Psychological Contract Theory Research Articles

Give and take: understanding innovative behaviour from a psychological contract perspective

ABSTRACT Despite numerous studies, little is known about public employees’ motivation to innovate. Based on psychological contract theory, this article examines why they have different levels of motivation for innovative behaviour. Using national-scale surveys of public employees in South Korea, this study demonstrates that employees become less innovative when financially compensated as expected, but more innovative when their expectations regarding career development and well-being are met. This indicates that individual motivation for innovation varies depending on the quality of the relationship with the organization, emphasizing that the organization should make a relational commitment to employees to foster innovative behaviour.

An empirical study on the influence of new generation employees’ job satisfaction on contextual performance in the energy industry

New generation employees in the energy industry generally suffer from several problems such as poor psychological endurance, lack of professional literacy, excessive mental stress, and low labor enthusiasm, which will affect the employee's individual contextual performance and stability of the labor market. In the context of energy transition, therefore, it is of practical significance to solve their problems in routine work and identify the factors affecting the contextual performance of next generation employees in the energy industry. In this paper, the theoretical model with job satisfaction as an independent variable, organizational commitment as a mediator, the sense of self-efficacy as a moderator, and contextual performance as a dependent variable is established; and several research hypotheses are proposed on the basis of the two-factor theory, psychological contract theory, and self-efficacy theory. The following conclusions are made through the testing of hypotheses based on questionnaire investigation: Job satisfaction of new generation employees in the new energy industry positively affects the contextual performance; organizational commitment plays a mediating role between job satisfaction and contextual performance; the sense of self-efficacy plays a role of moderating job satisfaction, organizational commitment, and contextual performance. There is a mediated moderation effect and regulated mediation effect in the model. These conclusions are of great significance to the healthy development of new generation employees in the energy industry.

The relationship between the behavioral integrity and organizational commitment the mediating effects of the job satisfaction and psychological safety

Purpose This study aims to apply the affective events theory and psychological contract theory to investigate how job satisfaction and psychological safety mediate the effect of the behavioral integrity of supervisors on the organizational commitment of employees. Design/methodology/approach A questionnaire survey was conducted using purposive sampling. In total, 500 questionnaire copies were distributed, and 453 responses were collected, of which 441 were valid (valid response rate = 88.2%). Findings The behavioral integrity of supervisors has a direct negative effect on organizational commitment but significant positive effects on job satisfaction and psychological safety, and job satisfaction and psychological safety have significant positive effects on organizational commitment. Job satisfaction and psychological safety have significant mediating effects on the association between the behavioral integrity of supervisors and the organizational commitment of employees. Practical implications Leaders and top management should “practice what they preach,” integrate honesty into organizational culture through training and establish a code of conduct to ensure that employees uphold their commitments. Companies should establish appropriate disciplinary systems and norms related to work and other aspects of organizational culture; they should also establish fair, just and open assessment systems to minimize the gap between their employees’ actual and expected earnings. Originality/value This study is the first to simultaneously consider the mediating effects of job satisfaction and psychological safety on the association between behavioral integrity and organizational commitment.

Examining the Role of HRM Practices in Fostering Employee Engagement Towards CSR Initiative.

This paper investigates the pivotal role of Human Resource Management (HRM) practices in fostering employee engagement towards Corporate Social Responsibility (CSR) initiatives within organizations. CSR has become a cornerstone of modern business strategy, acknowledging its significance in promoting sustainable practices and societal well-being. Employee engagement serves as a crucial link between CSR initiatives and organizational success, influencing attitudes, behaviors, and commitment levels among employees. Drawing upon existing literature and empirical evidence, this research provides insights into how HRM practices can effectively nurture and sustain employee engagement towards CSR, thereby contributing to enhanced organizational performance and social impact. [1] Theoretical frameworks such as Social Exchange Theory and Psychological Contract Theory are utilized to understand the mechanisms through which HRM practices shape employee attitudes and behaviors towards CSR. Social Exchange Theory elucidates how HRM practices serve as indicators of organizational support and commitment, fostering reciprocity and engagement among employees towards CSR goals. Psychological Contract Theory highlights the role of HRM practices in shaping the implicit expectations and obligations between employees and organizations, influencing perceptions of trust, fairness, and mutual respect, which in turn drive engagement towards CSR. [2] The paper explores key HRM practices that play a vital role in fostering employee engagement towards CSR initiatives, including recruitment and selection, training and development, performance management, and rewards and incentives. It discusses how organizations can integrate CSR considerations into these practices to create an enabling environment that motivates and empowers employees to actively participate in CSR efforts. Furthermore, implications for HRM practice are outlined, emphasizing the need for strategic alignment between HRM and CSR objectives, leveraging technology and communication channels to enhance employee engagement, and fostering a culture of transparency and accountability. DOI: https://doi.org/10.52783/tjjpt.v45.i02.6106

