In today’s modern-day work environment, understanding how cultural values influence the
perception of psychological contract among workers is very crucial. Literature is flooded in the area of
psychological contract breach, its formation and response to breach. However, research on the nature
and consequences of these contracts is rather lacking. This study seeks to cover that gap by examining
how cultural values may lead to the conception of various psychological contracts. Specifically, how
each value contributes in determining the psychological contract. Furthermore, it seeks to identify and
examine the moderation of perceived organizational support’s influence on the development of these
contracts.
After testing the laid down notions with a sample of 140 teachers from different native English-speaking
countries, I found that there is a significant positive relationship between collectivism and relational
contracts. The results of this study also indicated a negatively significant relationship between
uncertainty avoidance and transactional contract. Masculinity cultures also significantly correlated with
transactional contracts. In relation to the moderation, perceived organizational support moderated the
relationship between collectivism relational contract. The relationship between power distance and
relational contracts was also moderated by perceived organizational support. However, the direction of
moderation was contradicting the proposed effect. This research provided insight into employee’s
organizational behavior, specifically exploring their type of psychological contract, in relation to the cultural
background as well as their perception of support by helping organizations to derive analytical tools that
aids in identifying and managing contracts to ensure successful continuity not turnover .
