LAUSR

Abstract Using the conservation of resources theory and the terror management theory, we proposed that the perceived threat of terrorism would hurt employees' well-being, performance and individually directed citizenship behaviors (OCBI) and increase employee stress and emotional exhaustion. We tested our hypotheses in two studies using time-lagged data with independent measures for behaviors. In study 1, two-wave data comprised of 160 peer-employee dyads supported the proposed relationships of fear of terrorism with well-being and performance and the moderating role of negative affectivity. In study 2, two-wave data from 350 employee-supervisor dyads supported the proposed relationships of perceived threat of terrorism with stress, emotional exhaustion, performance, and OCBI. Results supported a moderating role of psychological capital in these relationships. We believe that our research adds meaningfully to the limited research on the effects of terrorism on employees’ well-being and behaviors. We discuss the implications of our findings for managers and the future research.