Abstract

The findings on the relationship between job demands and job performance have been inconsistent in previous studies. Drawing on social exchange theory, we examined the moderating effect of job security on the job demands–job performance relationship. Three studies with cross‐sectional and time‐lagged designs were conducted. The results of Studies 1 and 2 consistently demonstrated that job demands significantly improved employee performance in the context of higher job security, whereas job demands impaired performance to some extent when job security was lower. Study 3 replicated these findings and also showed that the positive moderating effect was stronger for employees with lower rather than higher levels of traditionality. The importance of job security to improving employees’ performance in stressful workplaces was affirmed. These findings contribute to theories linking job demands to job performance and have practical implications for managers in high‐stress environments, especially in developing countries.Practitioner points Job demands may lead to good performance when employees’ job security is high. Appropriate human resource practices should promise employees’ perceived job security rather than only reducing job demands. Employers should pay more attention to maintaining the social exchange relationships with employees having lower traditional values.

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