Interactive effects of organizational commitment and incentives on firm resilience during a global crisis

Abstract

The COVID-19 pandemic was a global crisis that impacted supply chains and disrupted manufacturing and services systems across the globe. The exodus of workers from their place of work to their respective native places was a phenomenon that resulted in 600 million workers migratingin India. The pharma industry, among others, struggled to keep its supply chains operational. Our article explores the mediating role of organizational commitment (OC) and the moderating role of incentives on the impact of organizational citizenship behaviour (OCB) on firm resilience (FR) during the COVID-19 pandemic and researched the pharma industry bearing the highest risk. Data from contractual workers in two large Indian companies indicates that OCB positively influences OC, while both impact FR. Moreover, OC partially mediates, while incentives significantly and positively moderate OC on FR, especially for non-loyalists. These findings establish that organizations need to monitor the impact of both OC and OCB on FR and thereby use appropriate incentives to improve the ‘loyalty’ of contract employees, specifically during major crises like the ongoing pandemic.