Social and economic exchange in the employee‐organization relationship: the moderating role of reciprocation wariness

Abstract

Purpose

This paper examines the relationships that social and economic exchanges, two elements of the employee‐organization relationship (EOR), had with affective commitment, turnover intentions, employer trust, and altruism. The paper also aims to determine whether reciprocation wariness, reflecting fear of exploitation in reciprocation, moderated relationships that exchange elements had with outcomes.

Design/methodology/approach

A total of 453 employees of a large Korean electronics organization completed a survey on their work attitudes, behaviors, and demographic characteristics.

Findings

Results showed that reciprocation wariness moderated relations that social exchange had with commitment, turnover intentions, and trust, and that economic exchange had with turnover intentions.

Research limitations/implications

The significance of examining social and economic exchange and of developing conceptualizations of the EOR that incorporate individual differences is discussed.

Practical implications

Organizational leaders need to consider how individuals may differ in responses to exchange elements of the EOR. Common assumptions about the EOR that social exchange is universally beneficial and that the necessity of economic exchange is accepted by all employees may not be accurate.

Originality/value

New theorizing and testing of the role of reciprocation wariness in the EOR contributes to an emerging literature on social and economic exchanges and how individuals may respond to these elements of the EOR.

Citation

Shore, L.M., Bommer, W.H., Rao, A.N. and Seo, J. (2009), "Social and economic exchange in the employee‐organization relationship: the moderating role of reciprocation wariness", Journal of Managerial Psychology, Vol. 24 No. 8, pp. 701-721. https://doi.org/10.1108/02683940910996752