Psychological contract breach: underlying mechanisms and defining boundary conditions

Abstract

Research on psychological contract breach indicates a clear link with detrimental individual and organizational effects. However, the role of context and individual differences in shaping employees’ reaction to breach is underdeveloped. In this sense, the main goal of this research is to understand the mechanisms through which breach impacts outcomes, and the boundary conditions of breach effects. In four studies, using different samples and designs, we highlight the importance of understanding psychological contract breach taking into account different theoretical perspectives and individual differences. Overall, our research findings have both theoretical and practical implications. From a theoretical point of view, this research contributes to an understanding of the boundary conditions (both contextual and individual) surrounding the process of breach. From a practitioner perspective, this research sheds light to different variables that managers should be aware in order to minimize the negative impact of breach. Moreover, it suggests that managers need to take into account both individual and cultural differences when attempting to deal with breach.