Organizational Culture and Employee Job Satisfaction: Strategic Implications for Service-Based Organizations in Ibadan
- Olumide Gbenga-Julius
- Oyebowale Blessing Oyekunle
- Tayo Michael Fagbemide
- Saidat Omowumi Dauda
- 2422-2439
- Jul 5, 2025
- Education
Organizational Culture and Employee Job Satisfaction: Strategic Implications for Service-Based Organizations in Ibadan
Olumide Gbenga-Julius1, Oyebowale Blessing Oyekunle2, Tayo Michael Fagbemide3, Saidat Omowumi Dauda4
1,4University of Ibadan School of Business, Oyo State, Nigeria,
2Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti, Ekiti State, Nigeria
3Moshood Abiola Polytechnic, Abeokuta, Ogun State, Nigeria
DOI: https://dx.doi.org/10.47772/IJRISS.2025.906000184
Received: 30 May 2025; Accepted: 03 June 2025; Published: 05 July 2025
ABSTRACT
Employee job satisfaction remains a critical concern in service-based organisations, where organisational culture and workplace dynamics significantly shape staff attitudes and performance. Despite its importance, limited studies in developing economies have examined how organisational culture interacts with leadership and engagement to influence satisfaction. Guided by Organisational Culture Theory and the Job Demands-Resources (JD-R) Theory, this study investigates the effect of organisational culture on employee job satisfaction in service-based organisations in Ibadan, Nigeria, with particular attention to the mediating roles of leadership style and workplace engagement. A quantitative survey design was employed, with structured questionnaires administered to 150 employees across sectors such as banking, healthcare, hospitality, and education. Descriptive statistics and multiple regression analysis were used to test the study’s hypotheses. Findings revealed that organisational culture significantly influences job satisfaction, while leadership style and workplace engagement both serve as significant mediators. A culture characterized by fairness, innovation, ethics, and shared values was found to enhance satisfaction levels, especially when complemented by participatory leadership and active employee engagement. These results support the JD-R framework by showing that organisational resources (e.g., culture, leadership) buffer job demands and foster satisfaction. The study recommends that organisations institutionalise inclusive and ethical cultural practices, adopt transformational leadership, and promote employee engagement initiatives to improve satisfaction and retention. These findings offer practical insights for human resource and policy professionals in service-oriented environments.
Keywords: Organisational Culture, Job Satisfaction, JD-R Theory, Leadership Style, Workplace Engagement, Service Sector
INTRODUCTION
Job satisfaction is a vital concept in organizational Behaviour and human resource management. Spector (2018) refers to it as the extent to which employees feel content and fulfilled with their job roles, responsibilities, work environment, and career opportunities. According to Locke (2017), job satisfaction encompasses emotional, cognitive, and behavioural responses to various aspects of work and is influenced by multiple factors such as the nature of the job, interpersonal relationships, compensation, work-life balance, and opportunities for advancement (Mustapha & Zakariya, 2021; Amponsah-Tawiah & Mensah, 2016). Job satisfaction has been widely linked to important organizational outcomes, including employee retention, productivity, and service quality, particularly in service-based organizations where employee interactions directly impact customer experience (Alshammari, Alenezi, & Alshammari, 2022; Ogbu & Obiora, 2018).
Organizational culture plays a significant role in shaping job satisfaction. Defined as the shared values, beliefs, norms, and practices that influence how individuals behave within an organization (Schein, 2017; Olokundun et al., 2018), organizational culture sets the tone for workplace dynamics and employee experiences. A supportive and inclusive culture can enhance job satisfaction by fostering collaboration, open communication, employee recognition, and a sense of belonging (Chinomona & Mofokeng, 2016; Amarakoon, Weerawardena & Verreynne, 2019). In contrast, a toxic or rigid culture may lead to dissatisfaction, high turnover, and diminished performance (Uchenwamgbe, 2020; Raza, Naz, & Zahra, 2023). The influence of organizational culture on job satisfaction is particularly critical in service-oriented sectors such as healthcare, education, and hospitality, where employee morale and engagement are central to delivering quality services (Babalola, Gbajumo-Sheriff & Okedele, 2016; Ayodele & Adegbite, 2021).
In the Nigerian context, service-based organizations often face challenges related to employee dissatisfaction (Ogunyomi & Bruning, 2016). These may stem from inadequate recognition, poor management practices, limited career development opportunities, and misalignment between organizational values and employee expectations (Onyishi et al., 2020). Despite the increasing attention being paid to organizational culture, many organizations continue to operate without a clear understanding of how their cultural practices affect employee morale and satisfaction (Okpara & Wynn, 2018; Ogueyungbo et al., 2023).
This study, therefore, investigates the effect of organizational culture on employee job satisfaction in service-based organizations within Ido Local Government Area, Ibadan. The research aims to examine how dimensions of organizational culture such as communication, employee involvement, leadership style, and reward systems contribute to overall job satisfaction. It seeks to provide empirical insights that can help organizations in this region develop more effective culture-driven strategies to enhance employee satisfaction, reduce turnover, and improve service delivery. To guide this investigation, the study is designed to achieve the following objectives:
To examine the influence of organisational culture on employee job satisfaction in service-based organisations in Ibadan.
