The relative impact of attribute, severity, and timing of psychological contract breach on behavioral and attitudinal outcomes

Abstract

A psychological contract defines the perceived reciprocal obligations that characterize a relationship between an individual and organizational entity. Breach of a psychological contract can negatively affect work behaviors and attitudinal perceptions, and may also elicit an emotional response (violation) which can help to explain these negative consequences. This research focuses on the role of psychological contracts in a supply chain setting. We explore when and how three conditions of psychological contract breach – attribute, severity, and timing – negatively impact outcomes, and assess the mediating role of psychological contract violation in this relationship. To evaluate our hypotheses, we employ a laboratory experiment in which participants assume the role of a purchasing manager. We impose various breach factors and observe their relative impact on the decision‐making behavior and fairness perceptions of the participant. We show that while the breach factors significantly impact task behavior, these relationships are not explained by psychological contract violation. However, violation is useful in explaining, in part, the results pertaining to fairness perceptions.

Supply Chain Psychological Contract Breach: An Experimental Study across National Cultures

“…Finally, although the use of undergraduate students for experimental research is sometimes questioned, we posit that our theoretical framework includes students within its boundary scope conditions, and that the coursework completed by each student and the training provided to them during the experiment further establishes suitability of the sample (Thomas, ). Moreover, this experiment was conducted with a group of MBA students, and revealed substantively similar results as those conducted with undergraduate students (Eckerd et al., ). This provides a level of confidence in our interpretations regarding the relationships under investigation (Stevens, ).…”

“…In Eckerd et al. 's () previous evaluation of post‐breach order quantities, they find that orders trend lower than what would otherwise be mathematically predicted due to reneging and breaches of major severity. However, given that their study evaluates only the orders occurring post ‐breach, we include here hypotheses regarding decision making behavior in the periods during the breach.…”

“…Accordingly, and following with the research protocol of Eckerd et al. (), we introduced several design features to enhance supplier realism. First, there was a variable lag to the amount of time that lapses as the automated supplier makes pricing decisions.…”

“… Subjects for the U.S. based administration participated in a broader study, the results of which are reported in Eckerd et al. (). A subset of those U.S. data is used here and is supplemented with data collection in China.…”

The Relationship Between Psychological Contract Breach and Employees’ Counterproductive Work Behaviors: The Mediating Effect of Organizational Cynicism and Work Alienation

“…Based on the analysis of 300 doctors and nurses in Pakistan, Ahmed et al (2013) found that PCB had a significantly positive direct effect on doctors’ and nurses’ CWBs. When perceiving PCB, employees may become angry and frustrated (Eckerd et al, 2013). These negative emotions can elicit employees’ CWB (Fox and Spector, 2002; Penney and Spector, 2005).…”