Abstract

This study examines the mediating role of job satisfaction in the relationship between human resource management practices and organizational performance among private food manufacturing companies in Jeddah, Saudi Arabia. Although previous studies have established direct relationships among these variables, limited empirical evidence has examined the mechanism through which job satisfaction mediates the relationship between human resource management practices and organizational performance. A quantitative research design was employed using data collected from 263 employees working in private food manufacturing companies. Structural equation modeling (SEM) using AMOS was applied to examine the proposed mediation model and test both the direct and indirect relationships among the study variables. The findings revealed that the mediating effect of job satisfaction varied across the human resource management practices examined. Job satisfaction significantly mediated the relationship between job security and organizational performance through full mediation, while it partially mediated the relationships between training and development, participation in decision-making, and organizational performance. In contrast, the indirect effects of selective hiring, compensation system, and performance evaluation on organizational performance through job satisfaction were not statistically significant. This study contributes to the strategic human resource management literature by providing empirical evidence on the mediating mechanism linking human resource management practices and organizational performance within Saudi Arabia’s private food manufacturing sector. The findings also provide practical guidance for managers seeking to implement human resource management practices associated with higher levels of job satisfaction and organizational performance.

Keywords

Human Resource Management Practices, Job Satisfaction, Organizational Performance, Mediating Effect, Saudi Arabia

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1. Introduction

Human Resource Management (HRM) has evolved into a strategic function that enables organizations to achieve sustainable competitive advantage through the effective management of human capital. Contemporary Human Resource Management Practices (HRMP), including job security, selective hiring, compensation systems, training and development, participation in decision-making, and performance evaluation, play a vital role in attracting, developing, motivating, and retaining competent employees, thereby enhancing organizational effectiveness and long-term performance (Al Habsi et al., 2021; Al-Kahtani, 2021).

Improving organizational performance remains a strategic priority for organizations operating in increasingly competitive environments. Previous research has consistently demonstrated that organizations implementing effective HRM practices achieve higher levels of productivity, innovation, employee commitment, and organizational effectiveness. However, growing evidence suggests that HRM practices do not always influence organizational performance directly. Instead, their effectiveness may depend on employees’ psychological responses to these practices, particularly job satisfaction. Employees who perceive HRM practices as fair, supportive, and development-oriented are generally more satisfied with their jobs, leading to stronger organizational commitment, higher motivation, improved performance, and lower turnover intentions (Ahmed & Top, 2021; Abdelhalim, 2022).

Job satisfaction is widely recognized as one of the most influential employee attitudes affecting organizational success. It represents employees’ overall evaluation of their work experiences and reflects the extent to which organizational practices meet their expectations and needs. Higher levels of job satisfaction have consistently been associated with greater employee motivation, commitment, and performance, ultimately contributing to superior organizational outcomes. Recent studies conducted in Saudi Arabia have likewise confirmed that effective HRM practices enhance employees’ job satisfaction, which subsequently supports improved organizational performance, particularly within the private sector.

Despite the well-established relationships between Human Resource Management Practices and organizational performance, and between Human Resource Management Practices and job satisfaction, limited empirical evidence has examined whether job satisfaction serves as the underlying mechanism through which HRM practices influence organizational performance. This research gap is particularly evident within Saudi Arabia’s private food manufacturing sector, where empirical studies investigating the mediating role of job satisfaction remain scarce. Addressing this gap is expected to provide a deeper understanding of the behavioral processes through which HRM practices contribute to organizational performance.

Accordingly, this study investigates the mediating role of job satisfaction in the relationship between Human Resource Management Practices and organizational performance among private food manufacturing companies in Jeddah, Saudi Arabia. Using Structural Equation Modeling (SEM), the study examines both the direct and indirect effects of Human Resource Management Practices to provide further empirical evidence on the mechanisms linking HRM practices with organizational performance while offering practical implications for managers seeking to enhance organizational performance through effective human resource management.

Problem Statement

Improving Organizational Performance (OP) has become a strategic priority for organizations seeking sustainable competitiveness, particularly within Saudi Arabia’s private manufacturing sector. Human Resource Management Practices (HRMP) are widely recognized as strategic drivers of organizational success because they enhance employees’ capabilities, motivation, and commitment (Ahmed & Top, 2021; Al Habsi et al., 2021). Nevertheless, many organizations continue to experience challenges related to employee retention, job satisfaction, and organizational effectiveness despite substantial investments in Human Resource Management initiatives (Alshamrani et al., 2023). Similar concerns have been reported within Saudi Arabia’s private food manufacturing sector, where organizations continue to seek more effective HRM systems capable of improving both employee outcomes and organizational competitiveness (Abdelhalim, 2022).

