Antecedents of Perceived Business Performance among Private Business Organizations: A Partial Least Square Approach

Abstract

This study is very important to ensure that business organizations can formulate and plan a strategic plan to continue to ensure that their business performance remains viable and sustainable. The aim of this study is to assess the direct relationships between corporate image, employee engagement, organizational culture, employee loyalty, and business performance among private business organizations. This study is vital to be carried out because many private organizations face difficulty to maintain their business performance in the coming years. The research model of this study consists of three independent variables: corporate image, employee engagement, organizational culture, employee loyalty as a mediator, and business performance as a dependent variable. This study adopts a quantitative approach by using primary data for analysis. Primary data were utilized in this study and a survey questionnaire which was adopted and adapted from previous studies was used for data collection. 329 clean data were used in the data analysis by utilizing the structural equation modeling (SEM) technique. Smartpls3 was used in this study to run the multivariate data analysis and test the proposed hypotheses. In addition, the model measurement and structural model assessment procedures also were performed by using Smartpls3. The PLS-SEM technique was employed for this study due to its assessment ability. Initially, the convergent validity was evaluated on the measurement model by assessing the construct reliability and validity. Then, the discriminant validity was assessed and confirmed through cross-loading and Hetrotrait-Monotrait (HTMT) ratios. Subsequently, the structural model was assessed and the hypotheses testing reveals that corporate image, employee engagement, and organizational culture, have a positive and significant influence on employee loyalty and business performance was strongly affected by employee loyalty. This shows that corporate image, employee engagement, and organizational culture are very important factors and business organizations need to pay serious attention if they want to ensure that the planned business performance can be achieved.