Organizational Citizenship Behaviour and Psychological Contract: The Moderating Role of Ethical Leadership

Abstract

Purpose: The psychological contract is commonly cited in studies as a precursor to organizational citizenship behavior. While studies in the past have overlooked various forms of psychological contract i.e., relational, transactional, balanced, and transitional This study aims to investigate the effect of various types of psychological contracts on the organizational citizenship behavior. Design/Methodology/Approach: This study uses survey method for data collection. The data were collected from employees of electrical sector in Kingdom of Saudi Arabia. In total 400 responses were processed for data analysis. Structural equation modelling technique was used to test hypotheses. Findings: the data providing support for the hypothesis used in the study. And it was found that greater levels of organizational citizenship behavior are influenced by both relational and balanced contracts while the transactional and transitional dimensions of psychological contract reduced organizational citizenship behavior.  In addition, it also confirmed ethical leadership provides boundary conditions between the influence of psychological contract and organization citizenship behavior. Implications/Originality/Value: The outcome is consistent with several earlier studies on psychological contracts and their connection to OCB. The study offers managers a useful understanding of the psychology of employees toward various psychological contract dimensions and how much these elements influence employees' organizational citizenship behavior.