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This study draws on affective events theory (AET) to propose and examine a sequential process in which expatriate employees’ perceptions of psychological contract (PC) breaches impact their emotions (feelings of violation), which in turn influence their attitudes and ultimately their behaviors.

Expatriate employees (n = 228) working in the United Arab Emirates participated in an experiment with four employment scenarios created by manipulating transactional and relational PC promises. Participants, randomly assigned to each scenario, responded as if in a real job situation. Data analysis was performed using MANCOVA and structural equation modeling (SEM).

Employing an experimental design, the findings offer causal evidence that supervisors’ failure to fulfill employment promises adversely impacts expatriate employees’ perceptions of PC breaches, emotions, job satisfaction, organizational commitment, turnover intentions and performance. Consistent with the AET, the findings demonstrate that PC breaches impact expatriate employees’ emotions, which subsequently influence their attitudes and ultimately affect their behaviors.

The study provides recommendations for organizations and managers to improve relationships with expatriate employees and suggests actions to lessen the adverse effects of PC breaches.

To our knowledge, this is the first study that examined the sequential process suggested by the AET in the context of PC and expatriation, establishing that PC breaches impact expatriate employees’ emotions, which in turn affect their attitudes and ultimately their behaviors.

Drawing upon social exchange theory and psychological contract (PC) research, this study aims to examine the impact of supervisors' fulfillment/non-fulfillment of transactional psychological contract (TPC) and relational psychological contract (RPC) promises on employees' reactions (e.g. feelings of violation, trust in the supervisor and organizational commitment) in a non-Western context, namely, the United Arab Emirates (UAE).

An experimental field design was used with a sample of employees (N = 234) from a wide range of nationalities and work backgrounds. Four conditions were developed by manipulating the fulfillment of three TPC promises (e.g. competitive salary) and three RPC promises (e.g. sufficient power and responsibility). Participants were randomly assigned to the four conditions and asked to complete the study materials as if they were experiencing a real employment situation with a real organization. Hypotheses were tested using multivariate analysis of covariance and follow-up univariate analysis with Bonferroni post hoc comparisons.

This study demonstrated that a supervisor's failure to fulfill promises pertinent to both TPC and RPC, or one of them, generated negative reactions among participants. Based on a comparison of means analysis, this study also established that breach of TPC promises produced a higher negative impact than breach of RPC promises on perceptions of breach, feelings of violation, trust in the supervisor, organizational perceptions, organizational commitment and recommendation intentions. Furthermore, these findings revealed that a supervisor's breach of RPC promises has no significant incremental (additive) effect above a supervisor's breach of TPC promises. On the other hand, a supervisor's breach of TPC promises has a significant incremental (additive) effect above a supervisor's breach of RPC promises.

This study is one of the very few studies that examined and established, under a controlled setting, the differential effects of fulfillment/non-fulfillment of both TPC and RPC promises on employees' breach perceptions, emotions, attitudes and behavioral intentions.