Investigating the mediating role of self-efficacy on work stress and job insecurity among Indonesian startup employees

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Type of the article: Research Article

Abstract
The wave of layoffs in Indonesia’s startups has increased employees’ concerns about job insecurity, raising the need for a deeper understanding of its determinants. This study examines the associations between work stress, self-efficacy, and job insecurity in Indonesia’s startup ecosystem. Specifically, it investigates direct and indirect effects of work stress on job insecurity through self-efficacy. Data were collected from 262 digital startup employees in Jakarta using an online survey at the beginning of 2024 and analyzed using covariance-based structural equation modeling with LISREL software. The findings suggest that work stress does not directly influence job insecurity (T-value of 0.79 < 1.967), indicating that startup employees may perceive stress as a regular aspect of their dynamic and high-pressure work environment. However, work stress significantly and positively impacts self-efficacy (T-value of 11.32> 1.967), implying that stress can enhance employees’ confidence in their abilities when managed effectively. Self-efficacy has a significant and positive effect on job insecurity (T-value of 9.98 > 1.967), highlighting its pivotal role in shaping perceptions of job stability. Furthermore, work stress indirectly influences job insecurity through self-efficacy (Indirect effect 0.7392 > direct effect 0.045), emphasizing the mediating role of self-belief in mitigating the adverse effects of workplace stress. The findings emphasize the importance of fostering self-efficacy through supportive management, training programs, and clear communication to lessen job insecurity and promote resilience. These insights provide practical implications for enhancing employee well-being and organizational sustainability in the rapidly evolving startup environment.

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    • Figure 1. Conceptual model
    • Figure 2. Full structural model – Standardized (modified)
    • Table 1. Demographics of respondents
    • Table 2. Multivariate normality for continuous variables test
    • Table 3. Work stress – CFA results
    • Table 4. Correlation coefficient – Work stress
    • Table 5. Self-efficacy – CFA results
    • Table 6. Correlation coefficient – Self-efficacy
    • Table 7. Job insecurity – CFA results
    • Table 8. Correlation coefficient – Job insecurity
    • Table 9. Goodness-of-fit indices results
    • Table 10. Direct hypotheses
    • Table 11. Indirect hypotheses
    • Conceptualization
      Jefta Harlianto
    • Data curation
      Jefta Harlianto, Rudi, Aga Qurota Ayun Hakim, Steven Lo
    • Formal Analysis
      Jefta Harlianto, Rudi, Aga Qurota Ayun Hakim, Steven Lo
    • Methodology
      Jefta Harlianto, Rudi
    • Resources
      Jefta Harlianto, Rudi
    • Supervision
      Jefta Harlianto
    • Validation
      Jefta Harlianto, Rudi
    • Visualization
      Jefta Harlianto, Rudi
    • Writing – original draft
      Jefta Harlianto, Rudi
    • Writing – review & editing
      Jefta Harlianto
    • Project administration
      Rudi, Aga Qurota Ayun Hakim, Steven Lo
    • Software
      Rudi, Aga Qurota Ayun Hakim, Steven Lo
    • Investigation
      Aga Qurota Ayun Hakim, Steven Lo