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Purpose: This study aims to discern the factors influencing job satisfaction and their correlation with fostering competitive advantage within the context of employee diversity. Design/Methodology/Approach: Combining theoretical insights with empirical analysis, the research examines factors that influence employee satisfaction and their implications for competitive advantage within small and medium-sized enterprises (SMEs). Employing a quantitative approach, the empirical study explores data collected from 590 employees across SMEs. The research spans four countries in Central and Eastern Europe: Poland, the Czech Republic, Slovakia, and Lithuania. Findings: The evaluation of job satisfaction among surveyed employees in small and medium-sized enterprises where they are employed indicates that attention to their satisfaction correlates with an enhanced competitive position. The obtained research results indicate a better competitive position of SMEs that are differentiated by gender and age of respondents. Practical Implications: Employers within the surveyed international enterprises should prioritize employee satisfaction by taking into account that an elevated level of satisfaction could translate into enhanced competitive advantage within the context of employee diversity. Originality/Value: In a landscape where research on job satisfaction is abundant, relatively few studies concentrate on employees within small and medium-sized enterprises as determinants of competitive advantage amid employee diversity. This article aims to bridge this gap, offering insights into the quantitative analysis and assessment of employee satisfaction as a pivotal determinant of competitive advantage within diverse organizational settings.
