Strategic Human Resource Management Bundles and Job Performance in the Nonprofit Sector: A Multilevel Longitudinal Study

Leaning on social exchange theory and job demand Resource theory, this study examines the impact of ability, motivation, and opportunity strategic human resource management bundles on job performance via the mediating mechanism of work engagement. Our data were gathered in two waves from 270 paid employees employed by 30 nonprofit organizations in Palestine and were analyzed using hierarchical linear modeling. The findings reveal that ability, motivation, and opportunity for strategic human resource management bundles have a significant positive impact on work engagement and job performance. Among these bundles, the opportunity‐enhancing bundle emerged as the strongest predictor of work engagement and job performance. Work engagement was found to partially mediate the relationship between strategic human resource management and performance. The novelty of this study lies in its examination of these relationships using a multilevel longitudinal methodology in the understudied contexts of the nonprofit sector and an Eastern setting, thereby addressing several theoretical, methodological, and empirical gaps within the literature on strategic HRM, the non‐profit sector, and positive psychology.