Previous studies have consistently shown that supportive Human Resource Management Practices enhance employees’ Job Satisfaction by promoting fair treatment, professional development, effective communication, and positive working conditions (Alalmai & Arun, 2020). Likewise, effective HRM practices have been found to improve Organizational Performance and organizational effectiveness, whereas ineffective HRM systems may reduce employee commitment and organizational performance (Ouafky & Alzoubi, 2019). Although these findings confirm the strategic importance of Human Resource Management Practices, they provide only limited insight into the mechanisms through which these practices contribute to improved organizational performance.

Although substantial evidence supports the direct relationships between Human Resource Management Practices and Job Satisfaction, as well as between Human Resource Management Practices and Organizational Performance, considerably less attention has been devoted to examining whether Job Satisfaction functions as the mechanism through which HRM practices enhance Organizational Performance. This limitation is particularly evident within Saudi Arabia’s private food manufacturing sector, where empirical evidence on the mediating role of Job Satisfaction remains limited. Addressing this gap is expected to provide a deeper understanding of the behavioral processes linking Human Resource Management Practices with Organizational Performance while offering practical guidance for organizations seeking to enhance employee well-being and long-term organizational effectiveness.

2. Literature Review

2.1. Human Resource Management Practices

Human Resource Management Practices (HRMP) constitute a fundamental component of strategic management because they enable organizations to develop, motivate, and retain human capital capable of sustaining competitive advantage. Contemporary Human Resource Management emphasizes integrated systems of complementary practices rather than isolated personnel activities, recognizing that organizational performance is enhanced when HRM practices operate collectively to improve employees’ capabilities, motivation, and commitment (Ahmed & Top, 2021; Al Habsi et al., 2021).

The strategic Human Resource Management literature identifies several practices as particularly influential in shaping employee attitudes and organizational outcomes. These include job security, selective hiring, compensation systems, training and development, participation in decision-making, and performance evaluation, all of which have been widely examined as key dimensions of strategic Human Resource Management (Ogalo, 2020; Ahmed & Top, 2021). Collectively, these practices contribute to organizational effectiveness by creating supportive work environments that foster employee commitment, competence, and long-term organizational performance.

Although each Human Resource Management Practice serves a distinct organizational purpose, they share the common objective of strengthening employees’ willingness and ability to contribute to organizational success. Job security promotes stability and organizational commitment, selective hiring ensures the recruitment of qualified employees, compensation systems provide incentives that encourage higher performance, training and development enhance employees’ knowledge and skills, participation in decision-making strengthens empowerment and commitment, and performance evaluation aligns individual performance with organizational objectives through continuous feedback (Ahmed & Top, 2021).

Recent empirical evidence from Saudi Arabia further supports the strategic importance of Human Resource Management Practices. Badraig (2022) reported that integrated HRM practices improve employees’ job satisfaction through fair recruitment, effective training, equitable compensation, and transparent performance management systems. Likewise, organizations adopting comprehensive Human Resource Management systems demonstrate stronger employee commitment, greater organizational effectiveness, and superior organizational performance in increasingly competitive business environments (Al Habsi et al., 2021; Badraig, 2022).

Overall, the literature suggests that Human Resource Management Practices influence organizational outcomes not only by improving organizational systems but also by shaping employees’ attitudes and behaviors. This perspective provides the theoretical basis for examining job satisfaction as the mechanism through which selected Human Resource Management Practices contribute to organizational performance.

2.2. Job Satisfaction

Job Satisfaction is widely recognized as one of the most influential employee attitudes affecting both individual and organizational outcomes. It reflects employees’ overall evaluation of their work experience and the extent to which their expectations are fulfilled within the workplace. Higher levels of job satisfaction are consistently associated with greater motivation, stronger organizational commitment, improved work performance, and lower turnover intentions, making job satisfaction a key determinant of organizational effectiveness (Ahmed & Top, 2021; Aziz et al., 2021).

