International Journal of Advanced Research and Publications (2456-9992)

Leadership Trust And Employee Loyalty In Manufacturing Firms In Port Harcourt

Volume 1 - Issue 5, November 2017 Edition
[Download Full Paper]

Author(s)
OTUONYE NKASIOBI, DR. S. A. C. ANYANWU, C. A. NWUCHE (PhD)
Keywords
Employee Loyalty, Leadership Trust, Organizational Culture, Manufacturing Firms.
Abstract
The study investigated the relationship between leadership trust and employee loyalty using Spearman’s Rank Order Correlation Coefficient with organizational culture as the moderating variable in manufacturing firms in Port Harcourt. The study utilized cross-sectional research design and used questionnaire to collect the primary data. Preliminary analysis was performed to ensure no violation of the assumptions of normality, linearity and equality of variance. The results of the analysis revealed that there were strong correlation between the dimensions of leadership trust and the measures of employee loyalty. Consequently, the study recommends the following: That manufacturing firms under study should benchmark, as there are organizations who have proven knowledgeable in the area of leadership trust, manufacturing firms under study should get employees input in taking decisions as it concerns them. Create surveys and give an incentive for the completion of the survey by each employee. Without incentive, most employees might not make effort to complete something they will not realize could prove beneficial to their future.
References
[1] Abdellah, F.G. & Levine, .E. (1979). Better Patient Care through Nursing Research. New York: Macmillan Publishing Co.

[2] Agbese, D. (2010). ‘The Followership as an Accomplice’ Newswatch 4 October, pp.53 – 54

[3] Agresti, A., Wackerly, J. & Boyett, J. (1979). Exact conditional tests for cross-classifications: Approximation of attained significance levels. Psychometrika 44 75-83.

[4] Ahiauzu, .A.I. (2010). Advanced Research Methods in Management Sciences. Lecture Notes for Ph.D Students. RSUST, Port Harcourt.

[5] Akande, A. (2013). Nigeria Industrial Economy at a Full Circle: A look at Five Decades of Industrialization. MIPR Monthly Lecture Series Delivered in the Department of Sociology, University of Ibadan, Ibadan on 28 March.

[6] Aluko, N., (2016). 6 Challenges facing manufacturing in Nigeria & Ghana. accessed from http://kpakpakpa.com/spotlight/challenges-facing-manufacturing-in-nigeria-ghana/
[7] Amah, .E. (2006). Human Resource Management. Port Harcourt, Nigeria. Amethyst and Colleagues Publishers.

[8] Armstrong, M. (2009). A handbook of Personnel Management Practice (10th Edition). London: Kogan Page.

[9] Arnould, E., Price, L. & Zinkham, G. (2002), Consumers, Boston, MA: McGraw-Hill.

[10] Arnold, H. (1982), “Moderator variables: a classification of conceptual, analytical and psychometric issues”, Organizational Behaviour and Human Performance, Vol. 29, pp. 143-74.

[11] Atkins, A. (2014).Building Workplace Trust "Trends and High Performance". Interaction Associates, Boston. Accessed online from: www.interactionassociates.com

[12] Avolio, B.J. Gardner, W. L. Walumbwa, F.O. Luthans, F. & May, D.R. (2004). Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviors. The Leadership Quarterly, 15, 801–823.

[13] Bansal, H.S., and Taylor, S.F. (1999), “The Service Provider Switching Model (SPSM): A Model of Consumer Switching Behaviour in the Service Industry”, Journal of Service Research, 2, 2, 200-218.

[14] Bandyopadhyay, S., & Martell, M. (2007). Does attitudinal loyalty influence behavioral loyalty? A theoretical and empirical study. Journal of Retailing and Consumer Services, 14, 35-44. http://dx.doi.org/10.1016/j.jretconser.2006.03.002

[15] Bryman, .A. & Bell .E. (2003). Business Research Methods. Oxford: Oxford. University Press.

