The Impact of Job Insecurity on Performance: only Negative Effects? Explaining the Nature of the Relationship with Overall Job Attitude as Mediator

Purpose: We examine through what mechanisms job insecurity, quantitative (i.e., threats to the job as such) and qualitative (i.e., threats to valued job features), affects employees’ performance (focal and contextual). Drawing on the compatibility principle in attitude theory, we proposed that overall job attitude (job satisfaction and affective commitment) predicts behavioural criteria. In particular, two predictions were compared based on social exchange theory and rational choice theory according to which JI can be an harmful stressor with negative strain reactions (behavioural withdrawal) or a challenge stressor that motivates employees to engage actively in actions coping with the threat (higher performance). Design/Methodology: Data were collected from 322 blue-collar workers in Italian organizational context. Structural equation modeling was used to test for direct, complete mediating, and partial mediating effects, with bootstrapping estimates of indirect effects. Results: Results provide support for the social exchange model, showing the negative influence of quantitative and qualitative JI as stressor on work performance, relationships fully mediated by overall job attitudes. Limitations: All measures were self-report. We adopted several procedural recommendations for controlling common method biases. To measure performance-related behaviours, is however important to collect multi-source data. Research/Practical Implications: Linking individual-level effects of JI (evaluation of one’s job experience) to organizational performance. By communicating the organization’s intentions, managers may enhance goal commitment and job satisfaction and indirectly improve employees’ performance. Originality/Value: To fill the gap in the literature about the effects of quantitative and qualitative JI on behavioural outcomes, in particular examining the underlying processes (mediating mechanism) to explain this relationship.