The role of psychological contract violation in shaping spurious loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ya Zhang ◽  
Jing Zhang
Keyword(s):  
Psychological Contract ◽  
Affective Commitment ◽  
Normative Commitment ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Attitudinal Loyalty ◽  
Calculative Commitment ◽  
Psychological Contract Violation ◽  
Loyal Customers ◽  
Contract Violation

PurposeThis study explores the impact of brand's psychological contract violation on customers' spurious loyalty, via the mediating effects of customers' brand commitments (affective commitment, calculative commitment and normative commitment) and the moderating effects of justification for violation and nostalgia proneness in the link of psychological contract violation and three commitments.Design/methodology/approachBased on 427 valid responses collected from paper- and web-based survey questionnaires, a total of 21 hypotheses were tested by adopting a structural equation model, hierarchical regression technique and slope analyses.FindingsThe result indicates negative effects of psychological contract violation on customers' attitudinal loyalty and behavioral loyalty via affective commitment and normative commitment, as well as positive effects of psychological contract violation on customers' attitudinal loyalty and behavioral loyalty via calculative commitment. It explains the reason why some loyal customers show spurious loyalty after being psychological contract violated. Meanwhile, it also supports different moderating impacts of justification for violation and nostalgia proneness in these relationships.Originality/valueThis study underscores the importance of calculative commitment in mitigating the adverse effect of psychological contract violation on customers' loyalty. Also, managerial implications are put forward to prevent loyal customers from switching to a worse loyalty stage after being violated.

scholarly journals How transformational leadership, psychological contract violation, empowerment and affective commitment influence employee’s intention to quit an organisation

2021 ◽  
Vol 52 (1) ◽  
Author(s):  
Olorunjuwon M. Samuel ◽  
Amos S. Engelbrecht
Keyword(s):  
Transformational Leadership ◽  
Conceptual Model ◽  
Psychological Contract ◽  
Affective Commitment ◽  
Psychological Empowerment ◽  
Partial Least Square ◽  
Least Square ◽  
Intention To Quit ◽  
Psychological Contract Violation ◽  
Contract Violation

Purpose: The first aim of this article is to assess the influence of transformational leadership and some selected psychological constructs on employee’s intention to quit an organisation. The second aim is to develop and validate a conceptual model that depicts the linear relationships amongst the constructs of this study (i.e. transformational leadership, psychological contract violation, psychological empowerment, affective commitment and intention to quit).Design/methodology/approach: The article employs correlational research method using quantitative research strategy. Structural equation modelling (SEM) was adopted in analysing data collected from 232 conveniently sampled respondents from various organisations in South Africa. The partial least square based SEM methodology was used to test the relationships amongst the various constructs of the study.Findings/results: Transformational leadership showed indirect influence on intention to quit through psychological contract violation, psychological empowerment and affective organisational commitment.Practical implications: The conceptual model of this study provides a useful psychological framework that guide organisations in the formulation and implementation of retention policies and practices. Further, it is imperative for organisations to encourage the adoption of transformational leadership at all levels of management. This is in consideration of the significant influences that this leadership behaviour exerts on individual employee’s intention to quit an organisation.Originality/value: An extensive search of instant literature did not produce evidence of an existing literature regarding the relationship between transformational leadership and psychological contract violation as we found in this article. This is a theoretical contribution to the field of organisation psychology. Furthermore, the article developed a unique and a empirically validated model that explained the direction and strength of relationships amongst selected antecedents of intention to quit. This practical contribution provides managers with both pragmatic insights and theoretical framework in formulating an effective retention strategy for their organisations.

Abusive supervision and knowledge hiding: the mediating role of psychological contract violation and supervisor directed aggression

2019 ◽  
Vol 24 (2) ◽  
pp. 216-234 ◽  
Author(s):  
Sajeet Pradhan ◽  
Aman Srivastava ◽  
Dharmesh K. Mishra
Keyword(s):  
Psychological Contract ◽  
Abusive Supervision ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Psychological Contract Violation ◽  
Final Sample ◽  
It Employees ◽  
Knowledge Hiding ◽  
Contract Violation

Purpose The purpose of this study is to test the relationship between abusive supervision and employee’s knowledge hiding behaviour among Indian information technology (IT) employees. The paper also strives to theoretically discuss and then seek empirical evidence to the two mediational paths (namely, psychological contract violation and supervisor directed aggression) that explain the focal relationship between abusive supervision and knowledge hiding. Design/methodology/approach To test the proposed hypotheses, the study draws cross-sectional data from Indian IT employees working in various IT firms in India. Data were collected at two time points (T1 and T2) separated by one month to counter the priming effect and neutralize any threat of common method bias. The final sample of 270 valid and complete responses was analysed using SmartPLS 3 to test the hypotheses. Findings Results showed that abusive supervision is positively related to employee’s knowledge hiding behaviours. Also, both psychological contract violation and supervisor directed aggression partially mediates the abusive supervision-knowledge hiding behaviour linkage. Originality/value First, the current study has tested the positive relationship between abusive supervision and knowledge hiding behaviours unlike most of the previous investigations that have focussed on knowledge sharing behaviour (the two are different constructs having different antecedents). Second, the study also empirically investigated the two parallel mediational routes, namely, psychological contract violation and supervisor directed aggression that explains the blame attributed by the beleaguered employee that led to covert retaliatory behaviour, such as knowledge hiding.

