The role of collective perceived organizational support in organizational performance

Although a positive relationship of perceived organizational support (POS) with employee performance is well established, research is lacking concerning the relationship between POS and organizational financial performance. In this study, we propose a mediated moderation framework where collective POS influences organizational financial performance via enhanced collective organizational identification (OID) as moderated by collective perceived organizational competence (POC) and organizational historical aspiration at the first stage and the second stage of the model respectively. With a sample of 269 small sized organizations in South Korea, we found that collective POS was strongly associated with organizational performance when collective POC was high and organizational historical performance was below the aspiration level. In contrast, we found no relationship between collective POS and organizational financial performance when collective POC was low and organizational historical performance was above the aspiration level. Theoretical and practical implications of the findings were discussed.