[16] Baridam, .D.M. & Nwibere .B.M. (2008). Understanding and Managing Organizational Behaviour. Port Harcourt: Sherbrooke Associates.

[17] Baridam, .D.M. (2001). Research Methods in Administrative Sciences. Port Harcourt Nigeria: Scherbrooke Associates.

[18] Barling, J., Weber, T., & Kelloway, E. K. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment, Journal of Applied Psychology, 81(6), 827–832.

[19] Boon, S. & Holmes, J. (1991). The dynamics of interpersonal trust: Resolving uncertainty in the face of risk. In Hindle, R. & Groebel, J.(Eds.). Cooperation and Prosocial Behavior, (167- 182). New York: Cambridge University Press.

[20] Bowley, A. L. (1964). Measurements of precision attained in sampling. Bull. Int. Stat. Inst., Amsterdam, v.22, p.1-62.
[21] Britannica, E. (1998). The definition of Loyalty. Retrieved from http://www.web2010.com.marceric/archive/arc3.htm

[22] Burke, C.S. Sims, D.E. Lazzara, E.H. & Salas, E. (2007). Trust in leadership: A multi-level review and integration. The Leadership Quarterly,18, 606-632.

[23] Chaudhuri, A., & Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing, 65(April), 81-93. http://dx.doi.org/10.1509/jmkg.65.2.81.18255

[24] Carpenter, J. M. (2008). Consumer shopping value, satisfaction and loyalty in discount retailing. Journal of Retailing and Consumer Services, 15(5), 358-363. http://dx.doi.org/10.1016/j.jretconser.2007.08.003

[25] Creswell, .J.W. (2003). Research Design: Qualitative, Quantitative and Mixed Method Approaches. (2nd Ed.). London: Sage Publishers.

[26] Cole, .G.A (2002). Personal and Human Resource Management, (5th Ed.), London: Continuum.

[27] Cooper, B. K., Sarros, J. C. & Santora, J. C. (2007). The Character of Leadership. Ivey Business Journal (Improving the practice of management). Accessed from http://iveybusinessjournal.com/publication/the-character-of-leadership/

[28] Chaudhuri, A. & Holbrook, M.B. (2001). The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of Marketing, 65(2), 81-93.

[29] Cheese, P. (2011). Index of Leadership Trust. Institute of leadership & management and management today. London EC1A 9DD.

[30] Choen, W. (2008). Effective Leadership, Leadership Excellence , 25(8), 7.

[31] Charry, K. (2012). Leadership Theories - 8 Major Leadership Theories. Retrieved March 23, 2014 fromhttp://psychology.about.com/od/leadership/p/leadtheories.htm

[32] Charbonneau, D., Barling, J., & Kelloway, E. K. (2001). Transformational leadership and sports performance: The mediating role of intrinsic motivation, Journal of Applied Social Psychology, 31(7), 1521–1534.

[33] Dirks, .K. T. & Ferrin, .D.L. (2001). The Role of Trust in Organizational Settings. Organizational Science. 12, pp.450 – 467.

[34] Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: Meta-analytic findings and implications for research and practice, Journal of Applied Psychology, 87(4), 611–628.

[35] Dick, A.S. and K. Basu, 1994. Customer loyalty:Toward an integrated conceptual framework. J. Acad. Market. Sci., 22: 99-133.

[36] Dooley, L., & O’Sullivan, D. (2001). Structuring Innovation: A Conceptual Model and Implementation Methodology, Enterprise and Innovation Management Studies, 2(3), 177-194.

[37] Dowling, G. (2002), “Customer Relationship Management: In B2C Markets, Often Less Is More,” California Management Review, 44, 3, 87–104.

[38] Dirks & Skarlicki, (2010). Trust in Leaders: Existing Research and Emerging issues, Russel Sage Foundation

[39] Donio, J., Massari, P. & Passiante, G. (2006), „Customer Satisfaction and Loyalty in a Digital Environment: An Empirical Test”, Journal of Consumer Marketing, 23, 7, pp. 445–457.

