THE EFFECT OF PSYCHOLOGICAL
CONTRACT FULFILLMENT ON WORKER
PERFORMANCE AT SAUDI ARABIA
UNIVERSITIES AND THE MEDIATING
EFFECT OF ORGANIZATIONAL CITIZENSHIP
BEHAVIOR
Mesud EssaTayeb
College of Business Administration, Northern Border University, Arar, Arabia
Saudia.
mesud.tahtouh@nbu.edu.sa
Jamel Ali Arous
College of Business Administration, Northern Border University, Arar, Arabia
Saudia.
jamel.benarous@nbu.edu.sa
Bilal Louail*
College of Business Administration, Northern Border University, Arar, Arabia
Saudia.
bilal.louail@nbu.edu.sa
Hamood Alenezi
College of Business Administration, Northern Border University, Arar, Arabia
Saudia
hamood.alenezi@nbu.edu.sa
Reception: 12 February 2024 | Acceptance: 11 March 2024 | Publication: 11 April 2024
Suggested citation:
Essa Tayeb, M., Ali Arous, J., Louail, B. and Alenezi, H. (2024). The Effect of
Psychological Contract Fulllment on Worker Performance at Saudi
Arabia Universities and the Mediating Effect of Organizational
Citizenship Behavior. 3C Empresa. Investigación y pensamiento crítico, 13(1),
56-79. https://doi.org/10.17993/3cemp.2024.130153.56-79
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ABSTRACT
This study investigates the role of psychological contract fulfillment as a mediator
between worker performance and organizational citizenship behavior. The
psychological contract encompasses the reciprocal anticipations and responsibilities
that exist between employees and the company. Worker performance encompasses
the manner in which employees carry out their job duties and accomplish performance
objectives. Organizational citizenship behavior, being an optional habit, can
significantly enhance employee performance beyond the formal job expectations. The
study will be conducted within a specific organizational context, and data will be
collected through a survey given to the academic and administrative staff at seven
universities in Saudi Arabia. The hypotheses will be tested and the mediating role of
organizational citizenship behavior will be explored through statistical studies,
including mediation analysis. The results will contribute to a more comprehensive
comprehension of the impact of psychological contract fulfillment on worker
performance through corporate citizenship behavior, offering valuable insights for
firms aiming to improve employee performance.
KEYWORDS
Psychological Contract Fulfillment; Worker Performance; Organizational Citizenship
Behavior; Mediation Analysis.
J.E.L. CLASSIFICATION
M12, J24, I23, C30, D23
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INDEX
ABSTRACT .....................................................................................................................2
KEYWORDS ...................................................................................................................2
J.E.L. CLASSIFICATION ................................................................................................2
1. INTRODUCTION .......................................................................................................4
2. LITERATURE REVIEW AND HYPOTHESIS ............................................................6
2.1. Psychological contract fulfillment and worker performance ...............................6
2.2. Psychological contract fulfillment and organizational citizenship behavior ........7
2.3. Organizational citizenship behavior and worker performance ...........................8
2.4. The mediating effect of OCB-I between psychological contract and worker
performance ............................................................................................................9
3. MATERIALS AND METHODS ................................................................................10
3.1. Data ..................................................................................................................10
3.1.1. Sample Selection ......................................................................................10
3.1.2. Sources of Data .........................................................................................10
3.1.3. Study Model ..............................................................................................10
3.2. Measures ..........................................................................................................11
3.3. Validity and Reliability .......................................................................................11
3.3.1. Tools ..........................................................................................................11
3.3.2. Descriptive Analysis ..................................................................................12
3.4. The Confirmatory factor analysis: ....................................................................13
4. RESULTS AND DISCUSSION ................................................................................15
4.1. The direct effect analysis .................................................................................16
4.2. The indirect effect analysis ...............................................................................17
4.3. The mediating effect analysis ...........................................................................18
5. CONCLUSION ........................................................................................................19
RECOMMENDATION ....................................................................................................20
ACKNOWLEDGEMENTS .............................................................................................20
REFERENCES ..............................................................................................................21
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1. INTRODUCTION
In today's highly competitive business environment, organizations face constant
challenges and opportunities that require agile and high-performing employees. The
dynamic change in the environment refers to the continuous and rapid shifts and
transformations that organizations face in various aspects, such as technology,
market conditions, customer preferences, and competition. This dynamic nature of the
environment requires organizations and their employees to adapt and perform
effectively to remain competitive and succeed. Universities and companies need
dynamic performance to grow in today's rapidly changing environment. The field of
education is constantly evolving with advancements in technology and shifting societal
needs. Universities must continually update their programs and curricula to stay
relevant and provide students with the knowledge and skills needed to succeed in the
job market. Universities play a crucial role in advancing knowledge through research
and innovation.
