The effects of employment externalization on the climate of flexibility: Evidence from Spanish firms

The purpose of this paper is to analyse the consequences of externalization from the perspective of the employees. The paper contributes to this line of research by examining how externalization influences internal employees’ perceptions of flexibility.

The hypotheses were tested with data collected from 249 internal workers in five organizations. To contrast the hypotheses, the paper used hierarchical regression analysis.

The results of the study indicate that externalization has a negative and significant effect on the climate of flexibility among internal workers. These negative consequences decrease in a context of group potency, but increase among employees with greater supervisory responsibility.

The results obtained add evidence to the small body of theoretical research that has studied the negative effects of externalization on internal employees’ perceptions.