Idiosyncratic deals and psychological contract fulfilment for older workers : the mediating role of entitlement and obligation

Abstract

This research addresses a paradox in the idiosyncratic deal literature. Despite an overwhelmingly positive orientation towards idiosyncratic deals, mixed results also abound, with certain studies showing no effect between idiosyncratic deals and outcomes. This has raised concern amongst scholars about the appropriateness of the dominant social exchange theoretical lens through which idiosyncratic deals have been studied. To address this concern, the researcher developed a conceptual model in which the mediating effect of obligation and entitlement on the relationship between idiosyncratic deals and psychological contract fulfilment could be examined. Then, in line with activity theory and disengagement theory, the quality of the exchange relationship was examined as an alternate mechanism through which idiosyncratic deals exert their influence on psychological contract fulfilment for older workers. The research was embedded within a social science context and the researcher followed a deductive strategy of enquiry. A cross-sectional survey-based design was followed, and a purposive sampling technique was used to gather data on subjects 50 years of age and older in South Africa. A key strength of this research was the structural model used to test the main and indirect effects that included mediation, moderation and mediated moderation. The findings make an original contribution by showing a strong relationship between idiosyncratic deals, as a second order construct and psychological contract fulfilment, mediated through a high-quality exchange relationship and not through obligation as posited by the social exchange paradigm. Also, the findings of this research indicate a statistically significantly positive influence of entitlement on obligation that may serve as a possible explanation for the lack of a mediating effect for obligation on the relationship between idiosyncratic deals and psychological contract fulfilment.