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Productive employment and decent work: The impact of AI adoption on psychological contracts, job engagement and employee trust

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  • Braganza, Ashley
  • Chen, Weifeng
  • Canhoto, Ana
  • Sap, Serap

Abstract

This research examines the tension between the aims of the United Nations’ Sustainable Development Goal 8 (SDG 8), to promote productive employment and decent work, and the adoption of Artificial Intelligence (AI). Our findings are based on the analysis of 232 survey results, where we tested the effects of AI adoption on workers’ psychological contract, engagement and trust. We find that psychological contracts had a significant, positive effect on job engagement and on trust. Yet, with AI adoption, the positive effect of psychological contracts fell significantly. A further re-examination of the extant literature leads us to posit that AI adoption fosters the creation of a third type of psychological contract, which we term “Alienational”. Whereas SDG 8 is premised on strengthening relational contracts between an organization and its employees, the adoption of AI has the opposite effect, detracting from the very nature of decent work.

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  • Braganza, Ashley & Chen, Weifeng & Canhoto, Ana & Sap, Serap, 2021. "Productive employment and decent work: The impact of AI adoption on psychological contracts, job engagement and employee trust," Journal of Business Research, Elsevier, vol. 131(C), pages 485-494.
    • Handle: RePEc:eee:jbrese:v:131:y:2021:i:c:p:485-494
    DOI: 10.1016/j.jbusres.2020.08.018
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    9. Xiaochun Zeng & Suicheng Li & Zahid Yousaf, 2022. "Artificial Intelligence Adoption and Digital Innovation: How Does Digital Resilience Act as a Mediator and Training Protocols as a Moderator?," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    10. Francesca Bonetti & Matteo Montecchi & Kirk Plangger & Hope Jensen Schau, 2023. "Practice co-evolution: Collaboratively embedding artificial intelligence in retail practices," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 867-888, July.
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    14. Lambert, Abbie & Jones, Robert Paul & Clinton, Suzanne, 2021. "Employee engagement and the service profit chain in a quick-service restaurant organization," Journal of Business Research, Elsevier, vol. 135(C), pages 214-225.

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