Psychological Contract, Symbolic Interactionism, Social Exchange, and Expectation Violation Theories: A Literature Review

This article presents a literature review on Symbolic Interactionism, Social Exchange, and Expectation Violation Theories and their relevance to the Psychological Contract. The review is part of a doctoral thesis on the socialization process and can be helpful to Human Resource Managers (HRM), scholars, and practitioners. The review's findings show that while there are many studies on the newcomer's adaptation in the international literature, there are very few academic studies on this topic in the Brazilian context where the cost of losing a job can induce a golden cage behavior as we see in the public sector companies. Therefore, the review provides a new perspective on the socialization process of a firm's newcomer by combining the theories above, which have not been studied together before.

Best Practices and Strategies for Talent Acquisition, Retention and Development in Egypt

Purpose: The aim of the study was to investigate best practices and strategies for talent acquisition, retention, and development.
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: In talent management, key strategies include assessing both skills and cultural fit in recruitment, providing continuous learning opportunities, promoting diversity and inclusion, offering competitive compensation, and fostering a supportive work environment through regular feedback and opportunities for advancement. These practices contribute to successful talent acquisition, retention, and development.
 Unique Contribution to Theory, Practice and Policy: Human capital theory, psychological contract theory & resource-based view (RBV) may be used to anchor future studies on best practices and strategies for talent acquisition, retention, and development. Organizations should adopt a comprehensive talent management approach that strategically integrates these practices, ensuring consistency across HR functions.HR policies and guidelines should promote the alignment of talent management practices, emphasizing the synergy between acquisition, retention, and development to optimize human capital.

Leave or stay? Factors influencing consumers’ purchase intention during the transformation of a content anchor to a live stream anchor

PurposeAs live streaming becomes a widely used online sales mode, previously content-centred anchors are attempting to switch to e-commerce live streaming. The purpose of this research was to explore the mechanisms that prompt consumers to stay or leave after content anchors transfer to live e-commerce broadcasts. In addition, we explored the factors affecting consumption from the perspectives of anchors, consumers and the external environment.Design/methodology/approachWe distributed questionnaires to a group of fans who had experienced the transition of content anchors to live streaming and received back 375 valid questionnaires. Using psychological contract theory, we constructed a theoretical model for the scenario in which content anchors transition to live e-commerce broadcasting and analysed the data using partial least squares structural equation modelling (PLS-SEM).FindingsThe results show that circle culture, mainstream culture, initial trust and live streaming content all positively influenced consumers’ attitudes, whilst consumers’ past shopping experiences negatively influenced consumers’ attitudes. The personal charm of the content anchors did not have a significant effect on consumers’ attitudes. Additionally, we found that only anchors with a significant circle culture and good trust levels amongst fans were able to transition to live e-commerce streaming successfully.Originality/valueThis study extends the application of psychological contract theory to the field of e-commerce and describes the transformation of different types of psychological contracts. The paper’s conclusions provide a reference for decision-making and the implementation of transformation by content-based anchors to live streaming, helping them to coordinate their relationships with fans more effectively.

Connect with care: informal knowledge protection practices to enhance knowledge sharing in networks of organizations

Purpose This paper aims to clarify how organizations manage their participation in networks to share and jointly create knowledge but also risk unwanted knowledge spillovers at the same time. As formal governance, trust and observation are less applicable in informal networks, the authors need to understand how members address the need to protect knowledge by informal practices. The study aims to investigate how the application of knowledge protection practices affects knowledge sharing in networks. The insights are relevant for organizational and network management to control knowledge risks but harvest the benefits of network engagement. Design/methodology/approach The authors opted for an exploratory study based on 60 semi-structured interviews with members of 10 networks. In two rounds, network managers, representatives and members of the networks were interviewed. The second round of interviews was used to validate the intermediate findings. The data were complemented by documentary analysis, including network descriptions. Findings Through analyzing and building on the theory of psychological contracts, two informal practices of knowledge protection were found in networks of organizations: exclude crucial topics and share on selected topics and exclude details and share a selected level of detail. The authors explored how these two practices are enacted in networks of organizations with psychological contracts. Originality/value Counter to intuition that the protection of knowledge can be strengthened only at the expense of knowledge sharing and vice versa, networks benefitted from more focused and increased knowledge sharing while reducing the risk of losing competitive knowledge by performing these knowledge protection practices.