In this context, worker performance refers to the ability of individuals to respond
and develop in a dynamic environment [29][30]. It involves being flexible, innovative,
and proactive in identifying and capitalizing on opportunities and effectively managing
and navigating through challenges and uncertainties. The need for worker
performance arises from recognizing that static and rigid approaches are no longer
sufficient to sustain success in a constantly changing environment. Organizations
must embrace agility, adaptability, and continuous Learning to stay ahead of the curve
and seize emerging opportunities. Organizations recognize that high-performing
employees are a valuable asset [5].
Numerous studies explore various aspects of worker performance, including its
determinants, measurement, and enhancement strategies. Worker or employee
performance can be defined as individual behavior in the workplace and how well the
worker executes the job duties and responsibilities [34]. It encompasses various
dimensions, including the task performance, the contextual performance, and the
counterproductive behavior [37].
By continuously seeking ways to enhance worker’s performances, organizations
can ensure they have the capabilities and agility to respond effectively to changing
market conditions and technological advancements. The skills possessed by workers
directly impact the overall organization's performance. Performance requires a culture
of continuous Learning and skill development [26]. Workers must stay current with
industry trends, acquire new knowledge, and develop new skills to remain effective in
a changing environment. By investing in their skills, workers can contribute to their
organization's performance and adapt to emerging opportunities.
The standard contracts are often rigid and fixed, specifying tasks and duties without
flexibility for change and may not include specific provisions for acquiring new skills
beyond the specified tasks [28]. Those contracts often face criticism for their inability
to accommodate transformations and changes in the external environment. Some of
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the criticisms include a lack of flexibility, Learning and development constraints, and a
Lack of wage and reward flexibility [45].
Social exchange theory emphasizes the reciprocal nature of social relationships
within organizations and how perceptions of exchange influence employees' decisions
to engage in dynamic performance [14][7]. By recognizing and promoting a positive
social exchange, organizations can encourage and reinforce worker performance,
ultimately fostering a positive work environment and enhancing organizational
performance. Social exchange theory focuses on social relationships as exchanges of
resources, where individuals engage in reciprocal interactions with the expectation of
receiving benefits in return [11].
The psychological contract can provide a framework for understanding the
reciprocal nature of the employer-employee relationship. The psychological contract
refers to the unwritten set of expectations, beliefs, and obligations between
employees and their organizations in the context of the employment relationship. It
represents the mutual understanding of what each party expects from the other and
what they perceive as their obligations and entitlements [12][36]. The psychological
contract is not formal or legally binding but an implicit agreement that evolves through
interactions, communication, and experiences between employees and the
organization [15]. In the psychological contract, employees must develop new skills
valued by the employer, successfully perform new tasks in return for opportunities and
resources for career advancement, and take on increased responsibilities within the
firm, enhancing long-time employability and promoting continuous Learning.
Thus, how does psychological contract fulfillment affect worker performance at
Saudi Arabian universities?
Studies have demonstrated that meeting the expectations and obligations of the
psychological contract can result in the development and strengthening of
organizational citizenship behavior [24][10][36]. Employees are more likely to feel
supported by the organization when they sense that their contributions are valued and
their personal and professional growth is fostered. Therefore, does organizational
citizenship conduct also serve as a mediator in the connection between psychological
contract fulfillment and workers' performance at Saudi Arabian universities?
Hence, the objective of this study is to investigate the intermediary impact of
organizational citizenship behavior and get a deeper understanding of how
psychological contract fulfillment affects employee performance, as well as the role
played by organizational citizenship behavior in this mechanism within Saudi Arabian
universities. More precisely, the study seeks to examine the conduct a study on the
structure of psychological agreements among employees at Saudi universities.
Evaluate the extent to which employees demonstrate organizational citizenship
behavior. Analyze the correlation between the fulfillment of psychological contracts
and the performance of workers. Examine the influence of meeting the expectations
outlined in the psychological contract on the performance of employees, both in terms
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of their direct work output and their indirect contributions to the business through
behaviors that go beyond their formal job requirements. Enhance the current
understanding of the correlation between the fulfillment of psychological contracts,
organizational citizenship behavior, and worker performance, with consequences for
the management of organizations and human resource practices.
