Relative deprivation, perceived status conflict and innovative behavior of outsourced employees: multiple moderating effects of dual organizational support

Abstract

PurposeHow to manage outsourced employees in interorganizational teams with triangular relationships has not yet attracted enough attention. Based on relative deprivation theory, this study explores how relative deprivation affects outsourced employees’ innovative behavior and investigates the complex moderating effects of dual organizational support.Design/methodology/approachThe authors tested their hypothesis by conducting a two-wave survey; responses to a questionnaire were collected from 283 outsourced employees and their managers among 52 client organizations.FindingsResults found that relative deprivation negatively influences the outsourced employees’ innovative behavior by eliciting their perceptions of status conflict. Support from client (supplier) organization attenuates (aggravates) the positive impact of relative deprivation on innovative behavior throughout status conflict. The moderating effect of client organizational support was moderated by support from supplier organization.Research limitations/implicationsThe authors selected the outsourced employees in a Chinese context to conduct this study, and the results need to be generalized in future research.Practical implicationsClient organizational support can alleviate the negative effect of relative deprivation on outsourced employees, whereas supplier organization support aggravates the negative effect; managers should pay attention to the different effects of the two organizations’ support and provide reasonable support for outsourced employees.Originality/valueThis study identified the mechanism of relative deprivation’s effect on outsourced employees’ innovative behavior from the perspective of interpersonal interaction and compared the effect of support from dual organizations. This study expands the research on triangular relationships, relative deprivation, status conflict and other field.