Effect of Organizational Culture On Empl

Nigerian Journal of Management Technology & Development
ISSN: 2006-1676 Volume 9, Number 2 December, 2018
Effect of Organizational Culture on Employee Loyalty among

University Non-Academic Staff
1Muhammad Bello Jakada & 2Alkasim Hussaini
1Department of Actuarial Science, Federal University, Dutse, Nigeria
Corresponding author: [email protected]
2Department of Business Administartion, Federal University, Dutse, Nigeria
[email protected]
Abstract
Employee loyalty is increasingly becoming a matter of concern to the organizations. It is clear that
employee disloyalty like turnover, leads to the frequent recruitment, training and development which in
turn add cost to the organizations. However, organisational culture could help improve employees’
feelings toward the organisation by stimulating employees’ attachment with the organisation, unanimity
of purpose, loyalty, and organizational commitment which in turn, lessen employees’ propensity to leave.
This study examined the effect of organizational culture on employee loyalty among university non-
academic staff of Kano University of Science and Technology Wudil (KUSTW), Nigeria. The study is
quantitative in nature and used survey research design. 242 employees were conveniently selected.
Regression analysis technique was used through SPSS version 20. The study found that organizational
culture significantly influences employee loyalty. Similarly, the study found that bureaucratic culture
significantly influences employee loyalty whereas supportive culture and innovative culture do not have
significant effect on employee loyalty. It is therefore recommended that the management of KUSTW
should focus and concentrate more resources on bureaucratic culture.
Keywords: Organisational culture, employee loyalty
Background to the Study: However, despite the immense importance of

