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This paper reveals that the relationship between public service motivation (PSM) and employee wellbeing depends on the societal impact potential (SIP) through the job and organizational type. In people-changing organizations, PSM relates to higher burnout and lower job satisfaction when SIP is high: employees sacrifice themselves too much for society. However, in people-processing organizations, low SIP relates to higher burnout and lower job satisfaction: employees experience frustration if they cannot contribute. This shows that whether PSM relates positively depends on institutional logics.
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