Beyond Support: The Interactive Impact of Psychological Contract on Job Satisfaction in Private Sector Higher Education Institutions

Abstract

The present study investigates how the psychological contract moderates the relationship between organizational support (POS), employee engagement (EE), and job satisfaction (JS). The conceptual model is built upon the premise of social exchange theory. Data was collected from 573 respondents working in private sector higher education institutions, and further structural equation modeling was conducted using Smart PLS 4.0. The results show that both EE and the perceptions of an employee about the organizational support affect job satisfaction positively, with the psychological contract playing a moderating role. This research adds to the organizational behavior literature by highlighting the factors that play an important role in contributing towards job satisfaction particularly among employees in higher education. Additionally, it has practical implications by emphasizing the importance of the psychological contract in enhancing job satisfaction in the organisation for employees in private sector higher education.