The Impact of Privatization on Employee Job Insecurity: The Case of the Healthcare Sector in Saudi Arabia

Abstract

Research has discussed several aspects of privatization in developed and developing countries. In this study, we build on the Psychological Contract Theory and the Human Capital Theory, as well as research on proactive behavior and self-concepts, to examine how understanding privatization impacts the quantitative and qualitative job insecurity of employees in the healthcare sector in Saudi Arabia during the privatization process. Using a sample of 136 employees, our results show that understanding the concept of privatization in general is negatively related to quantitative job insecurity. and knowing the nuances of privatization of the healthcare sector impacts quantitative, but not qualitative, job insecurity. This study makes several theoretical contributions to the literature on privatization, human resources, and organizational behavior. This study also provides useful practical implications for policymakers and managers.