Psychological Contracts at Different Levels: The Cross-Level and Comparative Multilevel Effects of Team Psychological Contract Fulfillment

Abstract

Taking a multi-level perspective on the psychological contract (PC), this study investigates the overlooked but critical role of team psychological contract fulfillment in shaping team and individual-level affect and outcomes. It examines the dynamics associated with employer PC Fulfillment (PCF) to the team and compares them to the dynamics regarding employer PCF of the individual’s own psychological contract. Guided by psychological contracts and self-regulation theories, we surveyed 504 individuals in 69 retail organization teams at two time periods. At the team level, findings support an indirect effect of team PCF on both team engagement and average turnover intention through affective climate. Similarly, at the individual level, we find an indirect effect of individual PCF on both engagement and turnover intentions through individual affect. Tests of scalar and configural similarity across levels support functional isomorphism between individual and team PCF relationships with engagement, while turnover intention is more highly related to individual than to team PCF. Last, we observe cross-level effects of team PCF on the relationship between individual PCF and turnover intentions. We present implications for multi-level PC theory, research, and practice.