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    Journal of Organizational Behavior

    J. Organiz. Behav.24, 451471 (2003)

    Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/job.209

    Cultural variation and the psychologicalcontract

    DAVID C. THOMAS1

    *, KEVIN AU2

    AND ELIZABETH C. RAVLIN3

    1Faculty of Business Administration, Simon Fraser University, Burnaby, British Columbia, Canada2Department of Management, Chinese University of Hong Kong, Shatin, Hong Kong3Department of Management, Moore School of Business, University of South Carolina, Columbia, South

    Carolina, U.S.A.

    Summary Literature on the psychological contract has made significant contributions to our understanding ofthe exchange relationship between employees and their employer. However, the influence of cul-tural differences on perceptions of the employment relationship has largely been neglected. Wepropose both cognitive and motivational mechanisms through which the cultural profiles of indi-viduals influence (a) formation of the psychological contract, (b) perceptions of violations of thepsychological contract, and (c) responses to perceived violations. General mechanisms for the influ-ence of culture on the psychological contract are followed by specific examples of the influence ofindividualism and collectivism. Copyright# 2003 John Wiley & Sons, Ltd.

    Introduction

    After one weekend of brainwashing, as he called it, a 22-year-old French medical student went to

    work in a Euro-Disney Fantasyland shop. By the next weekend the entire shop personnel had changed

    and he left after a dispute with his supervisor over the timing of his lunch break. A waiter in an upscale

    Euro-Disney hotel noted: I dont think they [Disney management] realized what Europeans were like,

    that we ask questions and dont think all the same (Anthony, Loveman, & Schlesinger, 1992). As

    Disney discovered on beginning operations in Marne-la-Valee, France, employees from different cul-

    tures can have very different ideas about the promises their employer has made and their obligations in

    return. It is impossible to specify all the terms of the exchange relationship with employees; therefore,

    individuals must make sense of these relationships by filling the gaps themselves. Clearly, in this age of

    globalization there is a need to consider culturally based variation in the ways employees conceptua-

    lize their relationship with their employers. The psychological contract is the current platform ofchoice for understanding this phenomenon. This article builds on this base to articulate both cognitive

    Copyright# 2003 John Wiley & Sons, Ltd. Accepted 24 April 2003

    * Correspondence to: David C. Thomas, Faculty of Business Administration, Simon Fraser University, Burnaby, BritishColumbia, Canada V5A 1S6. E-mail: [email protected]

    Contract/grant sponsor: Social Science and Humanities Research Council of Canada.

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    and motivational mechanisms through which the cultural profile of individuals can influence the

    psychological contract.

    Psychological Contracts

    The term psychological contract (Argyris, 1960; Schein, 1965) describes a set of individual perceptions

    concerning the terms of the exchange relationship between individuals and their organizations. For

    example, it may include beliefs about performance requirements, job security, training, compensation,

    and career development (Rousseau, 1989), but is not limited to these dimensions. Psychological con-

    tracts manifest themselves in individuals mental representations (schemas) of their relationship to their

    organization (Rousseau, 1998). Because psychological contracts are mental representations, having to

    do with mutual obligations, they help employees make sense out of a complex employment relationship

    (Shore & Tetrick, 1994). Recent work has emphasized the perceptual and idiosyncratic nature of the

    psychological contract (Morrison & Robinson, 1997). Contract schemas are based on perceived pro-

    mises that are conveyed to employees through a variety of mechanisms, such as documents, discussions,and organizational practices. That is, the psychological contract is subjective not only because of cog-

    nitive and perceptual differences, but also because there are multiple sources of information that influ-

    ence the development and subsequent modification of contracts (Shore & Tetrick, 1994). Therefore, a

    psychological contract can exist without agreement between the firm and the employee concerning the

    terms of the exchange relationship (Robinson & Rousseau, 1994). However, regardless of agreement in

    fact, there is for each individual a perception of mutual agreement.While initial conceptualizations of

    the psychological contract noted the importance of culture (e.g., Levinson et al., 1963), contemporary

    research has largely neglected this influence. As a determinant of social exchange in general, research

    has noted that culture is a primary component in choices people make as to how exchanges occur (Fiske,

