The relation between perceived organizational support and employee satisfaction: the role of relational psychological contract and reciprocity ideology

Purpose Using social exchange and reciprocation theory as a foundation, this paper aims to investigate the structural relationship between perceived organizational support (POS) and employee satisfaction (ES), focusing on the mediating role of relational psychological contract (RPC) and reciprocity ideology (RI). Design/methodology/approach An adopted literature-based survey was used to collect the data from a sample of 216 bank employees in the Turkish Republic of Northern Cyprus (TRNC), where the heuristic model for the relationship was subjected to a string of tests, using the partial least squares structural equation modeling (PLS-SEM) technique. Findings Discovery revealed that POS has a direct but insignificant effect on ES, whereas POS predicts RPC with ES as well as RI. The two mediators, RPC and RI, showed a positive and significant effect on the relationship between POS and ES. However, it was concluded that for employees to be satisfied, a higher level of support must always originate from the organization, through honoring all agreed terms stated in the conditions of employing them, as this will be a great motivator in ensuring productivity and efficient sustainability. Originality/value The study creates a theoretical basis related to the service industry, envisaging the importance of POS as a panacea for ES. Furthermore, the model contributes to literature lacking on mediating factors needed to boost employee morale in achieving mutual benefit for both the employee and the employer.