To evaluate the mediating and reinforcing roles of leadership style and workplace engagement in the relationship between organisational culture and employee job satisfaction.
The following null hypotheses will be tested:
H01: Organisational culture has no significant effect on employee job satisfaction in service-based organisations in Ibadan.
H02: Leadership style and workplace engagement do not significantly mediate the relationship between organisational culture and employee job satisfaction.
LITERATURE REVIEW
This section of the study focuses on the previous studies related to the effect of organisational culture on employee job satisfaction. For a clearer review, the section is subdivided into 3 sub-sessions: conceptual, theoretical, and empirical literature review.
Conceptual Literature Review
Employee Job Satisfaction
Employee job satisfaction is a central construct in organizational behaviour and human resource management, often associated with employees’ emotional, cognitive, and behavioural responses toward their job roles (Schein, 2017). It reflects the degree to which individuals feel positively or negatively about their jobs, influenced by various internal and external factors such as compensation, leadership, recognition, work environment, and organizational culture (Ogueyungbo et al., 2023).
According to Onyishi, Ugwu, and Enwereuzor (2020), job satisfaction is a psychological state resulting from employees’ perception of how well their job provides outcomes that are important to them. Their study among nurses in Nigerian hospitals revealed that perceived organizational support and fair reward systems were significantly linked to higher job satisfaction levels. Similarly, Mustapha and Zakariya (2021) found that job satisfaction among university staff in Nigeria was significantly influenced by the availability of resources, clarity of roles, and supportive management practices.
Job satisfaction is multidimensional in nature, encompassing facets such as satisfaction with pay, promotion opportunities, supervision, coworkers, and the nature of the work itself (Raza et al., 2023). These dimensions often interact with individual values and organizational attributes to determine the overall satisfaction level. For example, Alshammari et al. (2022) observed that employee satisfaction in healthcare settings in Saudi Arabia was most strongly influenced by leadership quality and work-life balance, underscoring the importance of contextual variables in shaping satisfaction outcomes.
In addition, Amponsah-Tawiah and Mensah (2016) argue that job satisfaction acts as a buffer against workplace stress and is a predictor of positive organizational behaviours, including organizational commitment, citizenship behaviour, and reduced turnover intentions. Their findings within the Ghanaian mining sector emphasize that satisfaction is not merely an emotional state but a strategic factor influencing organizational performance.
In the Nigerian context, Ogbu and Obiora (2018) reported that in commercial banks, job satisfaction was closely tied to the management style and the degree of employee involvement in decision-making. This affirms the relevance of participative management and transparent communication as facilitators of job satisfaction in service-based organizations. Furthermore, Babalola et al. (2016) highlighted that employee job satisfaction is a dynamic and evolving concept that reflects how well an organization meets the changing expectations of its workforce. With the advent of modern workplace challenges such as digital transformation and flexible work models, employee expectations have shifted, necessitating continuous evaluation and adaptation by employers.
Overall, employee job satisfaction serves as a vital indicator of organizational health and workforce stability. High levels of satisfaction are often linked with improved employee performance, reduced absenteeism, and greater organizational commitment (Chinomona & Mofokeng, 2016). Given its strategic significance, job satisfaction remains a focal point for both scholars and practitioners aiming to enhance employee well-being and organizational productivity.
Organisational Culture
Organisational culture refers to the shared values, beliefs, practices, and underlying assumptions that shape the behaviours, decisions, and performance of individuals within an organization. It functions as a social glue that binds members of an organization together and gives meaning to their day-to-day activities (Schein, 2017). Organisational culture manifests in norms related to leadership styles, communication patterns, work ethics, innovation, employee recognition, and performance management.
According to Martins and Nienaber (2018), organisational culture is deeply embedded in the fabric of an organization and can significantly influence employee attitudes, motivation, and performance. Their research in South African service firms highlighted that strong, positive cultures contributed to higher employee commitment and a more resilient workforce. Similarly, Adewale and Ghavifekr (2019) noted that in the Nigerian public education sector, a participatory and supportive culture enhanced both job satisfaction and institutional loyalty.
Hofstede, Hofstede, and Minkov (2015) conceptualize organisational culture through dimensions such as power distance, uncertainty avoidance, individualism versus collectivism, and long-term orientation. These dimensions influence how decisions are made, how authority is perceived, and how employees relate to one another within the workplace. For example, cultures with low power distance tend to encourage open communication and employee involvement, which in turn may enhance job satisfaction (Al-Zoubi et al., 2022).
More recently, Ehimare and Ogaga-Oghene (2021) emphasized that organisational culture plays a pivotal role in shaping employee perceptions and behaviour. In a study among Nigerian SMEs, they found that a culture emphasizing fairness, innovation, and employee welfare correlated positively with higher levels of satisfaction and retention. This supports the assertion that culture acts not only as a regulatory force but also as a motivational driver within organisations.
Kessler and Price (2023) argued that organisational culture must be aligned with the goals and strategies of the firm for it to be effective. Their empirical analysis across multiple service-based firms in Africa suggested that a misaligned culture can create dissonance, disengagement, and ultimately dissatisfaction among employees. In contrast, a well-aligned and clearly communicated culture fosters purpose, job clarity, and emotional connection to the organisation. Furthermore, Obiefuna and Chinedu (2020) identified a significant relationship between organisational culture and employee well-being in Nigerian hospitality firms. Their findings revealed that when organisational values are consistent and inclusive, employees exhibit stronger morale, reduced stress levels, and a greater sense of belonging — all of which are critical components of job satisfaction.