    1991). Recently, differences in psychological contracts as they exist in various societies have been

    documented (Rousseau & Schalk, 2000). However, this research falls short of identifying an approach

    for explaining or predicting comparative differences. We propose that differences in individual cultural

    profiles affect (1) the characteristics and formation of the psychological contract, (2) perception of vio-

    lations of the contract, and (3) behavioral responses to such violations. We describe both cognitive and

    motivational mechanisms through which the cultural profiles of individuals have influence, and discuss

    theoretical contributions and implications for research and practice. First, however, we discuss the gen-

    eral forms that the psychological contract might take.

    The transactional versus relational contract

    The psychological contract literature suggests that while there is infinite variety in forms psychological

    contracts take, differences in the content of these perceptions tend to cluster around the extent to whichthey are transactional versus relational (Rousseau, 1989, 1995). Transactional contracts are character-

    ized by limited involvement of the parties, and emphasize specific, short-term, monetary obligations.

    The identity of the parties is irrelevant. In contrast, relational contracts emphasize broad, long term,

    socio-emotional obligations, such as commitment and loyalty, consistent with collective interest

    (McLean Parks & Schmedemann, 1994), and have a pervasive effect on personal as well as work life.

    From a global perspective, it is fairly obvious that the term psychological contract itself may be

    more apt for transactional relationships, and not particularly descriptive of relational exchanges. While

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    the term contract expresses a rather Western, individualist view of the employment relationship

    (Rousseau & Shalk, 2000) we retain it based on prior usage, although the literature recognizes funda-

    mental differences that underlie the two types of relationships. Transactional relationships derive

    legitimacy from legal/rational or pragmatic principals (Brown, 1997; Suchman, 1995). This pragmatic

    legitimacy is outcome based: such calculative relationships are explicitly designed to provide tangible

    positive outcomes for both parties. Alternatively, the socio-normative relationships characteristic ofthe relational contract tend to be based in moral legitimacy, implying a felt moral obligation to do

    the right thing for relationship partners, regardless of immediate personal outcomes. Moral responsi-

    bility is the underlying motive for meeting relationship obligations, as opposed to accountability for

    specific outcomes (see Hofstede, 1980).

    Based on these fundamental differences and consistent with the terminology that has dominated

    the literature, we base our analysis on these two types of psychological contracts: transactional

    and relational. These types of contracts are separate components of any employment

    relationship (e.g., Cavenaugh & Noe, 1999); however, they are also interdependent in that a predomi-

    nance of one type will influence further parts of the social exchange to be perceived in the dominant

    mode.

    In this article, we limit our discussion to the effects of individual cultural profiles. While the psy-

    chological contract resides within individuals, we recognize that firm- and societal-level factors help toframe it. The myriad interactions among these three levels are impossible to articulate in one article.

    Here, we conceptualize societal- and firm-level factors as establishing the boundary conditions, (zone

    of negotiability; Rousseau & Schalk, 2000) within which the individuals psychological contract

    forms. We briefly discuss these boundary conditions to provide a frame in which to place our discus-

    sion of the individual effects of culture.

    Boundary conditions

    Societies place limits on the psychological contract through the level of resources (e.g., skilled labor,

    capital) made available to firms, and the regulations (laws or customs) that govern acceptable behavior

    by both employees and employers (Rousseau & Schalk, 2000). For example, laws influence employee

    beliefs about what is allowed in a relationship with a firm and also directly influence the ability of

    workers to bargain. Additionally, societies vary in the extent to which they support a free market econ-

    omy, and the economic environment in a country affects issues such as work force demographics, qual-

    ity of the labor force, hours of work, working conditions, and compensation (Parker, 1998). Moreover,

    government is a major employer in many countries and therefore a powerful influence on the establish-

    ment of normative standards of employment (Rousseau & Schalk, 2000). Finally, the institutions of

    society such as educational and family systems influence both the characteristics of the labor force as a

    whole and the characteristics of individuals (educational level, skills, social status) that determine indi-

    vidual bargaining power.

