Breach Begets Breach: Trickle-Down Effects of Psychological Contract Breach on Customer Service

Abstract

Adopting a multifoci approach to psychological contract breach (i.e., breach by the organization referent and breach by the supervisor referent), the authors propose a trickle-down model of breach. Results from three studies show that supervisor perceptions of organizational breach are negatively related to supervisor citizenship behaviors toward the subordinate, resulting in subordinate perceptions of supervisory breach. Subordinate breach perceptions are, in turn, negatively related to subordinate citizenship behaviors toward the customer and, ultimately, customer satisfaction. The findings demonstrate the interconnected nature of social exchange relationships at work and draw attention to the effects of breach for other employees and customers.