The Mediating Role of Job Satisfaction Between Leadership and Organizational Performance and the Moderating Effect of Educational Context

Background/purpose. Leadership behaviors correlate with job satisfaction, which is supposed to have impact on overall organizational performance. This study aimed to establish a model to explain organizational performance by determining the relational effect size between transformational and transactional leadership, job satisfaction, and organizational performance, and to examine the moderating effect of educational context.

Materials/methods. Meta-analytic structural equation modeling (MASEM) technique was used to determine the effect size of the relationship between transformational and transactional leadership, job satisfaction, and organizational performance. The model-data fit of the models established between these variables was then examined. Correlation coefficients from 25 primary studies were combined according to the random effects model.

Results. Analysis showed that significant effect sizes (p < .05) were found between transformational and transactional leadership, job satisfaction, and organizational performance. The model constructed between these variables was found to have a good model-data fit. Transformational and transactional leadership affects employees’ job satisfaction, and job satisfaction affects their organizational performance. The primary findings of the study are that employee job satisfaction is a partial mediator of the indirect effect of transformational leadership on organizational performance, and that leadership context does not significantly moderate the effect between these variables.

Conclusion. Organizational leaders need to consider the job satisfaction level of their subordinates in order to enhance organizational performance.

Keywords: transformational leadership, transactional leadership, job satisfaction, organizational performance, MASEM, moderating effect

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