Abstract:
The study investigated the mediating role of job satisfaction in the association
between psychological contract fulfilment and employee performance by
relying on the social exchange theory. Other issues examined include
psychological contract fulfilment and job satisfaction, job satisfaction and job
performance and psychological contract fulfilment and job performance. The
quantitative approach and causal design were employed, and primary data were
collected via structured questionnaires from 476 employees in two selected
insurance companies, Glico and SIC. A 341 data set was obtained and processed
with the IBM SPSS and SmartPLS software. The data was then analysed with
the partial least square-structural equation modelling tool. The study revealed
that psychological contract fulfilment improves job satisfaction and job
performance, whereas job satisfaction also improves job performance. In
conclusion, job satisfaction partially mediates the association between
psychological contract fulfilment and job satisfaction. It is recommended that
the management of insurance companies should ensure that psychological
contracts with their employees are identified and properly fulfilled to trigger job
satisfaction and improve the latter’s performance levels
