Enough is enough? Threshold models for the relationship between psychological contract breach and job-related attitudes

Psychological contracts are a powerful concept in research on organizational behaviour. Substantial negative reactions towards perceived breaches to the psychological contract have been reported in many studies. There are sound theoretical arguments for the existence of a point in the continuous perception of contract breach, where sudden changes in attitudes occur in the relationship between breach and outcomes (i.e., thresholds). Using questionnaire data from 592 employees working in more than 30 different organizations across Germany, segmented regression models were tested against curvilinear effects for the relationship between breach of the psychological contract and job satisfaction, affective organizational commitment, intention to quit, violation, and trust. This study provides empirical evidence for threshold models of psychological contract breach. The results imply that prior studies have underestimated the impact of psychological contract breach.