Behavioural Outcomes of Psychological Contract Breach in a Non-Western Culture: The Moderating Role of Equity Sensitivity

Abstract

This study tests the effects of psychological contract breach on several employee outcomes: workplace deviant behaviours directed at the organization (WD-O) and its organizational members (WD-I), in-role performance, and organizational citizenship behaviours directed at the organization (OCB-O) and its co-workers (OCB-I). It also examines the moderating effects of equity sensitivity in the relationship between breach and these outcomes. Data were collected from 162 sales executives and their direct supervisors. We found that breach was related to all behavioural outcomes. Equity sensitivity and breach also interacted in predicting OCB-I, OCB-O and WD-I. The negative relationships between breach and OCB-O and OCB-I were stronger for employees with an outcome-focused approach to organizational relationships than for those with an input-focused approach. In addition, breach had stronger positive effects on WD-I especially for those individuals who are output-oriented compared to those who are input-focused. Show more