Previous studies suggest that job satisfaction is shaped by employees’ perceptions of fairness, recognition, career development opportunities, supervisory support, and the overall work environment. Employees who perceive organizational practices as supportive and equitable are generally more satisfied with their jobs and more willing to contribute discretionary effort toward achieving organizational goals. Conversely, low job satisfaction has been associated with absenteeism, reduced commitment, lower productivity, and increased turnover intentions (Mira et al., 2019; Al-Ghamdi & Javed, 2021).

Within the Human Resource Management literature, job satisfaction is consistently identified as an important outcome of effective Human Resource Management Practices. Practices such as equitable compensation, employment security, training and development, transparent performance evaluation, and employee participation in decision-making create positive work experiences that strengthen employees’ perceptions of organizational support and enhance their commitment and performance (Ahmed & Top, 2021; Mira et al., 2019).

Recent empirical evidence from Saudi Arabia further supports these relationships. Badraig (2022) reported that strategic Human Resource Management Practices significantly improve employees’ job satisfaction through fair recruitment, professional development opportunities, and supportive organizational environments. Likewise, Shibeika (2025) found that job satisfaction is a major determinant of employee productivity within Saudi Arabia’s production sector, demonstrating that organizations capable of maintaining high levels of employee satisfaction achieve superior organizational outcomes.

Beyond its role as an employee attitude, recent Human Resource Management research increasingly considers job satisfaction an important mechanism through which Human Resource Management Practices influence organizational outcomes. Employees who respond positively to HRM practices are more likely to experience higher levels of job satisfaction, which subsequently strengthens organizational commitment, collaboration, and performance. Accordingly, this study conceptualizes job satisfaction as the mediating variable linking Human Resource Management Practices and organizational performance, thereby providing a deeper understanding of the behavioral mechanism through which strategic HRM practices contribute to organizational success.

2.3. Organizational Performance

Organizational Performance (OP) is widely regarded as a key indicator of organizational success because it reflects an organization’s ability to achieve its strategic objectives while maintaining long-term competitiveness and sustainability. Contemporary management literature considers organizational performance a multidimensional construct that extends beyond financial outcomes to include operational efficiency, customer satisfaction, organizational learning, innovation, and internal business processes (Kaplan & Norton, 2005; Al-Tarawneh, 2020).

The increasing complexity of business environments has encouraged organizations to adopt comprehensive performance measurement systems that integrate both financial and non-financial indicators. Among these, the Balanced Scorecard (BSC) remains one of the most widely adopted frameworks because it evaluates organizational performance across financial, customer, internal process, and learning and growth perspectives, thereby providing a more comprehensive assessment of organizational effectiveness (Kaplan & Norton, 2005; Abdelraheem & Hussien, 2022).

Previous research consistently demonstrates that organizational performance is influenced by organizational resources, managerial capabilities, and employees’ behaviors. Within this context, Human Resource Management Practices play a strategic role by enhancing employees’ competencies, motivation, and organizational commitment, all of which contribute to improved organizational effectiveness and sustainable performance (Al-Kahtani, 2021; Ahmed & Top, 2021).

Within Saudi Arabia, improving organizational performance has become increasingly important in light of the objectives of Saudi Vision 2030, which emphasize productivity, innovation, operational efficiency, and organizational sustainability. Consequently, organizations are placing greater emphasis on Human Resource Management Practices that strengthen employees’ knowledge, engagement, and motivation. Recent empirical evidence also suggests that organizations characterized by higher levels of employee job satisfaction tend to achieve superior organizational performance, highlighting the importance of employee-related outcomes in organizational success (Badraig, 2022; Shibeika, 2025).

Overall, the literature indicates that organizational performance is shaped by the interaction between organizational resources, managerial practices, and employees’ attitudes. This perspective supports the proposition that the relationship between Human Resource Management Practices and organizational performance is not always direct but may operate through employees’ psychological responses, particularly job satisfaction, which constitutes the central mediating mechanism examined in this study.

2.4. Hypotheses

Previous studies consistently demonstrate that job satisfaction plays a significant role in enhancing organizational performance by increasing employees’ motivation, organizational commitment, and work engagement. Satisfied employees are generally more willing to exert discretionary effort, collaborate effectively with colleagues, and contribute to organizational objectives, resulting in improved organizational effectiveness. These findings are consistent with empirical evidence reported across various organizational contexts (Ahmed & Top, 2021; Aziz et al., 2021; Badraig, 2022). Accordingly, the following hypothesis is proposed:

H1: Job Satisfaction (JSA) has a significant positive effect on Organizational Performance (OP).

