Job insecurity and performance in public and private sectors: a moderated mediation model

Purpose: The purpose of this study was to extend our knowledge of the relationship between quantitative and qualitative job insecurity and performance. On the basis of stress theories, we hypothesised that qualitative job insecurity (QLJI) would mediate the negative effect of quantitative job insecurity (QTJI) on two different indicators of performance: task performance (TP) and counterproductive work behaviours (CPWBs). In addition, the authors hypothesised that the effect of QTJI on QLJI would be moderated by the economic sector (public vs private) in which employees worked. Therefore, the authors empirically tested a moderated mediation model via PROCESS. Design/methodology/approach: Participants were 431 employees from various Italian organisations. Data were collected using a self-report questionnaire measuring QTJI, QLJI, TP and CPWBs. Findings: The results indicated that economic sector moderated the relationship between quantitative and QLJI. Both quantitative and QLJI were related to performance outcomes. Furthermore, QLJI mediated the effect of QTJI on TP and CPWB. However, this mediation was particularly apparent among employees in the private sector, supporting our hypothesised moderated mediation model. Practical implications: The results suggest that managers of private and public organisations need to apply different policies to reduce the impact of job insecurity on CPWBs and increase the TP of their employees. Originality/value: This study attempted to examine the job insecurity–performance relationship in more depth. For the first time, the effects of both job insecurity dimensions on performance were simultaneously investigated, with economic sector as a moderator and QLJI as a mediator.