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The Effects of Social Exchange Quality Indicators on Employee Engagement Through Internal Communication

Anja Špoljarić a
Dejan Verčič b
aUniversity of Zagreb, Croatia
bUniversity of Ljubljana, Slovenia

(Re)discovering the Human Element in Public Relations and Communication Management in Unpredictable Times

ISBN: 978-1-80382-898-5, eISBN: 978-1-80382-897-8

ISSN: 2398-3914

Publication date: 1 February 2023

pdf (206 KB) ePub (1.9 MB) Article view Figure view Cited (18) cite article

Abstract

Organisations have recently become more aware of the importance of their employees and their contributions to organisational success (Bakker and Schaufeli, 2008). Employee engagement is one of the contributors that has been recognised to have several positive outcomes for organisations. This study was conducted in order to explore how different employee-related concepts affect employee engagement. Its purpose was to determine whether internal communication can influence employee engagement by insuring employees perceive a fulfilled psychological contract, as well as adequate organisational support. A total of 3,457 employees from 26 different organisations completed a survey that measured internal communication satisfaction, employee engagement, level of psychological fulfilment and perceived organisational support. To test the relationship between these variables, mediation analysis was conducted. Two research models with internal communication satisfaction as a mediator between the relationship of psychological contract fulfilment and engagement, and perceived organisational support and engagement were tested. The results show that internal communication satisfaction is a significant mediator of both the relationship of psychological contract fulfilment and engagement, as well as the relationship between perceived organisational support and engagement. This indicates that internal communication could be used in order to manage psychological contract fulfilment and perceived organisational support with the intent of increasing employee engagement, and consequently, overall organisational performance.

Keywords

Citation

Špoljarić, A. and Verčič, D. (2023), "The Effects of Social Exchange Quality Indicators on Employee Engagement Through Internal Communication", Rodríguez-Salcedo, N., Moreno, Á., Einwiller, S. and Recalde, M. (Ed.) (Re)discovering the Human Element in Public Relations and Communication Management in Unpredictable Times (Advances in Public Relations and Communication Management, Vol. 6), Emerald Publishing Limited, Leeds, pp. 123-138. https://doi.org/10.1108/S2398-391420230000006008

Publisher

:

Emerald Publishing Limited

Copyright © 2023 Anja Špoljarić and Dejan Verčič. Published under exclusive licence by Emerald Publishing Limited

Introduction

Employee engagement has become a well-studied topic over the last years (e.g. Saks, 2006), presumably due to its positive contribution to organisational performance (Baumruk, 2004; Harter et al., 2002). Engaged employees make their employing organisations more effective, which contributes to their competitive advantage. This makes them more productive and more profitable, while both their employees and customers experience an increase in satisfaction with the organisation (Markos and Sridevi, 2010; Sundaray and Vihar, 2011). Organisations that want to thrive and accomplish outstanding results need to secure a certain level of employee engagement in order to achieve these positive outcomes. Adequate levels of employee engagement are ensured through activities that create an interactive and collaborative environment and promote inclusion for all the employees (Tkalac Verčič, 2021; Tkalac Verčič and Pološki Vokić, 2017).

Robinson et al. (2004) identified several key drivers of employee engagement. Among them were internal communication, the feeling of being valued and involved, opportunities for development within the organisation and the organisation's concern for its employees' well-being. Based on the significance employee engagement has for organisations, the aim of this study is to explore the relationships between employee engagement and some of its drivers. Within this chapter, two separate partial mediation models are tested. The proposed models describe the influence that (1) level of psychological contract fulfilment and (2) perceived organisational support have on employee engagement. In both models, internal communication satisfaction is a potential mediator of the relationships.

Theoretical Overview

Social Exchange Quality Indicators

Definition of social exchange was first proposed by Homans (1958, 1961) who described social exchange as any tangible and intangible activity between at least two people with ‘more or less rewarding or costly’ outcomes for the parties involved (Homans, 1961, p. 13). Social exchange is present everywhere, also in organisations, and it is part of the relationships between employees and their employers (Blau, 1964). It consists of a three-step process that includes action, response and formation of a relationship between parties (Cropanzano et al., 2017), which means it is the foundation of a relationship between an employee and his or her employer. The nature of this relationship is indicated by social exchange quality indicators, which include psychological contract fulfilment and perceived organisational support (Tkalac Verčič et al., 2021).

