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Organizational context and employee reactions to psychological contract breach: A multilevel test of competing theories

Author

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  • Lixin Jiang

    (University of Wisconsin Oshkosh, USA)

  • Tahira M Probst

    (Washington State University Vancouver, USA)

  • Wendi L Benson

    (Nevada State College, USA)

Abstract

This study examines how organizational context affects employee reactions to perceived psychological contract breach. Using Conservation of Resources and Social Comparison theories, the authors develop competing hypotheses regarding the potential exacerbating vs. buffering effects of organizational context on the relationships between psychological contract breach and job security satisfaction, job satisfaction, work–family conflict, and burnout. They collected a multi-source, multilevel data set composed of faculty and departmental administrators at a university experiencing repeated budget reductions. It was found that psychological contract breach was related to detrimental job outcomes (i.e., decreased job security satisfaction and job satisfaction, increased work–family conflict, and burnout). However, this relationship was stronger among faculty in departments reporting low rather than high departmental budget cuts, thus supporting Social Comparison theory rather than Conservation of Resources theory. Social comparison matters when it comes to psychological contract breach.

Suggested Citation

  • Lixin Jiang & Tahira M Probst & Wendi L Benson, 2017. "Organizational context and employee reactions to psychological contract breach: A multilevel test of competing theories," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(3), pages 513-534, August.
    • Handle: RePEc:sae:ecoind:v:38:y:2017:i:3:p:513-534
    DOI: 10.1177/0143831X15579288
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    References listed on IDEAS

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    1. Jill Kickul & Matthew A. Liao‐Troth, 2003. "The Meaning Behind the Message: Climate Perceptions and the Psychological Contract," American Journal of Business, Emerald Group Publishing Limited, vol. 18(2), pages 23-32, October.
    2. Susanna Lo & Samuel Aryee, 2003. "Psychological Contract Breach in a Chinese Context: An Integrative Approach," Journal of Management Studies, Wiley Blackwell, vol. 40(4), pages 1005-1020, June.
    3. Jill Kickul & Matthew A. Liao-Troth, 2003. "The Meaning Behind the Message: Climate Perceptions and the Psychological Contract," American Journal of Business, Emerald Group Publishing, vol. 18(2), pages 23-32.
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    Cited by:

    1. Maryam Aldossari & Maria Simosi & Denise M Rousseau, 2024. "So lucky to be paid on time! Downward social comparison and gratitude in crisis economy psychological contracts," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 45(4), pages 1158-1183, November.
    2. Yi-Ching Chen, Mavis & Wen-Fen Yang, Irene & Lin, Yi-Ting & Liu, Nien-Chi, 2025. "Fit the actions to the words: The psychological contract perspective on organizations’ CSR adoption and employees’ job involvement," Journal of Business Research, Elsevier, vol. 189(C).

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