What if expatriates decide to leave? The mediation effect of the psychological contract fulfilment

Abstract

Purpose – The aim of this study is to investigate the relationships among expatriates’ perceived human resource management practices (HRMP), psychological contract fulfilment (PCF) and turnover intention (TI). Design/methodology/approach – The study sampled 100 expatriates from a Portuguese company through a survey questionnaire. The paper used structural equation modelling (SEM) analyses to explore relationships between the variables and to test its hypotheses. Findings – Data showed that expatriates’ perceived fulfilment of their psychological contracts was negatively related to TI. The study also finds a positive relationship between HRMP and the fulfilment of psychological contract. Moreover, expatriates’ perceived fulfilment of psychological contract was found to be a mediator between HRMP and TI. Thus, a subjective perception of PCF is an important predictor of TI, but this perception is related with the HRMP developed by the organisation during the mission. Research limitations/implication – First, the study is limited due to the sample nature and the lack of longitudinal design not allowing causal relationships to be established between the variables. Second, all variables were measured using self-reported data, raising the question of whether the results may have been contaminated by common method variance. Practical implications – An important implication from this research is that organisations should develop appropriate HR practices during the mission and maintain open communications with their expatriates to ensure clear understanding of the agreement existing about the international mission. Originality/value – Few research studies are available to the authors’ knowledge to assess HRM practices with specific measure to expatriation context and with a Portuguese sample.