This study examines the associations between job insecurity, emotional exhaustion, and employee productivity among production employees in an Indonesian manufacturing company from the perspective of the Job Demands–Resources (JD-R) Theory. A quantitative explanatory study with a cross-sectional design was conducted among 151 production employees of PT FSCM Manufacturing Indonesia using saturated sampling. Data were collected through structured questionnaires and analyzed using multiple linear regression. The results indicate that job insecurity (β = 0.250, p = 0.001) and emotional exhaustion (β = 0.230, p = 0.003) were positively associated with employee productivity, while the overall model was significant (F = 9.885, p < 0.001; Adjusted R² = 0.106). The model explained a modest proportion of productivity variance, suggesting that additional organizational and individual factors also influence employee productivity. The findings suggest that, in a contract-based manufacturing environment, employees may temporarily sustain productivity despite increasing psychological strain. This study extends the contextual application of the JD-R Theory by proposing that these positive associations represent an early adaptive phase rather than evidence that psychological strain improves performance. Because the study was cross-sectional and conducted within a single organization, the findings should be interpreted cautiously. Future longitudinal studies across diverse organizational settings are recommended.
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