Psychological Contract

Rousseau (1995, p. 9) described psychological contract as ‘individual beliefs, shaped by the organisation, regarding terms of an exchange agreement between individuals and their organisation’. According to Brown (2015, p. 1) it is a ‘perception of an exchange agreement’ where parties are an employer and an employee. If there are inconsistencies between what an employee perceives as terms of employment and what their employer delivers, their work engagement will be influenced (Guerrero and Herrbach, 2008). Previous studies have shown that the perceived level of psychological contract fulfilment has an effect on employees' level of engagement at work (e.g. Bonilla, 2018; Sandhya and Sulphey, 2020). This suggests that when the psychological contract is breached or violated, employee engagement will decrease, while on the other hand, when the psychological contract is fulfilled (or better yet, exceeded), employee engagement will increase.

Organisational Support

Employees themselves determine to what extent they feel valued and cared for by the organisation, judging, in a way, the organisation's commitment to them (Eisenberger et al., 1986). Rhoades and Eisenberger (2002) apply Gouldner's (1960, p. 170) reciprocity norm to the work environment, which ‘defines certain actions and obligations as repayments for benefits received’. They recognise that positive judgment of organisational support can lead to beneficial outcomes (and vice versa). ‘Employees' perceptions are formed by their observations of how much their organisation rewards effort and loyalty’ (Tkalac Verčič et al., 2021, p. 8). Eisenberger et al. (2016) described eight human resources practices that lead to increased employee engagement through higher perceptions of organisational support. Several other studies have confirmed that this relationship is significant and positive (e.g. Alvi et al., 2014; Biswas and Bhatnagar, 2013; Dai and Qin, 2016). If linked to employee engagement, perceived organisational support can be of ‘primary importance in employee absenteeism, work effort, and turnover’ (Eisenberger et al., 1990, p. 51), similar to psychological contract fulfilment.

Employee Engagement as an Outcome of Social Exchange

Employee engagement is employee's physical, cognitive and emotional expression toward their job (Kahn, 1990). It is a positive attitude they display in their work environment (Schaufeli et al., 2002b) that reflects their satisfaction and often manifests as their devotion to work (Harter et al., 2002). Engagement is considered one of the most sustainable competitive advantages an organisation could have (Pandey and David, 2013). It is often approached as a work-related state of mind (Schaufeli et al., 2002b) consisting of three components: emotional, cognitive (Saks, 2006; Schaufeli, 2013) and behavioural (Saks, 2006), or physical-energetic (Schaufeli, 2013). Kahn (1990) recognised these components as employees' different types of expression within the work-environment. When engaged, employees will commit to their work by positively expressing all three of the components (Kahn, 1990), which can be seen as employees' ‘involvement and satisfaction with, as well as enthusiasm for work’ (Harter et al., 2002, p. 269).

Attitudes and behaviours employees exhibit depending on how they perceive their employer are called employee outcomes (Westerman and Yamamura, 2007). Attitudinal employee outcomes are commitment, job satisfaction and intention to leave (or remain), while behavioural employee outcomes include effort, motivation, cooperation and organisational citizenship (Posada et al., 2017). Employee outcomes, including employee engagement, are the result of social exchange, since the perception of different social exchange quality indicators forms both attitudinal and behavioural outcomes (Gould-Williams and Davies, 2005).

Employee engagement has been studied from several different academic perspectives (e.g. sociology, political science, psychology and organisational behaviour) (Tkalac Verčič et al., 2021) and only recently have public relations researchers become interested in it (e.g. Meng and Berger, 2019). Researchers approach it from three different perspectives: as an attitude, a psychological state or a personality trait (Macey and Schnider, 2008; Tkalac Verčič et al., 2021; Welch, 2011). However, since traits are quite permanent and rigid, making communication experts unable to influence it, engagement is generally approached as either an attitude or a psychological/motivational state (Welch, 2011).