How do leaders’ political influence tactics affect dissent, cynicism and negligence? A research into medical representatives in Turkey

The primary objective of this study was to investigate the influence of leaders' deployment of Political Influence Tactics (PIT) on the manifestation of articulated/upward dissent and negligent behavior among employees, with a specific focus on the mediating role of employee cynicism (EC). The study was theoretically grounded in both Psychological Contract Theory and Independent-Mindedness Theory. Data for this investigation were collected through surveys from a sample of 308 medical representatives in Turkey. The collected data underwent rigorous analysis employing the Partial Least Squares Based Structural Equation Modeling (PLS-SEM) method with the assistance of the SMART PLS 3.3.3 software. The findings of this study revealed that EC serves as a partial mediator in the relationship between pressure and ingratiation tactics and employee negligence. Notably, existing research within the realm of organizational politics often centers on Perceptions of Organizational Politics (POP), which encapsulates the subjective aspect of perceiving politics within an organization. In contrast, there has been relatively limited exploration into PIT, which adopts an objective standpoint. Furthermore, this study represents a pioneering effort as it identified a gap in the existing literature where no prior research has directly assessed the linkages between PIT and other key variables within the proposed model, namely cynicism, negligence, and articulated/upward dissent. Consequently, this study is poised to contribute significantly to the organizational politics and organizational behavior literature by addressing this notable gap.

The Impact of the Dark Side of Leadership on the Psychological State of Employees after the Covid-19 Pandemic:

This study aims to review the adverse effects of the dark side of leadership on employees’ psychological states, including distress and anxiety, after the COVID-19 pandemic, through the lens of psychological theories. A literature review was used to examine the dark side of leadership, which included any form of abusive, toxic, or destructive behaviors and characteristics that negatively affect the psychological states of employees. The effect on employees’ psychological state is crucial as it can influence their attitudes and performance. The Conservation of Resources and the Psychological Contract theory were employed to explain the emergence of the dark leaders’ behaviors and their consequences on employees’ psychological states in anticipation of extreme organizational changes after the pandemic. The employees’ psychological resources could be depleted due to exposure to abusive leaders while adapting to organizational changes post the pandemic. Also, the mistreatments from the destructive leaders could breach the employees’ psychological contract. The emergence of dark leadership practices might cause psychological distress. Previous psychological studies suggest that the psychological resources of employees can be replenished by seeking social support, while the organization can contribute by implementing intervention programs.

Employees in change: an exploration of academics’ perceived employee-organisation relationship in the reform of the tenure-track system in China

ABSTRACT The employee-organisation relationship between academics and universities is a critical issue in higher education (HE) human resource management. Previous studies have mainly investigated the segmentation between full-time and part-time academics, or academics working in different countries. However, few studies have explored academics’ perceptions of their relationship with universities under the recent tenure-track reform in the Chinese HE system. Drawing on psychological contract theory, this qualitative study explores how academics perceive their relationships with their university. Through interviews with 21 tenure-track academics at a Chinese university, this study found four types of psychological relationships: (1) high-risk with high-yield, (2) optimistic trust, (3) mutual benefit, and (4) content and satisfied. Among the four types, tenure-track academics’ expectations of universities are diversified. These findings suggest that universities should pay more attention to understanding academics’ perceived employee-organisation relationship and their corresponding expectations to improve managerial efficiency.

The effects of non-fungible token platform affordances on customer loyalty: A Buyer–Creator duality perspective

Prior academic research on non-fungible tokens (NFTs), an application of blockchain technology in the metaverse environment, has focused primarily on the market demand side (i.e., buyers), with limited attention given to the supply side (i.e., creators). To address this gap, we seek to understand creators' and buyers’ perceptions of platform affordances that can aid NFT platforms in developing functions that address the needs and expectations of both parties. To do this, we draw on affordance theory and psychological contract theory and use a mixed-methods approach consisting of text mining, structural equation modeling, and importance-performance map analysis. The results show that platform affordances (transaction, aesthetics, status, and user interface affordance) facilitate the creation of psychological contracts, which in turn promotes customer loyalty. Moreover, the relationships identified differ between creators and buyers. Overall, these results point to the value of using a user-centric human–computer interaction perspective to study emerging blockchain-based systems. They can inform design principles and guidelines for NFT platforms to effectively support creator–buyer interactions, transactions, and relationships through enhanced affordances and user-centric experience. This study advances knowledge of design in the nascent NFT domain relevant to the cross-disciplinary human–computer interaction community.

