Linking Psychological Ownership with Employee Loyalty through the Mediating Role of Organizational Commitment: An Empirical Study

The primary purpose of this research is to examine the relationship between psychological ownership and employee loyalty through the mediating role of organizational commitment. The current research work is based on a supported theoretical framework which highlights the role of social exchange theory in enhancing the relationship of psychological ownership, employee loyalty and commitment to the organization with the specific focused on the employees’ shared value inside the organization. A total number of 413 operational non-teaching employees of public and private universities in Afghanistan participated in this research. The data was analyzed using Partial Least Square Structure Equation Modeling (PLS-SEM), through SmartPLS 4. The empirical results indicated that psychological ownership significantly affected employee loyalty. In addition, the result showed that organizational commitment significantly mediates the relationship between PO and EL. The current research work theoretically contributes to the literature by adding a significant amount of evidence from an unexplored framework and under-researched area. This research further help the employees’ about the understanding of their shared values inside the organizations which considerably define and framed the current research work.