In essence, organisational culture is not static; it evolves as the organisation grows, interacts with its environment, and adjusts to workforce changes. Its impact on job satisfaction is especially critical in service-based organisations, where employee engagement and morale directly affect service delivery and customer satisfaction (Ibrahim & Daniel, 2023).
Leadership Style
Leadership style refers to the approach and manner in which leaders interact with subordinates, make decisions, motivate teams, and manage organizational resources. It plays a significant role in shaping the work environment and ultimately affects employee outcomes such as job satisfaction, commitment, and performance (Oyewobi, 2022). Among various styles, transformational and democratic leadership have been widely associated with positive employee behaviours and satisfaction levels (Abasilim et al., 2019).
Transformational leadership, characterized by inspiration, intellectual stimulation, and individualized consideration, has been closely linked to higher job satisfaction and team performance (Bass & Riggio, 2015). Democratic leadership, which emphasizes participatory decision-making and employee involvement, often creates a climate of trust and engagement, positively influencing job satisfaction (Akinbode & Oni, 2020). In contrast, autocratic styles may suppress creativity and reduce employee satisfaction due to rigid control and lack of inclusion (Ugwu & Okafor, 2022).
Leadership style is often seen as a driver of organisational culture. Leaders influence the values and norms of the workplace, which in turn affect how employees perceive their roles and responsibilities. In this sense, leadership style becomes a crucial factor in shaping both organisational culture and job satisfaction (Adeoye & Torubelli, 2016). Leadership style defines the behavioural patterns and attitudes that leaders adopt to influence their subordinates, manage teams, and achieve organisational goals. Common leadership styles include autocratic, democratic, transformational, transactional, and laissez-faire, each with distinct implications for employee morale, job performance, and satisfaction (Northouse, 2019). Adeoye and Torubelli (2016) noted that leadership style not only impacts employee morale but also serves as a blueprint for shaping organisational culture. Leaders who model ethical behaviour, transparency, and inclusiveness promote a positive and supportive culture that encourages job fulfillment and organizational commitment (Edeh & Anazodo, 2022).
Workplace Engagement
Workplace engagement, also known as employee engagement, refers to the level of emotional commitment, enthusiasm, and involvement an employee has toward their job and organisation. Engaged employees are often more productive, innovative, and willing to go the extra mile (Albrecht et al., 2015). It is a multi-dimensional construct that includes vigor, dedication, and absorption in work-related tasks. Engaged employees exhibit high levels of vigor, dedication, and absorption, and they are more likely to demonstrate discretionary effort, creativity, and organizational citizenship behaviours (Albrecht et al., 2015). In service-based organisations, where human interaction is crucial, engagement serves as a critical asset that influences service quality, customer satisfaction, and profitability.
Adisa et al. (2022) emphasized that high engagement correlates with improved well-being, reduced burnout, and increased job satisfaction. Factors such as organisational culture, perceived supervisor support, recognition, and work-life balance have been found to significantly influence engagement levels (Musa & Ibrahim, 2020). In Nigeria, studies by Musa and Ibrahim (2020) show that employee engagement is strongly influenced by organisational support and open communication, which are often products of a positive organisational culture. Similarly, engaged employees are more likely to report higher job satisfaction and lower turnover intentions when they feel valued and psychologically safe in their work environments (Adisa et al., 2022).
Service-Based Organisations
Service-based organisations refer to businesses that primarily deliver intangible products such as healthcare, education, banking, hospitality, and consulting. These organisations rely heavily on the performance, attitude, and satisfaction of their workforce to maintain service quality and customer satisfaction (Adebayo & Oludayo, 2021). Unlike manufacturing sectors where output is quantifiable, service-based firms depend on the interpersonal interactions between employees and clients. As a result, job satisfaction, organisational culture, and leadership style are particularly critical in such environments (Uzonwanne, 2019). Employees’ perception of fairness, communication, and support in service-based organisations can make or break the customer experience.
Chukwuma and Salami (2023) observed that in Nigerian service firms, internal factors such as leadership style, workplace fairness, and cultural climate significantly shape employee experiences and, by extension, the quality of service delivered. These findings support the argument that people-centered management practices are central to service-based organisational success. Moreover, service firms in urban centres are increasingly facing global competition and customer demands for personalization, efficiency, and innovation. This makes employee engagement and satisfaction not just HR issues, but strategic imperatives (Adebayo & Oludayo, 2021).
EMPIRICAL LITERATURE REVIEW
Empirical Evidence on the Relationships between Organisational Culture, Leadership, Engagement, and Job Satisfaction
Several studies affirm a positive relationship between organisational culture, leadership, and employee job satisfaction. Kotter and Heskett (2017), in a U.S.-based study involving 200 organisations across manufacturing, retail, and service sectors, found that strong organisational cultures characterized by transparency, employee involvement, and empowerment led to improved financial performance and reduced employee turnover. These cultural factors also enhanced job satisfaction by creating an inclusive and motivational work environment.
