Digital Transformation as a Buffer Against Job Insecurity: Evidence from Employee Well-being
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Abstract
Digital transformation accelerates automation, role restructuring, and demands for new technological competencies, which may heighten employees' perceptions of job insecurity. This study examines the effect of job insecurity and green innovative work behavior on employee well-being, with digital transformation as a moderating variable, among employees of financial service organizations undergoing digital transformation. Drawing on Conservation of Resources Theory and the Job Demands-Resources Model, data were collected from 103 respondents through a five-point Likert questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that job insecurity has a significant negative effect on employee well-being (β = -0.331; p = 0.001), while green innovative work behavior has no significant effect on employee well-being (β = 0.121; p = 0.266). Digital transformation has a significant positive effect on employee well-being (β = 0.424; p < 0.001) and significantly buffers the negative effect of job insecurity on employee well-being (β = 0.294; p = 0.002) but does not moderate the effect of green innovative work behavior on employee well-being (β = 0.112; p = 0.221). The structural model explains 42.15 percent of the variance in employee well-being (R² = 0.4215). These findings suggest that organizations need to actively manage job insecurity while leveraging supportive digital transformation as a job resource that sustains employees' psychological well-being amid technological change.
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