This article was divided into five important parts: the introduction, the second part
covering literature review and hypothesis, the third part focusing on materials and
methods, the fourth part presenting the results and discussion, and finally the
conclusion, which includes recommendations and future research prospects.
2. LITERATURE REVIEW AND HYPOTHESIS
2.1. PSYCHOLOGICAL CONTRACT FULFILLMENT AND
WORKER PERFORMANCE
The concept of the psychological contract was introduced by Argyris [4] and further
developed by Santos et al., [41]. Define the psychological contract as an "implicit
agreement" resulting from mutual expectations between the organization and its
employees [15]. The parties involved in the contract are not necessarily aware of
these obligations [45]. Rousseau [38] made significant contributions to the
understanding of psychological contracts. And defines the psychological contract as
an employee's belief regarding mutual obligations, which creates the impression of
obligation based on "promises rather than expectations" (such as fair pay, job
security) and obligations towards the organization like loyalty, discipline, sacrifices
[38]. The contract is a binding commitment to an exchange agreement between two or
more parties [39], where the employee is aware of the obligations in the psychological
contract without the explicit declaration of the organization [43][38]. The employees'
perceptions of promises in the psychological contract depend on their understanding
of the organization's practices and future intentions [8].
The psychological contract within employee-employee relationships can be
classified into four broad forms. These forms can differ based on the nature of the
expectations, obligations, and exchanges between employees and organizations [38]
[22]. The relational psychological contract is based on loyalty and stability; the
employee is required to support the organization and commit to its needs and
interests in exchange for the organization's commitment to support the employee's
well-being and interests. The employee is obligated to stay with the organization and
fulfill their tasks, while the organization is committed to providing long-term
employment and compensation.
The transactional psychological contract is based on a transactional relationship;
the contract is usually short-term and limited; the employee is obligated to perform a
limited and specific set of tasks, while the organization commits to limited participation
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in decision-making and limited contribution to training and self-development [43][38]
[22][42].
In the Balanced Psychological Contract (Bpc), the organization commits to
delegating responsibilities, granting access to information, providing tools for goal
achievement, and offering opportunities for self-development. In return, the employee
accepts the organization's goals, commits to demonstrating adaptability to achieve
expected performance, and seeks to acquire necessary competencies, expand skills,
or develop areas of work. This commitment is embodied through external
employability development, internal advancement, and engaging in dynamic
performance [42].
The Transitional contract is when the employee accepts a temporary position that
meets immediate needs but is unsuitable for the long term. These contracts are often
associated with organizations undergoing restructuring or change, where no
expectations can be confirmed due to unclear directions or a future vision [43][38][42].
This contract presents no commitment from either party, so they do not constitute an
accurate psychological contract [23].
Based on the above, the hypotheses would be as follows:
H1: Relational psychological contract fulfillment affects worker performance at
Saudi Arabian universities.
H2: The transactional psychological contract fulfillment affects worker performance
at Saudi Arabian universities.
H3: Balanced psychological contract fulfillment affects worker performance at Saudi
Arabian universities.
2.2. PSYCHOLOGICAL CONTRACT FULFILLMENT AND
ORGANIZATIONAL CITIZENSHIP BEHAVIOR
Organizational Citizenship Behavior refers to the discretionary actions and
behaviors of individuals within an organization that are not explicitly part of their formal
job description but contribute to the overall functioning and effectiveness of the
organization. OCB-i includes helping colleagues, volunteering for additional tasks,
showing courtesy, and offering suggestions for improvement [50]. These behaviors
are not explicitly rewarded or mandated by the organization but contribute to the
overall effectiveness, productivity, and well-being of the workplace [31][35].
When employees perceive that the organization values their contributions and
supports their personal and professional development, they are more likely to feel
supported by the organization. The employees engage in O.C.B. only when they
perceive that their employment relationships are based on social exchange [35][31]
and to reward their organizations for fair treatment. The fulfillment of the psychological
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contract can lead to the emergence and reinforcement of organizational citizenship
behavior [24][10][36][2].