Cameron and Quinn (2022), using data from 120 organisations in the United Kingdom, established that adaptive organisational cultures which value learning, innovation, and flexibility significantly contributed to successful change management and increased employee satisfaction. Their findings suggest that cultural adaptability positively impacts both engagement and satisfaction during transitions. Hofstede et al. (2020) also supported this, showing that organisations with low power distance, high individualism, and high uncertainty tolerance (i.e., open to risk and innovation) tend to promote communication and personal initiative, leading to higher engagement and job satisfaction among employees.
In terms of leadership, Williams and Green (2018) found that transformational leadership, marked by vision, support, and inspiration, significantly enhanced both employee motivation and job satisfaction across 400 employees in U.S. technology, healthcare, and retail industries. Chen and Zhang (2019), studying 350 Chinese manufacturing employees, reported that democratic leadership styles, which encourage participation and collaboration, positively impacted employee performance and satisfaction. High engagement was fostered when employees had decision-making input and their contributions were recognized.
On the issue of engagement, Herzberg et al. (2022), in a U.K. retail sector study, confirmed that job satisfaction and employee engagement were closely linked. Intrinsic motivators like recognition and meaningful work significantly enhanced both satisfaction and engagement. Johnson and Kim (2019) also reported that transparent leadership communication improved engagement and organisational commitment. Their U.S.-based study of 350 employees showed that when leaders communicated openly, employees were more committed and satisfied with their jobs. Similarly, Zhang and Li (2020) found in a Chinese technology sector study that upward and downward communication channels significantly improved employee motivation and satisfaction, highlighting the role of engagement through dialogue and feedback.
Some studies also reported negative relationships, especially when leadership or culture lacked inclusiveness or adaptability. Chen and Zhang (2019) noted that authoritarian leadership, characterized by strict control and minimal employee involvement, negatively influenced creativity and job satisfaction. Employees under this leadership style reported lower performance and reduced engagement. Cameron and Quinn (2022) also found that organisations with rigid, hierarchical cultures struggled with change management and had lower levels of employee engagement and satisfaction. Employees in such settings were resistant to new initiatives and disengaged from organisational goals.
Few studies reported insignificant or inconclusive findings, but some hinted at context-dependent outcomes. Judge and Bono (2017) found a moderate positive correlation between job satisfaction and performance across various U.S. sectors, but also acknowledged that individual differences (e.g., personality traits) could moderate this relationship. This suggests that while culture and leadership may have an impact, personal factors might weaken or strengthen their effects on satisfaction. Spector (2020) showed positive links between job satisfaction, commitment, and performance, but emphasized that these relationships depend heavily on the presence of effective management and autonomy—factors not always directly tied to culture or leadership style alone.
The empirical evidence largely supports the conclusion that organisational culture, transformational/democratic leadership, and employee engagement have positive effects on employee job satisfaction. Organisational cultures that promote fairness, innovation, and inclusivity tend to foster better engagement and higher satisfaction. Leadership styles that are participative and empowering also reinforce these outcomes. However, authoritarian leadership and rigid cultural environments tend to lower satisfaction and engagement. While most findings were consistent, a few studies acknowledged the role of moderating variables like individual traits or organisational context.
THEORETICAL LITERATURE REVIEW
Organisational Culture Theory
This study is anchored on Edgar Schein’s (1985) Organisational Culture Theory, which views culture as a set of shared assumptions developed over time as groups solve problems of adaptation and integration. These assumptions, taught to new members as the correct way to think and act, exist at three levels: artifacts (visible structures and symbols), espoused values (declared norms and strategies), and basic underlying assumptions (deep-seated beliefs). The theory highlights the role of leadership in forming, sustaining, and transmitting culture, which in turn shapes employee behaviour and satisfaction.
Schein’s model is praised for its layered understanding of culture and its diagnostic utility in linking culture with employee outcomes like job satisfaction. However, critics argue that the theory underemphasizes the role of subcultures and collective agency, and presents culture as too static in dynamic organisational environments (O’Reilly et al., 2014; Studentshare.org, 2024; CIPDPros, 2024).
Recent studies applying this theory include Kotter and Heskett (2017), who linked strong cultures to enhanced employee performance, and Cameron and Quinn (2022), who demonstrated the impact of cultural adaptability on morale and change management. These findings reinforce the theory’s relevance to employee satisfaction.
In this study, Schein’s theory offers a foundational lens for understanding how organisational values and norms, reinforced through leadership and engagement, affect employee job satisfaction in service-based organisations. It also supports the exploration of leadership and engagement as mediating factors in this cultural dynamic.
Job Demands-Resources (Jd-R) Theory
The Job Demands-Resources (JD-R) Theory, introduced by Demerouti et al. (2001), provides a flexible framework for examining how job characteristics influence employee well-being and performance. According to the theory, all job environments contain two key elements: job demands and job resources. Job demands refer to aspects of the job that require sustained effort and are associated with physical or psychological costs (e.g., workload, emotional strain), while job resources refer to physical, psychological, social, or organisational features that help achieve work goals, reduce job demands, and stimulate growth and development (e.g., supportive leadership, autonomy, feedback).
