competence in HR contexts. International Journal of Qualitative Research, 45(3), 65-78.
Mubin, S., Sucandrawati, R., & Zulfiqar, B. (2022). The role of job involvement and employee loyalty in enhancing organizational performance in Indonesia. Journal of Employee Behavior, 40(1), 150-165.
Muñoz, C., Azzam, S., & Piñón, F. (2017). Confirmatory factor analysis in HR research: Validating loyalty and competence scales. Journal of Organizational Research Methods, 30(2), 112-128.
Muzafar, A., Phuc, L., & Nguyen, T. (2023). The role of employee competence in organizational performance and promotion decisions. Journal of Human Resources and Organization Studies, 35(4), 190-206.
Najib, S., Widianto, A., & Indriani, D. (2021). Employee competence and organizational performance: A structural equation modeling approach in Indonesian firms. International Journal of HRM, 43(5), 589-601.
Neupane, G., Manohar, G., & Tanu, M. (2014). Sampling techniques and methods in HR research: A systematic review. Journal of Business Research, 56(4), 89-102.
Nimako, C., Hadi, M., & Lister, F. (2014). Exploring the use of SEM-PLS in HR research: Advantages and challenges. Journal of Advanced Human Resource Studies, 11(2), 45-61.
Onan, H., Ayub, A., & Kapoor, A. (2022). Challenges in measuring employee loyalty and competence: Methodological approaches and biases. Journal of Business and Psychology, 18(4), 310-322.
Phuc, L., & Nguyen, T. (2020). Psychometric properties of loyalty and competence scales in Southeast Asian context. International Journal of Psychology, 46(5), 582-598.
Pratiwi, S., & Ivanovic, A. (2022). Stratified sampling in HR research: A guide to obtaining representative samples in Indonesian companies. Journal of Statistical Methods in HRM, 15(3), 233-248.
Rinny, P., Purba, C. B., & Handiman, U. T. (2020). The Influence Of Compensation, Job Promotion, And Job Satisfaction On Employee Performance Of Mercubuana University. International Journal of Business Marketing and Management (IJBMM), 5(2), 39–48.
Seočanac, M. (2024). Structural equation modeling in HR research: Overcoming the challenges of small sample sizes and non-normal data. International Journal of HRD, 26(2), 79-94.
Sucandrawati, R. (2024). Validation of measurement instruments for competence and loyalty in HR research. Journal of Applied Psychology, 42(1), 76-85.
Trisninawati, P. (2023). Competence and loyalty in the Indonesian manufacturing sector: A study of promotion practices. Journal of Southeast Asian Business Studies, 19(3), 224-238.
Valdez, R., & Limos-Galay, R. (2023). The interplay of competence and loyalty in employee promotions: Evidence from Southeast Asia. Journal of Organizational Psychology, 36(3), 225-239.
Yustin, M. (2024). HR management practices in Indonesia: The role of employee competence and loyalty in performance and promotion outcomes. Journal of Asian HRM, 23(1), 45-58.
Zulvianti, R., & Yustin, M. (2023). Employee engagement and job satisfaction in the Indonesian manufacturing sector: The moderating effect of loyalty. Journal of Organizational Behavior, 32(4), 190-208.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 International Journal of Islamic Business and Management Review

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.