Multiple researches have identified a detrimental correlation between the violation
of the psychological contract and the display of organizational citizenship behaviors
[13][49][36]. Employees' motivation to engage in corporate citizenship activities may
decrease if they perceive a breach of the contract, such as unmet promises or unfair
treatment [13][36]. The findings highlight the significant impact of corporate
commitments and promises in driving employees' behaviors and attitudes, based on
the principle of reciprocity.
H4: The relational psychological contract fulfillment affects the organizational
citizenship behavior at Saudi Arabian universities.
H5: The transactional psychological contract fulfillment affects the organizational
citizenship behavior at Saudi Arabian universities.
H6: The balanced psychological contract fulfillment affects the organizational
citizenship behavior at Saudi Arabian universities.
2.3. ORGANIZATIONAL CITIZENSHIP BEHAVIOR AND
WORKER PERFORMANCE
The relationship between organizational citizenship behavior and worker
performance has been a topic of interest in organizational psychology and
management research. Research has generally found a positive association between
OCB-i and worker performance. Worker performance encompasses various
dimensions, including task performance, contextual performance, and
counterproductive behavior [33].
Task performance refers to the extent to which employees fulfill their formal job
requirements and achieve the objectives of their assigned tasks. OCB-i can have a
positive impact on task performance through various mechanisms. Employees who
engage in OCB-i may be more committed to their organization and have higher levels
of job satisfaction, which can enhance their motivation and effort in performing their
tasks. Additionally, employees who engage in OCB-i may also develop more robust
social networks and positive relationships with colleagues, which can facilitate
information sharing and collaboration, ultimately leading to improved task
performance [1][37][29][30].
Contextual performance, also known as extra-role performance or organizational
citizenship behavior, refers to behaviors that are not directly related to an employee's
formal job requirements but contribute to the organization's overall functioning.
Motowildo et al., [30] suggest that contextual performance can contribute to a more
harmonious work environment. While these behaviors may not consistently be
formally recognized through the reward system, Smith et al., [46] acknowledge that
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they can positively influence supervisory ratings over time. The contextual
performance is often seen as a form of OCB-i. Research has consistently shown a
positive relationship between OCB-i and contextual performance. Employees who
engage in OCB-i are more likely to go beyond their formal job requirements and
engage in behaviors that benefit their colleagues and the organization. This behavior
can improve team dynamics, increase cooperation, and enhance organizational
performance.
Counterproductive behavior refers to actions that can harm the organization or its
members. These actions include behaviors such as theft, sabotage, absenteeism, and
workplace aggression [40]. Research such as Sypniewska [48] and Spector & Fox
[47] have found a negative relationship between OCB-i and counterproductive
behavior. Employees who engage in OCB-i are less likely to engage in
counterproductive behaviors because they exhibit higher commitment, loyalty, and
positive work attitudes. They are also more likely to be invested in the success and
well-being of the organization, which can act as a deterrent to engaging in harmful
actions.
H7: The organizational citizenship behavior affects the organizational citizenship
behavior at Saudi Arabian universities.
2.4. THE MEDIATING EFFECT OF OCB-I BETWEEN
PSYCHOLOGICAL CONTRACT AND WORKER
PERFORMANCE
The mediating effect of OCB-i between psychological contract fulfillment and
worker performance suggests that the relationship between psychological contract
fulfillment and worker performance is partially explained by the extent to which
employees engage in OCB-i. In other words, when employees perceive that their
psychological contract is being fulfilled, they are more likely to engage in OCB-i, which
enhances their overall worker performance.
Studies have provided evidence for this intermediate influence, indicating that when
employees feel greater levels of psychological contract satisfaction, they are more
inclined to exhibit organizational citizenship behavior directed towards individuals,
resulting in enhanced worker performance.
H8: The mediating effect of OCB-i between Rcp and W.P. at Saudi Arabian
universities.
H9: The mediating effect of OCB-i between TrCP and W.P. at Saudi Arabian
universities.
H10: The mediating effect of OCB-i between Bcp and W.P. at Saudi Arabian
universities.
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3. MATERIALS AND METHODS
3.1. DATA
3.1.1. SAMPLE SELECTION
The academic and administrative personnel representing seven (07) Saudi
universities are Northern Border University, King Saud University, King Faisal
University, King Khaled University, Qassim University, University of Hail, and
University of Tabuk. The questionnaires were randomly distributed using the
employees’ emails in the selected universities.
