Investigating the mediating role of self-efficacy on work stress and job insecurity among Indonesian startup employees
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DOIhttp://dx.doi.org/10.21511/ppm.23(3).2025.05
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Article InfoVolume 23 2025, Issue #3, pp. 51-64
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Creative Commons Attribution 4.0 International License
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.
- Keywords
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JEL Classification (Paper profile tab)J24, L25, M13, O15
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References53
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Tables11
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Figures2
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- Figure 1. Conceptual model
- Figure 2. Full structural model – Standardized (modified)
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- 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
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