Internal Communication and Its Relationship With Employee Outcomes

Internal communication is all communication within an organisation (Tkalac Verčič et al., 2012). It can be formal (or managed) and informal, which makes it a continuous occurrence in organisations (Welch and Jackson, 2007). The idea that internal communication satisfaction can impact employee engagement has been gaining momentum in the last decade. One of the first times this idea was brought to the attention of communication researchers was in 2011, when Welch proposed a conceptual model describing how different content of internal communication messages connects to different aspects of engagement. In her model, awareness and understanding are engagement outcomes resulting from good internal communication practices. Good internal communication practices include: promoting organisational culture, values and objectives; aligning employees' expectations and performance with organisation's expectations and consumers' needs; providing employees with all the necessary information, including information they need to do their job, as well as information about their contribution to the organisation (Yates, 2006). Through all these practices, internal communication is able to fulfil one of its key functions, which is building emotional engagement (Ruck and Trainor, 2012). Mishra et al. (2014) also recognised that one of the benefits of effective internal communication is, among other positive outcomes, increased engagement. Tkalac Verčič and Pološki Vokić (2017) confirmed that higher internal communication satisfaction increases engagement. This, in turn, has a positive effect on various organisational performance outcomes, such as productivity and retention, as well as profitability and consumer satisfaction (Markos and Sridevi, 2010), proving the importance of effective internal communication.

Tkalac Verčič et al. (2021) have identified a positive relationship between internal communication satisfaction and employee outcomes. Wyatt (2007, cited in Robertson-Smith and Markwick, 2009, p. 13) discovered that ‘having clear expectations and delivering promised rewards is key to engaging the workforce’. This is also consistent with Brown's (2015) conclusions. According to her, communication can be used to both form and manage the psychological contract, especially through influencing organisational culture ‘that indirectly impact[s] desired outcomes of the contract’ (Brown, 2015, p. 13). Spelman (2015) also found a connection between psychological contract and communication while researching the relationship between psychological contract currencies and different aspects of communication within an organisation. There are also some (but limited) studies that explore the relationship between perceived organisational support and internal communication (Allen, 1992; Tkalac Verčič, 2021). However, most of the studies that have been conducted explored only some internal communication aspects and not all. For example, it has been found that top-management communication, immediate superior communication and horizontal communication positively impact perceived organisational support (Allen, 1992). It has to be noted that perceived organisational support is most intensely influenced by top-management communication, which is reflected in communication climate (Niehoff et al., 1990), one of the dimensions of internal communication satisfaction. This type of communication, when effective, is also responsible for making employees feel valued and supported, which is achieved through higher trust levels and increases perceived organisational support (Allen, 1992; Niehoff et al., 1990).

If communicated properly and effectively, perceived levels of psychological contract fulfilment (Brown, 2015; Spelman, 2015) and organisational support (Allen, 1992) are both going to lead to the feeling of being valued and involved, which will in turn increase employee engagement itself. These links suggest that internal communication is a mediator between the concept of psychological contract fulfilment and employee engagement, as well as between perceived organisational support and employee engagement. Previous research shows that satisfactory internal communication boosts employee engagement, improves perception of psychological contract and increases perceived organisational support. Based on these findings, the following hypothesis are proposed:

  • H1. The relationship between levels of psychological contract fulfilment and employee engagement is partially mediated by internal communication satisfaction.

  • H2. The relationship between levels of perceived organisational support and employee engagement is partially mediated by internal communication satisfaction.

Method

The research for this study was carried out as a part of a four-year project researching internal communication and related concepts (such as employee engagement, psychological contract, organisational support and employer brands) within participating organisations. Organisations that are participating in the research were selected based on typical unit criteria (Gerring, 2016) that were established by the project team. Criteria for defining typical organisations within the project were industry and size of an organisation, financial and non-financial economic indicators, as well as internal communication practices within the organisation. 26 organisations participated in the project. Three of the 26 organisations are publicly held, one is a mixed-ownership organisation and the rest are privately held. The number of employees within each organisation ranges from 60 to 9,000 employees.

Data Collection and Participants

3,457 employees from 26 organisations that are participating in the project completed a communication survey that examined all observed concepts by using well-established and validated scales. All of the items were measured on 7-point Likert-type scales. The survey was conducted before the COVID-19 pandemic from May 2019 to October 2019 in 12 organisations, and also during the pandemic, from October 2020 to February 2021 in 14 different organisations. Out of 3,457 participants, 1805 participated in the first phase of data collection and 1,652 participated in the second phase. A significant effort was made in order to include representative sample of employees from each company. Demographics of all 3,457 participants that completed the survey are shown in Table 1.

Table 1.

