Factors affecting perceived organizational performance with mediation of job satisfaction

Aim/purpose – The primary intent of the study is to examine the effects of employee empowerment (EE) and employee training (ET) on perceived organizational performance (POP) among the academic and administrative staff of public and private sector higher education institutions of Pakistan with mediation of job satisfaction (JS). Specifically, this study aims to fill the knowledge gap regarding the factors affecting POP in higher education institutions in Pakistan. Design/methodology/approach – 500 Questionnaires were distributed to the academic and administrative staff of 20 higher education institutions (public & private sector) in Faisalabad and Lahore, Pakistan, through a stratified random sampling technique. In this way, 461 out of 500 questionnaires were filled and returned. PLS-SEM was applied to analyze the collected data. Findings – As per the research findings, EE and ET positively affected POP in Pakistan’s higher education institutions. JS positively mediated the relationship between EE, ET, and POP. Research implications/limitations – This study is of great importance to individuals from varying backgrounds, especially those associated with higher education institutions. As a limitation, future studies can also consider longitudinal studies rather than cross-sectional observational studies, different industries rather than higher education institutions, and other relevant variables. Originality/value/contribution – These findings vigorously argue that the determinants of POP, namely EE and ET, further increase JS and the overall performance of higher education institutions.