Strategic Human Resource Management literature further suggests that the influence of Human Resource Management Practices on Organizational Performance extends beyond direct relationships. Employees’ perceptions of Human Resource Management Practices shape important psychological outcomes, particularly job satisfaction, which may subsequently translate into improved organizational performance. Although previous studies have confirmed the direct relationships between Human Resource Management Practices, Job Satisfaction, and Organizational Performance, relatively limited empirical evidence has examined whether job satisfaction functions as the underlying mechanism linking these constructs, particularly within Saudi Arabia’s private food manufacturing sector (Ahmed & Top, 2021). Therefore, this study proposes that job satisfaction mediates the relationship between Human Resource Management Practices and Organizational Performance.

H2: Job Satisfaction (JSA) significantly mediates the relationship between Human Resource Management Practices (HRMP) and Organizational Performance (OP).

H2a: Job Satisfaction (JSA) mediates the relationship between Job Security (JSE) and Organizational Performance (OP).

H2b: Job Satisfaction (JSA) mediates the relationship between Selective Hiring (SH) and Organizational Performance (OP).

H2c: Job Satisfaction (JSA) mediates the relationship between Compensation System (CS) and Organizational Performance (OP).

H2d: Job Satisfaction (JSA) mediates the relationship between Training and Development (TD) and Organizational Performance (OP).

H2e: Job Satisfaction (JSA) mediates the relationship between Participation in Decision Making (DM) and Organizational Performance (OP).

H2f: Job Satisfaction (JSA) mediates the relationship between Performance Evaluation (PE) and Organizational Performance (OP).

3. Methodology

3.1. Study Designs

This study adopted a quantitative research design to investigate the mediating role of Job Satisfaction (JSA) in the relationship between Human Resource Management Practices (HRMP) and Organizational Performance (OP) among private food manufacturing companies in Jeddah, Saudi Arabia. A cross-sectional survey design was employed because it enables the examination of relationships and mediation patterns among multiple latent constructs using Structural Equation Modeling (SEM). Data were collected using a structured questionnaire adapted from previously validated measurement instruments to ensure the reliability and validity of the research constructs.

The study examined six dimensions of Human Resource Management Practices, namely Job Security (JSE), Selective Hiring (SH), Compensation System (CS), Training and Development (TD), Participation in Decision-Making (DM), and Performance Evaluation (PE). Job Satisfaction (JSA) was specified as the mediating variable, whereas Organizational Performance (OP) represented the dependent variable.

3.2. Pilot Test

Prior to the main survey, a pilot study was conducted to assess the clarity of the questionnaire, evaluate the internal consistency of the measurement scales, and identify any potential weaknesses in the research instrument. Thirty questionnaires were distributed to employees working at different organizational levels, including senior management, middle management, supervisory staff, and subordinate employees within private food manufacturing companies in Jeddah.

The pilot data were analyzed using IBM SPSS Statistics. Internal consistency reliability was evaluated using Cronbach’s Alpha coefficients. The obtained reliability values exceeded the recommended threshold of 0.70, indicating satisfactory reliability for all study constructs and confirming the suitability of the questionnaire for the main survey.

Table 1 presents the internal consistency reliability results of the pilot study conducted with 30 respondents. All constructs demonstrated satisfactory reliability, confirming the suitability of the questionnaire for the main survey.

3.3. Population

Sampling involves selecting a representative subset of a population to enable valid generalizations (Creswell, 2009; Morgan & Harmon, 1999). In this study, systematic stratified random sampling was employed following the recommendations of Cooper and Schindler (2011) and Creswell (2009). The target population consisted of 620 employees from private food manufacturing companies in Jeddah, Saudi Arabia, representing Senior Management, Middle Management, Supervisory, and Subordinate positions.

The study was conducted in five private food manufacturing companies. These companies were included based on their agreement to participate and provide the organizational information required for the study. Staff distribution data were obtained directly from the participating companies, and staff lists obtained from these companies were used to establish the sampling frame.

The population profile is presented in Table 2 below.

Table 1. Variable reliability.

Source: own study in SPSS.

Table 2. Number of staff in the participating companies.

Source: Own study.

