The Implications of the Cultural Values of Individualism and Collectivism in the Formation of the Psychological Contract and Employee Commitment

We examine here employee commitment to the organization as an outcome variable of the psychological contract, generally defined as the employee’s perception of what will be received from the employer in exchange for work. As a context for the formation of the psychological contract, cultural values of individualism and collectivism are considered as antecedents in a proposed research model. The study is conceptual in nature, however, propositions related to the effect of individualism and collectivism on the type of psychological contract formed, transactional or relational, and the subsequent component of commitment realized, affective, continuance, or normative, are offered