Firm performance in the midst of the COVID-19 pandemic: the role of perceived organizational support during change and work engagement

Purpose

By drawing on the perceived organizational support (POS) theory and the extended job demands-resources model (JD-R model), the aim of this study is to investigate the influence of different levels of organizational support during change (i.e. organizational level, supervisory level, coworker level) on firm financial performance and to explore the role of employee work engagement.

Design/methodology/approach

Data were collected during the second outbreak of the COVID-19 pandemic in two waves, approximately 2 weeks apart. A total of 291 employees in the Greek telecommunication industry completed questionnaires examining the POS during change and consequently, their supervisors evaluated their work engagement. The research model was tested with the use of structural equation modeling.

Findings

The research findings note the importance of different levels of organizational support during change; they describe how each level influences employees' work engagement as well as they confirm that employee work engagement mediates the relationship between POS during change and firm financial performance. Theoretical and practical implications of these findings are discussed.

Practical implications

The results indicate that should firms manage to influence positively employees' work engagement by providing support at all levels during change, they may boost their financial performance.

Originality/value

The research findings provide new insights into how POS and work engagement may influence firm financial performance. The originality of this study lies in the finding that employees' work engagement mediates the relationship between POS during change and firm financial performance. Further, the study was carried out in the Greek telecommunication industry during the second outbreak of the COVID-19 pandemic.