Investigating the Impact of Psychological Contract Violation on Survivors’ Turnover Intention under the Downsizing Context: A Moderated Mediation Mechanism

Abstract

In the light of social exchange theory, our study aimed to explore the impact of psychological contract violation on survivors’ turnover intention, specifically in a downsizing context. We put forth a moderated mediation model to uncover the mediating role of organizational commitment, as well as the boundary conditions of organizational support and emotional susceptibility as a moderating mechanism. To test our hypotheses, we surveyed 202 out of 271 layoff survivors belonging to the stores of an established manufacturing and retail footwear business in the southwest region of China. The study found a positive relationship between psychological contract violation and the survivors’ turnover intention. In addition, organizational commitment has been identified as a powerful mediator between psychological contract violation and turnover intention. This study, however, only explores how organizational support significantly moderates the mediating effect of organizational commitment in regard to psychological contract violation and turnover intention. This study helps organizational practitioners to ensure sound management practices for employees, in order to get rid of adverse consequences evinced through individuals’ negative emotions.