Leadership style and organizational performance: the role of job satisfaction

Purpose The down-and-out challenges facing hospitals in Nigeria have drawn the attention of academics to propose solutions to these problems that have been drawing the global standard of the sector backward in the country. As a result, this study seeks to investigate leadership style and organizational performance. The role of job satisfaction within Nigerian hospitals. Design/methodology/approach This study used a positivist philosophy and cross-sectional survey to assess the relationships among leadership style, job satisfaction and organizational performance in Nigerian public hospitals. A stratified sample of 372 was drawn from 11,373 employees. Using validated instruments, data were analyzed with Statistical Package for Social Sciences (SPSS) and analysis of moment structures (AMOS), employing structural equation modeling (SEM) to test relationships and mediation, ensuring robust, generalizable results. Findings The results revealed that job satisfaction significantly influences organizational performance (ß = 1.044, p < 0.001). However, leadership style showed no significant direct effect on organizational performance (ß = −0.017, p = 0.927), indicating a full mediation through job satisfaction (indirect effect = 0.844, p < 0.001). Among control variables, education and work experience positively affected performance (ß = 0.069, p = 0.006) and (ß = −0.088, p = 0.002). However, age was not significant (p = 0.211). Originality/value This study not only introduces job satisfaction as a mediating variable but also applies human capital and social exchange theories to explore how leadership style influences organizational performance. Using SEM and control variables, it provides a fresh perception into leadership dynamics within under-resourced healthcare systems in Nigeria.