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Article
Publication date: 11 March 2021

Taeshik Gong and Chen-Ya Wang

This paper introduces the concept of dysfunctional customer behavior toward a brand and argues that when customers perceive that a brand has failed to fulfill its…

Abstract

Purpose

This paper introduces the concept of dysfunctional customer behavior toward a brand and argues that when customers perceive that a brand has failed to fulfill its promises, a psychological brand contract breach occurs, which in turn leads to a psychological brand contract violation, which evokes dysfunctional customer behavior toward the brand. In addition, this study investigates whether the impact of a breach of this contract is dependent on brand relationship quality, brand apology and restitution.

Design/methodology/approach

Study 1 conducted the online survey and 224 respondents were used for data analysis and the moderating role of brand relationship quality was examined. Study 2 conducted an experiment with 201 participants to test the moderating role of brand apology and restitution.

Findings

This study found the moderating role of brand relationship quality, brand apology and brand restitution on the relationship between a psychological brand contract breach and dysfunctional customer behavior toward a brand (i.e. brand-negative word-of-mouth, brand retaliation and brand boycott), which is mediated by psychological brand contract violation.

Originality/value

This study contributes to the theoretical understanding of dysfunctional customer behavior toward a brand by integrating the literature on brand management with the organizational literature on psychological contracts between organizations and their employees. Furthermore, this study sheds light on the effectiveness of reparative actions by the firm after occurrence of the psychological brand contract breach.

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Article
Publication date: 1 January 2006

Judy Pate

The purpose of this paper is to propose a processual framework of psychological contract breach, which maps holistically the interactions among concepts drawn from the…

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3945

Abstract

Purpose

The purpose of this paper is to propose a processual framework of psychological contract breach, which maps holistically the interactions among concepts drawn from the trust and justice literature. However, the price of a holistic picture is frequently a lack of depth of analysis of any single variable, and consequently the second part of the paper seeks to unpack a central variable, circumstances of breach.

Design/ methodological approach

Draws on findings from a four‐year qualitative study and investigates the psychological contract in situ. The issue of circumstances of breach was explored inductively by applying in‐depth employee case histories using theory‐based sampling.

Findings

Key findings indicate that breach may occur as a result of direct or indirect organisational actions. Further the degree of reaction may differ according to the type of trigger (i.e. a distributive, procedural or interactional justice issue) and also the extent to which the organisation is held responsible.

Research limitations/Implications

Based on an in‐depth study of one organisation over time; further research is required to ascertain the generalisability of the key findings.

Practical implications

The implications for the practice of management surround the issue of unanticipated results of actions. Changes to substantive, distributive justice issues are likely to result in psychological contract violation or rupture unless handled with care. The repercussions of relationship fracture include diminished employees attitude and, perhaps more importantly for the organisation, negative behaviour.

Originality/value

The key contribution of the paper is that it presents a new model of psychological contract and elucidates a key aspect of the holistic model using empirical data.

Details

Journal of European Industrial Training, vol. 30 no. 1
Type: Research Article
ISSN: 0309-0590

Keywords

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Article
Publication date: 10 July 2017

Tso-Jen Chen and Chi-Min Wu

This study aims to explore the high turnover intention issue in Taiwan’s tourist hotel industry. Due to a lack of empirical research regarding front-line employees…

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4290

Abstract

Purpose

This study aims to explore the high turnover intention issue in Taiwan’s tourist hotel industry. Due to a lack of empirical research regarding front-line employees’ psychological contract breach perceptions in tourism literature, this study develops an integrated model to examine the causal relationship among transformational leadership behaviors, leader–member exchange (LMX), psychological contract breach and turnover intentions.

Design/methodology/approach

Data from the 226 frontline employees in Taiwan’s tourist hotel industry were employed to examine the proposed hypotheses by using a series of structural equation modeling analyses.

Findings

Statistic results revealed that transformational leadership behaviors influence LMX and LMX in turn influences psychological contract breach, which consequently leads to lower turnover intention.

Practical implication

The results of this study suggest that hospitality organizations should recruit individuals who have the potential to exhibit transformational leadership skills, along with designing leadership training programs for middle- and high-level managers.