Employee loyalty is increasingly becoming a employee loyalty to the efficiency of the
matter of concern to the organizations. It is clear organisations, until recently, employee loyalty
that employee disloyalty, like turnover, leads to did not attract much philosophical attention
the frequent recruitment, training and (Kleinig, 2013).
development which in turn add cost to the Loyal employee identified, involved, and
organizations. An employee that stays long in an committed him/herself to the organization. A
organization is much familiar with the loyal employee has certain attributes; less likely
organizational goals, objectives, organizational to look for work elsewhere, expects to stay with
culture and operational guidelines, and what the the organization both in the short and long-term,
organization is expected from its employee. This would recommend working for the organization
in turn increases efficiency, high performance to others; proud to be working with the
and reduces supervision and counseling as well organization, is interested in doing his best and
as cost of employing supervisors and make an extra effort when required, develop
counselors by the organization. On the other strong relations to the organization, temporary
hand, employees that are not loyal find it difficult dissatisfaction with the job is accepted, is
to stay long in the organization, they are looking interested in improving his own performance,
and willing to find a better offer, this keeps them and offers suggestions for improvement (Anne
distracted, causes lack of concentration on their & Grønholdt, 2006).
job, decrease in performance, and when they Every organization has certain cultures in terms
leave they add extra costs of replacement of rules, policies, assumptions and ethics that
(Mehta, Singh, Bakhar & Sinha, 2010). guide the conduct of its employees within the
©JOMATECH Publication of Faculty of Management Sciences ATB University, Bauchi. Page | 145
organisation. These cultures evolved over time vacancies; the research students used the
whether consciously nurtured or by default. opportunity and made some preliminary survey
Organisational cultures are set of dominant core on the interviewees on the tendency to
values espoused by an organization which organizational loyalty. 14 out of 18 (about 78%)
determine organizational activities ranging from people that were asked about whether they are
deciding what products get manufactured to how working somewhere confirmed with yes. This
workers at various levels are treated (Deal & signifies the trend of employees’ disloyalty in
Kennedy, 1982). Organizational culture affects Nigeria in relation to intent to leave their
various outcomes related to employees and organisations and thus the issue that prompted
organizations (Adeleke, 2016) such as this research work.
employee behavior, learning and development,
creativity and innovation (Saeed & Hassan, 2.0 Literature Review
2000; Ahmed, 1998) and performance (Tseng, 2.1 Organizational Culture
2010). In addition, organisational culture helps Culture is an old perceived concept that
improve employees’ feelings toward the received attention from many scholars,
organisation, because organisational culture particularly anthropologists and industrial
stimulates employees’ attachment with the psychologists. According to Hofstede (2011)
organisation, unanimity of purpose, loyalty, and culture is the collective programming of the mind
organizational commitment which in turn, lessen that distinguishes the members of one group or
employees’ propensity to leave (Robbins & category of people from others. However,
Judge, 2013). Amazing organisational culture researches on the subject of organizational
could be a fantastic way to cultivate employee culture and its effect on other organizational
loyalty (Wells, 2017). Organizational culture variables became widespread during 1980s
encourages employee to demonstrate positive (Adelekan, 2016) which witnessed a boom in
behavior through commitment by developing research on impact of organizational culture on
willingness of employee to stay in the employees and organizations performance
organization (Wibawa, Troena & Noermijati, (Lund, 2003). Lincon and Doerr (2012) defined
2014), and guides the organization (regardless culture as the reflections of value, beliefs,
of the type of the organisation) towards the norms, ideologies that emerges spontaneously
attainment of its objectives. Thus, organizational within a group or community in similar forms but
culture is an important construct to universities consciously devised by one group or stratum for
that can help them towards achieving their the purpose of influencing the thinking of others.
ultimate goal of effective teaching and learning. Schein (2010) defined organizational culture as
However, employee disloyalty is still a global beliefs, assumptions, and values that members
phenomenon. According to the American of a group share about rules of conduct,
Management Association (AMA) declining leadership styles, administrative procedures,
employee loyalty is the culprit of 80% of ritual and customs. Organizational culture was
employee disengagement, 84% of low morale, seen as something that is holistic, historically
and 80% of turnover (Wells, 2017). Employee determined (by founders or leaders), related to
disloyalty is still at high and thus an issue of things anthropologists study (like rituals and
concern in Nigeria in particular. A recent study symbols), socially constructed (created and
indicated that employee turnover remained preserved by the group of people who together
pervasive in Nigeria such that most employees form the organization), soft and difficult to
working in Small and Medium Enterprises change (Abu-Jarad, Yusof, Nor’Aini & Nikbin,
(SMEs) are leaving their jobs within a year of 2010). Organizational culture is a flexible system
employment (Sayinbola & Ilman, 2017). because they change by external and internal
Similarly, recently, a Federal University in surroundings. Organizational culture is an
Nigeria called for an interview for available important construct that affects both individual
and organizational related process and 2.1.3 Bureaucratic culture