Sample Demographics (N = 3,457).
Frequency Percentage
Gender
Female 1,670 50.0
Male 1,670 50.0
Age group
<36 948 30.8
36–45 1,089 35.4
46–55 730 23.7
>55 312 10.1
Years of experience
<11 1,464 46.6
11–20 919 29.2
>20 760 24.2
Management level
Lowest management level 496 30.4
Middle management level 239 14.7
Top management level 56 3.4

Measures

To measure internal communication satisfaction, the internal communication satisfaction questionnaire (UPZIK), developed by Tkalac Verčič et al. (2009), was used. This operationalisation of internal communication satisfaction measures internal communication satisfaction as an eight-dimensional construct, but it can also be used as a one-dimensional construct (Tkalac Verčič, 2021; Tkalac Verčič et al., 2021). In this research, the concept of internal communication was used as a one-dimensional construct.

To measure employee engagement, the UWES, developed by Schaufeli et al. (2002b), was used. UWES is the most widely applied and accepted scale to measure engagement in academic studies (Farndale et al., 2014), and it was proven to be reliable for measuring employee engagement as a psychological concept (Balducci et al., 2010; Durán et al., 2004; Schaufeli and Bakker, 2004a; Schaufeli et al., 2002a, 2002b). The UWES can be used as both a three and a one-dimensional operationalisation (Fong and Ng, 2012; Kulikowski, 2017; Schaufeli and Bakker, 2004b), and in this study, the one-dimensional approach was taken in the analysis.

Robinson and Wolfe Morrison's (2000) operationalisation was used to measure psychological contract fulfilment. Their scale is made up of five items and has been validated previously (e.g. Jafri, 2014; Restubog et al., 2007; Suazo et al., 2005; Tkalac Verčič et al., 2021; Turnley et al., 2004).

Perceived organisational support was measured with an eight-item scale introduced by Eisenberger et al. (1986). This scale has been used and validated numerous times (e.g. Eisenberger et al., 1986, 2001; Tkalac Verčič, 2021; Tkalac Verčič et al., 2021).

Results

Descriptive Statistics

Scale reliability was determined with Cronbach's alpha coefficient (see Table 2), which was greater than 0.7 (α > 0.87) for all scales, showing that they are reliable (Nunnally, 1978). As shown in Table 2, all four variables used for this study have a mean higher than 4.2, which means overall internal communication satisfaction is slightly above the midpoint of the scale (M = 4.53, SD = 1.31), employees are moderately engaged (M = 4.98, SD = 1.24), and feel that psychological contract between them and their employee has been adequately fulfilled (M = 4.60, SD = 1.53), while perceiving medium organisational support (M = 4.28, SD = 1.45). All variables are positively and significantly (p < 0.001) correlated, with correlation between internal communication satisfaction and perceived organisational support, as well as between psychological contract and perceived organisational support, being strong, and other correlations being moderate (see Schober et al., 2018).

Table 2.

Means, Standard Deviations, Reliabilities, and Intercorrelations of Study Variables.
M SD α ICS EE PCF POS
ICS 4.53 1.31 0.979 1
EE 4.98 1.24 0.958 0.695 1
PCF 4.60 1.53 0.876 0.698 0.543 1
POS 4.28 1.45 0.908 0.748 0.573 0.786 1

Note: All correlations are statistically significant with p < 0.001.

ICS = internal communication satisfaction. EE = employee engagement. PCF = psychological contract fulfilment. POS = perceived organisational support.

Mediation Analysis

In order to determine whether internal communication satisfaction (ICS) mediates the relationship between psychological contract fulfilment (PCF) and employee engagement (EE), and perceived organisational support (POS) and EE, mediation analyses using PROCESS macro (Hayes, 2017) were conducted in IBM SPSS software. The assumptions of normality of residuals, multicollinearity and homoscedasticity were satisfied. There were no identified outliers. Additionally, differences between levels of ICS, EE, PCF and POS based on gender, age, work experience and level of education were calculated. All analysed variables showed significant differences of means based on all demographic criteria. The analysis was based on significance values (p) of appropriate tests, which were all below p < 0.05, except for one – employee engagement was not different based on work experience. Even though all the differences, except one, have shown to be significant, effect sizes were all small (d < 0.2) (Cohen, 1988). Results of mediation analyses with significance set to 99% and 5,000 bootstrap samples are presented in Tables 3–4, and in Figs. 1–2.

Table 3.

