Impact of psychological contract fulfillment on micro-firm clerks: An empirical study in China

Abstract

The psychological contract is an international academic focus in the field of organization behavior and human resources management. Despite a large number of literatures in the psychological contract from different types of organizations, there is still a lack of exploration involving the micro business sector. This study aims to fill some of the gaps and analyze the intimate relationship with the target of micro-firm clerks in the context of China. Such analysis was performed employing the self-constructed framework of Psychological Contract Fulfillment (PSF), which has been built to reflect the specific characteristics in line with Chinese circumstances. Results show that the PSF has a positive effect on organization commitment and work acceptance while indicates the negative impact on the turnover intention, as perceived by the micro-firm clerks in the sampled cities. PSF for micro-firm clerks, on the other hand, acts as a partial intermediary role between Leader-Member Exchange (LMX) and work acceptance as well as turnover intention. PSF practices call for the significant need to improve internal behavior relations for micro-firm clerks and have the potential to create a type of organizational environment or culture for more sustainable exchanges that act as a positive role for stable human resources, preserving loyalty value and reducing the firms' cost of staff turnover.