Implications of psychological contract breach

Purpose This study aims to investigate the assumed direct and indirect effects of psychological contract breach (breach) on supervisor‐rated employee behaviors of in‐role performance, organizational citizenship behavior (OCB) directed at an individual (OCBI), and OCB directed at the organization (OCBO). The assumed indirect effects are to be investigated with psychological contract violation (violation) as a mediator of these relations. In addition, perceived organizational support (perceived support) is to be examined as a moderator of the same relations. Design/methodology/approach A survey was administered to 1,013 employees working in the USA and hypotheses were tested with structural equation modeling. Findings The results indicate that: breach is negatively related to supervisor‐rated in‐role behavior, OCBI, and OCBO; breach is positively related to violation and that violation in turn is negatively related to supervisor‐rated in‐role behavior, OCBI, and OCBO; and perceived support can strengthen the positive relation between breach and violation, and the negative relations between breach or violation and supervisor‐rated employee behaviors. Research limitations/implications The use of a non‐experimental design does not allow for definitive conclusions regarding causality. Practical implications Managers should be aware of the potential negative implications of the escalation of breach to violation on employee behaviors and the value of understanding that the level of perceived support may influence employee behaviors following breach or violation. Originality/value This study makes a unique contribution to the literature by being the first to examine perceived support as a moderator of the relations between breach or violation and supervisor‐rated in‐role behavior, OCBI, and OCBO.