3.1.2. SOURCES OF DATA
Four hundred twenty-three employees answered the questionnaire prepared to test
the hypotheses of this study.
3.1.3. STUDY MODEL
The study is grounded in a theoretical framework that establishes a connection
between the fulfillment of psychological contracts and worker performance. This
connection is mediated by the role of organizational citizenship behavior, as depicted
in Figure 1.
Figure 1. Model of OCB-i as a mediator between psychological contract fulfillment and worker
performance.
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3.2. MEASURES
In order to examine the assumptions, original data was gathered from a sample
comprising academic and administrative personnel from seven (07) Saudi universities.
A questionnaire consisting of questions was designed to measure the study variables.
A Likert scale ranging from "5= I agree strongly Agree" to "1= I strongly Disagree"
assessed all construction aspects. The Rousseau [39] model was used to measure
the psychological contract fulfillment, with four items for each: relational psychological
contract (Rpc), transactional psychological contract (Trpc), and balanced
psychological contract (Bcp). For the worker performance variable, Koopmans al.
(2014) model was used, which utilizes three dimensions: task performance (Tskpr) (5
items), contextual performance (Ctxtpr) (8 items), and counterproductive behavior
(CBve) (5 items). As for the mediator variable "organizational citizenship behavior, the
model used was the Organizational Citizenship Behavior (OCBi) of Spector & Fox [47]
and it consists of 10 items.
3.3. VALIDITY AND RELIABILITY
The Cronbach's alpha coefficient was computed to assess the reliability and
internal consistency of the research instrument. Fornell and Larcker [18] state that a
Cronbach's alpha value greater than 0.6 is deemed dependable, irrespective of the
scale's item count. Table 4 displays the alpha Cronbach value for all variables tested,
ranging from 0.69 to 0.92. Hence, this scale is dependable.
Table 1. Reliability Questionnaire Test
Source: Data analyzed using SPSS
3.3.1. TOOLS
For testing the hypotheses of this study, a set of statistical methods were
employed:
NCronbach's Alpha value
OCBi 10 923
Tskpr 5 0.70
Ctxtpr 8 787
CBve 5 908
Bpc 4 847
Rpc 4 783
Trpc 4 755
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Cronbach's alpha reliability analysis assesses the internal consistency of a scale or
measure.
Confirmatory Factor Analysis (C.F.A.) examines the underlying structure of a set of
observed variables and confirms the measurement model.
Path analysis is used to identify the direct and indirect effects of variables by
examining the relationships between them.
3.3.2. DESCRIPTIVE ANALYSIS
The questionnaire was distributed to academic and administrative staff at 07 Saudi
universities. The responses were collected from 423 employees, and it was found that
From the table, we can observe that the sample used in the study consists of 67.4%
males and 32.6% females. Approximately 44% of the sample individuals have 5-10
years of experience, and 22.2% have work experience exceeding ten years.
Moreover, the percentage of individuals belonging to each university in the sample is
similar, ranging from 7.3% to 18.9%, and this avoids bias in the respondents' answers.
Table 2 presents the displayed results.
Table 2. Personal statistics for the study
Source: Respondents' answers.
NP (%)
Gender :
Male 285 67.4%
Female 138 32.6%
Experience:
1 -5 years 140 33.1%
5-10 years 189 44.7%
> 10 years 94 22.2%
University of employment
Northern border university 74 17.5%
King Saud University 31 7.3%
King Faisal university 54 12.7%
King Khaled university 42 10.00%
Qassim university 63 14.9%
university of Hail
university of Tabuk
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3.4. THE CONFIRMATORY FACTOR ANALYSIS:
Construct validity refers to the extent to which the dimensions of a model align with
the data collected from the study sample and eliminate any measurement errors. This
is assessed using confirmatory factor analysis (C.F.A.), and the results are as follows:
Figure 2. Confirmatory factor analysis (C.F.A.) for the organizational citizenship behavior
Figure 3. C.F.A. for balanced
psychological contract
Figure 4. C.F.A. for Relational
psychological contract
Figure 5. C.F.A. for
Transactional psychological
contract
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Figure 6. C.F.A. for the Worker performance
The four th item in the organizational citizenship behavior dimension was deleted
because the standardized coefficient for the confirmatory factor analysis was less than
0.5 [20]. The confirmatory factor analysis was conducted after that, and the results
shown in Figures 2, 3, 4, 5, and 6 indicate that all standardized coefficients for the
confirmatory factor analysis are higher than 0.5. Therefore, it is valid for statistical
analysis. A set of fit indices were used to ensure the model fit, as illustrated in Table 3.
