The Mediating Role of Job Satisfaction in the Relationship between Psychological Contract and Employee Engagement: A Study on Private Sector Higher Education Institutions

Abstract

Drawing upon the social exchange theory, the purpose of this particular study is to examine the mediating role of job satisfaction in the relationship between psychological contract and employee engagement For this study, data from 573 respondents from private sector higher education institutions was utilized and structural equation modeling was performed using Smart PLS 4.0. The findings of the study demonstrate that psychological contract positively influence job satisfaction and job satisfaction positively influence employee engagement. Moreover, job satisfaction was found to have a mediating between psychological contract and employee engagement. The findings of this study contributed to the organizational behavior literature by understanding contributing factors to employee engagement for higher education employees in a workplace.