3.4. Sample Size

According to Morgan and Harmon (1999), sampling involves selecting a representative subset of a population, a concept further discussed by Creswell (2009). The sample size was determined using the Raosoft online calculator (http://www.raosoft.com/samplesize.html) and verified using Cochran’s formula (Cochran & Cochran, 1977). For a population of 620 employees, the required sample size was 238. To improve the robustness of the analysis and account for potential outliers, an additional 25 questionnaires (approximately 10%) were included, resulting in a final sample of 263 respondents, consistent with the recommendations of Sekaran (2003).

All selected respondents completed the questionnaire, resulting in a 100% response rate. Consequently, all questionnaires were complete and suitable for analysis.

The sample size was further verified using Cochran’s formula (Cochran & Cochran, 1977), as presented below.

Step# 1: Calculate the initial sample size.

Z = 1.96 # Z-score for 95% confidence

p = 0.5 # Proportion of population

e = 0.05 # Margin of error

n₀ = (Z**2 * p * (1 − p))/e**2 = 384.16

Step# 2: Apply the finite population correction (FPC)

N = 620 # Population size

n = n₀/(1 + (n₀ − 1)/N) =237.43 ≈ 238.

3.5. Survey Questionnaire

Data were collected using a structured questionnaire developed from previously validated instruments reported in the Human Resource Management and Organizational Behavior literature. The questionnaire consisted of two sections. The first section collected respondents’ demographic information, while the second section measured the study constructs, including Human Resource Management Practices, Job Satisfaction, and Organizational Performance.

The online questionnaire was distributed through Google Forms with the assistance of designated coordinators within the participating organizations. Each questionnaire included a cover letter explaining the purpose of the study, assuring respondents of confidentiality, and emphasizing that participation was voluntary.

Employees’ self-reports were used to measure Organizational Performance because the final measurement model focused on observable, non-financial organizational outcomes that employees are well positioned to evaluate through their day-to-day work activities. Following Confirmatory Factor Analysis (CFA), the retained indicators reflected organizational growth, customer satisfaction, and delivery speed. These indicators represent operational aspects of organizational performance that employees can reasonably assess based on their workplace experience and are consistent with the use of non-financial performance measures widely recognized in the organizational performance literature (Kaplan & Norton, 1996; Abdelraheem & Hussien, 2022).

3.6. Measurement Scale

The study employed nominal and ordinal measurement scales. Nominal scales were used to collect demographic information, whereas the study constructs were measured using a structured questionnaire based on a five-point Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree), with 3 representing a neutral response. The five-point Likert scale was selected because of its reliability and widespread use in behavioral research (Frazer & Lawley, 2000). To enhance data quality, the questionnaire consisted of clear, close-ended questions (Churchill Jr., 1979; Frazer & Lawley, 2000; Hair et al., 1995). The survey was administered online using Google Forms, which required respondents to complete all items before submission, thereby eliminating missing data.

3.6.1. Measurement of Study Constructs

Human Resource Management Practices (HRMP) were measured using 41 items distributed across six constructs: Job Security (6 items; Albahussain et al., 2016; Ali et al., 2018), Selective Hiring (7 items; Vidija et al., 2016; Bisharat et al., 2017), Compensation System (7 items; Albahussain et al., 2016; Bisharat et al., 2017), Training and Development (7 items; Albahussain et al., 2016), Participation in Decision-Making (8 items; Wambua & Karanja, 2016), and Performance Evaluation (6 items; Al-Shuaibi, 2013). Job Satisfaction was measured using a 7-item scale adapted from Al-Shuaibi (2013), while Organizational Performance was measured using a 7-item scale adapted from Ahmed et al. (2015). Sample items included “Workers can expect to stay in position as long as they wish, if their performance is satisfactory” (HRMP), “The workload in this organization is suitable” (Job Satisfaction), and “The organization is more profitable” (Organizational Performance).

3.6.2. Common Method Bias Assessment

Since data for both independent and dependent variables were collected from the same respondents using a self-administered questionnaire, several procedural and statistical measures were employed to minimize the potential for common method bias (Podsakoff et al., 2003). Procedurally, respondents were informed that their participation was voluntary, their responses would remain anonymous and confidential, and that the data would be used solely for academic research purposes. In addition, all study constructs were measured using previously validated instruments adopted from prior studies.

Statistically, Harman’s single-factor test was performed using exploratory factor analysis. The results showed that the first unrotated factor accounted for 36.875% of the total variance, which is below the recommended threshold of 50% (Podsakoff et al., 2003). Therefore, common method bias was not considered a serious concern in the present study.

