IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v117y2020icp825-838.html
   My bibliography  Save this article

The moderating role of corporate reputation and employee-company identification on the work-related outcomes of job insecurity resulting from workforce localization policies

Author

Listed:
  • Ali, Imran
  • Ali, Murad
  • Grigore, Georgiana
  • Molesworth, Mike
  • Jin, Zhongqi

Abstract

Although previous studies have examined the impact of job insecurity, there remains a need to understand specific issues related to job insecurity that results from government workforce localization policies. This study addresses this gap by examining employees' work-related outcomes: employee engagement, job burnout, and intentions to quit, recognizing the interplay of employees' identification with an organization and perceived corporate reputation in the context of Saudi Arabia's localization policies. The study uses social identification theory to explain how employees' perception of corporate reputation and their identification with a company shape their work attitudes in the presence of job-insecurity. Partial least square - path modeling (PLS-PM) and PROCESS tool is used to test hypotheses from data collected from 135 expatriate migrant employees working in different organizations in Saudi Arabia. Findings show that job insecurity has a significant effect of reducing the engagement of immigrant employees and leads to increased employee burnout and intentions to quit jobs. The results of moderation analysis show that favorable corporate reputation reduces the negative impact of job insecurity on employee's burnout and intentions to quit, whereas high level of identification with company may also reduce employee burnout, even during job insecurity. Although immigrant employees do not seek to leave a reputable organization due to localization policies, they still experience stress, become disengaged, and so are less productive. As a result, businesses should leverage their reputation towards governmental policies of localization, by advocating expatriate employees' contributions towards organizations and economy.

