Job Insecurity and Performance: The Mediating Role of Organizational Justice in terms of Type of Contract.

Abstract

Job insecurity has been widely researched. However, there have been inconsistent results about the association between job insecurity and job performance. This study proposed a multi-group mediation model to explain the underlying mechanisms of this relationship according to psychological contract and social exchange theory. Data were collected through a survey. The sample was composed of 1,435 employees in 138 organizations from two European countries (i.e. Spain and Austria). Results showed that job insecurity was indirectly related to OCB and self-rated performance through the three types of organizational justice (distributive, procedural, and interactional justice); and these relationships varied depending on the type of contract. This study contributes to a better understanding of the relationship between job insecurity and performance by clarifying underlying mechanisms according to the type of contract.