Abstract:

Today, the main purposes of businesses are to get a sustainable competitive advantage. Businesses are all in a constant struggle for this purpose. However, it has become increasingly difficult for businesses to differentiate themselves in this process. In the consistently changing competitive conditions, businesses need employees who are always open for developments and can adapt easily changing conditions and are willing to learn the nature of the work. So it can be said that human capital is more important than fixed assets today. Businesses primarily have to use their human resources effectively and efficiently in order to ensure continuity in today’s competitive environment. Also it is gaining importance for businesses to create a positive image for their employees as internal customers and in the thinking of their external customers in changing conditions. This image forming for both employees and customers means that they got positive results and their expectations are met in every field and experience that they communicated with the business. This creates both employee and customer satisfaction and also helps to increase their existing loyalty to business. Therefore, employee satisfaction for a business is as important as customer satisfaction. In addition, this is a process that must be managed very well. In this study, based on the understanding that human is one of the main sources of the competitive advantage in enterprises, it is advocated that as human resource practices provide satisfaction of the internal customers (employees), satisfied internal customers will also provide satisfaction of the external customers. As a result of this relationship, satisfied employees shall ensure satisfied customers. Developed research model was tested over 200 employees in a medium-sized company in accordance with the opportunities and the constraints of the researchers. Reliability and validity analysis was conducted before putting the research data into the SEM. It is intended with the reliability analysis to improve the internal consistency of the scale. In our study, Cronbach Alpha method is used for reliability analysis. As a result of the reliability analysis, Cronbach's Alpha value is found as 0.972. As a result of this, it can be said that the scale is reliable. Similar to the reliability analysis, validity analysis have also no specific criteria. So, Factor analysis was used for validity analysis. Results of the KMO test (0.946) and the Bartlett test (8893.103; p <0.001) –which are made to test assumption of the unit matrix and sample adequacy- demonstrated that the data is appropriate for making factor analysis. As a result of factor analysis, it is understood that total variance of all scale items have reached a value that 70.777%. When we look at the Cronbach's Alpha coefficients of the factors that are obtained, it can be observed that they are all at satisfactory levels (from 0.895 to 0.953). As a result of factor analysis, it is observed that C8 and CM2 coded scale questions did not take place under the factors that they need to be. Therefore they are removed from the scale and the test was repeated. In total, 49 research questions remained backward. These are grouped under seven different factors. Here is a striking detail, "Evaluation of the award and the performance" variables are located under the same factor. Therefore, these two variables are combined into a single factor in the research model. In confirmatory factor analysis of the scale used in the study, Structural Equation Model (SEM) was used. The Chi-square value obtained in the SEM results and fit index results are as follows: x2=1978,154 Df=1160 P=0,000 x2/df=1,705 IFI=0,906 CFI=0,905 NFI=0,800 TLI(NNFI)= 0,900 RFI=0,789 RMSEA=0,060 In short, when we look at the results of the fit indexes, it can be said that the model is fit as a whole. Ultimately, at a p <0.000 significance level, the result of the hypothesis test is as follows: Human r

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