Job Insecurity and Performance in Italy and the U.S.: Hindrance or Challenge effect?

Purpose: Using samples from Italy and the U.S., we examine the mechanisms through which job insecurity affects task and contextual performance. Drawing on a two-dimensional stressor framework, it is hypothesized that job insecurity may affect behavioural outcomes differentially. On one hand, job insecurity may have a negative affect (hindrance stressor) and, on the other hand, it may positively affect behavioural outcomes (challenge stressor). The model attempts to disentangle both mechanisms by introducing overall job attitudes (job satisfaction and affective commitment) as mediating variables. The research permits us to examine cross-cultural generalizations. Methodology: Data were collected from 322 blue-collar workers in Italy and 320 staff in the U.S. The meditational model was tested using SEM with bootstrapping estimates of indirect effects. Results: In both countries, job insecurity is found to be a hindrance stressor that induces strain reactions: one way to cope with such a stressor is to behaviourally withdraw from the situation, i.e., reduced performance and OCB. Limitations: Because of the cross-sectional design, no inferences were made about true causal relationships. Practical Implications: Job insecurity does not act as a challenge stressor to motivate employees’ performance. This suggests that managers should communicate clearly about change initiatives to reduce job insecurity, enhance affective commitment and job satisfaction, thereby indirectly improving productive behaviours. Originality: This paper contributes to the cross-cultural generalizability of job insecurity and performance outcomes. Further, it compares challenge and hindrance affects of job insecurity.status: publishe