Suggested Citation

  • Ali, Imran & Ali, Murad & Grigore, Georgiana & Molesworth, Mike & Jin, Zhongqi, 2020. "The moderating role of corporate reputation and employee-company identification on the work-related outcomes of job insecurity resulting from workforce localization policies," Journal of Business Research, Elsevier, vol. 117(C), pages 825-838.
    • Handle: RePEc:eee:jbrese:v:117:y:2020:i:c:p:825-838
    DOI: 10.1016/j.jbusres.2019.02.060
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319301493
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2019.02.060?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Foroudi, Pantea & Jin, Zhongqi & Gupta, Suraksha & Melewar, T.C. & Foroudi, Mohammad Mahdi, 2016. "Influence of innovation capability and customer experience on reputation and loyalty," Journal of Business Research, Elsevier, vol. 69(11), pages 4882-4889.
    2. László, Krisztina D. & Pikhart, Hynek & Kopp, Mária S. & Bobak, Martin & Pajak, Andrzej & Malyutina, Sofia & Salavecz, Gyöngyvér & Marmot, Michael, 2010. "Job insecurity and health: A study of 16 European countries," Social Science & Medicine, Elsevier, vol. 70(6), pages 867-874, March.
    3. Jiménez Paul & Milfelner Borut & Žižek Simona Šarotar & Dunkl Anita, 2017. "Moderating Effects between Job Insecurity and Intention to Quit in Samples of Slovene and Austrian Workers," Naše gospodarstvo/Our economy, Sciendo, vol. 63(1), pages 27-37, March.
    4. Ageeva, Elena & Melewar, T.C. & Foroudi, Pantea & Dennis, Charles & Jin, Zhongqi, 2018. "Examining the influence of corporate website favorability on corporate image and corporate reputation: Findings from fsQCA," Journal of Business Research, Elsevier, vol. 89(C), pages 287-304.
    5. Cheng, Yawen & Chen, Chun-Wan & Chen, Chiou-Jong & Chiang, Tung-liang, 2005. "Job insecurity and its association with health among employees in the Taiwanese general population," Social Science & Medicine, Elsevier, vol. 61(1), pages 41-52, July.
    6. DeConinck, James B., 2011. "The effects of ethical climate on organizational identification, supervisory trust, and turnover among salespeople," Journal of Business Research, Elsevier, vol. 64(6), pages 617-624, June.
    7. Wilmar Schaufeli & Marisa Salanova & Vicente González-romá & Arnold Bakker, 2002. "The Measurement of Engagement and Burnout: A Two Sample Confirmatory Factor Analytic Approach," Journal of Happiness Studies, Springer, vol. 3(1), pages 71-92, March.
    8. Zulfiqar Ali & Hongyi Sun & Murad Ali, 2017. "The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach," Sustainability, MDPI, vol. 9(12), pages 1-23, November.
    9. Mooweon Rhee & Pamela R. Haunschild, 2006. "The Liability of Good Reputation: A Study of Product Recalls in the U.S. Automobile Industry," Organization Science, INFORMS, vol. 17(1), pages 101-117, February.
    10. Saba Qasim & Mohammad R.A. Siam & Mohd Nizam bin M Sarkawi, 2017. "The effect of CSR on brand loyalty: the moderating role of corporate reputation and mediates the brand image," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 7(10), pages 251-259, October.
    11. Marty Stuebs & Li Sun, 2010. "Business Reputation and Labor Efficiency, Productivity, and Cost," Journal of Business Ethics, Springer, vol. 96(2), pages 265-283, October.
    12. Tischer, Sven & Hildebrandt, Lutz, 2014. "Linking corporate reputation and shareholder value using the publication of reputation rankings," Journal of Business Research, Elsevier, vol. 67(5), pages 1007-1017.
    13. Mohamed Ramady, 2013. "Gulf unemployment and government policies: prospects for the Saudi labour quota or Nitaqat system," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 5(4), pages 476-498.
    14. Artyom Shirin & Nicola Kleyn, 2017. "An Evaluation of the Effects of Corporate Reputation on Employee Engagement: The Case of a Major Bank in South Africa," International Studies of Management & Organization, Taylor & Francis Journals, vol. 47(3), pages 276-292, July.
    15. Wang, David Han-Min & Yu, Tiffany Hui-Kuang & Chiang, Chia-Hsin, 2016. "Exploring the value relevance of corporate reputation: A fuzzy-set qualitative comparative analysis," Journal of Business Research, Elsevier, vol. 69(4), pages 1329-1332.
    16. Imran Ali & Murad Ali & Saeed Badghish & Thamer Ahmad S. Baazeem, 2018. "Examining the Role of Childhood Experiences in Developing Altruistic and Knowledge Sharing Behaviors among Children in Their Later Life: A Partial Least Squares (PLS) Path Modeling Approach," Sustainability, MDPI, vol. 10(2), pages 1-24, January.
