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Collectivist orientation and the psychological contract: Mediating effects of creditor exchange ideology

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Abstract

As organizations globalize, culturally based variation in the ways employees conceptualize their relationships with their employers increases in importance. In the competition for talent, organizations must understand employee preferences and expectations regarding their treatment by the firm. Recently, culture's influence on the psychological contract (individual perceptions of employer obligations) has been noted with regard to the extent that employees perceive their psychological contracts as relational or transactional. We provide results from a survey conducted in a multinational corporation (MNC) indicating that the cultural value of collectivist orientation likely has its effect on the psychological contract through beliefs about the nature of social exchange. Data were consistent with creditor exchange ideology (appropriateness of giving more than has been received) mediating the relationship between collectivist orientation and perceptions of a relational psychological contract. By examining this relationship empirically, we go beyond the demonstration of cultural effects to describe an intermediate mechanism through which culture operates. Exchange norms are likely to play a mediating role in a variety of cross-cultural relationships, and may be used by managers as a lever to improve relationships with employees, as opposed to engaging in attempts to change individual cultural orientation.

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Acknowledgements

This research was supported by a grant from the Social Science and Humanities Research Council of Canada.

Author information

Authors and Affiliations

  1. Moore School of Business, University of South Carolina, Columbia, USA

    Elizabeth C Ravlin

  2. Beedie School of Business, Simon Fraser University, Vancouver, Canada

    Yuan Liao

  3. Department of Management and Marketing, Middle Tennessee State University, Murfreesboro, USA

    Daniel L Morrell

  4. Department of Management, The Chinese University of Hong Kong, Hong Kong, China

    Kevin Au

  5. School of Management, Australian School of Business, University of New South Wales, Sydney, Australia

    David C Thomas

Authors
  1. Elizabeth C Ravlin
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  2. Yuan Liao
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  3. Daniel L Morrell
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  4. Kevin Au
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  5. David C Thomas
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Corresponding author

Correspondence to Elizabeth C Ravlin.

Additional information

Accepted by David A. Ralston, Consulting Editor, 23 May 2012. This paper has been with the authors for four revisions.

APPENDIX

APPENDIX

TRANSACTIONAL AND RELATIONAL PSYCHOLOGICAL CONTRACT AND EXCHANGE IDEOLOGY ITEMS

Transactional Contract

  1. 1)

    Compensate me based on what I do for company name.

  2. 2)

    Share resources with employees who deserve them.

  3. 3)

    Treat me appropriately with regard to my rank in the company name organization.

  4. 4)

    Share company name's positive outcomes with employees if they have contributed to them.

  5. 5)

    Evaluate my contribution compared to that of others, and treat me accordingly.

  6. 6)

    Pay as much attention to my contributions as anyone else's.

  7. 7)

    Compensate me based on what other companies do for similar employees.

Relational Contract

  1. 1)

    Create a sense of community among employees.

  2. 2)

    Protect my well-being.

  3. 3)

    Support me in matters outside of work.

  4. 4)

    Look out for me no matter how well or poorly company name is doing.

  5. 5)

    Be responsible for me.

  6. 6)

    Employ me as long as I make a useful contribution.

Reciprocation Wariness

  1. 1)

    The most realistic policy is to take more from others than you give.

  2. 2)

    It generally pays to let others do more for you than you do for them.

  3. 3)

    In the long run, it is better to accept favors than to do favors for others.

Creditor Ideology

  1. 1)

    If someone does something for you, you should do something of greater value for him or her.

  2. 2)

    If someone goes out of their way to help me, I feel as though I should do more for them than merely return the favor.

  3. 3)

    If someone does you a favor, you should do even more in return.

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Ravlin, E., Liao, Y., Morrell, D. et al. Collectivist orientation and the psychological contract: Mediating effects of creditor exchange ideology. J Int Bus Stud 43, 772–782 (2012). https://doi.org/10.1057/jibs.2012.17

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  • DOI: https://doi.org/10.1057/jibs.2012.17

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