Originality/value

This study provides hospitality organization leaders with the necessary information to formulate a beneficial relationship with their front-line employees, which, in turn, weakens their perception of psychological contract breaches and reduces their willingness to leave the organization.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 4 November 2014

Robert Buch, Bård Kuvaas, Lynn Shore and Anders Dysvik

The purpose of this paper is to examine the relationship between previous employer's psychological contract breach and exchange perceptions with the current employer, and…

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1138

Abstract

Purpose

The purpose of this paper is to examine the relationship between previous employer's psychological contract breach and exchange perceptions with the current employer, and seeks to uncover moderating influences of perceived organizational support (POS).

Design/methodology/approach

Data were obtained from a cross-lagged sample of 314 employees in Norway. Hierarchical moderated regression analysis was used to test the hypotheses.

Findings

The authors found a positive relationship between previous employer's psychological contract breach and economic exchange with the current employer, and a negative relationship between previous employer's psychological breach and social exchange with the current employer. The authors also found that POS from the current employer attenuates the positive association between previous employer's breach and economic exchange with the current employer.

Research limitations/implications

The data were cross-lagged, so causal inferences should be made with caution.

Practical implications

Managers should be aware that past employment experiences may relate to present employment exchange relationships. In addition, POS from current employer may serve to counterbalance the “carry over” effects of past employment experiences.

Social implications

In light of the present global economic climate, increasing POS among employees could decrease the likelihood that they assume that the employment relationship constitutes an economic exchange relationship.

Originality/value

This study contributes to a more complete understanding of factors that shape employees’ relationships with their organization. Furthermore, this study suggests a way by which organizations can repair damages incurred by previous employer's psychological contract breach.

Details

Journal of Managerial Psychology, vol. 29 no. 8
Type: Research Article
ISSN: 0268-3946

Keywords

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Article
Publication date: 30 March 2010

P. Matthijs Bal, Dan S. Chiaburu and Paul G.W. Jansen

The aim of this paper is to investigate how social exchanges modify the relationship between psychological contract breach and work performance. It aims to present two…

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10950

Abstract

Purpose

The aim of this paper is to investigate how social exchanges modify the relationship between psychological contract breach and work performance. It aims to present two concurrent hypotheses, based on theoretical interaction effects of social exchanges (conceptualized as social exchange relationships, POS, and trust).

Design/methodology/approach

Data were collected from a sample of 266 employees in a service sector company in the USA. Regression analysis was used to explore the moderating effects of social exchanges on the relationships between psychological contract breach and work performance (operationalized as in‐role behaviors and organizational citizenship behaviors).

Findings

It was found that the negative relationship between psychological contract breach and work performance was moderated by social exchanges, such that the relationship was stronger for employees with high social exchange relationship, perceived organizational support, and trust.

Research limitations/implications

The data were collected cross‐sectionally, and thus causal inferences have to be made with caution. Moreover, the data were collected from a single source. The study shows that the relations between contract breach and outcomes are moderated by the existing relationship between employee and organization.

Practical implications

Although organizations may invest in long‐term relationships with their employees, psychological contract breaches have a profound impact on work performance. Therefore, organizations should diminish perceptions of contract breach; for instance by providing realistic expectations.

Originality/value

The paper provides new theoretical insights on how social exchange can have two distinct effects on the breach‐outcomes relations. It shows that social exchanges moderate the relations between contract breach and work performance.

Details

Journal of Managerial Psychology, vol. 25 no. 3
Type: Research Article
ISSN: 0268-3946

Keywords

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Article
Publication date: 1 May 2007

Carol Atkinson

This paper aims to contribute empirical data to the under‐researched relationship between trust and the psychological contract.

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21593

Abstract

Purpose

This paper aims to contribute empirical data to the under‐researched relationship between trust and the psychological contract.

Design/methodology/approach

A case study approach is used carrying out 41 interviews in three case study firms, adopting a critical incident technique (CIT).

Findings

Trust is present in all psychological contracts and its different bases, cognitive and affective, underpin transactional and relational obligations respectively.

Research limitations/implications

A small‐scale study using CIT which identifies especially salient issues but is not necessarily exhaustive. Provides a base for more detailed study of the relationship.

Practical implications

Demonstrates the impact of the differing bases of trust on the employment relationship. This information could contribute to better managing the employment relationship.

Originality/value

There are few extant empirical data on this relationship and a contribution is made to debates on the role of trust within the psychological contract by providing detailed empirical data.

Details

Employee Relations, vol. 29 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

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Article
Publication date: 7 March 2019

Bing Ma, Shanshi Liu, Hermann Lassleben and Guimei Ma

The purpose of this paper is to examine the mediating effect of psychological contract breach on the relationship between job insecurity and counterproductive workplace…

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1538

Abstract

Purpose

The purpose of this paper is to examine the mediating effect of psychological contract breach on the relationship between job insecurity and counterproductive workplace behavior (CWB) and the moderating effect of employment status in this relationship.