Table 3. Model Fit Summary
Source: Output SPSS.
Table 3 displays the outcomes of model fit analysis. The CMIN/df ratio for each
index reflects the degree to which the observed data align with the stated model, with
an acceptable range serving as a benchmark. A lower CMIN/df ratio indicates a more
optimal fit; in this investigation, the values were deemed satisfactory as they were
below the threshold of 0.05 [20]. The Standardized Root Mean Square Residual
Fit index Acceptable fit Bcp Rpc Trpc OCBi WP
CMIN/df <5 2.766 2.112 2.689 3.551 3.654
RMR 0.08 26 23 25 72 76
CFI 0.9 930 951 943 913 901
RMSEA <0.04 0.0033 0.0021 0.0031 37 38
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(R.M.R.), Comparative Fit Index (CFI), and Root Mean Square Error of Approximation
(RMSEA) all obtained acceptable values, suggesting a strong correspondence
between the observed data and the stated model.
4. RESULTS AND DISCUSSION
In this study, we want to examine if the forms of psychological contracts indirectly
affect worker performance through organizational citizenship behavior. A path analysis
model was employed to investigate the direct and indirect effects of a group of
observed variables. The Rcp, Trpc, and Bpc are the independent variables; Wpr is the
dependent variable, and the OCBi is the mediator variable. The research by Baron
and Kenny [6] was one of the fundamental frameworks for how to test mediation. We
proceed with the analysis as illustrated in Figure 7.
Figure 7. The standardized values for the impact of psychological contract forms on
employees' performance through organizational citizenship behavior. Source: Output Amos
The relationships in Figure 7 can be translated through Table 4, which illustrates
the direct and indirect effects of psychological contract fulfillment forms on employees'
performance.
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Table 4. Regression Weights: (Group number 1 - Default model)
Source: Output Amos
4.1. THE DIRECT EFFECT ANALYSIS
The direct effect represents the direct relationship between the independent and
dependent variables. In this study, the effects of Rpc, Trpc, and Bpc on worker
performance are all significant; Table 4 demonstrates that the
-value is smaller than
the significance level of 5%. Therefore, the regression analysis result indicated that
Rpc, TRpc, and Bpc have a positive effect on W.P., where the regression coefficients
were = 0.14, = 0.09, and = 0.23. The interpretation of these results can
be attributed to the nature of each psychological contract. Based on these
conclusions, it can be inferred that the H1, H2, and H3 are confirmed.
A long-term employment arrangement between employees and employers
characterizes relational psychological contracts. These contracts are primarily
established through trust, loyalty, and stability. La Porta et al. [25] explore the
argument that a high level of trust enhances the employee performance of large
organizations in 40 countries. Studies have found that loyal employees are motivated
to perform at their best, contributing to higher productivity and overall performance [3]
[32][16].
The transactional psychological contract defines employment arrangements as
short-term or limited duration. This relationship is primarily focused on exchanging
economic contracts, specified, limited, and narrow job involvement by the employee.
According to Hassan [21] when employees have transactional psychological
contracts, they only perform what they are expected to perform in the contract and, in
return, receive the benefits accordingly.
A balanced psychological contract refers to the mutual agreement between an
employer and an employee, wherein the employee expects career growth and
advancement in return for their high performance on work assignments [17].
Estimate S.E. C.R. P Label
OCBi <--- Rpc 0,852 0,022 37,960 *** par_1
OCBi <--- Bpc 0,475 0,035 13,425 *** par_6
OCBi <--- Trpc -0,020 0,019 -1,032 0,302 par_7
WP <--- OCBi 0,578 0,025 22,681 *** par_2
WP <--- Bpc 0,088 0,022 3,970 *** par_3
W. P. <--- Trpc 0,228 0,010 22,909 *** par_4
WP <--- Rpc 0,142 0,025 5,746 *** par_5
p
βRpc
βBpc
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4.2. THE INDIRECT EFFECT ANALYSIS
According to Table 4, the Rpc positively affects OCBi, as indicated by a regression
equation, with -value <0.05 and regression coefficient
= 0.852. The results of
this study align with many other studies that have demonstrated a strong impact of
fulfilling the relational psychological contract on organizational citizenship behavior
[44][51][9]. When employee perceives a firm relational psychological contract
characterized by trust, mutual obligations, and support from their organization, they
are more likely to engage in OCBi; this is because a favorable relational psychological
contract fosters a sense of commitment, loyalty, and reciprocity between employees
and the organization, leading employees to go beyond their formal job requirements
and contribute voluntarily to the betterment of the organization. They engage in
discretionary behaviors such as helping colleagues, offering suggestions for
improvement, and participating in activities that enhance the organizational climate.