    17. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    18. Jain, Shailendra Pratap & Maheswaran, Durairaj, 2000. "Motivated Reasoning: A Depth-of-Processing Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(4), pages 358-371, March.
    19. Khurram Khan & Muhammad Abbas & Asma Gul & Usman Raja, 2015. "Organizational Justice and Job Outcomes: Moderating Role of Islamic Work Ethic," Journal of Business Ethics, Springer, vol. 126(2), pages 235-246, January.
    20. Capozzi, Louis, 2005. "Corporate Reputation: Our Role in Sustaining and Building a Valuable Asset," Journal of Advertising Research, Cambridge University Press, vol. 45(3), pages 290-293, September.
    21. Sophie Gaultier-Gaillard & Jean-Paul Louisot, 2006. "Risks to Reputation: A Global Approach," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 31(3), pages 425-445, July.
    22. Su, Lujun & Swanson, Scott R. & Chinchanachokchai, Sydney & Hsu, Maxwell K. & Chen, Xiaohong, 2016. "Reputation and intentions: The role of satisfaction, identification, and commitment," Journal of Business Research, Elsevier, vol. 69(9), pages 3261-3269.
    23. Muhammad Ibrahim Abdullah & Samra Ashraf & Muddassar Sarfraz, 2017. "The Organizational Identification Perspective of CSR on Creative Performance: The Moderating Role of Creative Self-Efficacy," Sustainability, MDPI, vol. 9(11), pages 1-21, November.
    24. Helm, Sabrina, 2011. "Employees' awareness of their impact on corporate reputation," Journal of Business Research, Elsevier, vol. 64(7), pages 657-663, July.
    25. Bouckenooghe, Dave & Raja, Usman & Butt, Arif Nazir & Abbas, Muhammad & Bilgrami, Sabahat, 2017. "Unpacking the curvilinear relationship between negative affectivity, performance, and turnover intentions: The moderating effect of time-related work stress," Journal of Management & Organization, Cambridge University Press, vol. 23(3), pages 373-391, May.
    26. M. Sridhar & Ajay Mehta, 2018. "The Moderating and Mediating Role of Corporate Reputation in the Link Between Service Innovation and Cross-Buying Intention," Corporate Reputation Review, Palgrave Macmillan, vol. 21(2), pages 50-70, June.
    27. Ali, Raza & Lynch, Richard & Melewar, T.C. & Jin, Zhongqi, 2015. "The moderating influences on the relationship of corporate reputation with its antecedents and consequences: A meta-analytic review," Journal of Business Research, Elsevier, vol. 68(5), pages 1105-1117.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abu Elnasr E. Sobaih, 2023. "Challenges in Effective Implementation of Saudization Policy in the Restaurant Sector," Sustainability, MDPI, vol. 15(9), pages 1-17, May.
    2. Sirkeci Kübra & Arıkan Esra, 2021. "The Infinite Wardrobe: Female Consumers’ Value Perceptions Regarding Collaborative Consumption of Apparel," South East European Journal of Economics and Business, Sciendo, vol. 16(2), pages 150-170, December.
    3. Mahamudul Hasan & Md. Maqbul Hossain, 2021. "Corporate Recognition Award and Reputation Dimensions on Corporate Reputation Consequences: A Critical Review on Bangladesh," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 12(3), pages 191-204, July.
    4. Yongyi Shou & Xueshu Shan & Jinan Shao & Kee-hung Lai & Qing Zhou, 2024. "How Do Foreign SMEs Mitigate Violent Conflict Risk by Doing Good? An Instrumental Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 192(2), pages 407-422, June.
    5. Yi Luo & Hua Jiang & Linzhi Zeng, 2023. "Linking Informative and Factual CSR Communication to Reputation: Understanding CSR Motives and Organizational Identification," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    6. Abbasi, Ghazanfar A & Jagaveeran, Mahavithya & Goh, Yen-Nee & Tariq, Beenish, 2021. "The impact of type of content use on smartphone addiction and academic performance: Physical activity as moderator," Technology in Society, Elsevier, vol. 64(C).
    7. SangRyeong Lee & Jin-Woo Park & Sukhoon Chung, 2022. "The Effects of Corporate Social Responsibility on Corporate Reputation: The Case of Incheon International Airport," Sustainability, MDPI, vol. 14(17), pages 1-19, September.
    8. Silbiger, Avi & Barnes, Bradley R. & Berger, Ron & Renwick, Douglas W.S., 2021. "The role of regulatory focus and its influence on the cultural distance – Adjustment relationship for expatriate managers," Journal of Business Research, Elsevier, vol. 122(C), pages 398-410.