Total, Direct, and Indirect Effects Between Psychological Contract Fulfilment and Employee Engagement.
Effect SE t 95% BC CI
Total effect of PCF on EE 0.4421 0.0117 37.9426* 0.4120, 0.4721
Direct effect of PCF on EE 0.0930 0.0138 6.7142* 0.0573, 0.1287
Indirect effect via ICS 0.3491 0.0135 0.3142, 0.3825

Note: PCF = psychological contract fulfilment. EE = employee engagement. ICS = internal communication satisfaction. BC CI = bias corrected bootstrap confidence intervals. *p < 0.001.

Table 4.

Total, Direct, and Indirect Effects Between Perceived Organisational Support and Employee Engagement.
Effect SE t 95% BC CI
Total effect of POS on EE 0.4897 0.0119 41.0368* 0.4590, 0.5205
Direct effect of POS on EE 0.1036 0.0157 6.6074* 0.0632, 0.1441
Indirect effect via ICS 0.3861 0.0161 0.3428, 0.4283

Note: POS = perceived organisational support. EE = employee engagement. ICS = internal communication satisfaction. BC CI = bias corrected bootstrap confidence intervals. *p < 0.001.

Fig. 1. Indirect Effects Between Psychological Contract Fulfilment and Employee Engagement. Note: Unstandardized β coefficients are shown. PCF = psychological contract fulfilment. ICS = internal communication satisfaction. EE = employee engagement. aDirect effect. bTotal effect. *p < 0.001.

Fig. 1.

Indirect Effects Between Psychological Contract Fulfilment and Employee Engagement. Note: Unstandardized β coefficients are shown. PCF = psychological contract fulfilment. ICS = internal communication satisfaction. EE = employee engagement. aDirect effect. bTotal effect. *p < 0.001.

Fig. 2. Indirect Effects Between Perceived Organizational Support and Employee Engagement. Note: Unstandardized β coefficients are shown. POS =perceived organisational support. ICS = internal communication satisfaction. EE = employee engagement. aDirect effect. bTotal effect. *p < 0.001.

Fig. 2.

Indirect Effects Between Perceived Organizational Support and Employee Engagement. Note: Unstandardized β coefficients are shown. POS =perceived organisational support. ICS = internal communication satisfaction. EE = employee engagement. aDirect effect. bTotal effect. *p < 0.001.

As shown in Table 3, the total effect of PCF on EE was significant with β = 0.4421 and p < 0.001. Even when including ICS as a mediator, the effect of PCF remained significant (β = 0.0930, p < 0.001). The bootstrapped indirect effect of PCF on employee engagement via ICS was also significant (β = 0.3491, p < 0.001).

As shown in Table 4, the total effect of POS on EE was significant with β = 0.4897 and p < 0.001. Even when including ICS as a mediator, the effect of POS remained significant (β = 0.1036, p < 0.001). The bootstrapped indirect effect of POS on employee engagement via ICS was also significant (β = 0.3861, p < 0.001).

To summarise, all bias corrected bootstrap confidence intervals indicate significant mediation, due to not including the zero (Hayes, 2017; Preacher and Hayes, 2008). Considering all bias corrected bootstrap confidence intervals were significant, including total and direct effect of PCF and POS on EE, ICS can be considered a partial mediator between the relationship of PCF and EE, as well as the relationship between POS and EE.

The research model for testing PCF's effect on EE, which includes ICS as a mediator, accounted for 49% of the variance of employee engagement (see Fig. 1). At the same time, the research model for testing POS' effect on EE, including ICS as a mediating variable, accounted for 49% of the variance of employee engagement as well (see Fig. 2).

Discussion

This study was conducted to determine whether internal communication satisfaction mediates the relationship between psychological contract fulfilment and employee engagement, as well as perceived organisational support and employee engagement. This was done to determine whether employee engagement can be increased by internal communication that aims to build clearer expectations and improve employees' perception of their importance to their employer. Two mediation models were tested. Both of the models proved to be significant and internal communication satisfaction emerged as a partial mediator between both of the tested relationships.

The results of this study show psychological contract fulfilment is significantly and positively related to employee engagement (β = 0.0930, p < 0.001). This result supports H1 and is consistent with several previous studies (e.g. Bonilla, 2018; Moor, 2014; Sandhya and Sulphey, 2020; Spelman, 2015; Tkalac Verčič et al., 2021). It demonstrates how employees, who perceive that their employer fulfilled what they explicitly and implicitly expected, are more engaged in their work. Internal communication satisfaction is a mediator in this relationship and it increases the total effect of psychological contract fulfilment on employee engagement (β = 0.4421, p < 0.001) and also creates an indirect effect (β = 0.3491, p < 0.001). This is expected, since internal communication practices are used to manage employees' expectations (Tavares Cavalcanti, 2014; Wyatt, 2007 cited in Robertson-Smith and Markwick, 2009).