outcomes (Adelekan, 2016). Bureaucratic culture oriented organizations are
One of primary function of organizational culture those organisations that valued formality, rules,
is coordination of internal systems and standard operating procedures, and hierarchical
processes, thus strong organizational culture coordination (Hofstede, 2011). These forms of
reflects the corporate and employee abilities in organisations have much more concern on
adapting each other, having high consensus in standard rules of doing things; formalities are
holding values, ethic, norms, and vision (Decker, adhered to base on bureaucracy and
2014). According to (Kaplan & Norton, 2004) standardized measure of performance. The
shaping the organizational culture is an often organization’s rules and processes are clearly
cited priority in balanced scorecard projects, just spelled out and employees deemed it as their
as often, culture is viewed as the humanizing duty to go by the book and adhere to the
element of corporate business, which helps to processes (Mullins, 2010). Bureaucratic cultures
establish expectations between an employee are power-oriented, regulated, procedural and
and the organization, foster trust, facilitate hierarchical. The work is organized, systematic
communications, and build commitment. and well spelled out. Bureaucratic culture is
2.1.2 Supportive Culture hierarchical and compartmetalized, there are
Supportive culture may be defined as an clear lines of responsibility and authority, work is
organization climate that is based on mutual organized and systematic, and this culture is
trust between the individual and the organization usually based on control and power (Yiing,
(Harrison & Stokes, 1992). In such 2008). Such organizations are stable, cautious,
organizations, people are valued as human usually mature, power-oriented, established,
beings and are not just cogs in a machine. This solid, regulated, ordered, structured, procedural
culture centers on warmth and love and it makes and hierarchical (Yiing, 2008). However, even
people want to come to work in the morning, not though bureaucratic culture does not seem
only because they like their work but also encouraging to innovation and attractive to
because they care for their colleagues. creative and ambitious employees, most public
Employees contribute towards the organization organisations in developing countries like
through sense of commitment and belonging Nigeria adhere to it. The reasons could be
and tend to have a personal stake in the traced to the fact that most of these public
organization. Schein (2010) believed that organisation enjoyed monopoly advantage and
supportive culture like rewarding and are non-profit oriented.
compensation, communication, training and 2.1.4 Innovative Culture
growth opportunities as well as supervisory Innovation is the application of resources to
support are conservative force for employee job create value for the customer and the
satisfaction which in turn can lead to loyalty. organisation by developing, and improving
Thus, culture of every modern organisation existing products, processes and services
should be supportive but limited to certain (Greenberg & Baron, 1995). Innovative culture
conditions (Schein, 2010). Supportive culture is a set of procedures, processes and behavior
exhibits teamwork and people-oriented, that leads to improving the general atmosphere
encouraging, trusting work environment: people in the organization and activating the creative
are generally friendly, fair and helpful to each performance through motivating employees to
other, open, harmonious, trusting, safe, solve problems and take decisions in a more
equitable, sociable, relationships-oriented, creative and unusual way of thinking (Al-
humanistic, collaborative, and likened to an salaymeh, 2013). Innovative culture helps to
extended family (Yiing, 2008). steer the employees of the organization towards
creativity and problem solving. Therefore,
innovative culture helps organisations to
building a proactive and entrepreneurial loyal employees. Yee, Yeung & Edwin Cheng
organization (Johannessen, Olsen & Lumpkin, (2010) found that, employee loyalty significantly
2001). Organizational innovative culture affects company’s profitability through service
enables idea generation, risk taking and quality, customer satisfaction and customer
collaboration of ideas among employees loyalty. Loyal employees help in the growth and
(Karlsson, 2010) and enhances employee sustainability of a company and reduces
attitudes and behaviors (Odom, Boxx & Dunn, company’s financial strain and saving on
1992) by empowering employees to be more investment in the recruiting process of new
creative. Thus, human resource practices, employees. Gaining employee loyalty is not a
organizational structure, and organizational one-time task; it requires constant care which
culture have impact on the innovative culture. metamorphoses into mutual relationship
For example, in organisations where formalities building (Eldred & Madden, 2011).
are strictly adhered to, innovative culture could
not be fostered. 2.3 Relationship between Organizational
Culture and Employee Loyalty
2.2. Concept of Employee Loyalty The relationship between organizational culture
Employee loyalty has received the attention of and employee loyalty is becoming strong
many scholars in an attempt to determine what because employees turnover leads to
it actually meant. As the set of definitions recruitment, training and development which in
continue to expand, it becomes increasingly turn add cost to the organizations. An employee
difficult to determine exactly what is meant by that stays long in an organization is much
loyalty and how it should be measured. This familiar with the organizational goals, objectives
leads to contradictory findings about the and operational guidelines and what the
presence or absence of loyalty in organizations organization is expected from its employee; this
and makes it more difficult to identify loyalty's increases efficiency and high performance and
antecedents and outcomes (Coughlan, 2005). In reduces the cost and burden of supervision and
recent years, definitions of loyalty have centered counseling. Similarly, some studies established
on employees not harming their colleagues or a relationship between organizational culture
the firm that employs them. For example, Dooley and employee loyalty. Ericsson (2018)
and Fryxell, (1999) described loyalty as concluded that organizational culture makes
disinclination toward opportunism. Employee employees stay loyal in an organisation. Kwakye
loyalty is an employee's feeling of attachment to (2018) reported that bureaucratic culture, clan
an organization (Hirschman, 1970). Thus, culture and entrepreneurial culture have
loyalty can be described as disinclination significant influence on employee turnover. Minh
towards opportunism (Dooley & Fryxell, 1999). Thu and Doan Khoi (2018) concluded that
Kleing (2013) defined loyalty as a practical organizational culture has a strong impact on
disposition to persist in an intrinsically valued employee loyalty in Vietnam. Madueke and
(though not necessarily valuable) associational Emerole (2017) found a significant positive
attachment, where that involves a potentially relationship between innovative culture and the
costly commitment to secure or at least not to employee commitment. Alvi, Hanif, Adil, Ahmed
jeopardize the interests or well-being of the and Vveinhardt (2014) reported that supportive
object. culture and bureaucratic culture have significant
The long term success of any company depends effect on employee commitment.
heavily upon the quality and loyalty of its people
(Keiningham & Aksoy, 2009). Loyal employees 2.4 Empirical Literature Review
are assets to an organization, and their retention Ericsson (2018) studied organizational culture
is key to its success. Upon this importance, and employee loyalty in IKEA, Sweden. Semi
employers need to be able to identify and retain structured interview was used for data collection
and 13 employees participated in the study. The employee loyalty in Vietnam. Omoregbe and
study found that organizational culture makes Umemezia (2017) examined organizational