A Review of Research on Organizational Citizenship Behaviors

As a significant research object in the realm of organizational behavior, organizational citizenship behavior (OCB) has received extensive attention from researchers since it was proposed. Through a comprehensive analysis of a large number of English and Chinese literature, this article sorts out five important theoretical basis, including individual positive affect, social exchange theory, psychological contract, covenant relationships and equity theory. It also clarifies the concept and development of OCB and provide an overview of the current research in this field. Job satisfaction, perceived fairness, perceived supervisor support, and leadership styles have all been found to have significant effects on OCB. In academic circles, there are three main views about the association between OCB and organizational performance, showing that their relationship is still not clear enough. It turns out that positive effects are still the mainstream, while more and more scholars are studying on negative effects. Overall, this review article provides a comprehensive theoretical and practical reference for studying OCB and offers insights and guidance for the future development trend.

Earnings management: a three-decade analysis and future prospects

PurposeThis paper undertakes an extensive and systematic review of the literature on earnings management (EM) over the past three decades (1992–2022). Furthermore, the study identifies emerging research themes and proposes future avenues for further investigation in the realm of EM.Design/methodology/approachFor this study, a comprehensive collection of 2,775 articles on EM published between 1992 and 2022 was extracted from the Scopus database. The author employed various tools, including Microsoft Excel, R studio, Gephi and visualization of similarities viewer, to conduct bibliometric, content, thematic and cluster analyses. Additionally, the study examined the literature across three distinct periods: prior to the enactment of the Sarbanes-Oxley Act (1992–2001), subsequent to the implementation of the Sarbanes-Oxley Act (2002–2012), and after the adoption of International Financial Reporting Standards (2013–2022) to draw more inferences and insights on EM research.FindingsThe study identifies three major themes, namely the operationalization of EM constructs, the trade-off between EM tools (accrual EM, real EM and classification shifting) and the role of corporate governance in mitigating EM in emerging markets. Existing literature in these areas presents mixed and inconclusive findings, suggesting the need for further theoretical development. Further, the study findings observe a shift in research focus over time: initially, understanding manipulation techniques, then evaluating regulatory measures, and more recently, investigating the impact of global accounting standards. Several emerging research themes (technology advancements, cross-cultural and cross-national studies, sustainability, behavioral aspects and non-financial indicators of EM) have been identified. This study subsequent analysis reveals an evolving EM landscape, with researchers from disciplines like data science, computer science and engineering applying their analytical expertise to detect EM anomalies. Furthermore, this study offers significant insights into sophisticated EM techniques such as neural networks, machine learning techniques and hidden Markov models, among others, as well as relevant theories including dynamic capabilities theory, learning curve theory, psychological contract theory and normative institutional theory. These techniques and theories demonstrate the need for further advancement in the field of EM. Lastly, the findings shed light on prominent EM journals, authors and countries.Originality/valueThis study conducts quantitative bibliometric and thematic analyses of the existing literature on EM while identifying areas that require further development to advance EM research.

The Impact of Privatization on Employee Job Insecurity: The Case of the Healthcare Sector in Saudi Arabia

Research has discussed several aspects of privatization in developed and developing countries. In this study, we build on the Psychological Contract Theory and the Human Capital Theory, as well as research on proactive behavior and self-concepts, to examine how understanding privatization impacts the quantitative and qualitative job insecurity of employees in the healthcare sector in Saudi Arabia during the privatization process. Using a sample of 136 employees, our results show that understanding the concept of privatization in general is negatively related to quantitative job insecurity. and knowing the nuances of privatization of the healthcare sector impacts quantitative, but not qualitative, job insecurity. This study makes several theoretical contributions to the literature on privatization, human resources, and organizational behavior. This study also provides useful practical implications for policymakers and managers.

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

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.

