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The tortoise and the hare: the impact of employment instability on firm performance

The tortoise and the hare: the impact of employment instability on firm performance The main objective of this study is to assess the influence of employment instability on firm performance in a sample of publicly traded firms. Competing theoretical arguments are considered with regard to likely outcomes associated with employment instability. A large sample of cross‐sectional time‐series data is then analysed using generalised estimating equations (GEE) regression techniques. Results indicate that employment instability is negatively associated with firm performance, although the relationship is also demonstrated to be quadratic (an inverse U‐shaped relationship). This suggests that the main relationship varies depending upon the level of employment instability. Industry characteristics are also examined as moderators of this main effect. The results suggest a disordinal interaction effect for industry differentiation, where employment instability is negatively associated with firm performance for firms in highly differentiated industries and positively associated in less differentiated industries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Human Resource Management Journal Wiley

The tortoise and the hare: the impact of employment instability on firm performance

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Publisher
Wiley
Copyright
© 2014 John Wiley & Sons Ltd
ISSN
0954-5395
eISSN
1748-8583
DOI
10.1111/1748-8583.12052
Publisher site
See Article on Publisher Site

Abstract

The main objective of this study is to assess the influence of employment instability on firm performance in a sample of publicly traded firms. Competing theoretical arguments are considered with regard to likely outcomes associated with employment instability. A large sample of cross‐sectional time‐series data is then analysed using generalised estimating equations (GEE) regression techniques. Results indicate that employment instability is negatively associated with firm performance, although the relationship is also demonstrated to be quadratic (an inverse U‐shaped relationship). This suggests that the main relationship varies depending upon the level of employment instability. Industry characteristics are also examined as moderators of this main effect. The results suggest a disordinal interaction effect for industry differentiation, where employment instability is negatively associated with firm performance for firms in highly differentiated industries and positively associated in less differentiated industries.

Journal

Human Resource Management Journal – Wiley

Published: Jan 1, 2014

Keywords: ; ;

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