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Collectivist Values, Exchange Ideology and Psychological Contract Preference

Author

Listed:
  • David C. Thomas

    (Simon Fraser University)

  • Elizabeth C. Ravlin

    (University of South Carolina)

  • Yuan Liao

    (IESE Business School)

  • Daniel L. Morrell

    (Middle Tennessee State University)

  • Kevin Au

    (The Chinese University of Hong Kong)

Abstract

The psychological contract describes a set of individual perceptions concerning the terms of the exchange relationship between individuals and their organizations. While this concept has substantially advanced our knowledge about how individuals relate to their organization, as organizations globalize and workforce diversity increases, it is important to understand how individuals with different cultural value orientations think about these relationships. Our purpose in this study was to isolate, insofar as possible, the effects of the individual level value of cultural collectivism. In this paper, we present evidence from two studies that examine the relationship between the cultural value of collectivism and the preferences that individuals have for firms exhibiting different psychological contract forms. First, we demonstrate experimentally that collectivist orientation has an impact on fundamental beliefs about the nature of exchange. Then, in the second study, we show that collectivist value orientation had its effect on preferences for the psychological contract through beliefs about social exchange. In so doing, we go beyond the simple demonstration of the effects of cultural values to describe the causal chain through which these values operate. Our results suggest that effective management in multicultural organizations ultimately requires a clear understanding of the process whereby values influence beliefs about employment relationships, which has implications for both theory and practice.

Suggested Citation

  • David C. Thomas & Elizabeth C. Ravlin & Yuan Liao & Daniel L. Morrell & Kevin Au, 2016. "Collectivist Values, Exchange Ideology and Psychological Contract Preference," Management International Review, Springer, vol. 56(2), pages 255-281, April.
    • Handle: RePEc:spr:manint:v:56:y:2016:i:2:d:10.1007_s11575-015-0275-2
    DOI: 10.1007/s11575-015-0275-2
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    References listed on IDEAS

    as
    1. Elizabeth C Ravlin & Yuan Liao & Daniel L Morrell & Kevin Au & David C Thomas, 2012. "Collectivist orientation and the psychological contract: Mediating effects of creditor exchange ideology," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(8), pages 772-782, October.
    2. Susanna Lo & Samuel Aryee, 2003. "Psychological Contract Breach in a Chinese Context: An Integrative Approach," Journal of Management Studies, Wiley Blackwell, vol. 40(4), pages 1005-1020, June.
    3. David C Thomas & Kevin Au, 2002. "The Effect of Cultural Differences on Behavioral Responses to Low Job Satisfaction," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 309-326, June.
    4. Zapata-Phelan, Cindy P. & Colquitt, Jason A. & Scott, Brent A. & Livingston, Beth, 2009. "Procedural justice, interactional justice, and task performance: The mediating role of intrinsic motivation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(1), pages 93-105, January.
    5. Parks, J.M. & Schmedemann, D.A., 1994. "When Promises Become Contracts: Implied Contracts and Handbook Provisions on Job Security," Papers 94-05, Minnesota - Industrial Relations Center.
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    Cited by:

    1. Romona Sewpersad & Shaun Ruggunan & Jamila K. Adam & Suresh Babu Naidu Krishna, 2019. "The Impact of the Psychological Contract on Academics," SAGE Open, , vol. 9(2), pages 21582440198, April.
    2. Paul N. Gooderham & Torben Pedersen & Alexander Madsen Sandvik & Àngels Dasí & Frank Elter & Jarle Hildrum, 2022. "Contextualizing AMO Explanations of Knowledge Sharing in MNEs: The Role of Organizational and National Culture," Management International Review, Springer, vol. 62(6), pages 859-884, December.
    3. Tim G. Andrews & Khin Thi Htun, 2018. "Economic Inequality, Cultural Orientation and Base-of-Pyramid Employee Performance at the MNC Subsidiary: A Multi-Case Investigation," Management International Review, Springer, vol. 58(2), pages 337-357, April.
    4. Aslam, Haris & Wanke, Peter & Khalid, Amna & Roubaud, David & Waseem, Maimoona & Chiappetta Jabbour, Charbel Jose & Grebinevych, Oksana & Lopes de Sousa Jabbour, Ana Beatriz, 2022. "A scenario-based experimental study of buyer supplier relationship commitment in the context of a psychological contract breach: Implications for supply chain management," International Journal of Production Economics, Elsevier, vol. 249(C).

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