Abstract
Although previous research has examined the influence of job insecurity on perceptions, attitudes, and behaviors of employees, the literature has paid insufficient attention to the impact of job insecurity on organizational performance and the underlying mechanisms of this association. Organizational performance is one of the most critical outcomes in an organization, and studies are needed to examine the influence of job insecurity on organizational performance together with its intermediating processes. Accordingly, this study investigates the intermediating mechanisms between job insecurity and perceived organizational performance with a sequential mediation model. Specifically, this article hypothesizes that levels of employees’ psychological safety and organizational commitment sequentially mediate the job insecurity–perceived organizational performance link. Using three-wave time-lagged data from 321 employees in South Korea, this study found that psychological safety and organizational commitment were sequential mediators in the link. This finding suggests that levels of psychological safety and organizational commitment in employees function as underlying processes in explaining the job insecurity–perceived organizational performance link.
Highlights
Due to severe competition and complexity, many firms have reduced job stability for employees by downsizing, outsourcing labor, and implementing temporary or short-term employment contracts to maximize operational efficiency (Lam et al, 2015; Sverke et al, 2002; Wang et al, 2015)
To determine whether there was an adequate level of discriminant validity, a confirmatory factor analysis (CFA) was conducted for research variables from the same employee
The aim of this article was to reconcile mixed results from previous research in the job insecurity–organizational outcomes link by delving into intermediating processes of the association
Summary
Due to severe competition and complexity, many firms have reduced job stability for employees by downsizing, outsourcing labor, and implementing temporary or short-term employment contracts to maximize operational efficiency (Lam et al, 2015; Sverke et al, 2002; Wang et al, 2015). The issue of job insecurity is fundamental for employees. Scholars and practitioners have paid much attention to job insecurity because the issue substantially influences the working lives of employees, as well as organizational outcomes. Previous research shows mixed results, job insecurity is closely associated with poor mental/physical wellbeing and poor work attitudes/behavior in employees (e.g., job satisfaction, well-being, organizational commitment, job involvement, trust in organizations, creativity, and organizational citizenship behavior) as well as poor performance outcomes on the part of employees and organizations (Cheng & Chan, 2008; De Witte et al, 2016; Ferrie et al, 2001; Gilboa et al, 2008; Kim, 2019; Lam et al, 2015; Niessen & Jimmieson, 2016; Probst et al, 2007; Richter & Näswall, 2019; Shin et al, 2019; Shoss, 2017; Sverke et al, 2002; Wang et al, 2015)
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