The mediating effect of job satisfaction on work environment and productivity of the public petrochemical companies in Libya

Companies must step outside their traditional roles and comfort zones to look at new ways of working. The primary purpose of this study is to assess the impact of physical and behavioral environments on workers’ productivity in Libya. The secondary problem is concerned with how job satisfaction mediates and affects the relationship between work environment and productivity. This study provides a basis for those who are seriously searching for the reasons that cause productivity to be low. Therefore, this study examines the physical and behavioral environments and their relationship with workers’ productivity. It aims to provide critical recommendations to policy-makers in Libya to overcome this issue and improve the work environment towards boosting productivity. To achieve the objectives of this study, a questionnaire was administered. Multiple regressions were used to test the hypotheses. In line with that and to satisfy the objective of the analysis, the researcher used “stepwise regression” and "standard regression" in this study. In general, the results of the linear regression analysis reveal that all the variables under the physical environments are negatively and significantly related to workers’ productivity, whereas behavioral environment has significant mixed results in relation to workers’ productivity. These findings can be linked with Maslow’s Need Hierarchy and Herzberg Theory. In addition, the mediating effect of job satisfaction on both physical and behavioral environments on workers’ productivity indicates partial mediation, and one has perfect mediation (mistreatment behavior) as supported by the Social Exchange Theory which states that job satisfaction functions as a mediator. In relation to the practical and theoretical contributions, so far, to the best of the researcher’s knowledge, no scientific research has been found regarding the physical and behavioral environments and their effects on workers’ productivity by utilizing job satisfaction as a mediation between work environment and productivity. This study will help policy-makers, managers and the Libyan government to look into this phenomeno