[40] Dubrin, A. J., Dalglish, C., & Miller, P. (2006). Leadership. Milton: John Wiley & Sons, Ltd.

[41] Eketu, .C.A. (2014). Advanced Research Methods. Lecture Notes for M.Sc Students, Department of Management, University of Port Harcourt.

[42] Ehrenberg, A.S.C. and Scriven, J.A. (1999), “Brand loyalty”, in Earland, P.E. and Kemp, S. (Eds), The Elgar Companion to Consumer Research and Economic Psychology, Cheltenham, UK: Edward Elgar, pp. 53-63.

[43] Frost, T. Stimpson, D.V. & Maughan, M.R.C. (1978). Some Correlates of Trust. Journal of Psychology, 99, 103-108.

[44] Fournier, S. (1998). “Consumers and Their Brands: Developing Relationship Theory in Consumer Research”, Journal of Consumer Research, 24, 3, 343-373.

[45] Fox, .G.L & Royle .M.T. (2014). Human Capital in Service Innovation Strategy. International Journal of Management and Marketing Research: Vol.7 (1) pp.29-47.

[46] Filip, A. & Constantinescu M. (2007), “Retenţia şi loializarea clientelei financiarbancare. Trăsături definitorii, importanţă şi beneficii”, Revista Română de Marketing, 1, 220-238.

[47] Gratton, L., & Erickson, T. J. (2007). Eight ways to build collaborative teams, Harvard Business Review, 85(11), 100–109.

[48] Grojean, M. W., Resick, C. J., Dickson, M. W., & Smith, D. B. (2004). Leaders, values, and organizational climate: Examining leadership strategies for establishing an organizational climate regarding ethics, Journal of Business Ethics, 55(3), 223–241.

[49] Gruca, .T.S. & Rego .L.L. (2005). Customer Satisfaction, Cash Flow and Shareholders Value. Journal of Marketing. Vol. 69 (July), pp.115–130.

[50] Gómez, B.G., Gutiérrez Arranz., A. & Gutiérrez Cillán, J. (2006), “The Role of Loyalty Programs in Behavioral and Affective Loyalty”, Journal of Consumer Marketing, 23, 7, 387–396.

[51] Howell, J. M., & Avolio, B. J. (1993). Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance, Journal of Applied Psychology, 78(6), 891–902.

[52] Hurley, R. F. (2006). Decision to trust. Harvard Business Review, online, 11 pp.

[53] Iqbal, Tufail & Lodhi (2015). Employee loyalty and organizational commitment in Pakistani organizations. Global journal of Human Resource Management (3) 1, pp. 1 – 11.

[54] Jacoby, J, & Chestnut, R.W. (1978), Brand Loyalty Measurement and Management, New York: Wiley.

[55] Jaja, .S.A. (2003). Praxis of Work Behaviour. Lagos: Pinnacle Publishers.

[56] Lamb, R. (2013). How can Managers Use Participative Leadership Effectively? Retrieved March 17, 2014, from http://www.task.fm/participative-leadership.

[57] Luthans, F. Avolio, B.J. Avey, J.B. & Norman, S.M. (2007). Positive Psychological Capital: Measurement and Relationship with Performance and Satisfaction. Published in Personnel Psychology 60, 541–572.

[58] Mayer, D. M., Kuenzi, M., Greenbaum, R., Bardes, M., & Salvador, R. B. (2009). How low does ethical leadership flow? Test of a trickle-down model, Organizational Behavior and Human Decision Processes, 108(1), 1–13.

[59] Morris, R.J. & Martin, C.L. (2000), “Beanie Babies: a Case Study in the Engineering of a High-Involvement/Relationshipprone Brand”, Journal of Product and Brand Management, 9, 2, 78-96.

