HOW DETRIMENTAL IS PSYCHOLOGICAL CONTRACT BREACH TO AIRLINES?

This study aims at understanding airline industry’s organizational changes conceptualized as psychological contract breach (PCB) among flight attendants, leading to dissatisfaction reflected in this study as counterproductive work behavior (CWB). PCB refers to organization’s inability in fulfilling obligations contained within the psychological contract, while CWB is defined as conducts that are harmful to organization. With 410 respondents, using Structural Equation Model (SEM), the results had shown that CWB increases as the PCB is heightened. This study adds value to the literature in three ways: PCB being tested among flight attendants; CWB being conceptualized using Hirschman’s Model of EVLN with an extension of acquiescent silence; and the application of Affective Events Theory (AET) in supporting the linkage between PCB and CWB in airline context.