Walking the talk

2019 ◽  
Vol 15 (4) ◽  
pp. 654-677
Author(s):  
Andrea M. Scheetz ◽  
Timothy J. Fogarty
Keyword(s):  
Internal Control ◽  
Psychological Contract ◽  
Psychological Contracts ◽  
Detection Mechanism ◽  
Content Type ◽  
Unethical Conduct ◽  
Psychological Contract Violation ◽  
Psychological Contract Violations ◽  
Reporting Intentions ◽  
Contract Violation

Purpose Based on exchange theory and the generalized norm of reciprocity, psychological contracts perceived by employees are believed to have dysfunctional consequences for organizations if breached. This paper aims to study the willingness of employees to report fraud, as such is an important aspect of internal control for organizations. Design/methodology/approach A 2 × 2 between-subjects experiment was conducted in which 99 participants with diverse accounting backgrounds were first asked questions about their preconceived beliefs (psychological contract) regarding how reports of unethical conduct would be managed, and their reaction if these beliefs were broken (psychological contract violation). Participants were given a hypothetical situation of fraud and then asked to indicate their likelihood of reporting fraud to a supervisor. Findings The main hypotheses are that employees will be less likely to report fraud when the organization fails to signal the presence of a positive ethical environment or when management reacts weakly to previous reports of unethical activity. The data and findings support these hypotheses. Additional testing also reveals that a psychological contract violation mediates the relationship between the outcome of previous reports and the intention to report fraud. Research limitations/implications As with any experimental study, this study’s results come with limitations. Reading an overly simplistic scenario that omits real world details and providing intention to report is very different from actually reporting fraud in one’s own place of employment. Therefore, reporting intentions may vary from actual reporting behavior. Further, reporting motivation (self-defense, altruism, etc.) and concern over retaliation are not measured. Practical implications Employees have expectations surrounding ethical corporate environments. Psychological contract violations occur as a result of broken expectations and are common in the workforce. In this study, a breakdown in the internal control environment because of a poor ethical culture, caused an even greater breakdown in internal controls because of employees’ decreased reporting intentions. Social implications Psychological contract violations impact employees’ intention to report fraud. These violations need to be understood so that additional measures and safeguards can be instituted when employees are not acting as a fraud defense or detection mechanism. During such times when there is a breakdown in this type of internal control (that is, when employees might be hesitant to report fraud), extra safeguards against fraud, additional procedures to detect fraud, and enhanced employee training encouraging reporting of suspected unethical conduct, become even more important. Originality/value Strong experimental methods provide a rigorous way to evaluate a problem of our day: job insecurity caused by rampant organizational turbulence. The hidden cost is expressed in terms of how less can be expected of employees as a first line of defense against fraud.

The effect of nepotism on tolerance to workplace incivility: mediating role of psychological contract violation and moderating role of authentic leadership

2020 ◽  
Vol 41 (4) ◽  
pp. 597-613 ◽  
Author(s):  
Hasan Evrim arici ◽  
Huseyin Arasli ◽  
Nagihan Cakmakoglu Arici
Keyword(s):  
Psychological Contract ◽  
Authentic Leadership ◽  
Family Members ◽  
Workplace Incivility ◽  
Content Type ◽  
Mediating Role ◽  
Psychological Contract Violation ◽  
Moderating Role ◽  
Contract Violation

PurposeThis multilevel study investigates the effect of employees' perception of nepotism on tolerance to workplace incivility through the mediating role of psychological contract violation and the moderating role of authentic leadership in organizations.Design/methodology/approachUsing time-lagged data from 547 frontline employees working in four- and five-star hotels, this study's hypotheses were analyzed by conducting hierarchical regression analysis and hierarchical linear modelling.FindingsThe findings indicate that non-family members' perception of nepotism triggered perceived tolerance to the uncivil behavior of family members by the management and that this relationship between nepotism perception and tolerance to workplace incivility was mediated by psychological contract violation. In line with expectations, authentic leadership moderated the effect of nepotism perception on tolerance to workplace incivility.Originality/valueThis study is among the first to examine the effects of nepotism perception on tolerance to workplace incivility by focusing on the mediator role of psychological contract violation at the individual level and the moderator role of authentic leadership at the group level.

