The explanatory role of rumours in the reciprocal relationship between organizational change communication and job insecurity: a within-person approach

Abstract

The current study highlights rumours as an explanation of the reciprocal relationship between perceived organizational change communication and job insecurity. First, we predict that perceiving insufficient organizational change communication may result in rumours, which in turn may shape job insecurity perceptions. Second, we propose that rumours may also mediate the relationship between job insecurity and perceiving insufficient organizational change communication. To test the hypotheses, a multilevel approach was used, in which three measurements were nested within 1994 employees. This enabled us to probe within-person processes, while controlling for possible between-person variation. The results demonstrated a negative reciprocal relationship between perceived organizational change communication and job insecurity. Additionally, rumours mediated both the negative relationship between perceived organizational change communication and subsequent job insecurity, and the negative relationship between job insecurity and subsequent perceived organizational change communication. This study contributes to the literature on job insecurity by offering initial evidence on the relationship between job insecurity and rumours, and by highlighting rumours as a process through which perceived organizational change communication and job insecurity may mutually affect each other.