Organizational-level perceived support enhances organizational profitability

Abstract

Although the importance of perceived organizational support on organizational outcomes has been highlighted in the literature, research is lacking concerning how organization-wide perceptions of support by employees (organizational-level perceived support [OPS]) may contribute to organizational performance. To address this critical deficiency in the literature, we extend organizational support theory to the organizational level and examine the influence of OPS on organizational profitability. We conducted two studies with samples of 224 and 96 organizations, respectively, in South Korea and found that workforce performance (Study 1) and workforce voluntary turnover rate (Studies 1 and 2) mediate the relationship between OPS and organizational profitability. Furthermore, we found that organizational financial slack resources moderate the effect of OPS on workforce performance. Specifically, the positive effect of OPS on workforce performance, and consequently on organizational profitability, was stronger when financial slack resources were lower. Financial slack resources, however, do not moderate the relationship between OPS and voluntary turnover rate. We discuss the theoretical and practical implications of these findings. (PsycInfo Database Record (c) 2022 APA, all rights reserved).