Personal values and the features of psychological contracts

Abstract

PurposeThis paper aims to investigate how personal values relate to the psychological contract employees establish with their employers.Design/methodology/approachThe sample consisted of 223 frontline employees from a major Portuguese company. The paper used stepwise regressions analysis to test the research hypotheses.FindingsCollectivistic-oriented values were generally related to psychological contract features such as long time frame, lower tangibility, flexibility, inequality and collective regulation. Conversely, individualistic-oriented values were generally associated with a short time frame and a more tangible, stable, equal and individually regulated type of contract with a narrow scope.Research limitations/implicationsThis study uses cross-sectional data collected from a single Portuguese company. While common method bias could potentially affect the results, various procedural remedies were used to control for it. Finally, the study relied on stepwise regression, which is a data-driven approach.Practical implicationsThe study supports the contentions that internal dispositions are related to psychological contracts.Originality/valueThis paper innovates by exploring how employees’ personal values are associated with the psychological contract from a feature-oriented approach. In addition, this study was carried out in Portugal, highlighting the importance of exploring existing models and theories in different cultural contexts.