Psychological Contract Violation and Turnover Intention: Do Trust and Organizational Commitment Matter?

Abstract

This study aimed to investigate the relationship between psychological contract violation (PCV) and turnover intention among faculty members in selected AACSB-accredited B schools in India. Drawing on social exchange theory, the study examined the impact of transactional and relational psychological contracts on turnover intention, with trust and organizational commitment as potential mediators. Data were collected through an online structured questionnaire from 305 faculty members. The results revealed that PCV significantly influenced turnover intention, both directly and indirectly. Trust was found to mediate the relationship between PCV and turnover intention. However, organizational commitment did not act as a mediator in this context. Furthermore, the study highlighted the significance of the relational contract compared to the transactional contract. The relational contract had a stronger impact on turnover intention through its influence on trust. By exploring the direct and indirect relationships between PCVs and turnover intention, this study contributes to the existing knowledge within the framework of social exchange theory. It sheds light on the importance of trust as a mediator and emphasizes the role of the relational contract in understanding turnover intention.