Predictors and Outcomes of Relational and Transactional Psychological Contract

This study identifies the impact of individual and organizational factors on employee’s relational and transactional psychological contract. The study also investigates the effects of psychological contract on innovative work behavior and psychological ownership. The sample consisted of 307 employees working in four organizations in India. The results show that while creditor ideology predicted relational psychological contract, perceived organizational support emerged as the predictor of both relational and transactional contract. In terms of the outcomes of psychological contract, while transactional psychological contract emerged as a significant predictor of psychological ownership as well as innovative work behavior, relational psychological contract emerged as a significant predicator of only psychological ownership. Managerial Implications of the study are discussed.