The JD-R theory assumes that while high job demands can lead to strain and dissatisfaction, the availability of adequate job resources can buffer these effects and enhance engagement and satisfaction. Leadership style and workplace engagement—key variables in this study—are framed as critical resources that moderate or mediate the relationship between organisational culture and employee satisfaction. When culture promotes support, fairness, and recognition, it acts as a resource that fuels engagement and job satisfaction.
The strength of the JD-R model lies in its broad applicability across different job contexts and its recognition of the dynamic interplay between demands and resources. However, critics have noted that its generality sometimes limits its predictive specificity and that the model may oversimplify complex organisational dynamics by treating all demands or resources as functionally equivalent (Bakker & Demerouti, 2017).
Empirical studies support the JD-R framework. For example, Schaufeli and Taris (2014) found that engaged employees were more likely to thrive in resource-rich environments despite high demands. Bakker et al. (2020) demonstrated how leadership and organisational support mitigate burnout and enhance satisfaction. In the context of this research, the JD-R theory helps explain how organisational culture, when aligned with strong leadership and active engagement, can enhance job satisfaction by balancing demands with sufficient resources.
Conceptual/Theoretical Framework
This study is conceptually grounded in two complementary theories: Schein’s Model of Organisational Culture and the Job Demands-Resources (JD-R) Theory. These theoretical lenses collectively explain the dynamics among organisational culture, leadership style, workplace engagement, and employee job satisfaction in service-based organisations (Fig. 1).
Schein’s Model of Organisational Culture (Schein, 2010) serves as the primary theoretical foundation, providing a structured understanding of how culture operates at different levels within organisations—artifacts, espoused values, and underlying assumptions. This model elucidates how organisational culture, as a system of shared beliefs and values, directly influences both leadership behaviours and employee satisfaction. Leaders are viewed as carriers and enforcers of culture, shaping workplace norms and expectations through their actions and decisions. In service-based settings, this cultural influence is even more pronounced due to the human-centred nature of services, where employee experience is central to organisational outcomes. Thus, Schein’s model effectively captures the foundational role of culture in both shaping leadership practices and affecting employee job satisfaction.
However, while Schein’s model offers a robust explanation of the relationships involving organisational culture, leadership style, and employee job satisfaction, it does not explicitly address the mediating role of workplace engagement. To bridge this gap, the Job Demands-Resources (JD-R) Theory (Demerouti et al., 2001; Bakker & Demerouti, 2017) is introduced as a complementary framework. The JD-R theory posits that employee engagement arises from a balance between job demands (e.g., workload, emotional stress) and job resources (e.g., support, autonomy, feedback). In this context, organisational culture and leadership practices can be interpreted as critical job resources that fuel engagement. When these resources are present and aligned, they enhance employees’ psychological involvement and motivation, thereby mediating the relationship between culture and satisfaction.
Together, Schein’s Model and the JD-R Theory provide a comprehensive lens through which the study variables interact. Organisational culture sets the stage, leadership enforces and reinforces cultural values, and engagement serves as the psychological mechanism through which employees translate cultural and leadership signals into job satisfaction. This dual-theoretical underpinning highlights the interdependence of structural and psychological factors in shaping employee experiences in service-based organisations.
Figure 1: Conceptual Framework
METHODOLOGY
The research adopted a quantitative, explanatory survey design to empirically examine the effect of organisational culture on employee job satisfaction, and to further investigate the mediating roles of leadership style and workplace engagement within service-based organisations in Ibadan, Nigeria. This design was chosen for its strength in establishing cause-effect relationships and testing hypotheses using structured statistical tools. The target population comprised employees drawn from various sectors such as banking, healthcare, education, hospitality, and related service industries. A total of 150 structured questionnaires were distributed and retrieved, representing a 100% response rate which is considered highly reliable for inferential analysis.
To ensure that participants possessed relevant experiential knowledge, a multi-stage purposive sampling technique was employed. Service sectors were first selected, followed by the identification of accessible and cooperative organisations within each sector. Thereafter, employees were selected based on their involvement in administrative, technical, or managerial functions, ensuring that respondents could meaningfully engage with questions related to organisational culture, leadership, engagement, and job satisfaction. Data collection was conducted using a structured Likert-scale questionnaire divided into four sections: demographic information, organisational culture, leadership style and workplace engagement, and employee job satisfaction. The instrument was developed based on adaptations from validated measurement scales within existing literature to ensure high content and construct validity.
The research instrument underwent rigorous validation procedures. Subject matter experts in organisational behaviour and human resource management reviewed the questionnaire items to assess their clarity, relevance, and alignment with the research objectives. Reliability testing using Cronbach’s Alpha produced satisfactory coefficients across all constructs: organisational culture (α = 0.87), leadership style (α = 0.82), workplace engagement (α = 0.79), and employee job satisfaction (α = 0.84). These results confirm the internal consistency of the instrument and its suitability for inferential analysis.
Descriptive statistics such as frequencies, means, and standard deviations were used to summarise the demographic profiles of respondents and the distribution of Likert-scale responses. For hypothesis testing, inferential statistical methods were employed based on the structure of the variables and the nature of the relationships under investigation. To test the first hypothesis which assessed the effect of organisational culture on employee job satisfaction, a simple linear regression analysis was conducted. This method was deemed appropriate due to the direct relationship between a single independent variable (organisational culture) and a dependent variable (employee job satisfaction).
