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Ideological Foundations of Perceived Contract Breach Associated With Downsizing: An Empirical Investigation

Elmhurst College

William McKinley

Southern Illinois University at Carbondale

Gyewan Moon

Kyungpook National University

John C. Edwards

This paper explores the effects of three managerial ideologies on the degree of psychological contract breach perceived in connection with a downsizing event. Results from surveys conducted in the U.S. and Singapore suggest that a strong belief in the ideologies of market competition or shareholder interest reduces the perceived contract breach associated with a downsizing, while strong belief in the third ideology, the ideology of employee worth, has the opposite effect. Theoretical implications and suggestions for future research are discussed.

Journal of Leadership & Organizational Studies, Vol. 12, No. 1, 37-52 (2005)
DOI: 10.1177/107179190501200105


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