Overall, a favorable relational psychological contract encourages and motivates
employees to exhibit higher levels of OCBi. Based on these conclusions, it can be
inferred that the hypothesis H4 is confirmed.
The effect of Bcp on OCBi is positive and significant, with
-value <0.05 and
regression coefficient
= 0.475. This result is consistent with many previous
studies, such as Santos et al. (2024). In balanced psychological contact, the
employee has the responsibility to develop his skills, while the employer has a
responsibility to improve employees' long-term employability within or outside the
organization; the employer provides training and advancement opportunities. Studies
like Shih and Chen [44] have confirmed this relationship by explaining that the
balanced psychological contract ensures that employees have a sense of job security,
an emotional connection to the organization, and a defined reward system.
Consequently, employees with a balanced psychological contract are more likely to
engage in organizational citizenship behavior (OCBi) as they strive to maintain a
mutually beneficial employment relationship characterized by fair rewards and
obligations. The hypothesis H6 is confirmed.
Regarding the relationship between the transactional psychological contract and
organizational citizenship behavior, table 4 shows that the
-value =0.302, which is
higher than the significance level of 0.05, and the impact is not statistically significant.
The transactional psychological contract may not significantly affect organizational
citizenship behavior for several reasons. Firstly, the psychological contract is primarily
based on a transactional exchange between employees and employers, where
employees fulfill their job responsibilities in exchange for tangible rewards such as
salary, benefits, and promotions. This type of contract focuses more on the formal
obligations and specific tasks outlined in the employment agreement rather than
fostering a sense of discretionary behavior or going above and beyond what is
required. Secondly, the transactional psychological contract is often characterized by
a limited scope of obligations and expectations, primarily centered on fulfilling
contractual duties. This narrow focus may encourage employees to refrain from
p
βRpc
p
βRpc
p
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engaging in OCBi, which involves voluntary and extra-role behaviors that contribute to
the organization's overall well-being. From this conclusion, the hypothesis H5 is
rejected.
This study demonstrates further results; the effect of OCBi on W.P. is significant
and positive, with -value <0.05 and regression coefficient = 0.578; this is similar
to other studies [31][27][19]. The increase in employee initiative behavior can increase
W.P. This result can be explained by improved productivity among colleagues and the
optimization of resources to align them with production objectives. Based on this
result, the hypothesis H7 is confirmed.
4.3. THE MEDIATING EFFECT ANALYSIS
In order to test whether organizational citizenship behavior plays a mediating role
between the fulfillment of the psychological contract and employee performance, this
relationship will be tested using the bootstrapping method. This method does not
require the data distribution to be expected, and it is suitable for both small and large
samples. Unlike the Sobel test, this method can be applied to various sample sizes.
According to Table 5, the indirect effect of Rpc and Bpc on W.P. by the mediating
effect of OCBi is significant (
-value <0.05) with the regressions coefficients 0.493
and 0.275. It should be noted that the effect of Rpc and Bpc increased from 0.14 and
0.09 to 0.49 and 0.27. Similarly, this result showed that organizational citizenship
behavior partially mediated the relationship between relational and balanced
psychological contracts on worker performance. Based on these results, the
hypotheses H8 and H10 are confirmed.
On the other hand, the mediating effect between organizational citizenship behavior
and employee performance through transactional psychological contracts is not
significant. The -value for this relationship is greater than 0.05, indicating a non-
significant relationship between transactional psychological contracts and employee
performance, and that means that hypothesis H9 is confirmed.
