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The role of perceived employer obligations in the interpretation of and reaction to expatriate compensation practices


  • Christelle Tornikoski

    () (University of Vaasa - University of Vaasa, MC - Management et Comportement - Grenoble École de Management (GEM))


In this paper I examine the relationship between expatriates' perceptions of their compensation package and their affective commitment. The results of this cross-sectional study amongst 263 Finnish expatriates suggest the mediating role of the employee's perceptions of fulfillment of their employer obligations. This leads to the consideration that employees systematically assess their total reward package, interpret and give meaning to these compensation signals in terms of fulfillment of perceived employer obligations and simultaneously re-adapt or adjust their attitudes at any moment thorough their exchange relationship. In addition, this study gives empirical support for some of Rousseau and Ho's (2000) theoretical arguments regarding psychological contract (PC) issues in compensation. Furthermore it provides evidence that three of the PC feature measures for employer obligations developed by Janssens, Sels and Van den Brande (2003) can be replicated. Finally the implications of these findings for future research are discussed.

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  • Christelle Tornikoski, 2011. "The role of perceived employer obligations in the interpretation of and reaction to expatriate compensation practices," Grenoble Ecole de Management (Post-Print) hal-00675160, HAL.
  • Handle: RePEc:hal:gemptp:hal-00675160
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    References listed on IDEAS

    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    3. Roderick D. Iverson, 1999. "Affective, Normative and Continuance Commitment: Can the 'Right Kind' of Commitment be Managed?," Journal of Management Studies, Wiley Blackwell, vol. 36(3), pages 307-333, May.
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    psychological contract; total reward; affective commitment; meaning; expatriate;

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