Perceived organisational support is also significantly and positively related to employee engagement (β = 0.1036, p < 0.001), which supports H2 and is consistent with the results of studies conducted by Eisenberger et al. (2016), Tkalac Verčič (2021), Tkalac Verčič et al. (2021), etc. This result confirms the idea that employees that feel valued by their organisation are more likely to be engaged (Robinson et al., 2004). This relationship is also mediated by internal communication satisfaction, which increases the total effect perceived organisational support has on engagement (β = 0.4897, p < 0.001) and creates an indirect effect on as well (β = 0.3861, p < 0.001). Internal communication is an organisational function that helps employees see their value to their organisation, which explains why employees who are more satisfied with their employer's internal communication practices would perceive higher organisational support, and in turn be more engaged. Therefore, internal communication needs to be high on the management agenda, as it may be one of the most cost-effective ways to improve organisational performance.

Results of this study indicate that both, level of psychological contract fulfilment and perceived organisational support, significantly influence the level of employee engagement. However, their relationship to employee engagement is both direct and indirect. Indirect effects, which both psychological contract fulfilment and perceived organisational support have on employee engagement manifests through internal communication satisfaction. This indicates that the level of employee engagement could be managed by better communication during an employment process with the intent of managing potential employees' expectations from their new job. Potential, and current, employees' understanding of what is expected of them and their knowledge on what they should expect from their employer will increase the level of psychological contract fulfilment. In turn, internal communication satisfaction will also increase, which will lead to more engaged employees. Engagement could also be managed through communication practices that demonstrate the organisation's support once a candidate has become an employee. Employees' feelings of value and support from their employer will also lead to higher levels of employee engagement. However, this feeling of support and value is, for the most part, created within the community of colleagues in an organisation (Hayton et al., 2012). This process defines an organisation's communication culture. If employees perceive higher levels of support within the organisation, they will be more satisfied with internal communication. The level of employee engagement within the organisation will rise with an increase in perceived support and internal communication satisfaction.

There is broad anecdotal evidence that internal communication has become more important during the recent COVID-19 pandemic, although thorough research on the topic is only emerging. Based on the results of this study, it can be suggested that focus and improvements in internal communication achieved in the crisis should feed-forward into post-pandemic time. If a new (organisational) reality emerges, it is probably more employee focused. What used to be considered ‘soft skills’ and ‘morally right practices’ (good communication, engagement, contract fulfilment and organisational support), has proven to produce tangible and material results for the organisations.

Limitations and Future Studies

There are some limitations to this study that should be addressed in future research. Several of them come from the cross-sectional nature of the study. First, the causality of the concepts cannot be determined. This is due to both the cross-sectional nature (Wang and Cheng, 2020), as well as mediation analysis itself (Fiedler et al., 2011). In order to address this, or to be more precise, in order to determine causality between variables, an experiment needs to be conducted (Fiedler et al., 2011; Reiter, 2000; Wirtshafter and Sorrentino, 1994), which is something that could be addressed in future studies.

Furthermore, the data were collected from a single source as a part of a cross-sectional study. This causes certain limitations. It can affect the results (especially the relationships between the concepts), since the data for all of the studied constructs was collected from the same participants (Tkalac Verčič et al., 2021). In order to address this, collecting data from the same measurement point (both from the same participants, as well as at the same point in time) should be avoided (Brannick et al., 2010). In order to reduce these limitations, verified scales were used, since they have been proven to provide reliable results in previous studies (e.g. Eisenberger et al., 1986; Robinson and Wolfe Morrison, 2000; Schaufeli et al., 2002b; Tkalac Verčič et al., 2009). However, this limitation should be addressed in future research by collecting data for each concept from different participants and at different points in time.

Another limitation is the nationality of this (Croatian) research, which limits the ability to generalise these findings. Nevertheless, this study provides valuable insights for internal communication researchers and practitioners. It showcases that internal communication could be used to increase the understanding of psychological contract among employees and demonstrate organisational support with the intent of increasing engagement, and therefore improving overall organisational performance.

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Acknowledgements

This work has been fully supported by the Croatian Science Foundation under project no. 3323.
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