employees engaged to achieve the company’s culture and employee performance in the
objectives and stay loyal to the company. Nigerian banking sector. Systematic sampling
Kwakye (2018) examined organisational culture and convenient sampling techniques were used
and employee turnover: evidence from Ghana. and 392 employees participated in the study.
203 respondents were conveniently selected to Ordinary Least Squares (OLS) was used for
participate in the study and regression analysis data was analysis. The study concluded that
was used for data analysis. The study found that leadership style, employee training, work
bureaucratic culture significantly influences process, employee commitment have positive
employee turnover. Niguse and Hirpesa (2018) effect on employee performance.
studied the effects of organizational culture on Jiddah, Rayyan and Umar (2016) studied the
organizational commitment: the mediating role impact of organizational culture on employee
of job satisfaction, in Oromia Forest and Wild performance in Nigeria. Ordinary least square
Life Enterprise, Ethiopia. 315 employees (OLS) simple regression method of analysis was
participated in the study and data was analysed used for data analysis. The study concluded that
using structural equation modeling. The study employee involvement, consistency, and
found that bureaucratic culture, innovative organizational mission have significant effect on
culture, and supportive culture have direct effect employee performance. Mochklas and dan
on organizational commitment. Suwitho (2016) studied the influence of
Inanlou and Ahn (2017) examined the effect of leadership style, organizational culture, work
organizational culture on employee motivation employee loyalty in Indonesia. 229
commitment: a mediating role of human employees participated in the study. The study
resource development in South Korean. The reported that organizational culture significantly
study used secondary data (panel data) and influences employee loyalty.
regression analysis was used for data analysis. Asiedu (2015) examined supportive
The study found that organizational culture, in organizational culture and employee job
particular communication among superiors and satisfaction: a critical source of competitive
subordinates trust, and appreciation of advantage in selected banking company in
innovation from superiors, is positively related to Oxford, United Kingdom. 70 questionnaires
organizational commitment. Madueke and were distributed using random sampling
Emerole (2017) examined organizational culture technique. The study found that employees
and employee retention of selected commercial within the company were not motivated enough
banks in Anambra State, Nigeria. The entire to perform better due to lack of rewarding
population of the study of 35 employees culture, growth opportunities (training) culture,
participated in the study and Pearson product communication and supervisory supportive
moment correlation was used for data analysis. culture.
The study found that there is a significant Alvi et al (2014) examined the impact of
positive relationship between innovative culture organizational culture on organizational
and the employee commitment in commercial commitment and job satisfaction in Pakistan.
banks. Convenient sampling technique was used and
Minh Thu and Doan Khoi (2017) examined the 303 employees constituted the sample size of
effectiveness of corporate culture to employee’s the study. Regression technique was used for
loyalty at Lilama 7 Joint Stock Company in data analysis. The study found that supportive
Vietnam. 320 employees were conveniently culture and bureaucratic culture have significant
selected and regression analysis was used for effect on employee job satisfaction and
data analysis. The study concluded that commitment whereas innovative culture was
organizational culture has a strong impact on found to have insignificant effect on employee
job satisfaction and commitment. Decker (2014) 200 employees were selected. Descriptive and
examined the role of organizational culture on inferential statistics were used for data analysis.
spiritual leadership, human capital, and The study found that significant relationship
employee loyalty in Indonisea. Simple random exists between organizational culture and
sampling technique was used and 291 nurses employees' commitment in public tertiary
were selected. The study concluded that institutions in Lagos State.
organizational culture does not influence However, from the review of these literatures,
employee loyalty in Indonesia. Ojo (2014) three things can be inferred which gave room for
studied organisational culture and corporate this study to come in. firstly, literatures reported
performance in commercial banks in Nigeria. conflicting conclusions on the effect of culture on
Stratified sampling technique was used and 80 employee loyalty. For example, studies by
employees participated in the study. Parametric Wibawa et al (2014) and Decker (2014)
t-test was used for data analysis. The study concluded that organizational culture does not
concluded that organisational culture plays a influence employee loyalty. On the other hand,
vital role in the performance of an organisation. studies by Ericsson (2018) and that of Thu and
Wibawa, Troena and Noermijati (2014) Doan Khoi (2018) concluded that organizational
examined the role of organizational culture on culture has a strong impact on employee loyalty.
spiritual leadership, human capital, and The incongruity could be as a result of the fact
employee loyalty in Indonesia. Random that organisations vary in terms of culture
sampling technique was adopted and 291 adapted and practiced. Some organisations
employees participated in the study. Structural adapted and focused on external or pragmatic
equation modeling was used for data analysis. cultures that flexibly focused on consumer
The study concluded that organizational culture needs and result oriented. These types of
does not influence employee loyalty directly. organizational cultures do not directly have
Falemu and Ojo (2013) examined organisational influence on employee loyalty as internal
culture, job satisfaction and commitment of stakeholders since they give more emphasis on
Lagos-based construction workers in Nigeria. achieving results. In addition, employees differ
176 employees participated in the study and in terms of the type of organizational culture they
percentile, mean score and spearman rank cherish. This justifies the need to test the direct
correlation methods were employed for data effect of organizational culture on employee
analysis. The study concluded that there is a loyalty based on another totally different
significant correlation between organisational location, organisation and set of individuals. This
culture and job satisfaction and commitment of location gap is addressed by this study.
construction workers. Secondly, the model construct of this study is
Emeka and Philemon (2012) examined the another gap to be filled by this study. Based on
impact of organizational culture on employee the literatures reviewed supportive,
performance in selected manufacturing industry bureaucratic, and innovative cultures were to the
in Enugu, Nigeria. Stratified and random best knowledge of the researchers never been
sampling techniques were used and 100 used simultaneously as proxies of
employees participated in the study. Chi-square organizational culture to examine the effect of
was used for data analysis. The study found that organizational culture on employee loyalty.
there is a positive relationship between Thirdly, it could be inferred from the literature
organizational culture and employee that, even though many studies on
performance. Sola, Femi and Kolapo (2012) organizational culture were carried out in Nigeria
examined organisational culture and (e.g. Ojo 2014; Omoregbe and Umemezia 2017;
employees’ commitment in public tertiary Jiddah et al 2016; Falemu and Ojo 2013; Emeka
institutions in Lagos State, Nigeria. Simple and Philemon 2012; Sola at el 2012;) however,
random sampling technique was adopted and none of these studies, to the best knowledge of
the researchers used employee loyalty as proxies/dimensions; supportive culture,

