Understanding the Relationship Between Job Insecurity and Performance: Hindrance or Challenge Effect?

This study aims to propose a theoretical model that explains the psychological processes underlying the job insecurity-performance relationship. To accomplish this goal, we draw on a two-dimensional stressor framework. Job insecurity may undermine performance through a hindrance effect, because it causes strain reactions and withdrawal behaviors. In contrast, it can trigger productive behaviors as a form of job preservation strategy, when reacting actively. These competing predictions are integrated in the same structural equation modeling by testing the negative indirect effect of job insecurity on task and contextual performance, mediated by job satisfaction and affective commitment. The positive challenge effect is examined by testing the remaining direct path to performance. To provide convergence of evidence, two studies were conducted with the purpose to replicate patterns and findings across different measures and samples. The results provide support only for negative and passive reactions to job insecurity, leading to lower performance.