When and how does the job insecurity of salespersons become a sleep problem? The moderating roles of organizational control systems

Abstract

The present study examines the effect of the emotional exhaustion associated with salespersons’ job insecurity on their sleep (i.e., insomnia symptoms). We identified two types of formal organizational control systems (i.e., outcome-based and behavior-based controls) as boundary conditions that strengthen/weaken the positive relationship between job insecurity and emotional exhaustion. To test this moderating effect, we collected online panel surveys from 187 Korean salespersons at two time points, which were separated by three months. Like our predictions, the positive relationship between job insecurity and negative sleep quality (i.e., insomnia symptoms) was found to be mediated by emotional exhaustion. We further found a significant three-way interaction between job insecurity, outcome-based control, and behavior-based control, which is mediated by emotional exhaustion, indicating that the positive relationship between job insecurity and emotional exhaustion was strongest when the outcome-based control and behavior-based control of salespersons were high and low, respectively. The indirect effect of the emotional exhaustion associated with job insecurity on sleep quality was also weakest when the outcome-based control and behavior-based control were both high. These results provide theoretical and practical implications for managing employees in job insecurity contexts.