Psychological contract violation and patient’s antisocial behaviour

2020 ◽  
Vol 31 (4) ◽  
pp. 647-664
Author(s):  
Po-Chien Chang ◽  
Ting Wu ◽  
Juan Du
Keyword(s):  
Psychological Contract ◽  
Antisocial Behaviour ◽  
Patient Communication ◽  
Patient Relationship ◽  
Patient Trust ◽  
Doctor Patient Relationship ◽  
Content Type ◽  
Doctor Patient Communication ◽  
Psychological Contract Violation ◽  
Contract Violation

Purpose The purpose of this study is to examine the dual effects of the violation of psychological contract on patient’s antisocial behaviour via the mediator of patient trust and the role of doctor-patient communication as a critical contingent variable in the psychological contract violation of patient’s antisocial behaviour relationship. Design/methodology/approach The data were collected from 483 hospitalized patients distributed in Shanxi province, China by using a self-administered survey. Findings The results indicated that psychological contract violation is positively associated with patient antisocial behaviour via patient trust. Moreover, the study found that doctor-patient communication moderates the mediated effects of psychological contract violation on patient’s antisocial behaviour through patient trust; that is, the mediated effect on antisocial behaviour is weaker when both doctor and patients have more communication. Research limitations/implications Due to a cross-sectional design in nature, the causal relationship cannot be developed based on the results. Despite the limitation, the present study provides insights for improving doctor-patient relationship by emphasizing the importance of increasing patient trust and doctor-patient communication. Practical implications To improve the quality of doctor-patient relationship, this study addresses the significance of properly showing understandings and care to regain mutual trust and reducing the likelihood of patient’s antisocial behaviour. Social implications The research findings have implications for both the health system and medical schools in China to reinforce the professional ethics and improve their medical humanities as the main concerns to generate a more sustainable doctor–patient relationship. Originality/value This study includes patient trust as a mediator and doctor-patient communication as a moderator to investigate the moderated mediation relationship among patients and medical professionals. By further examining the doctor-patient relationship, the results may not only help improve the efficient implementation of medical practices but also support the institutes and develop medical professionals for more positive doctor-patient relationships.

Psychological contract violation and turnover intention: the role of job dissatisfaction and work disengagement

2020 ◽  
Vol 42 (6) ◽  
pp. 1291-1308
Author(s):  
Muhammad Umer Azeem ◽  
Sami Ullah Bajwa ◽  
Khuram Shahzad ◽  
Haris Aslam
Keyword(s):  
Psychological Contract ◽  
Turnover Intention ◽  
Employee Turnover ◽  
Turnover Intentions ◽  
Job Dissatisfaction ◽  
Content Type ◽  
Psychological Contract Violation ◽  
Employee Turnover Intention ◽  
Contract Violation

PurposeThis paper investigates the role of psychological contract violation (PCV) as the antecedent of employee turnover intention. It also explores the role of job dissatisfaction and work disengagement as the sequential underlying mechanism of a positive effect of PCV on employee turnover intention.Design/methodology/approachDrawing on social exchange theory (SET), the authors postulate that PCV triggers negative reciprocity behaviour in employees, which leads to job dissatisfaction and work disengagement, which in turn develop into turnover intentions. The authors tested the research model on time-lagged data from 200 managers working in the banking sector of Pakistan.FindingsThe findings confirmed the hypothesis that employees experiencing PCV raise their turnover intentions because of a feeling of organisational betrayal which makes them dissatisfied and detached from their work.Originality/valueThis research advances the body of knowledge in the area of psychological contracts by identifying the mechanisms through which PCVs translate into employee turnover intentions.

Psychological contract violation

2017 ◽  
Vol 28 (1) ◽  
pp. 103-121 ◽  
Author(s):  
Wen-Hai Chih ◽  
Tao-Sheng Chiu ◽  
Li-Chi Lan ◽  
Wen-Chang Fang
Keyword(s):  
Psychological Contract ◽  
Behavioral Intentions ◽  
Word Of Mouth ◽  
Negative Word ◽  
Equation Modeling ◽  
Repurchase Intention ◽  
Content Type ◽  
Psychological Contract Violation ◽  
Procedure Justice ◽  
Contract Violation

Purpose This study aims to investigate the relationships between consumers’ perceived justice and their behavioral intentions and explores the effects of psychological contract violation on the relationships. Design/methodology/approach This study conducts sampling through the survey to consumers after restaurant dining. This study collected data from 400 respondents and analyzed the data with the structural equation modeling. Findings The results indicate that consumers who experience higher level of distribution justice and procedure justice are more likely to have behavioral intentions. This study also reveals that psychological contract violation is a partial mediator of the above relationships. Consumers will feel less psychological contract violation when they perceive more distribution justice and procedure justice and will not significantly affect them more likely to repurchase intention. Originality/value During restaurant service, if consumers feel distribution or procedure injustice, they are more likely to engage in negative word-of-mouth. However, the lack of significant and positive effect of interaction justice on negative word-of-mouth in this study can be because of other intervening variables, such as intensity. Furthermore, in terms of customer’s repurchase intention, the results indicate significant and positive effects for all three types of justice on repurchase intention.