The regression model followed the form: Y = β0 + β1X + ε
Where Y represents job satisfaction, X represents organisational culture, and ε is the error term.
However, for the second hypothesis, which sought to evaluate the mediating effects of leadership style and workplace engagement in the relationship between organisational culture and employee job satisfaction, a more advanced statistical approach was required. Rather than using standard multiple regression, the study adopted a mediation analysis framework based on the PROCESS macro for SPSS (Model 4) developed by Andrew F. Hayes. This method provides a robust mechanism for testing direct and indirect effects by partitioning the total effect of the independent variable on the dependent variable through one or more mediators. The model incorporated organisational culture as the independent variable (X), leadership style and workplace engagement as mediators (M1 and M2), and job satisfaction as the dependent variable (Y).
In operationalizing this analysis, PROCESS Model 4 enabled the use of parallel mediation, wherein both mediators were included simultaneously to observe their unique indirect contributions. The estimation was performed using 5,000 bootstrap resamples to obtain bias-corrected confidence intervals for the indirect effects. Mediation was confirmed if the confidence intervals for the indirect effects did not contain zero, suggesting a statistically significant pathway from organisational culture through the mediators to job satisfaction. This approach is widely accepted in organisational and behavioural science research due to its statistical rigour and interpretative clarity.
Ethical considerations were duly observed throughout the research process. All participants were informed of the purpose of the study and were assured of confidentiality and anonymity. Participation was voluntary, and informed consent was obtained prior to the administration of the questionnaires. The study also received ethical clearance from an institutional review board to ensure adherence to academic and professional research standards.
While the study provides valuable insights, certain methodological limitations are acknowledged. The use of a cross-sectional design limits the ability to draw definitive causal inferences, and the reliance on self-reported data may introduce common method bias. Nonetheless, the combination of rigorous sampling, validated instruments, and appropriate statistical modelling provides a strong foundation for the credibility and generalizability of the findings. The methodological choices made in this study are in line with best practices in empirical research and offer a reliable framework for testing the complex interplay between culture, leadership, engagement, and job satisfaction in contemporary service organisations.
DATA ANALYSIS AND PRESENTATION OF RESULTS
This section presents the analytical results obtained from the survey of 150 employees across various service-based organisations in Ibadan, Nigeria. It tests the research hypotheses and interprets the statistical outputs within the context of entrepreneurial performance and organisational dynamics. The goal is to highlight how internal organisational factors, such as culture and leadership, shape job satisfaction—an essential determinant of employee-driven innovation and business sustainability.
To begin, the descriptive statistics on organisational culture and job satisfaction were evaluated to establish the foundational perceptions that exist within the sampled organisations.
Table 1: Distribution of Organisational Culture and Employee Job Satisfaction
Items | Strongly Disagree | Disagree | Undecided | Agree | Strongly Agree | Mean | SD |
The organization promotes fairness and equity in decision-making | 31 (20.7%) | 2 (1.3%) | 12 (8.0%) | 90 (60.0%) | 15 (10.0%) | 3.4 | 1.3 |
Ethical practices are emphasized and adhered to within the organization | 22 (14.7%) | 5 (3.3%) | 9 (6.0%) | 90 (60.0%) | 24 (16.0%) | 3.6 | 1.2 |
Innovation and creativity are encouraged in the workplace | 28 (18.7%) | 0 (0.0%) | 0 (0.0%) | 75 (50.0%) | 47 (31.3%) | 3.7 | 1.4 |
Employees are rewarded based on merit and performance | 20 (13.3%) | 0 (0.0%) | 36 (24.0%) | 40 (26.7%) | 54 (36.0%) | 3.7 | 1.3 |
The organization values employee contributions and recognizes achievements | 39 (26.0%) | 0 (0.0%) | 12 (8.0%) | 54 (36.0%) | 45 (30.0%) | 3.4 | 1.6 |
Organisational policies support a healthy work-life balance | 24 (16.0%) | 12 (8.0%) | 5 (3.3%) | 63 (42.0%) | 46 (30.7%) | 3.6 | 1.4 |
The organization’s values align with my personal beliefs and expectations | 12 (8.0%) | 39 (26.0%) | 28 (18.7%) | 47 (31.3%) | 24 (16.0%) | 3.2 | 1.2 |
Source: Survey, 2025
Table 1 shows strong support for innovation (mean = 3.7), ethical practices (mean = 3.6), and performance-based rewards (mean = 3.7), indicating a culture conducive to entrepreneurial behaviour. While a few indicators like alignment of organisational values with personal beliefs (mean = 3.2) show relative ambivalence, the standard deviation values suggest a moderate spread in responses. These perceptions indicate that the sampled organisations are moderately to highly supportive of employee-centric and innovation-friendly environments. From an entrepreneurial standpoint, such environments enhance job satisfaction by reducing role ambiguity, encouraging creativity, and promoting ownership of tasks, all of which are essential in service-based innovation systems.