Table 5. Indirect Effects (Group number 1 - Default model)
Source: Output Amos
p
βRpc
p
p
WP OCBi
Sig
Lower Bound Upper Bound
Trpc -0.011 0.000 -0.035 0.190 0.417
Bpc 0.275 0.000 0.210 0.364 0.000
Rpc 0.493 0.000 0.404 0.606 0.000
OCBi 0.000 0.000 0.000 0.000 0.000
-value
p
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5. CONCLUSION
This study investigated the role of mediation in the relationship between the
fulfillment of psychological contract forms and worker performance. The study's
findings provide insight into the intricate connection between these two concepts and
highlight the significance of taking into account mediating elements while
comprehending their relationship.
The analysis demonstrated that the satisfaction of relational and balanced
psychological contracts has a substantial and favorable influence on worker
performance. This suggests that employees are more inclined to achieve higher levels
of performance when they perceive that the organization is meeting their
psychological contracts. Nevertheless, a more thorough analysis of the mediating
impact revealed that O.C.B. plays a crucial role in this association. The mediating
effect analysis revealed that Organizational Citizenship Behavior (O.C.B.) functions as
a mediator between the fulfillment of relational and balanced psychological contracts
and worker performance. When employees feel that their psychological agreements
are being met, they are more inclined to participate in discretionary activities that go
beyond their official job obligations. Engaging in behaviors such as assisting
colleagues, willingly taking on extra responsibilities, and demonstrating commitment to
the organization all contribute to enhanced employee performance.
These findings have significant ramifications for both research and practice.
Gaining insight into the mediating influence of Organizational Citizenship Behavior
(O.C.B.) can provide organizations with valuable knowledge regarding the significance
of cultivating a favorable psychological contract environment. Organizations can boost
worker performance by ensuring that employees view their psychological contracts as
met, hence promoting higher levels of O.C.B.
Conversely, the analysis showed that meeting transactional psychological contracts
has a substantial beneficial effect on employee performance. This suggests that when
workers believe that their organization is fulfilling their transactional psychological
contracts, they are more inclined to perform at a superior level. Nevertheless, the
study of mediating effects failed to reveal a substantial involvement of O.C.B. in
mediating this specific association. Although O.C.B. is commonly acknowledged as a
crucial element in employee performance, the results of this analysis indicate that it
does not operate as a mediator in the connection between the fulfillment of
transactional psychological contracts and worker performance. Unexplored mediating
processes or factors may be influencing this association.
The results highlight the significance of meeting the expectations outlined in the
psychological contract to improve worker performance by encouraging corporate
citizenship behavior. Organizations should aim to create and sustain positive
psychological agreements with their employees, cultivating an atmosphere of trust,
equity, and reciprocal responsibilities. By implementing this approach, organizations
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can enhance employees' involvement in organizational citizenship behaviors, which in
turn can result in enhanced worker performance and overall organizational outcomes.
RECOMMENDATION
Based on the findings of this study, we may offer the following set of
recommendations:
Enhance awareness and understanding of psychological contracts: Saudi
universities should educate managers and employees about the concept and
importance of psychological contracts. This will help create a shared understanding
of the expectations and obligations between the organization and its employees.
Foster a supportive work environment: Saudi universities should strive to create a
work environment that fosters trust, fairness, and open communication. This will
contribute to a favorable psychological contract and increase the likelihood of
fulfillment, improving worker performance.
Strengthen employee engagement initiatives: Saudi universities should implement
strategies to engage employees actively in their work and the organizational
mission. This can be achieved through regular feedback, recognition programs, and
employee involvement and participation opportunities.
Encourage and reward organizational citizenship behaviors: Saudi universities
should recognize and reward employees who engage in organizational citizenship
behaviors. This can be done through performance evaluations, promotions, and
incentives. By highlighting and appreciating such behaviors, organizations can
reinforce their importance and encourage their continuation.
Regularly assess and monitor psychological contract fulfillment: It is essential for
organizations to periodically assess and monitor the level of psychological contract
fulfillment among employees. This can be done through surveys, focus groups, or
individual discussions. By staying attuned to the fulfillment levels, organizations can
identify areas of improvement and take corrective actions if necessary.
Conduct further research: While this study has provided valuable insights into the
relationship between psychological contract forms fulfillment, worker performance,
and organizational citizenship behavior, further research is needed. Future studies
can explore the impact of different contextual factors, such as organizational culture
and industry-specific dynamics, on this relationship.
ACKNOWLEDGEMENTS
The authors gratefully acknowledge the approval and the support of this research
study by the grant no. BSAA-2022-11-1824 from the Deanship of Scientific Research
at Northern Border University, Arar, K.S.A.
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