Unveiling the Influence of Empowerment Leadership on Employee Loyalty: the Mediating Role of Employee Trust and Job Satisfaction

Abstract

This study examines the influence of empowerment leadership on employee loyalty under the mediating roles of employee trust and job satisfaction among medical staff at the private healthcare system. The investigation was conducted by surveying 374 doctors, nurses, and other medical staffs within 19 cities/provinces in the south of Vietnam. The SmartPLS software was used to conduct the partial least squared structural equation modeling (PLS-SEM) technique. The findings from the PLS-SEM analysis reveal that empowerment leadership has a direct positive influence on the employee loyalty to the organization of medical staff as well as a positive impact on intermediate variables such as employee trust and employee job satisfaction. On the other hand, the intermediate variables employee trust and employee job satisfaction also have a positive impact on the employee loyalty toward the organization. This research not only contributes to the existing body of knowledge by evaluating the relationship between employee trust, empowerment leadership, job satisfaction, and employee loyalty but also offers valuable recommendations for the management board of private healthcare organizations in southern Vietnam.