With the aggravation of population aging, the problem of providing service for the aged has become the focus of the public. A large number of nursing homes have emerged under this background. Residence satisfaction is broadly used as the indicator to measure the quality of nursing homes. Focusing on the resident satisfaction formation from the organizational factors, this study investigate show staffi ng, hardware facilities, elderly service guarantee and perceived environment infl uence the satisfaction of the elderly. Meanwhile, how these variables interact with each other and fi nally aff ect the satisfaction is also explored. Data collected from 493 nursing homes in Shanghai city of China are used for the empirical analysis. Research results show that: residence satisfaction is directly infl uenced by the environment perception and elderly service guarantee of the nursing home; staffi ng and hardware facility confi guration are the direct factors in the satisfaction, and staffi ng is the most important element in the construction of nursing homes and infl uences other factors directly or indirectly.