dependent variable. Therefore, having bureaucratic culture and innovative culture. The
employee loyalty as dependent variable in the DV is employee loyalty. This hypothesized
model construct of this study is another relationship model will be underpinned by
contribution of this research work. McClelland’s achievement motivation theory.
Thus based on the review of the literatures and The theory was developed by McClellend in
the gap to be filled by the study, three 1961 and proposes that people have three basic
hypotheses were formulated for testing: motivational needs which influence their
H1: Supportive culture has no effect on behaviour. The first one is need for power.
employee loyalty among university non- These set of people love to influence and control
academic staff of KUSTW. others, therefore generally seek for leadership
H2: Bureaucratic culture has no effect on position. Thus these type of individuals could do
employee loyalty among university non- well in bureaucratic culture set ups. The second
academic staff of KUSTW. one is need for affiliation. Individuals with a high
H3: Innovative culture has no effect on need for affiliation usually derive pleasure from
employee loyalty among university non- being loved, they are friendly and enjoy
academic staff of KUSTW. compassionate relationship. Thus, this type of
individuals will fare well in supportive culture set
2.5 Conceptual Frame Work ups. The third and last is need for achievement.
The model of the study is formulated based on This set of people enjoyed pleasure from
direct relationship between the independent competitive success, they are ambitious and
variable (IV) and dependent variable (DV). The result oriented. This type of individuals thrived
IV is organizational culture which is multi- well in innovative culture.
dimensional and measured through three
Figure 2.1: Research Model

