The role of employee loyalty in online reputation: evidence from tourism and hospitality sector

Abstract

Purpose

Online employee reviews have a substantial impact on employee recruitment, retention and the overall perception of a company’s image, making them a crucial element of its online reputation. Consequently, these reviews play a vital role in shaping the company’s competitiveness in the talent market. This study aims to investigate the role of employee loyalty in online reputation in the tourism and hospitality sector.

Design/methodology/approach

This study collected online reviews posted by 334,428 employees across 173 companies in the tourism and hospitality sector. Then, this study proposed a method for measuring employee loyalty toward the company through text comments. Furthermore, the role of employee loyalty in online reputation through regression models was analyzed.

Findings

Employee loyalty is positively associated with the closed-form evaluations, and the length and readability of open-ended comments is directly and positively associated with review helpfulness and is indirectly associated with review helpfulness through employee online reviews. Employees’ perception of job instability has a significant moderating effect on the above relationships.

Research limitations/implications

This study contributes to the literature on loyalty in the tourism and hospitality industry, online reputation and employee risk perception. These findings offer a more profound understanding of the extra-role behaviors demonstrated by loyal employees, provide a theoretical foundation for the formation of a company’s online reputation and contribute to helping the tourism and service industry better address risk events. These conclusions provide valuable insights for companies in the fields of human resource management and online reputation management.

Originality/value

To the best of the authors’ knowledge, this study is the first to reveal the impact of employee loyalty on the company’s online reputation and provides important theoretical and practical implications for management.

Citation

Yao, Y., Han, T.-Y. and Bi, J.-W. (2023), "The role of employee loyalty in online reputation: evidence from tourism and hospitality sector", International Journal of Contemporary Hospitality Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJCHM-03-2023-0409