3.7. Sampling Technique

A systematic stratified random sampling technique was employed to ensure proportional representation of employees across the four organizational levels.

The population was first divided into four strata according to organizational position: Senior Management, Middle Management, Supervisory employees, and Subordinates.

Following the determination of the required sample size for each stratum, participants were randomly selected within each stratum in proportion to its size within the population.

This sampling approach enhanced the representativeness of the sample and supported the generalizability of the research findings across the participating organizations.

This approach ensured adequate representation of all population strata, thereby improving the representativeness of the sample. The use of stratified sampling is well supported in the literature for enhancing sampling accuracy and representativeness (Cavana et al., 2001; Hair et al., 2007; Sekaran, 2003).

3.8. Sample Profile

Table 3 presents the demographic characteristics of the respondents.

Table 3. Sample profile.

Source: own study in SPSS.

3.9. Data Collection Procedure

Data were collected using an online questionnaire administered through Google Forms, a method recognized for its flexibility, speed, and cost-effectiveness (Kuen et al., 2009).

The survey link was shared with designated representatives in the participating organizations, who subsequently circulated it among eligible employees. This method provided an efficient, flexible, and cost-effective approach for collecting data while ensuring respondent confidentiality and facilitating a high response rate.

4. Results

4.1. Measurement Model Assessment

Prior to evaluating the structural model, the measurement model was assessed using Confirmatory Factor Analysis (CFA) to establish the reliability and validity of the measurement scales. As presented in Table 4, standardized factor loadings ranged from 0.546 to 0.965, exceeding the recommended minimum value of 0.50. Composite Reliability (CR) values ranged from 0.738 to 0.957, indicating satisfactory internal consistency and exceeding the recommended threshold of 0.60 (Bagozzi & Yi, 1988). The Average Variance Extracted (AVE) values ranged from 0.503 to 0.815, all above the recommended threshold of 0.50 (Hair et al., 2006), confirming convergent validity. Furthermore, the Cronbach’s alpha values ranged from 0.753 to 0.958, exceeding the recommended value of 0.70 (Nunnally & Bernstein, 1994). These results confirm that the measurement model demonstrated satisfactory reliability and convergent validity for all constructs.

Table 4. Measurement model assessment results.

Source: own study in SPSS and AMOS.

Discriminant validity was subsequently assessed using the Fornell-Larcker criterion. As shown in Table 5, the square root of the AVE for each construct exceeded the corresponding inter-construct correlations, confirming adequate discriminant validity among the study constructs (Fornell & Larcker, 1981). These findings indicate that the measurement model demonstrated satisfactory reliability and construct validity and was therefore considered appropriate for subsequent structural model analysis.

Table 5. Discriminant validity assessment results.

Note: AVE’s square root is represented by diagonals, and correlations are represented by the other entries. Source: own study in AMOS.

4.2. Structural Model Assessment

Following the validation of the measurement model, Structural Equation Modeling (SEM) was employed to examine the proposed structural relationships among Human Resource Management Practices (HRMP), Job Satisfaction (JSA), and Organizational Performance (OP). The structural model was estimated using the Maximum Likelihood Estimation (MLE) procedure in AMOS to evaluate both the direct relationship between Job Satisfaction and Organizational Performance and the mediating role of Job Satisfaction in the relationship between Human Resource Management Practices and Organizational Performance.

The adequacy of the proposed structural model was assessed using several commonly recommended goodness-of-fit indices. The results demonstrated that the model achieved an acceptable level of overall fit. Specifically, the chi-square statistic was 860.889 with 494 degrees of freedom, producing a normed chi-square (CMIN/DF) of 1.743, which is well below the recommended threshold of 3.0. The Root Mean Square Error of Approximation (RMSEA) was 0.053, indicating a satisfactory approximation of the model to the observed data.

The incremental fit indices also confirmed the adequacy of the structural model. The Comparative Fit Index (CFI) reached 0.946, the Tucker-Lewis Index (TLI) was 0.939, and the Incremental Fit Index (IFI) was 0.947, all exceeding the recommended cut-off value of 0.90. The chi-square test was statistically significant (p < 0.001), a result commonly observed in SEM studies employing moderate sample sizes and complex models.

The goodness-of-fit indices presented in Table 6 confirmed the adequacy of the proposed structural model. Furthermore, the coefficient of determination (R²) indicated that the model explained approximately 47% of the variance in Job Satisfaction and 78% of the variance in Organizational Performance. The final structural model is illustrated in Figure 1.

