Individual cultural orientation as a determinant of psychological contract fulfilment

Abstract

Purpose The purpose of this paper is to explore the role of individualism-collectivism (IC) in determining psychological contract fulfillment (PCF) at individual level, thus attempting to establish that cultural orientation of each individual may differentially predict the fulfillment of his/her psychological contract. Design/methodology/approach Structural equation modeling was conducted on the cross-sectional data collected from 465 IT professionals working at different multi-national software companies. Findings Model fit between the dimensions of IC and PCF was found to be good, indicating a significantly positive relationship between within-culture cultural orientation of an individual and his/her perception of PCF. The analyses revealed that collectivist beliefs, values and norms have a significant relationship with the perception of delivery, fairness and trust toward PCF. The relationship between collectivist values and fairness of the deal was found to be insignificant. Research limitations/implications A major theoretical implication of the study is its contribution to evidence that people with collectivist orientation have a relatively positive perception toward the fulfillment of a psychological contract between them and the employer. It also clarifies why employees working in the same work environment tend to develop unique psychological contracts owing to their tendency to orient toward a particular cultural state of mind in the form of beliefs, values and norms guiding their day-to-day work-life. Originality/value The study is a valuable addition to the current literature in two ways. First, it contributes to the area of personality by examining the individual cultural orientation as an individual difference predictor of PCF. This helps in understanding the role of differences in emotions, cognition and behavior among individuals in predicting the fulfillment of hidden expectations of employees. In the domain of psychological contract, it contributes to evidence that explains why employees in same job conditions and employment relationships experience breach or fulfillment owing to their difference in cultural orientation.