Bridging Loyalty and Innovation: The Dual Challenge for Germany’s Automotive Workforce

Éva Löwe; Éva Mária Kovácsné Laczkó

doi:10.32976/stratfuz.2026.16

Authors

Éva Löwe University of Sopron
Éva Mária Kovácsné Laczkó University of Sopron

DOI:

https://doi.org/10.32976/stratfuz.2026.16

Keywords:

employee loyalty, innovation, Germany, automative workforce

Abstract

The study examines the relationship between employee loyalty and innovation within the framework of an empirical study conducted at a large German automotive company. The rapid technological development of the industry, sustainability goals, new market entrants, digitalization, and the rise of electric mobility demand continuous adaptation from both companies and employees. The research aims to explore how the automotive transformation and the associated innovation pressure affect employee loyalty and to identify key factors that promote loyalty. The research is based on a survey conducted among employees working in the company’s development department. The analysis focuses on factors such as organizational culture, job security, brand significance, training opportunities, work-life balance, and job satisfaction. The findings aim to demonstrate that maintaining loyalty amidst the constant progress driven by innovation is a cornerstone of the company’s long-term success. The research provides practical recommendations for human resource management on how to balance strengthening loyalty and fostering innovation.

Author Biographies

Éva Löwe, University of Sopron

Kompetenzteam Managerin/PHD Student, Schwaikheim, Germany, SOE LKK

Éva Mária Kovácsné Laczkó, University of Sopron

PhD Student, University of Sopron, István Széchenyi Economics and Management Doctoral School

References

Aaker, D. A. (1996). Building Strong Brands. Free Press.

Allen, T. D., Johnson, R. C., Kiburz, K. M., & Shockley, K. M. (2013). Work–family conflict and flexible work arrangements: Deconstructing flexibility. Personnel Psychology, 66(2), 345–376. https://doi.org/10.1111/peps.12012

Ambler, T., & Barrow, S. (1996). The employer brand. Journal of Brand Management, 4(3), 185–206. https://doi.org/10.1057/bm.1996.42

Backhaus, K., & Tikoo, S. (2004). Conceptualizing and researching employer branding. Career Development International, 9(5), 501–517. https://doi.org/10.1108/13620430410550754

Barney, J. B. (1986). Organizational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11(3), 656–665.

Blau, P. M. (1964). Exchange and Power in Social Life. Wiley.

Bogale, A. T., & Debela, K. L. (2024). Organizational culture: A systematic review. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2340129

Burnes, B. (2020). Managing Change (8th ed.). Pearson.

Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework (3rd ed.). Jossey-Bass.

Chesbrough, H. W. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business School Press.

Clark, S. C. (2000). Work/family border theory: A new theory of work/family balance. Human Relations, 53(6), 747–770. https://doi.org/10.1177/0018726700536001

Cummings, T. G., & Worley, C. G. (2019). Organization development and change (11th ed.). Cengage Learning.

Csedő, Z., & Zavarkó, M. (2019). Változásvezetés. Akadémiai Kiadó. https://doi.org/10.1556/9789634544104

Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227–268. https://doi.org/10.1207/S15327965PLI1104_01

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500–507. https://doi.org/10.1037/0021-9010.71.3.500

Eisenbeiss, S. A., Van Knippenberg, D., & Boerner, S. (2008). Transformational leadership and team innovation: Integrating team climate principles. Journal of Applied Psychology, 93(6), 1438–1446. https://doi.org/10.1037/a0012716

European Automobile Manufacturers’ Association. (2025). Economic and market report: Global and EU auto industry – Full year 2024. ACEA. https://www.acea.auto/publication/economic-and-market-report-global-and-eu-auto-industry-full-year-2024/

Farooq, B., Mushtaq, N., Naseer, P. M., & Hakim, I. A. (2024). Impact of employer branding on job satisfaction: A conceptual framework. Asian Journal of Economics, Business and Accounting, 24(8), 87–97. https://doi.org/10.9734/AJEBA/2024/v24i81443

Getahun Asfaw, A., & Chang, C.-C. (2019). The association between job insecurity and engagement of employees at work. Journal of Workplace Behavioral Health, 34(2), 96–110. https://doi.org/10.1080/15555240.2019.1600409

Greenhaus, J. H., & Beutell, N. J. (1985). Sources of conflict between work and family roles. Academy of Management Review, 10(1), 76–88. https://doi.org/10.5465/AMR.1985.4277352

Haar, J. M., Russo, M., Suñe, A., & Ollier-Malaterre, A. (2014). Outcomes of work–life balance on job satisfaction, life satisfaction and mental health: A study across seven cultures. Journal of Vocational Behavior, 85(3), 361–373. https://doi.org/10.1016/j.jvb.2014.08.010

Herzberg, F. (1968). One more time: How do you motivate employees? Harvard Business Review, 46(1), 53–62.

Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein’s model. Journal of Business Research, 67(8), 1609–1621. https://doi.org/10.1016/j.jbusres.2013.09.007

Keller, K. L. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity (4th ed.). Pearson.

Kim, S., & Kim, J. (2023). How does internal brand communication affect organizational outcomes? The mediating roles of brand identification and employee behaviors. Journal of Public Relations Research, 35(4), 259–280. https://doi.org/10.1080/1062726X.2023.2181814

Kniffin, K. M., Narayanan, J., Anseel, F., et al. (2021). COVID-19 and the workplace: Implications, issues, and insights for future research and action. American Psychologist, 76(1), 63–77. https://doi.org/10.1037/amp0000716

Kuvaas, B., & Dysvik, A. (2009). Perceived investment in employee development, intrinsic motivation and work performance. Human Resource Management Journal, 19(3), 217–236. https://doi.org/10.1111/j.17488583.2009.00103.x

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90011-Z

OECD. (2024). The future of the automotive value chain: Implications for FDI–SME linkages. OECD Publishing. https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/11/the-future-of-the-automotive-value-chain_91460165/cb730d65-en.pdf

Schein, E. H., & Schein, P. A. (2021). Organizational culture and leadership (5th ed.). John Wiley & Sons.

Tajti K., Németh E., & Dániel Z. A. (2024). Innovációs pályázati forrásokat elnyert hazai kkv-k közép- és hosszútávú teljesítményváltozása. Észak-magyarországi Stratégiai Füzetek, 21(03), 139–152. https://doi.org/10.32976/stratfuz.2024.31

Wang, J., & Wang, J. (2024). Internal employer brand, employee engagement and perceived organizational support: A review of literature. Transactions on Economics, Business and Management Research, 10, 323–326. https://doi.org/10.62051/pnmwnf58

Wiese, S. A., Lehmann, J., & Beckmann, M. (2024). Organizational culture and the usage of Industry 4.0 technologies: Evidence from Swiss businesses. arXiv.org. https://doi.org/10.48550/arXiv.2412.12752