Crisis-induced career shock and entrepreneurial intention among employees: what is the role of layoff, job insecurity and perceived employability during COVID-19?

Abstract

Purpose

Crises significantly affect the “people” dimension of the triple bottom line, disrupting careers through economic consequences, reducing organizational trust and altering career choices. Entrepreneurial careers may emerge as an alternative to secure income and career control. Crises can generate career shocks, prompting transitions from traditional employment to entrepreneurship. This study aims to investigate how crises influence career transitions, particularly entrepreneurial intentions, focusing on the effects of layoffs, job insecurity and perceived employability during COVID-19. It explores both direct and indirect impacts of these factors through career shock, contributing to career and entrepreneurship research.

Design/methodology/approach

Cross-sectional data were collected in the United Arab Emirates (UAE) using snowball sampling during the COVID-19 health crisis. The final sample consisted of 211 working individuals. An online questionnaire was distributed to participants. The study hypotheses were tested using Partial Least Squares (PLS) analysis conducted with SmartPLS 3.0.

Findings

The obtained results showed that the layoff of others, job insecurity and low perceived employability are significantly associated with career shock. And that career shock mediates the relationship between these variables and entrepreneurial intention in times of crisis, except for job insecurity.

Practical implications

This research provides insights for employees, managers, organizations and policymakers. It is necessary to carefully address employee expectations and experiences to identify career decisions resulting from career shocks and determine the needed interventions and support.

Originality/value

Very few studies examined the relationship between career shock and entrepreneurial intention. This cannot help human resources management practitioners understand how career shock can trigger the transition from paid employment to an entrepreneurial career. This study broadens the scope of research on human resource management, entrepreneurship and career by examining the direct effects of layoff, job insecurity and perceived employability on career shock as well as on entrepreneurial intention, in addition to their direct effects on the latter through career shock during a crisis.

Citation

Hamouche, S., Bani-Melhem, S., Demir, A. and Kammogne, C.L. (2024), "Crisis-induced career shock and entrepreneurial intention among employees: what is the role of layoff, job insecurity and perceived employability during COVID-19?", The Bottom Line, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BL-08-2023-0248