    In addition to societal-level effects, firms also set boundaries on the psychological contracts of indi-

    viduals. Firms are not passive, but react to and sometimes shape societies in several ways (Rousseau &Schalk, 2000). For example, through recruitment and selection practices they can exercise discretion

    over the types of resources they derive from society. In addition, they can decide whether or not to

    invest in the training and development of the work force. Finally, they can socialize workers to specific

    organizational practices, which reflect firm specific technology and structure. In this way the work

    force of a particular firm may differ significantly from the larger society.

    The psychological contract of employees is formed within the zone of negotiability created by these

    societal- and firm-level factors. That is, these factors have an indirect effect on the psychological

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    contract by creating boundaries that limit the extent to which individuals have choice in their exchange

    with the firm and the extent to which both individuals and firms are capable of honoring commitments.

    There is considerable variation in these factors around the world (Rousseau & Schalk, 2000), and soci-

    etal conditions change, sometimes rapidly. The variation and volatility of the various zones of negotia-

    bility that exist around the world create differences in the context for the psychological contract.

    However, the economic, legal, and political systems that create the zone of negotiability have devel-oped over time and are the visible manifestation of a more fundamental set of culturally shared mean-

    ings (Schwartz, 1994).

    Societal culture reflects the institutions of society, and is represented in the relatively stable values,

    attitudes, and behavioral assumptions of individuals. Focusing on the fundamental construct of indi-

    vidual cultural profiles, rather than on societal- or firm-level influences, allows us to better understand

    cultural variation in the psychological contract of individuals. For the international manager, it is these

    individual perceptions, as influenced by culture, that are key to effectively managing employment

    relationships.

    In order to specify the influence of culture we first review our conceptualization of the culture con-

    struct and the cultural profile of the individual. Then, for the purpose of providing clear examples of

    the propositions given ahead, we focus on the well-known cultural value orientations of individualism

    and collectivism. General mechanisms for the influence of culture on the psychological contract arefollowed by specific examples of the influence of individualism/collectivism.

    Culture

    Culture consists of systems of values, attitudes, beliefs, and behavioral meanings shared by members

    of a social group (society) and learned from previous generations. Culture itself, a group level con-

    struct, is neither genetic nor about individual behavior. However, it exists within the knowledge sys-

    tems of individuals, which are formed during childhood, and reinforced throughout life (Triandis,

    1995). Much of our understanding of cultural variation has developed through our study of values

    (e.g., Kim et al., 1994). Value orientations are the shared assumptions about how things ought to be

    or how one should behave (Rokeach, 1973). They result from solutions that social groups have devised

    for dealing with the finite number of problems that all people confront. Because there are limited

    ways that societies can deal with these problems (Kluckhohn & Strodtbeck, 1961), it is possible to

    develop a system that categorizes and compares societies on the basis of their values (see also Lytle

    et al. (1995) for further discussion of types of cultural variation). As noted above, in order to provide

    clear examples of our propositions we focus on the much-researched value dimensions of individual-

    ism and collectivism.