Independent Variable
Supportive Culture
Dependent Variable
Bureaucratic Culture Employee

Loyalty
Innovative Culture
Source: Literature review
3.0 Methodology in Nigeria where you will find some employees

This research work is quantitative and uses are on leave, some went out for field work, some
cross sectional survey research design. The on maternity or sick leave etc., the study adopts
population of the study consists of the entire 635 convenience sampling technique. In this case
(as at 2017) non-academic staff of KUSTW. The any employee found on his table and willing to
sample size for the study is 242 based on participate in the study was given the
Krejcie and Morgan (1970) scientific approach questionnaire.
table of determining sample size. However, Data for this research work was collected using
because of the nature of work of public servants questionnaire. The questionnaire has 35 items
which were divided into 3 sections. Section one instrument has 3 dimensions (innovative culture,
contained 5 items on demographic information, supportive culture, and bureaucratic culture)
section two contained 6 items on employee and each dimension has 8 items. The
loyalty, section three was spilt further into three instrument was adapted from the work of Chen
sub-sections: 8 items on supportive culture, 8 (2004) and five point Likert scale from 1 strongly
items on bureaucratic culture, and 8 items on agreed to 5 strongly disagreed was adopted.
innovative culture. The research instrument was used by some
Cronbach alpa was used to determine the previous studies (e.g. Alvi et al 2014;
reliability of the instrument. A reliability of 0.818, Geldenhuys 2006; Chen 2004).
0.880, and 0.870 were recorded for bureaucratic Employee loyalty was measured using six items.
culture, innovative culture, and employee The instrument was developed by Coughlan
loyalty, respectively. These reliabilities are very (2005). The instrument was developed based on
good because a reliability of between .80 to .95 the justification that most existing measures of
is generally considered very good (Zikmund, employee loyalty either ignore or minimize its
Barbibn, Carr & Griffin, 2010). An alpha of 0.629 moral basis. The instrument has six items and
was recorded for Supportive Culture. This five point Likert scale was adopted.
reliability is fair and acceptable because a
reliability of between .60 to 70 is considered fair 4.0 Results and Discussions
and acceptable (Hair Jr, Black, Babin & Out of the 242 questionnaires distributed, 234
Anderson, 2014: Zikmund et al, 2010). valid responses were received (96.6% valid
response). 73% of the respondents are male
3.1 Measurement of Variables and 27% are female, majority of the respondents
Organisational culture is a complex construct to (60.7%) are between the age of 20-39, and
measure and capture all its characteristics in 39.3% are 40yrs and above. Similarly, 62.4% of
single instrument. Jung, Scott, Davies, Bower, the respondents have first degree and above
Whalley, McNally, and Mannion (2007) while 53.2% of the respondents have working
identified 70 instruments on organizational experience of `between 0 to 10yrs.
culture and poised that no single instrument can Multiple regression analysis was used
be considered as ideal for exploring culture. for data analysis. However, before regression
They argued that the appropriateness of analysis is run the data should be subjected to
organizational culture instrument is dependent certain basic assumptions of normality, linearity,
on multiple factors such as research context and homoscedasticity, multicollinearity, and
question(s), the underlying aim, and the independence of error term. The data of the
resources available. This study adapted study was subjected to these assumption tests
organisational culture index (OCI) instrument and satisfied all the conditions.
developed by Wallach (1983). The research
Table 4.1: Model Summary

