Job embeddedness as a modulation : Goal orientation and job stress in the life insurance M & A

Purpose – Based on job embeddedness (JE) theory, the purpose of this paper is to explore the impact of goal orientation (GO) and JE on job stress for financial service salespersons in the indeterminate situation. Design/methodology/approach – Participants were 298 insurance salespersons employed at two major life insurance institutions in Taiwan: Nan Shan and Fubon – which were formerly the subsidiaries of two international financial groups, American International Group and International Netherland Group, respectively. The models were tested using the two-step structural equation procedure. Findings – Findings indicated that, compared with salespersons in the newly merged Fubon, those in Nan Shan, which was undergoing mergers and acquisitions, were found to be subject to higher job stress with lower JE. In the process of reducing stress, JE is an important mechanism. However, the modulating influence of embeddedness is dependent on salespersons’ GO. In situations of higher stress, learning-oriented salespersons (in Nan Shan) were unable to significantly reduce job stress until JE was introduced as a full mediator. However, in a lower stress context, performance-oriented salespersons (in Fubon) fully applied JE in order to relieve job stress. Research limitations/implications – Managers endeavor to help salespersons effectively improve stability and reduce job stress by exploiting salespersons’ dispositions. Originality/value – The contribution of this study includes identifying the role of JE on the relationship between GO and job stress for the contingency of an indeterminate state.