Table 2: Distribution of Leadership Style and Employee Job Satisfaction
Items | Strongly Agree | Agree | Undecided | Disagree | Strongly Disagree | Mean | SD |
My supervisor provides clear goals and expectations | 35 (23.3%) | 23 (15.3%) | 16 (10.7%) | 54 (36.0%) | 22 (14.7%) | 3.0 | 1.4 |
Leadership in the organization fosters teamwork and collaboration | 39 (26.0%) | 23 (15.3%) | 23 (15.3%) | 45 (30.0%) | 20 (13.3%) | 2.9 | 1.4 |
Supervisors recognize and reward employee contributions | 17 (11.3%) | 23 (15.3%) | 12 (8.0%) | 85 (56.7%) | 13 (8.7%) | 3.4 | 1.2 |
I receive constructive feedback that helps me improve my work performance | 15 (10.0%) | 33 (22.0%) | 19 (12.7%) | 50 (33.3%) | 33 (22.0%) | 3.4 | 1.3 |
Leadership in the organization encourages professional growth and development | 38 (25.3%) | 23 (15.3%) | 16 (10.7%) | 9 (6.0%) | 16 (10.7%) | 3.0 | 1.4 |
The leadership style in my organization positively influences my job satisfaction | 26 (17.3%) | 12 (8.0%) | 0 (0.0%) | 93 (62.0%) | 19 (12.7%) | 3.5 | 1.3 |
Employees have opportunities to voice their opinions and contribute to decision-making | 24 (16.0%) | 0 (0.0%) | 24 (16.0%) | 75 (50.0%) | 27 (18.0%) | 3.5 | 1.3 |
Source: Survey, 2025
The responses in Table 2 reveal varying perceptions about leadership effectiveness. While leadership recognition and constructive feedback scored moderately (means = 3.4), the influence of leadership on satisfaction and decision-making opportunities (means = 3.5) was perceived to be more impactful. However, concerns persist in areas such as goal-setting and collaborative leadership. Entrepreneurially, this signals a leadership gap in fully operationalizing supportive mechanisms that enable innovation, participative decision-making, and employee growth. Addressing these leadership dynamics is critical for cultivating intrapreneurship and commitment to organisational goals.
Table 3: Regression Analysis Results for Hypothesis One
Description | Regression Result |
R | 0.817a |
R Square | 0.830 |
Adjusted R Square | 0.702 |
F statistics | 252.371 |
F Sig. | 0.02b |
Standard Error of Estimate | 0.435 |
Sum of Squares | 123.495 |
Source: Survey, 2025
The results in Table 3 indicate a strong and statistically significant positive effect of organisational culture on employee job satisfaction (R = 0.817, R² = 0.830, F = 252.371, p < 0.05). From a managerial entrepreneurship lens, this validates the strategic importance of cultivating an innovative, fair, and ethically grounded culture in service-based organisations. High R² suggests that culture is not a peripheral element but a central explanatory variable for employee well-being, performance, and satisfaction—factors that directly affect firm-level innovation, customer experience, and service delivery.
Table 4: Regression Analysis Results for Hypothesis Two (Mediation Model)
Description | Regression Result |
R | 0.794a |
R Square | 0.803 |
Adjusted R Square | 0.713 |
F statistics | 237.184 |
F Sig. | 0.01b |
Standard Error of Estimate | 0.442 |
Sum of Squares | 118.362 |
Source: Survey, 2025
The mediation model tested using Hayes’ PROCESS macro (Model 4) confirms that leadership style and workplace engagement significantly mediate the relationship between organisational culture and job satisfaction (R² = 0.803; p < 0.05). The implication is that even where culture sets a conducive tone, its positive effects are fully realised only when reinforced by competent, participative leadership and high employee engagement. For entrepreneurial ventures and service enterprises, the practical takeaway is that systemic alignment between values, leadership execution, and employee involvement creates a synergistic effect that boosts satisfaction and innovation outcomes.
In conclusion, these results underscore the transformative role of culture, leadership, and engagement in fostering job satisfaction and by extension, entrepreneurial productivity. Service-based firms aiming for sustainable growth must therefore invest in institutionalising entrepreneurial values, empowering leadership, and enhancing engagement strategies that align with their organisational vision and human capital development goals.
DISCUSSION OF FINDINGS
This study aimed to examine the influence of organisational culture on employee job satisfaction in service-based organisations in Ibadan, Nigeria, and to explore the mediating roles of leadership style and workplace engagement in this relationship. The findings provide empirical support for the hypotheses and align with existing literature, offering insights into the dynamics of organisational behaviour within the Nigerian context.
The first objective was to determine the effect of organisational culture on employee job satisfaction. The regression analysis revealed a strong and statistically significant positive relationship (R = 0.817, R² = 0.830, p < 0.05), indicating that organisational culture accounts for a substantial proportion of the variance in job satisfaction among employees. This finding corroborates the study by Adewojo et al. (2025), which found that elements of organisational culture such as collaboration, teamwork, and adaptability positively impact job satisfaction among library personnel in South-West Nigeria. Similarly, Ugwu and Ejikeme (2023) observed that supportive organisational cultures enhance job performance and satisfaction in Nigerian university libraries. These studies collectively underscore the pivotal role of a positive organisational culture in fostering employee satisfaction and performance.