Model R R Square Adjusted Std. Error of Change Statistics Durbin-
R Square the Estimate Watson
R Square F Change df1 df2 Sig. F
Change Change
1 .447a .200 .190 3.51480 .200 19.186 3 230 .000 2.383
a. Dependent Variable: Employee Loyalty
Table 4:1 determines whether the construct of organizational culture accounts for 20%
the model of the study is fit and can successfully variation in employee loyalty.
predict variation in the dependent variable (DV). These values signified that the model is
R shows the coefficient correlation of .447 statistically significant at predicting the variation
(44%). Adjusted R2 is .200 which indicates that in the DV (employee loyalty).
Table 4.2: ANOVA

Model Sum of Df Mean F Sig.
Squares Square
Regression 711.060 3 237.020 19.186 .000b
1 Residual 2841.384 230 12.354
Total 3552.444 233
a. Dependent Variable: Employee Loyalty
Similarly, Table 4.2 provides statistical test for 19.185 at sig = 0.000 which is less than the
the overall model fit in terms of F-ratio (Hair Jr et typically used value of 0.05 (Hair et al, 2014).
al, 2014) and the ability of the model to This indicates that, the model is statistically
statistically predict the behavior of the DV. The significant at predicting the variation in the DV
result in the table shows that, the F-value is (Employee loyalty).
Table 4.3 Coefficients