    9. Lin Wang & Murad Ali & Hyun Jeong Kim & Sareum Lee & Felipe Hernández Perlines, 2021. "Individual entrepreneurial orientation, value congruence, and individual outcomes: Does the institutional entrepreneurial environment matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2293-2312, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kaveh Moghaddam & Thomas Weber & Pouya Seifzadeh & Sara Azarpanah, 2021. "Internal Reputation of the Firm: CEO Retention and Firm Market Performance," Corporate Reputation Review, Palgrave Macmillan, vol. 24(4), pages 205-221, November.
    2. Gross, Hellen P. & Ingerfurth, Stefan & Willems, Jurgen, 2021. "Employees as reputation advocates: Dimensions of employee job satisfaction explaining employees’ recommendation intention," Journal of Business Research, Elsevier, vol. 134(C), pages 405-413.
    3. Murad Ali & Imran Ali & Gema Albort-Morant & Antonio Luis Leal-Rodríguez, 2021. "How do job insecurity and perceived well-being affect expatriate employees’ willingness to share or hide knowledge?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 185-210, March.
    4. Gatzert, Nadine, 2015. "The impact of corporate reputation and reputation damaging events on financial performance: Empirical evidence from the literature," European Management Journal, Elsevier, vol. 33(6), pages 485-499.
    5. Schaarschmidt, Mario & Könsgen, Raoul, 2020. "Good citizen, good ambassador? Linking employees' reputation perceptions with supportive behavior on Twitter," Journal of Business Research, Elsevier, vol. 117(C), pages 754-763.
    6. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    7. Wolter, Jeremy S. & Donavan, D. Todd & Giebelhausen, Michael, 2021. "The corporate reputation and consumer-company identification link as a sensemaking process: A cross-level interaction analysis," Journal of Business Research, Elsevier, vol. 132(C), pages 289-300.
    8. Salman Khan & Jacques Digout, 2018. "The Corporate Reputation Reporting Framework (CRRF)," Corporate Reputation Review, Palgrave Macmillan, vol. 21(1), pages 22-36, February.
    9. Schaarschmidt, Mario & Walsh, Gianfranco, 2020. "Social media-driven antecedents and consequences of employees' awareness of their impact on corporate reputation," Journal of Business Research, Elsevier, vol. 117(C), pages 718-726.
    10. Inocencia M. Martínez-León & Isabel Olmedo-Cifuentes & Gary Davies, 2023. "The Virtuous Circle of Internal Corporate Reputation and Financial Performance," Corporate Reputation Review, Palgrave Macmillan, vol. 26(2), pages 97-110, May.
    11. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    12. repec:dau:papers:123456789/13646 is not listed on IDEAS
    13. Italo A. Gutierrez & Pierre-Carl Michaud, 2017. "Whistle While You Work: Job Insecurity and Older Workers’ Mental Health in the United States," CIRANO Working Papers 2017s-21, CIRANO.
    14. Eve Caroli & Mathilde Godard, 2013. "Does Job Insecurity Deteriorate Health ? A Causal Approach for Europe," Working Papers 2013-13, Center for Research in Economics and Statistics.
    15. María del Mar Miras‐Rodríguez & Francisco Bravo‐Urquiza & Bernabé Escobar‐Pérez, 2020. "Does corporate social responsibility reporting actually destroy firm reputation?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1947-1957, July.
    16. Rohde, Nicholas & Tang, K.K. & Osberg, Lars & Rao, Prasada, 2016. "The effect of economic insecurity on mental health: Recent evidence from Australian panel data," Social Science & Medicine, Elsevier, vol. 151(C), pages 250-258.
    17. Elena Cottini & Paolo Ghinetti, 2018. "Employment insecurity and employees' health in Denmark," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 426-439, February.
    18. Tahir Farid & Sadaf Iqbal & I. M. Jawahar & Jianhong Ma & Muhammad Khalil Khan, 2019. "The interactive effects of justice perceptions and Islamic work ethic in predicting citizenship behaviors and work engagement," Asian Business & Management, Palgrave Macmillan, vol. 18(1), pages 31-50, February.
    19. Kim, Il-Ho & Muntaner, Carles & Vahid Shahidi, Faraz & Vives, Alejandra & Vanroelen, Christophe & Benach, Joan, 2012. "Welfare states, flexible employment, and health: A critical review," Health Policy, Elsevier, vol. 104(2), pages 99-127.
    20. Conchita D’Ambrosio & Andrew E. Clark & Rémi Yin, 2023. "Economic Insecurity and Health," Hacienda Pública Española / Review of Public Economics, IEF, vol. 247(4), pages 69-89, December.
    21. Isadora Sánchez‐Torné & Juan Carlos Morán‐Álvarez & José A. Pérez‐López, 2020. "The importance of corporate social responsibility in achieving high corporate reputation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2692-2700, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:117:y:2020:i:c:p:825-838. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.