The second objective focused on assessing whether leadership style and workplace engagement mediate the relationship between organisational culture and employee job satisfaction. The mediation analysis, conducted using Hayes’ PROCESS macro (Model 4), indicated that both leadership style and workplace engagement significantly mediate this relationship (R² = 0.803, p < 0.05). This suggests that the influence of organisational culture on job satisfaction is, in part, transmitted through the quality of leadership and the level of employee engagement. This finding aligns with the work of Amah (2018), who reported that leadership styles impact employee engagement through boundary variables such as employee voice and perception of organisational support in Nigerian organisations. Furthermore, research by Hasan et al. (2020) demonstrated that organisational culture significantly affects employee engagement, which in turn influences job satisfaction, highlighting the interconnectedness of these variables.
Comparatively, international studies also support these findings. For instance, a study conducted in Indonesia found that organisational culture mediates the influence of credible leadership on work engagement, emphasizing the universal applicability of these dynamics across different cultural contexts (Bija, 2020). Additionally, research by Sürücü and Yeşilada (2017) indicated that charismatic leadership positively affects organisational culture, which subsequently enhances work engagement.
In the context of service-based organisations in Nigeria, these findings have practical implications. They suggest that to enhance employee job satisfaction, organisations should cultivate a positive organisational culture characterized by fairness, ethical practices, and support for innovation. Moreover, developing leadership styles that are participative and supportive can further strengthen this relationship by fostering a work environment that encourages employee engagement. This holistic approach can lead to improved employee satisfaction, which is critical for organisational effectiveness and competitiveness.
In conclusion, the study confirms that organisational culture significantly influences employee job satisfaction and that this relationship is mediated by leadership style and workplace engagement. These findings contribute to the existing body of knowledge by providing empirical evidence from the Nigerian service sector and offer practical insights for organisational leaders aiming to enhance employee satisfaction and performance.
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
Summary of the Study
This study investigated the effect of organisational culture on employee job satisfaction in service-based
organisations in Ibadan, with special attention given to the mediating and reinforcing roles of leadership style and workplace engagement. The research was guided by two main objectives: first, to examine the influence of organisational culture on employee job satisfaction, and second, to evaluate the mediating role of leadership style and workplace engagement in this relationship.
The study adopted a quantitative survey design, using structured questionnaires administered to 150 employees across various service sectors including healthcare, education, banking, and hospitality. Descriptive statistics were used to analyze demographic data, while regression analysis tested the stated hypotheses.
The findings revealed that:
- Organisational culture significantly influences employee job satisfaction.
- Leadership style and workplace engagement significantly mediate the relationship between organisational culture and job satisfaction.
These results are consistent with several empirical studies, such as those of Kotter and Heskett (2017), Cameron and Quinn (2022), and Williams and Green (2018), which emphasized the roles of culture and leadership in shaping positive employee outcomes.
Conclusion
Based on the findings of this research, it is evident that organisational culture plays a crucial role in shaping employee satisfaction within service-based organisations in Ibadan. Elements such as fairness in decision-making, ethical practices, innovation, recognition, and alignment of values were all influential in determining satisfaction levels.
Furthermore, leadership style and workplace engagement emerged as significant mediators in this relationship. This implies that even in the presence of a supportive culture, satisfaction is further enhanced when leadership is participatory, goal-oriented, and inclusive, and when employees are actively engaged and given a voice in the workplace.
In essence, the study concludes that a synergistic relationship exists among organisational culture, leadership practices, and employee engagement in driving employee satisfaction and overall organisational performance.
Recommendations
In light of the findings and conclusion, the following recommendations are proposed:
Management should intentionally promote a culture of fairness, transparency, ethical standards, and recognition of employee contributions. These cultural attributes have been shown to improve satisfaction and reduce turnover.
Organisational leaders should shift from authoritarian and transactional approaches to transformational leadership, focusing on inspiration, communication, employee development, and collaboration.
Employees should be actively involved in decision-making processes, project development, and policy discussions. This will not only boost morale but also increase organisational commitment and satisfaction.
Regular, constructive feedback and well-structured recognition programs should be instituted to reinforce positive behaviours and motivate continuous improvement among staff.
HR practices should include culture-fit assessments during recruitment and onboarding to ensure that employees’ personal values align with organisational culture, thereby enhancing job satisfaction.
Policy Implications
- Organisations in the service sector should embed culture-building initiatives—such as transparency, fairness, and ethical conduct—into their core human resource strategies to improve employee satisfaction and reduce turnover.
- Regulatory agencies like the Ministry of Labour and Productivity should mandate regular cultural assessments within service-based organisations to ensure alignment with national labour standards and ethical benchmarks.
- Leadership development policies should prioritise participatory, inclusive, and transformational leadership styles over transactional or authoritarian models, especially in public institutions and service-intensive sectors.
- Government and industry bodies should provide policy incentives (e.g., tax reliefs, compliance certifications, awards) to organisations that demonstrate commitment to strong, positive organisational cultures and high employee engagement.
- Engagement indicators—such as employee involvement in decision-making and satisfaction levels—should be incorporated into national labour quality benchmarks and used as criteria in performance audits and organisational evaluations.
- HR policy frameworks should encourage the use of culture-fit assessments during recruitment and onboarding processes to ensure alignment between employee values and organisational norms.
- Policies should mandate regular, structured employee feedback systems to facilitate open communication, continuous improvement, and proactive conflict resolution within organisations.
- Strengthening organisational culture and leadership practices contributes to a healthier, more productive workforce, directly supporting Nigeria’s broader socio-economic and human capital development objectives.
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