Revealing the impact of social exchange theory on financial performance: a systematic review of the mediating role of human resource performance

This study applies Social Exchange Theory (SET) to examine how Perceived Organizational Support (POS), Perceived Procedural Justice (PPJ), and trust influence workplace behaviors, including employee performance, voluntary turnover, and financial outcomes. A systematic analysis of 71 articles from the Scopus database (1986–2023) was conducted to evaluate the impact of these concepts on human and organizational performance. The findings reveal that POS boosts productivity and retention, contributing to financial success. POS and PPJ foster fairness and trust, improving workplace dynamics. Trust in management emerges as vital for collaboration, loyalty, and performance. Human resource performance mediates these factors, linking relational constructs to measurable financial outcomes. The originality of this research lies in its focus on integrating SET principles with practical human resource strategies, offering a novel approach to understanding and enhancing the interplay between relational factors and financial performance. This research goes beyond confirming established relationships by extending the literature to provide a comprehensive understanding of how relational constructs translate into measurable financial outcomes. By aligning POS, PPJ, and trust with HR practices, this study highlights the value of relational dynamics in fostering engagement and achieving sustainable success. Practically, organizations can leverage these findings to enhance their HR practices, implement strategies to strengthen POS, PPJ, and trust. For instance, companies can develop structured support programs for employees, establish transparent and fair procedural frameworks, and foster a culture of trust through consistent and ethical leadership. By adopting these strategic actions, organizations can optimize employee engagement, improve retention rates, and drive sustainable financial success. The central objective of this article is to thoroughly examine the ins and outs of social exchange Theory, with a particular emphasis on foundational elements such as Perceived Organizational Support (POS), Perceived Procedural Justice (PPJ), and trust. This study aims to evaluate the predictive potential of these factors on companies’ financial performance through the lens of human resource performance. The methodology employed is based on a systematic literature review, analyzing 71 articles from the Scopus academic database. This review evaluates the core constructs of Social Exchange Theory regarding their predictive capacity for both human resource performance and financial performance. The findings of this study reveal significant conclusions. POS emerges as a primary predictor of companies’ financial performance, significantly enhancing employee performance and reducing turnover rates. Additionally, PPJ exerts a substantial influence on employee behavior, positioning it as a crucial predictor of financial performance. Finally, trust in management proves to be a critical predictor of overall performance, employee retention, and financial performance. The originality of this research lies in elucidating the predictive potential of Social Exchange Theory, thereby expanding the literature on this theoretical framework and its outcomes as reflected in objective company indicators. Beyond its theoretical contributions, this study has significant managerial implications. Organizations can leverage these findings to enhance their human resource practices, particularly by implementing targeted strategies to strengthen POS, PPJ, and trust. For instance, companies can develop structured support programs for employees, establish transparent and fair procedural frameworks, and foster a culture of trust through consistent and ethical leadership. By adopting these strategic actions, organizations can optimize employee engagement, improve retention rates, and ultimately drive sustainable financial success. In conclusion, this study reinforces the premise that understanding relational behaviors within companies is fundamental to predicting financial success through effective human resource management. By providing concrete insights into the link between social exchange dynamics and organizational performance, this research serves as a practical guide for business leaders and HR professionals seeking to enhance both employee well-being and financial stability. Notably, this research is among the first, to our knowledge, to conduct a systematic review of 71 articles from 1986 to 2023, examining POS, PPJ, and trust in management in the context of predicting outcomes related to workplace behaviors (employee performance and voluntary turnover rates) and financial performance, thus highlighting its contribution to the predictive potential of Social Exchange Theory.