The Interactive Effects of Procedural Justice and Equity Sensitivity in Predicting Responses to Psychological Contract Breach: An Interactionist Perspective

Abstract

Purpose: The purpose of the study was to examine the combined interactive effects of a situational variable (procedural justice) and a dispositional (equity sensitivity) variable on the relationship between breach and employee outcomes. Design/methodology/approach: Data were obtained from 403 full-time employees representing a wide variety of business sectors in the Philippines. Supervisors were requested to provide an assessment of their subordinate's civic virtue behavior. Findings: Results showed that equity sensitivity and breach interacted in predicting affective commitment. The negative relationship between breach and affective commitment was stronger for employees with an input-focused approach to organizational relationships (referred to as benevolents) than for those with an outcome-focused approach (referred to as entitleds). Results also indicated a stronger negative relationship between contract breach and civic virtue behavior under conditions of high procedural justice. Finally, a three-way interaction was found between contract breach, procedural justice and equity sensitivity in predicting affective commitment. Implications: Our findings provide a new insight suggesting that worse outcomes are to be anticipated especially if employees have an expectation that procedural justice can prevent any form of contract breach. In addition, although previous research has portrayed benevolents as more accepting of situations of u under-reward, this study has demonstrated that they too have their limits or threshold for under-reward situations. Originality/value: This research suggests that the type and intensity of one's reactions to psychological contract breach is influenced by interactive forces of the individual's disposition and the organizational procedures.