Incentive strategy and employee performance: a mediating perspective of employee job satisfaction and moderating role of organizational commitment

Daniel Marcel and Haruna Isa Mohammad

American Journal of Business, 2026, vol. 41, issue 1, 18-34

Abstract: PurposeThe purpose of this study is to investigate the effect of incentive strategy on employee performance: moderating mediating effect of organizational commitment and job satisfaction in the hospitality industry in Nigeria.Design/methodology/approachThis study used a quantitative approach to gather data, giving questionnaires to 335 full-time workers of three- and four-star hotels in Northeast Nigeria. The study hypotheses were empirically tested using the bootstrapping technique and the structural equation modeling approach.FindingsThe results confirm the positive and significant effects of incentive strategies (intrinsic and extrinsic), employee job satisfaction, and organizational commitment on employee performance. The positive significant effect of motivational strategies on employee job satisfaction was documented. A partial mediating effect of job satisfaction was documented. However, job satisfaction has no mediating impact, while the moderating effect of organizational commitment was documented.Practical implicationsBased on this study, practitioners should provide in-accordance incentives and rewards to hardworking employees in order to provide them with excellent working environments and suitable employment conditions, increase employee loyalty, reduce attrition, and draw in promising talent.Originality/valueIn contrast to earlier research, this study contribution concentrates on the moderating effect of organizational commitment and the mediating effect of employee work satisfaction in the hospitality industry. It draws attention to the industry's ongoing difficulties in luring and keeping workers.

Keywords: Intrinsic incentive; Extrinsic incentive; Job satisfaction; Organizational commitment; Employee performance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajbpps:ajb-06-2025-0097

DOI: 10.1108/AJB-06-2025-0097

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