COVID-19 and organizational performance: a quasi-longitudinal and multilevel study of Greece

Abstract

Based on threat-rigidity theory, the purpose of this study is to examine the effect of organisational responses to COVID-19 on organisational performance, through the serially mediating mechanism of employee motivation and employee work engagement. The research analysis is based on two surveys referring to Greek organisations, which were conducted six months apart in 2020 and 2021. Using a quasi-longitudinal and multilevel structural equation modelling approach, the findings suggest that the first wave of the COVID-19 pandemic led to a decline in organisational performance due to fear and uncertainty which weakened employee motivation. The second wave of the COVID-19 pandemic revealed a trend of organisational performance returning to its initial equilibrium. Based on these findings, which underline the meaning of the serially mediating mechanism of employee motivation and employee work engagement, the study has several theoretical and practical implications.