Why do employees have counterproductive work behavior? The role of founder’s Machiavellianism and the corporate culture in China

2017 ◽  
Vol 55 (3) ◽  
pp. 563-578 ◽  
Author(s):  
Wenzhi Zheng ◽  
Yen-Chun Jim Wu ◽  
XiaoChen Chen ◽  
Shu-Jou Lin
Keyword(s):  
Personality Traits ◽  
Corporate Culture ◽  
Psychological Contract ◽  
Work Behavior ◽  
Three Dimensions ◽  
Content Type ◽  
Psychological Contract Violation ◽  
Organisational Justice ◽  
Counterproductive Work Behaviours ◽  
Contract Violation

Purpose The purpose of this paper is to analyse the mechanism of how Machiavellian corporate culture (MCC) affects employees’ counterproductive work behaviours. Design/methodology/approach Through a three-phase grounded study on the data of a single case amounting to over 170,000 words, this qualitative study explores why employees exhibit counterproductive work behaviours. Findings The results indicated that the implications of the MCC of family businesses in China include the following three dimensions: low trust, control orientation, and status orientation. In this corporate cultural context, employees exhibit counterproductive work behaviours because they perceive low organisational justice, psychological contract violation, and low trust. Among them, psychological contract violation serves as a triggering mechanism due to the organisational context and trust is crucial to employee counterproductive work behaviour. Research limitations/implications In this study, the results are derived merely from the observation of and generalisation about one case; more therefore, empirical studies are required. Practical implications Numerous family business owners in China exhibit a high level of Machiavellian personality traits, and this personality tends to determine the implications of corporate culture. In order to establish a diverse culture, a heterogeneous top manager team must be developed and a new organisational culture must be established from top down. Originality/value This study extends the research scopes of employee personality and behaviours as well as leaders’ personality traits and employee emotions, and proposes a theoretical framework of leaders’ personality-culture-employee behaviours as a contribution to studies on organisational behaviour, theories of corporate social responsibility, and development of corporate culture.

Consumers’ CSR boycott: the mediating role of psychological contract violation

2019 ◽  
Vol 11 (1) ◽  
pp. 23-43
Author(s):  
Xinming Deng ◽  
Xianyi Long
Keyword(s):  
Psychological Contract ◽  
Negative Relationship ◽  
Psychological Contracts ◽  
Research Field ◽  
Central China ◽  
Corporate Management ◽  
Content Type ◽  
Mediating Role ◽  
Psychological Contract Violation ◽  
Contract Violation

Purpose Consumers may boycott firms’ corporate social responsibility (CSR) activities, but little is known about when, why and how they would respond in this way. Based on psychological contract violation and discount principles, the purpose of this paper is to argue that timing and fit of CSR activities are the main dimensions of consumers’ psychological contract. It is posited that CSR activities would be boycotted if consumers perceived violation of their psychological contract, and their altruistic tendency would have a moderating effect on this mechanism. Design/methodology/approach This paper takes the form of an empirical study using a sample of 434 respondents through scene-questionnaire survey in central China. Findings It is found that (1) low fit or reactive CSR activities would induce consumers’ psychological contract violation, and the latter has a more significant influence; (2) perceived CSR is negatively related with consumers’ boycott behaviors, but CSR activities would be boycotted if consumers’ psychological contracts are violated; (3) the negative relationship between perceived CSR and consumers’ boycott behaviors would be strengthened by consumers’ altruistic tendency, and the positive relationship between consumers’ psychological contract violation and their boycott behaviors would also be strengthened by their altruistic tendency. Research limitations/implications This paper has significant theoretical implications, as it answers the question that when, why and how CSR activities would be boycotted. Besides, it contributes to literature on psychological contract for applying it to CSR research field. Furthermore, the double-edged effect of consumers’ altruistic tendency extends literature on pro-social behaviors. Social implications This paper is of interests to corporate management and academics who wish to understand when and why consumers would boycott CSR activities and the factors that would relax consumers’ negative responses. Originality/value This is the first paper that investigates when, why and how CSR activities would be boycotted from the perspective of consumers’ psychological contract violation.

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