IMPACT OF ADMINISTRATIVE EMPOWERMENT ON EMPLOYEE’S DEVELOPMENT AND INTENTION TO STAY

Abstract

This study examined the impact of administrative empowerment dimensions (work teams, independence and freedom of action, reinforcement, information sharing) on employee development and intention to stay within the Egyptian microfinance sector using PLS-SEM. Administrative empowerment was operationalized through four dimensions: information sharing, independence and freedom of action, reinforcement, and work teams. The results indicate that independence and freedom of action exerted the strongest positive effect on both employee development (β = 0.343) and intention to stay (β = 0.613), highlighting the central role of delegated authority and decision autonomy in enhancing competence and retention. Reinforcement also demonstrated a positive effect on employee development (β = 0.356) and intention to stay (β = 0.219), suggesting that recognition and incentive systems contribute to both skill growth and organizational attachment. Work teams showed a moderate positive influence on employee development (β = 0.253) and intention to stay (β = 0.234), indicating that collaborative structures support learning and stability. In contrast, information sharing revealed a negative relationship with employee development (β = −0.076) and intention to stay (β = −0.199), suggesting that information practices alone may not translate into positive outcomes without supportive structural mechanisms.