[60] Musa, R. (2005), „A Proposed Conceptual Framework Of Satisfaction—Attitudinal Loyalty—Behavioural Loyalty Chain: Exploring The Moderating Effect Of Trust”, ANZMAC 2005 Conference: Relationship Marketing (Consumer), 44-51.

[61] Nachmias, .D. & Nachmias .C. (1976). Research Methods in the Social Sciences. London: Edward Arnold.

[62] Naylor, J. (1999). Management. Harlow, England: Prentice Hall.

[63] Nongo, E. S. & Ikyanyon, D. N., (2012). The influence of corporate culture on Employee Commitment to the Organization. International Journal of Business and Management; 7, 22.

[64] Nwibere, .B.M; Emecheta, .B.C; & Chikwe .J.E (2000). Management: An Integrated Approach. Port Harcourt, Nigeria: Davidstones Projects Ltd.

[65] Nunnally, J.C. and I.H. Bernstein, 1994. Psychometric Theory. New York: McGraw-Hill.

[66] O’Brien, (2010). The Three Dimensions of Leadership Trust. WorkChoice Solutions. The Leadership Compass: April, 2010. Accessed from www.workchoicesolutions.com

[67] Okoye, .F. I. (2015). Trust and Employee Affective Commitment: A study of Radio Stations in Rivers State, Unpublished MBA Thesis, Department of Management, University of Port Harcourt, Nigeria.

[68] Ololube, N. P. (2013). Educational Management, Planning and Supervision: Model for Effective Implementation. Owerri: SpringField Publishers.

[69] Oliver, R. (1999), “Whence consumer loyalty?”, Journal of Marketing, 63, 33-44.

[70] Oputa, C.C. (2002). Research Methods and Project/Thesis/Dissertation Writing Guide, (2ndEd).Port Harcourt:Harey Publications Nigeria.

[71] Peloso, A. F. (2004).The Antecedents of the Employee Loyalty-Customer Loyalty Relationship. School of Advertising Marketing and Public relations, Queensland University of Technology.

[72] Pirc, M. (2008). Determinants, Contexts, and Measurements of Customer Loyalty”, Dissertation Paper, Universitatea Pompeu Fabra, Barcelona, Spania//www.tesisenxarxa.net/TESIS_UPF/AVAILABLE/TDX-0505109-123834//tmp.pdf (Retrieved at 13.12. 2012)

[73] Robbins, .S. (2003). Organizational Behaviour, (10th Ed). New York: Pearson Education.

[74] Robbins, .S.P. (2001). Organizational Behaviour. 9th (Ed). New Jersey: Prentice Hall Inc.

[75] Reichheld, F. (1996), Learning From the Customer Defection. Harvard Business School Press.

[76] Reichheld, F. & Teal, T. (1996), The Loyalty Effect: The Hidden Force Behind Growth, Profits, And Lasting Value. Harvard Business School Press.

[77] Ranaweera, C. & Prabhu, J. (2003), „The Influence of Satisfaction, Trust and Switching Barriers on Customer Retention in a Continuous Purchasing Setting”, International Journal of Service Industry Management, 14, 4, 374-395.

[78] Sekaran, .U. (2003). Research Methods for Business, (4th Ed), John Wiley and Sons.

[79] Schieffer, R. (2013). “Face the Nation”, Sunday, September 8.

[80] Schaubroeck, J., Hannah, S. T., Avolio, B. J., Kozlowski, S. W. J., Lord, R. L., Trevino, L. K., et al. (2012). Embedding ethical leadership within and across organization levels, Academy of Management Journal, 55(5), 1053–1078.

[81] Sharabati, A., Jawad, S. & Bontis, N. (2010). Intellectual Capital and Business Performance in the Pharmaceutical Sector of Jordan. Management Decision, 48, 105 – 131, https://doi.org/10.J108/00251741011014481

[82] Sherman, .A.W; Bohlander, .G.W. & Chruden, .H.J. (1988). Managing Human Resources. Cincinnati, Ohio. South Western Pub. Co.

