Exploring Fresh Insights in Psychological Contract Research

Abstract

Extant literature in the psychological contract field has addressed the ramifications of psychological contract breach, much of the evidence is drawn from the West. Perspectives from the Global South are not represented in proportion. The emergence of China and India, etc. to global players signals the criticality of examining the psychological contract in socio-cultural spheres outside the West. The article's contribution is clarifying culture and contexts as critical in theorizing modern inclusive psychological contract, transcending the West. It is found that culture is a key determinant of the form and functioning of the psychological contract in the Global South where allegiance, kinship, social networks impact on the perception and acceptance of employment relations and working conditions, etc. This means that, in many developing country contexts (despite perceived exploitation of workers by global players), there is limited association between psychological contract breach and employee turnover or organizational performance because the ‘divine' helps manage post-psychological breach.