Psychological contract violation and turnover intention: do cultural values matter?

Abstract

Purpose – The purpose of this paper is to examine the role of cultural value orientations (mastery and subjugation) in moderating the relationship between psychological contract violation (PCV) and turnover intention. Design/methodology/approach – A longitudinal survey method was used to collect data from downsizing survivors in two phases. The final sample was 281 cases. Confirmatory factor analysis and hierarchical regression models were used to test the hypotheses. Findings – PCV is positively related to turnover intention, and the relationship is moderated by cultural value orientations. Specifically, the relationship is stronger among downsizing survivors with a high level of subjugation orientation (SO) and/or a low level of mastery orientation (MO) in comparison with downsizing survivors with a low level of SO and/or a high level of MO. Research limitations/implications – The contribution of the study lies in the utility of examining culture at an individual level of analysis in relation to PC and downsizing research. Despite a generic human functioning model, some subtle cultural influences exist affecting the processes within the model. The negative reactions to downsizing are not simply a function of situational factors, but also reflect individual differences in cultural value orientations. Originality/value – The study addresses the need to examine the role of cultural value orientations in influencing the relationship between PCV, and employee behaviors. Such an examination is important because cultural differences may result in unique interpretations and reactions to PCV.