An interactionist perspective on employee performance as a response to psychological contract breach

Abstract

Purpose –The purpose of this paper is to investigate the inter-relationships among the closely related exchange-based constructs such as psychological contract (PC) breach, perceived organisational support (POS), and exchange ideology. The authors examine the effects of three-way interaction of them on employee performance. Design/methodology/approach – This study theoretically builds on a personality trait-based interactionist model of performance (Tett and Burnett, 2003) and empirically tests the model using multi-source data collected from employee-manager dyads in a non-profit organisation. Hierarchical linear modelling was employed for analysis. Findings – The results indicate a significant three-way interaction, such that, the negative relationship between PC breach and task performance is the strongest when employees with a high exchange ideology perceive low levels of POS. Practical implications – These findings suggest that organisations should ensure employees feel supported and pay special attention to employees with a high exchange ideology to minimise the harmful consequences of PC breach Originality/value – The study provides new theoretical insights to PC literature by integrating the interactionist approach, cognitive psychology, and exchange ideology research. It highlights the importance of simultaneously examining both a situational and an individual variable in predicting employee performance after PC breach