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Implications of the Affective Response to Psychological Contract Breach

Listed author(s):
  • Mark M. Suazo

    (University of Texas at San Antonio)

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    Purpose The purpose of this study is to examine the impact of psychological contract violation (PCV) as a mediating variable in the relationship between psychological contract breach (PCB) and workplace attitudes and behaviors. In addition, this study aims to expand the generalizability of psychological contract theories by examining service-oriented employees rather than a population of managers as in most research on PCB. Design/methodology/approach A survey was conducted on 196 service-oriented employees working in the United States. Factor analyses (principle components, varimax rotation) were conducted on all of the variables in the study to determine the factorial independence of the constructs. Hierarchical multiple regression analyses were conducted to test the main effects and mediating hypotheses. Findings PCV was found to fully mediate the relationship between PCB and job satisfaction, organizational commitment, intent to quit, perceived organizational support, service delivery service-oriented organizational citizenship behaviors, and participation service-oriented organizational citizenship behaviors. PCV partially mediated the relationship between PCB and loyalty service-oriented organizational citizenship behaviors. PCV was not found to mediate the relationship between PCB and in-role job performance. Research limitations/implications The use of a cross-sectional design does not allow for definitive conclusions regarding causality and there is a possibility that the results may be influenced by common method variance. Practical implications Managers need to carefully consider the psychological contracts of their subordinates. The perception of PCB may negatively impact a whole host of workplace outcomes, particularly when PCB leads to PCV. Originality/value This paper empirically examines the PCB??PCV??Outcomes model using a sample of service-oriented employees.

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    Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0028.

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    Length: 42 pages
    Date of creation:
    Handle: RePEc:tsa:wpaper:0028
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    1. Amy J. Hillman, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, March.
    2. 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.
    3. Hubbard, R. Glenn & Palia, Darius, 1995. "Executive pay and performance Evidence from the U.S. banking industry," Journal of Financial Economics, Elsevier, vol. 39(1), pages 105-130, September.
    4. Baysinger, Barry D & Butler, Henry N, 1985. "Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition," Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(1), pages 101-124, Spring.
    5. Raviv, Artur, 1985. "Management compensation and the managerial labor market an overview," Journal of Accounting and Economics, Elsevier, vol. 7(1-3), pages 239-245, April.
    6. Charles R. Schwenk, 1990. "Conflict in Organizational Decision Making: An Exploratory Study of Its Effects in For-Profit and Not-For-Profit Organizations," Management Science, INFORMS, vol. 36(4), pages 436-448, April.
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