    Individualism and collectivism

    Individualism and collectivism are perhaps the most useful and powerful dimensions of cultural var-

    iation in explaining a diverse array of social behavior (Triandis, 1995). Despite being conducted at

    widely different times, with different samples and methods, major studies of national variation in value

    orientations (e.g., Hofstede, 1980; Kluckhohn & Strodtbeck, 1961; Schwartz, 1994; Trompenaars,

    1993) all feature individualism and collectivism. This convergence suggests that they are broad

    cultural constructs that encompass more basic elements (Triandis, 1995). Also, individualism and

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    collectivism may be particularly important to the psychological contract because self-concept derived

    motives, as discussed ahead, are central to the nature of the exchange that individuals have with their

    organizations. Key to the understanding of self-concept motives, individualism and collectivism can be

    described fundamentally in terms of the way individuals construct their concept of themselves (Markus

    & Kitayama, 1991).1

    Individualism refers to the tendency to view ones self as independent of others and to be moreconcerned about consequences of behavior for ones personal goals. Cognitions that focus on attitudes,

    personal needs, and rights guide much of behavior, and rational analysis guides relationship formation.

    Individualists norms for relationships tend to be based on what Fiske (1991) calls market pricing

    (Triandis, 1995). This refers to exchange relationships based on a function of market prices or utilities

    where exchanges are made in proportion to what is contributed. Resources are shared according to a

    quota proportionate to some standard. There is a concern with the efficient use of resources, especially

    time. Decision-making is dominated by cost benefit and market forces approaches. Individual social

    identity is defined in terms of ones economic role, and achievement motivation tends to dominate.

    Aggression and conflict are based on protecting markets or profits, and justified based on utilitarian

    principles.

    Collectivism refers to the tendency to view the self as interdependent with selected others, be con-

    cerned about consequences of behavior for the goals of the in-group, and be more willing to sacrificepersonal interests for group welfare. Cognitions that focus on norms, obligations and duties guide

    much of behavior, and there is an emphasis on relationship formation even when the advantages to

    the individual are unclear. In Fiskes (1991) terms, relationship norms for collectivists are founded

    in communal sharing (Triandis, 1995). Communal sharing involves an exchange relationship in which

    individuals contribute what they can and freely take what they need from the common pool of

    resources. Relationships are idealized as eternal, with decisions made by consensus. Individuals derive

    their social identity from common origins such as ancestry or race, and are motivated by a desire to be

    similar to others and to avoid standing out as different. There is strong in-group favoritism and conflict

    is expressed as out-group hostility.

    These orientations can be identified at the societal level (i.e., Japanese culture is more collectivist

    than the United States), but can also be examined with regard to the cultural profiles of individuals, as

    we do here (Triandis, 1995).2 Thus, while national culture influences the cultural profile of individuals

    raised within it, individual sources of variation, such as idiosyncratic experiences and personality will

    also affect individuals value orientations, creating variation within socio-cultural groups. Individual-

    level variation in cultural profiles should be most closely tied to individual perceptions of the exchange

    relationship, and individual cultural profiles serve as the conduit of influence of that part of the mental

    programming of individuals that is shared in a society.

    1Markus and Kitayama also expand on the notion of cultural differences in the definition of self by describing both vertical andhorizontal orientations. The vertical dimension of self accepts inequality, while the horizontal dimension emphasizes that peopleshould be similar on most attributes, especially status (Triandis, 1995). This distinction between vertical and horizontalindividualism and collectivism results in the possibility of four different cultural profiles. However, Hofstedes power distancedimension is conceptually equivalent to verticality, and there is a strong positive correlation between power distance and

    collectivism (r0.67 according to Hofstede, 1980). This finding indicates that vertical collectivism and horizontal individualismappear to be the dominant cultural profiles around the world (Triandis, 1995). For example, while the United States might behigher in verticality than New Zealand or Canada, all individualist cultures, relative to collectivist cultures, are horizontal. Thatis, verticality serves to reinforce collectivism and horizontality reinforces individualism. Given this strong relationship, we chosethe more parsimonious approach of focusing on individualism and collectivism for our specific examples, while recognizing thepotential importance of other cultural dimensions, particularly verticality and horizontality.2Triandis et al. suggest the use of the level-specific terms idiocentric and allocentric to describe individuals who endorseindividualist or collectivist values respectively (Triandis, Leung, Villareal, & Clack, 1985). This terminology has not been widelyadopted; thus, consistent with common practice, we use individualism and collectivism to refer to both societal and individuallevels of analysis.