Standardized Collinearity
Unstandardized Coefficients Coefficients Statistics
Model Beta Std. Error Beta t Sig. Tolerance VIF
1 (Constant) 6.064 1.004 6.037 .000
Supportive
.178 .098 .128 1.814 .071 .790 1.266
culture
Bureaucratic
.454 .111 .354 4.082 .000 .462 2.163
culture
Innovative
.040 .097 .035 .419 .676 .492 2.031
culture
a. Dependent Variable: Performance
Table 4.3 measures the contribution of each Standardized beta (β) tells more on variation in
independent variable (Supportive Culture, the DV accounted for by the independent
Bureaucratic Culture, and Innovative Culture) in variable (Field, 2009) and enable researchers
predicting the DV (Organizational Culture). The to determine which independent variable
table tests the hypotheses of the study as to particularly account for more variation in the DV
whether to accept the hypotheses or reject (Zikmund et al, 2010). Therefore, most
them based on slope coefficient (t-test) and a researchers frequently explained regression
low p-value (p<0.05). T-value tells whether the result by referring to β (Zikmund et al, 2010).
predictor is making a significant contribution to When the β value is positive, the relationship is
the model based on type 1 error i.e. p<0.05: the also positive and a negative β value represents
greater the t-value (with p<0.05) the better the negative relationship. T-value on the other
contribution of predictor variable (Field, 2009). hand, tells whether the predictor is making a
significant contribution to the model based on mostly used threshold value of .05 for social
type one error i.e. p<0.005 (Field, 2009). sciences. The statistical insignificant
Hypothesis one which states that supportive relationship could be explained by strict
culture has no significant effect on employee adherence to bureaucratic processes,
loyalty among non-academic staffs of Kano particularly conformity to hierarchy and rules
University of Science and Technology, Wudil is and regulations, in public institutions in Nigeria.
accepted. The t-value is 1.814 at confidence Public institutions are traditionally seen mostly
level of .071 (p-value is .071) which indicates as unreceptive to innovation (Laegreid,
that the p-value is more than the typically Roness, & Verhoest, 2009) and thus not seem
accepted level of .05 for social sciences (Hair et encouraging to innovation and attractive to
al, 2014; Zikmund et al, 2010). The results creative and ambitious employees. This finding
meant that supportive culture has no statistical concurred with the findings of the study by
significant effect on employee loyalty among Niguse and Hirpesa (2018).
non-academic staffs of Kano University of
Science and Technology, Wudil. The statistical 5.0 Conclusions and Recommendations
insignificance may due to the fact that some This study examined the effect of organizational
core elements of supportive culture such as culture on employee loyalty among university
harmony, collaboration and extended family are non-academic staff of KUSTW, Nigeria. The
not prevalent among the non-academic staff of study concluded generally that organizational
the University. This finding concurred with the culture influences employee loyalty. However, of
findings of the study by Decker (2014). all three dimensions used to measure
Hypothesis two which states that bureaucratic organizational culture, only bureaucratic culture
culture has no significant effect on employee was found to have statistical significance effect
loyalty among non-academic staffs of Kano on employee loyalty. Supportive culture and
University of Science and Technology, Wudil is innovative culture were found to have statistical
rejected. The t-value is 4.048 with a insignificance effect on employee loyalty.
significance of .000 (p<0.05). These results The theoretical implications of this study
showed that bureaucratic culture has statistical included using supportive, bureaucratic, and
significant effect on employee loyalty among innovative cultures as proxies of organisational
non-academic staffs of Kano University of culture to examined employee loyalty.
Science and Technology, Wudil. Similarly, the Organisational culture was found to have
standardized beta value for bureaucratic culture significant effect on employee loyalty; however,
is .354 which indicates that bureaucratic culture adopting the proxies helped determined the
accounts for more than 35% variation in proxy/dimension that is statistically significant
employee loyalty. This statistical significance and accounted for higher variation in the
could be due the fact that employees in public dependent variable and those that are not. The
institutions in Nigeria are used to bureaucratic second contribution to knowledge of this study is
processes such as hierarchy and strict testing a unique model that was, to the best
conformity to rules and regulations such that knowledge of the researchers, never been
employees regarded them as values. This tested before in any part of the world. Similarly,
finding concurred with the findings of the works the location gap created by the literature is also
by Kwakye (2018), Niguse and Hirpesa (2018). filled by the study. The effect of organizational
Hypothesis three which states that innovative culture on employee loyalty, was to the best
culture has no significant effect on employee knowledge of the researchers, never been
loyalty among non-academic staff of Kano tested before in Nigeria.
University of Science and Technology, Wudil is The practical implication of the study is its ability
accepted. The t-value of .419 is very low with a to empirically determine the dimension of
significance of .0676 which is greater than the organizational culture that could best be used by
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Nigerian Journal of Management Technology & Development

ISSN: 2006-1676 Volume 9, Number 2 December, 2018

Effect of Organizational Culture on Employee Loyalty among

Background to the Study: However, despite the immense importance of

and organizational related process and 2.1.3 Bureaucratic culture

the researchers used employee loyalty as proxies/dimensions; supportive culture,

Figure 2.1: Research Model

Bureaucratic Culture Employee

Source: Literature review

3.0 Methodology in Nigeria where you will find some employees

Table 4.1: Model Summary

1 .447a .200 .190 3.51480 .200 19.186 3 230 .000 2.383

a. Dependent Variable: Employee Loyalty

Table 4.2: ANOVA

Table 4.3 Coefficients

the management of the KSTU to motivate References

Students in Malaysian Higher Learning Journal of Business Management

nations (2nd Ed). Thousands. Oaks, <https://plato.stanford.edu/archives/win

Mochklas, M. & Suwitho, B. D. (2016). Influence Schultz, M. (1994). On Studying Organizational

260a9acc262db57c7912e2ab8bc97ed Method (8th ed). Ohio, USA: South-

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