Association between Organizational Performance and Job Satisfaction:How Sectoral Identity Moderates the Relationship

Vollständiger Abstract

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Job satisfaction is a key element of human resource management, yet the association between organizational performance and employee job satisfaction remains theoretically underdeveloped, particularly regarding the direction of influence and how institutional context shapes this relationship. Drawing on organizational climate theory and social identity theory, this study examines how organizational performance is associated with job satisfaction and whether sectoral identity moderates this relationship. Using a panel of New York City school-level data linking independently measured student test scores to teacher survey responses, the findings show that performance is positively associated with job satisfaction across multiple model specifications, including school fixed effects. Results also reveal that public-sector employees report higher satisfaction than their nonprofit counterparts. However, no significant moderating effect of sector is found, suggesting the performance–satisfaction link operates similarly across institutional contexts. Implications for managing satisfaction in nonprofit educational organizations are discussed.