The strategic effects of job satisfaction on organizational performance: The mediating role of employee engagement

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Abstract

In today’s rapidly evolving business landscape, intense performance demands, advancing technologies, shifting organizational contexts, and high client expectations pose significant challenges to performance in construction firms. A capable workforce is essential for achieving strong organizational performance and sustaining a competitive edge. Various factors influence how effectively a construction organization performs (Abawa & Obse, 2024). Notably, the job satisfaction and employee engagement of construction engineers play a crucial role in driving industry progress and are key contributors to organizational performance. This study investigated the mediating role of employee engagement in the relationship between job satisfaction and organizational performance by distributing 467 self-reported questionnaires to engineers in Jordanian construction organizations. The collected data, analyzed using structural equation modeling (SEM) via IBM-SPSS-AMOS 24.0, revealed that both job satisfaction and employee engagement are positively correlated with organizational performance. Job satisfaction has a positive and significant effect on employee engagement, and, importantly, employee engagement partially mediates the relationship between job satisfaction and organizational performance. In this context, fostering collaboration among staff is considered vital for improving organizational performance, particularly when employees experience high levels of satisfaction and engagement. This study also highlights practical implications for managers, offering insights into how strategic efforts to enhance satisfaction and engagement can lead to measurable performance gains.

Keywords: Job Satisfaction, Employee Engagement, Organizational Performance

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: J290, L220, L250, L740, M540, O530

Received: 06.07.2025
Revised: 17.10.2025; 30.12.2025
Accepted: 22.01.2026
Published online: 26.01.2026

How to cite this paper: Abu-Mahfouz, S. (2026). The strategic effects of job satisfaction on organizational performance: The mediating role of employee engagement. Corporate and Business Strategy Review, 7(1), 192–202. https://doi.org/10.22495/cbsrv7i1art17