The relationship between interpersonal trust, employee satisfaction, employee commitment, leader support and employee loyalty: A study of the employees in an automotive sector in Malaysia

The Malaysian automotive industry was unable to retain employees who are loyal, hence affecting its competitiveness. The objectives of this study were to determine the relationships among interpersonal trust, employee satisfaction, employee commitment
and leader support with employee loyalty. Literature review suggested that trust,
satisfaction, commitment and leader support exist in organizations as a dynamic set of factors, influenced by different surroundings and culture. Six hypotheses were then developed. This study utilized a quantitative research design. An established automotive firm in Malaysia was chosen as the target. The respondents of the study
were the executives of this automotive firm. The executive register of the chosen firm was used as the base. Using stratified random sampling, the study sample was determined as 800 respondents. The research instrument was the survey questionnaire
which was adopted and adapted from past research. The questionnaires were self–administered. From the 800 questionnaires distributed, 361 were returned, giving the study a response rate of 45 percent. For data analysis, the study used multiple regression and correlation methods. The findings of the study had indicated that interpersonal trust influenced leader support; employee satisfaction influenced leader support; employee commitment influenced leader support; and leader support was found to have a significant relationship with employee loyalty. The hypotheses involving the relationships of interpersonal trust, employee satisfaction, employee commitment and employee loyalty were partially supported. One important finding in
this study was that leader support did not mediate the relationships between interpersonal trust, employee satisfaction, employee commitment and employee loyalty. This study contributed theoretically, methodologically and practically to
academicians, professionals and managers in the automotive organization (as well as other organizations). Limitations in the study were highlighted as opportunities for improvement and recommendations were made to take the research to the next level. It was hoped that this study could further enrich the literature in the related research areas and provide more empirical evidence to support the future efforts of professionals and managers in the effective management of their respective organizations.