Table 6. Fit Measurement criteria of structural model.

Source: own study in AMOS.

4.3. Hypotheses Testing

Following the satisfactory assessment of the structural model, the proposed hypotheses were tested using Structural Equation Modeling (SEM). Structural model analysis enables the examination of both direct and indirect relationships among latent constructs and provides empirical evidence for testing the proposed hypotheses (Hair et al., 2019; Kline, 2010). Consistent with the recommendations of Hair et al. (2019) and MacKinnon & Fairchild (2009), the direct effect of Job Satisfaction on Organizational Performance was first examined, followed by the assessment of the mediating role of Job Satisfaction in the relationship between Human

Figure 1. The structural model.

Resource Management Practices and Organizational Performance using the bootstrapping procedure. The results are presented in Table 7 and Table 8.

4.3.1. Direct Effect of Job Satisfaction on Organizational Performance

Table 7. Results of the direct effect (H1).

Source: own study in AMOS.

As shown in Table 7, Job Satisfaction was positively and significantly associated with Organizational Performance (β = 0.375, C.R. = 4.670, p < 0.001), thereby supporting H1. This finding indicates a significant positive relationship between Job Satisfaction and perceived Organizational Performance among employees working in private food manufacturing companies in Jeddah, Saudi Arabia.

Figure 2 presents the structural path corresponding to Hypothesis H1, illustrating the direct relationship between Job Satisfaction and Organizational Performance.

4.3.2. Mediating Effect of Job Satisfaction

The mediating role of Job Satisfaction was examined using the bootstrapping procedure implemented in AMOS with 2,000 bootstrap samples. Bootstrapping was performed using bias-corrected 95% confidence interval, and the statistical significance of the indirect effects was evaluated using the bootstrapped estimates and their associated probability values. The results are presented in Table 8.

Figure 2. Direct effect of job satisfaction on organizational performance.

Table 8. Results of mediation analysis using bootstrapping (H2).

Note: c′ = direct effect after including the mediator; indirect effect = mediated effect through JSA. Source: own study in AMOS.

As presented in Table 8, the mediation analysis revealed that Job Satisfaction significantly mediated the relationships between Job Security, Training and Development, and Participation in Decision-Making and Organizational Performance. Specifically, Job Satisfaction fully mediated the relationship between Job Security and Organizational Performance because the indirect effect was statistically significant (β = 0.105, p = 0.002), whereas the direct effect was no longer statistically significant after including the mediator (β = −0.052, p = 0.404).

In contrast, Job Satisfaction partially mediated the relationships between Training and Development and Organizational Performance, and between Participation in Decision-Making and Organizational Performance. This conclusion was supported by the statistically significant direct effects (Training and Development: β = 0.315, p < 0.001; Participation in Decision-Making: β = 0.265, p = 0.003) together with the statistically significant indirect effects through Job Satisfaction (Training and Development: β = 0.076, p = 0.001; Participation in Decision-Making: β = 0.127, p = 0.003).

No statistically significant mediation effect was observed for Selective Hiring (β = −0.006, p = 0.784), Compensation System (β = 0.015, p = 0.636), or Performance Evaluation (β = −0.047, p = 0.235), indicating that Job Satisfaction did not serve as a significant mediating mechanism in the relationships between these Human Resource Management Practices and Organizational Performance. Accordingly, H2a, H2d, and H2e were supported, whereas H2b, H2c, and H2f were rejected.

Overall, these findings indicate that the mediating role of Job Satisfaction varies across Human Resource Management Practices, suggesting that different HRM practices are associated with Organizational Performance through different underlying mechanisms.

4.4. Discussion

The findings of this study indicate a significant positive relationship between job satisfaction and organizational performance, suggesting that employees who report higher levels of job satisfaction also tend to report higher levels of organizational performance. This finding supports the assumptions of Social Exchange Theory, which suggests that employees reciprocate favorable organizational practices with positive attitudes and behaviors, as well as Herzberg’s Two-Factor Theory, which emphasizes the role of motivational factors in supporting employee performance. The result is also consistent with previous empirical studies reporting a positive relationship between job satisfaction and organizational performance (Ahmed & Top, 2021; Aziz et al., 2021).