The psychological contract of women athletes in semi-professional team sports

ABSTRACT Within the dynamic landscape of women’s semi-professional and professional leagues, athletes and their employers are negotiating their employment relationship parameters. Positioning our research in a postfeminist sensibility, we explore both parties’ expectations and obligations through psychological contract (PC) theory. We conducted interviews across two semi-professional sports leagues, with 30 athletes, 20 coaches and managers and two league-level representatives. The data analysis identified three themes: 1. Obligations, commitment, and choice; 2. Expectations of conformity and power relations; 3. Fulfilling organisational goals. Many athletes spoke about power imbalances in the PC with employers “exploiting” athletes’ desire to be play in the league at almost any cost. Athletes felt they had little choice but to accept the current state of employment, endure sacrifices and hope for a better future where they could reach their potential through viable career pathways and a living wage. Our research provides a better understanding of the PC employment relationship and associated implications. Greater knowledge about PCs could be used to develop work practices and relations that enhance and benefit athletes and employers.

What drives project success in online labour markets? A bilateral perspective on freelancers and clients

ABSTRACT Despite some advantages over traditional (offline) labour markets – such as lower search costs, better matching and improved monitoring – online labour markets (OLMs) have not taken off as initially expected. In this paper, we study the challenges of managing projects in OLMs and discuss factors that limit perceived success both from the perspective of the employer and the freelancer. Using psychological contract theory, we theorise how common OLM features including contracts with virtual monitoring, multi-freelancer projects, and simultaneous projects by a client trigger the perception of psychological contract breach among OLM participants and reduce perceived project success for both participants. We test these hypotheses using an extensive dataset with more than 143,000 transactions on the world’s largest freelancing platform, Upwork, and find that – contrary to predictions from agency theory – projects equipped with strict freelancer monitoring (hourly-pay contracts) and projects enabling peer comparison (multi-freelancer projects or multiple simultaneous projects), lead to lower perceived project success both from the freelancer’s and the client’s perspective. Our work implies that transactions on online labour markets should not be viewed solely as agency relations, and that some features that supposedly reduce agency costs and improve efficiency on OLMs come at the cost of triggering the perception of psychological contract breach.

Is strong more vulnerable? An empirical investigation of psychological contract formation, violation, and customer reactions

The authors combine the psychological contract theory with the cognitive appraisal theory of emotions to systematically examine how psychological contract breach affects customer reactions to service failures. In service encounters, customers may perceive a discrepancy between what the brand has promised and what they have received, leading to breach that could potentially evoke feelings of violation and result in retaliatory behaviors. Two online scenario-based experiments reveal that 1) breach and subsequent feelings of betrayal mediate the impact of the strength of psychological contracts on anger in response to service failures, and that 2) breach, betrayal, and anger mediate the impacts of the strength of psychological contracts on partner quality inferences and negative word-of-mouth communication intentions, with the effects being moderated by the reason for the failure (customer fault versus brand fault). These results indicate that managing psychological contracts can help mitigate negative reactions to service failures.

An assessment of the impact of emotional labour and burnout on the employees’ work performance

PurposeThe purpose of this study is to identify and assess the factors that influence the work performance of employees in the service sector of Mauritius during the post-COVID-19 period. Factors like emotional labour, burnout, job satisfaction and psychological health of employees have been identified as those potential factors influencing the work performance of employees.Design/methodology/approachThis study adopts the survey-based approach for data collection. Employees from the service sector were targeted, that is, those who have direct contact with the customers. A response rate of 197 was recorded. The partial least square structural equation modelling has been used to run the data analysis.FindingsTen hypotheses were proposed, and four hypotheses were accepted. Job satisfaction appears to positively influence the work performance of employees in the service sector. Emotional labour, burnout and psychological health of employees appeared not to significantly affect the work performance of employees.Practical implicationsFrom a practical perspective, the author recommends that employers need to provide more support in terms of employee counselling, more job rotation for the employees to avoid burnout. Other support mechanisms as a supportive supervisor/manager where the employees can voice their concerns. It is also recommended that employers should have a more humane way to handle their human resources despite they are having the pressure to maximise profits. Employers need to understand that commercialisation of emotions demand a lot of emotional pressure on the employees and job re-design might be a solution to provide employees with more autonomy in the workplace. The level of flexibility also needs to be reviewed and employees should be more trusted.Originality/valueThis study acknowledges that a lot of research has been done in identifying and assessing factors that significantly impact employees’ work performance. Nevertheless, this study brings together two theories, namely, the social exchange theory and the psychological contract theory to better understand the relationship between the variables. This study also brings a methodological contribution with second-order factor analysis of factors like emotional labour and burnout which enabled better assessment and understanding of the factors and their effect on work performance. Some practical recommendations have also been made.