Design/methodology/approach

Data were collected from 212 supervisor–subordinate dyads in a large Chinese state-owned air transportation group. AMOS 17.0 software was used to examine the hypothesized predictions and the theoretical model.

Findings

The results showed that psychological contract breach partially mediates the effect of job insecurity on CWB, including organizational counterproductive workplace behavior and interpersonal counterproductive workplace behavior. In addition, the relationships between job insecurity, psychological contract breach and CWB differ significantly between permanent workers and contract workers.

Originality/value

The present study provides a new insight into explaining the linkage between job insecurity and negative work behaviors as well as suggestions to managers on minimizing the harmful effects of job insecurity.

Details

Personnel Review, vol. 48 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

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Article
Publication date: 16 March 2021

Erum Ishaq, Usman Raja, Dave Bouckenooghe and Sajid Bashir

Using signaling theory and the literature on psychological contracts, the authors investigate how leaders' personalities shape their followers' perceptions of the type of…

Abstract

Purpose

Using signaling theory and the literature on psychological contracts, the authors investigate how leaders' personalities shape their followers' perceptions of the type of psychological contract formed. They also suggest that leaders' personalities impact their followers' perceived contract breach. Furthermore, the authors propose that power distance orientation in organizations acts as an important boundary condition that enhances or exacerbates the relationships between personality and contract type and personality and perceived breach.

Design/methodology/approach

Data were collected through multiple sources in Pakistan from 456 employees employed in 102 bank branches. Multilevel moderated path analyses provided reasonably good support for our hypotheses.

Findings

The leaders' personalities impacted the relational contracts of their followers in the cases of extraversion and agreeableness, whereas neuroticism had a significant relationship with the followers' formation of transactional contracts. Similarly, agreeableness, neuroticism and conscientiousness had significant relationships with perceived breach. Finally, the power distance of the followers aggregated at a group level moderated the personality-contract type and personality-perceived breach relationships.

Research limitations/implications

This research advances understanding of psychological contracts in organizations. More specifically, it shows that the personality of leader would have profound impact on the type of contract their employees form and the likelihood that would perceive the breach of contract.

Originality/value

This research extends existing personality-psychological contract literature by examining the role of leaders' personalities in signaling to employees the type of contract that is formed and the perception of its breach. The role of power distance organizational culture as a signaling environment is also considered.

Details

Personnel Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0048-3486

Keywords

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Article
Publication date: 17 February 2012

P. Matthijs Bal and Priscilla Smit

The aim of this paper was to investigate the role of emotion regulation and age in reactions to psychological contract breach towards positive and negative affect. The…

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2151

Abstract

Purpose

The aim of this paper was to investigate the role of emotion regulation and age in reactions to psychological contract breach towards positive and negative affect. The authors expected that in the context of contract breach, reappraisal emotion regulation mitigate the negative relation with affect. Moreover, based on lifespan theory, suppression emotion regulation was expected to be important for younger workers, because older workers have learned how to express themselves appropriately at the workplace. Consequently, suppression would mitigate the relations of contract breach with well‐being only among younger workers, while it strengthened the relation for older workers.

Design/methodology/approach

Data were collected among 163 employees working in various Dutch organizations. Moderated regression analyses were used to test the hypotheses.

Findings

Reappraisal mitigated the relation of contract breach with positive affect, and suppression mitigated the relations of contract breach with positive affect only among younger workers, while for older workers with high suppression the relations were accentuated. It was also found that contract breach was more strongly related to negative affect for younger workers than for older workers.

Research limitations/implications

Reactions towards psychological contract breaches are influenced by the emotion regulation strategies people employ. Especially reappraisal is important to maintain optimal levels of affect, while suppression is detrimental especially for older workers.

Originality/value

This paper is the first study in which emotion regulation strategies are investigated in the context of psychological contract breaches. The paper presents novel insights into how reactions to contract breaches are modified through emotion regulation strategies and age.

Details

Career Development International, vol. 17 no. 1
Type: Research Article
ISSN: 1362-0436

Keywords

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Book part
Publication date: 30 September 2019

Ross Donohue and Tse Leng Tham

Abstract

Details

Contemporary HRM Issues in the 21st Century
Type: Book
ISBN: 978-1-78973-457-7

1 – 10 of over 2000