The mediation analysis further revealed that the mediating effect of job satisfaction differed across the Human Resource Management Practices examined. Specifically, job satisfaction fully mediates the relationship between job security and organizational performance, suggesting that the relationship between job security and organizational performance is primarily explained through employees’ job satisfaction. This finding is consistent with Social Exchange Theory, which proposes that employees who perceive employment stability are more likely to demonstrate stronger commitment and positive work-related outcomes.

In contrast, training and development and participation in decision-making exhibited partial mediation, indicating that these practices were associated with organizational performance both directly and indirectly through job satisfaction. From the perspective of the Resource-Based View, investments in employee development are associated with stronger organizational capabilities through higher levels of employees’ knowledge and skills, while participation in decision-making is associated with higher levels of employee engagement and commitment. These findings suggest that the effectiveness of these practices extends beyond employees’ psychological responses to include broader organizational capabilities that are associated with organizational performance.

Conversely, no significant mediating effect was observed for selective hiring, compensation system, or performance evaluation. These findings suggest that the relationships between these Human Resource Management Practices and organizational performance may operate through alternative mechanisms rather than job satisfaction alone. Other organizational or individual factors not examined in the present study may better explain these relationships, highlighting the complexity of the processes underlying the relationships between Human Resource Management Practices and organizational outcomes.

Overall, the findings indicate that job satisfaction should not be viewed as a universal mediating mechanism across all Human Resource Management Practices. Instead, its mediating role varies according to the nature of each practice, providing a more nuanced understanding of the relationships between Human Resource Management Practices and organizational performance within Saudi Arabia’s private food manufacturing sector.

5. Research Contribution

This study contributes to the Strategic Human Resource Management literature by demonstrating that the mediating role of job satisfaction varies across Human Resource Management Practices rather than functioning as a universal mechanism. The findings indicate that job satisfaction fully mediates the relationship between job security and organizational performance and partially mediates the effects of training and development and participation in decision-making. The study also enriches the limited empirical evidence from Saudi Arabia’s private food manufacturing sector by providing context-specific insights into the mechanisms through which Human Resource Management Practices influence organizational performance.

6. Managerial Implications

The findings provide practical guidance for managers and HR practitioners seeking to improve organizational performance through effective Human Resource Management Practices. Given the significant mediating role of job satisfaction, organizations should prioritize HR initiatives that strengthen job security, expand training and development opportunities, and encourage employee participation in decision-making, as these practices were found to enhance organizational performance directly or indirectly through job satisfaction.

The findings also indicate that Human Resource Management Practices do not contribute to organizational performance through the same mechanism. Accordingly, managers should avoid adopting a uniform approach to HRM implementation and instead align specific HR practices with the organizational outcomes they are intended to achieve. Such an approach is more likely to strengthen employee well-being while supporting sustainable organizational performance.

7. Limitations

This study has several limitations that should be considered when interpreting its findings. First, the study adopted a cross-sectional research design, which may limit the ability to establish causal relationships among the study variables. Second, the sample was confined to employees working in private food manufacturing companies in Jeddah, Saudi Arabia. Consequently, the findings may not be fully generalizable to other industries or geographical contexts. Finally, the study examined job satisfaction as the only mediating variable included in the proposed model linking Human Resource Management Practices and Organizational Performance. Future research may incorporate additional mediating or moderating variables to provide a more comprehensive understanding of the mechanisms through which Human Resource Management Practices influence Organizational Performance across different organizational contexts.

8. Conclusion and Recommendation

The findings of this study indicate that job satisfaction plays an important mediating role in the relationship between selected Human Resource Management Practices and Organizational Performance. However, its mediating role varies across different HRM practices, indicating that these practices are associated with organizational performance through different pathways rather than a single mechanism. This finding highlights the importance of considering employees’ psychological responses when designing and implementing HRM strategies.

Based on these findings, organizations are encouraged to strengthen HRM practices associated with higher levels of employees’ job satisfaction, particularly job security, training and development, and participation in decision-making. Managers should adopt integrated HRM systems that align employee well-being with organizational objectives, recognizing that different HRM practices may be associated with organizational performance through different mechanisms rather than through job satisfaction alone.

Future research is encouraged to validate the proposed model across different industries and countries, employ longitudinal research designs to examine causal relationships, and investigate additional mediating and moderating variables that may further explain the relationships between Human Resource Management Practices and Organizational Performance.

Conflicts of Interest

The author declares no conflicts of interest regarding the publication of this paper.

References