[83] Shukla, P. (2009), “Impact of Contextual Factors, Brand Loyalty and Brand Switching on Purchase Decisions”, Journal of Consumer Marketing, 26, 5,348–357.

[84] Skarlicki, D. P., Folger, R., & Tesluk, P. (1999). Personality as a moderator in the relationship between fairness and retaliation. Academy of Management Journal, 42, 100-110.

[85] Söderlund, M. (2006), „Measuring Customer Loyalty with Multi-Item Scales”, International Journal of Service Industry Management, 17, 1, 76-98.

[86] Sondoh, S. L. (2009), „Brand Image, Satisfaction, and Loyalty Among Malaysian Female Consumers: The Moderating Effects of Personality and Dwelling Area”, doctoral thesis, http://eprints.usm.my/15339/1/ BRAND_IMAGE_SATISFACTION_AND_LOYALTY_AMONG_MALAYSIAN_F MALE_CONSUMERS_HE_MODERATING_EFFECTS_OF_PERSONALITY_AND DWELLING_AREA.pdf (Retrieved at 9.05.2012)

[87] Sotunde, O. B., (2013). Ventures and Business. Ventures Africa. Accessed from http://venturesafrica.com/top-13-nigerian-ceos-2013/

[88] Stacy, A.W., Newcomb, M.D. & Bentler, P.M. (1991), “Personality, problem drinking, and drunk driving: mediating, moderating, and direct-effect models”, Journal of Personality and Social Psychology, Vol. 60 No. 5, pp. 795-811.

[89] Torres-Moraga, E., Va´squez-Parraga E. & Zamora-Gonza´lez, J. (2008), „Customer Satisfaction and Loyalty: Start with the Product, Culminate with the Brand”, Journal of Consumer Marketing, 25, 5, 302–313.

[90] Tschannen-Moran, M. & Hoy, W. K. (2000). A multidisciplinary analysis of the nature, meaning, and measurement of trust. Review of Educational Research, 71, 547-593.

[91] Uncles, M.D., Hammond, K.A., Ehrenberg, A.S.C. & Davies, R.E. (1994), “A Replication Study of Two Brand-Loyalty Measures”, European Journal of Operational Research, 76, 2, 375-384.

[92] Veltri, S. & Silvestri, A. (2011). “Direct and indirect effects of human capital on firm value: evidence from Italian companies”, Journal of Human Resource Costing & Accounting, Vol. 15 (3), pp. 232 – 254, http://doi.org/10.1108/14013381111178596

[93] Walsh, G., Gwinner, K.P. & Swanson, S.R. (2004), “What makes mavens tick? Exploring the motives of market mavens’ initiation of information diffusion”, Journal of Consumer Marketing, Vol. 21 No. 2, pp. 109-22.

[94] Warshaw, P. & Davis, F. (1985), “Disentangling Behavioral Intention and Behavioral Expectation”, Journal of Experimental Social Psychology, 21, 33,213-228.

[95] Weiss, W. (2000). Effective Leadership: What are the Requisites? Supervision, 61(8), 3-6.

[96] Wolinski, S. (2010). Leadership Theories. Retrieved June 14, 2014, from http://managementhelp.org/blogs/leadership/2010/04/21/leadership-theories/.

[97] Yamane, T. (1967). Statistics: An Introductory Analysis, 2nd Edition, New York: Harper and Row.

[98] Yang, J. & Mossholder, K.W. 2010. Examining the effects of trust in leaders: A bases-and-foci approach. Leadership Quarterly, 21, 50-63.

[99] Zeithaml, V., Berry, L. & Parasuraman, A. (1996), The Behavioral Consequences of Service Quality”, The Journal of Marketing, 60, 2, 31-46.