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    Mechanisms of Cultural Influence: An Overview

    Our predictions of how culture influences the psychological contract are grounded in the concepts of

    both social cognition and motives in social exchange. We suggest that the cultural profiles of indivi-

    duals act both as processors of information and as sources of influence on preferences and forces onbehavior. That is, while cultural values operate at the cognitive level, we distinguish between cognitive

    and motivational channels of this influence. We define cognitive mechanisms as those that operate

    through a neuropsychological information processing channel and motivationalmechanisms as those

    that operate through preferable end states or modes of behavior. While these pathways are interrelated

    (e.g., Alexander, Kulikowich, & Jetton, 1994; Locke, 2000), we suggest that distinct effects based on

    each process can be identified.

    First, social cognition addresses the role mental representations have in processing information

    about people or social events, and answers the question of what is perceived to be true. Culturally dif-

    ferent individuals learn different sets of values (Erez & Earley, 1993), which develop into cognitive

    frameworks or schemas that are used to help organize and process information about various situa-

    tions, in this case, their relationship with their employer (Fiske & Taylor, 1984). Different priorities

    for what stimuli deserve attention (selective attention), and the meaning we attach to these perceptions(encoding), are formed by gradual internalization of prevailing cultural patterns (storage, retrieval;

    Markus & Kitayama, 1991; Miller, Bersoff, & Harwood, 1990). Research indicates that social cogni-

    tions such as perceptions of events (e.g., Bagby, 1957) and attributions made about their causes (Ting-

    Toomey, 1988) both vary across cultures. This variance has implications for how the psychological

    contract is perceived, and how events within that relationship, such as violations, are explained.

    Second, motivational implications of differing self-concepts arise from individuals seeking to fulfill

    differential motives aligned with their cultural values within the context of social exchange. Motives

    address the question of what does one want or prefer. Motives to maintain a positive self-image are

    probably universal. However, what constitutes a positive self-view depends on how the self is con-

    strued. Motives that are linked to the self assume different forms depending on the concept of self

    being enhanced or verified (Markus & Kitayama, 1991). For example, for those with independent

    (separate) selves, feeling good about oneself means uniqueness and expression of inner attributes,

    internal needs, and rights, and exhibition of the capacity to withstand undue social pressure (Janis

    & Mann, 1977). Those with interdependent (connected) selves derive a positive self-image from

    belonging, fitting in, occupying ones proper place, maintaining harmony, receptivity to others, and

    restraint of personal needs or desires (Markus & Kitayama, 1991).

    Cultural and other components of the self-concept act to select, interpret, and evaluate the meaning

    of action through its contribution to personal self worth and well being (Erez & Earley, 1993). It affects

    choices about what actions people initiate, terminate, or persist in (Atkinson, 1958) to self regulate in

    the quest for self worth. Activities that fit an individuals cultural value profile will help to maintain and

    enhance the self-image and will hence be preferred. This process is fundamentally different from influ-

    ences based solely on cognitive structure, as it is based in inherent needs (e.g., self worth), and forces

    on preferences and behavior regulating the pursuit of fulfillment of these needs. The cognition channel,on the other hand, involves the use of information stored in memory to guide attention and sensemak-

    ing, and to compensate for information lacking from organizational communication in the effort to

    determine states of existence.

    In sum, we propose that the mechanisms of cultural influence can be described as falling into two

    related domains,cognitiveand motivational. The cognitive domain involves cultural variation in per-

    ception and interpretation of signals from the organization and in behavioral scripts associated with an

    individuals relationship to the organization. The motivational domain involves how culturally

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    different self-concepts influence what is desirable and thus, varying forces on preferred outcomes and

    ways of behaving (Fiske & Taylor, 1991). Figure 1 shows a heuristic conceptualization of how these

    two mechanisms influence the formation of the psychological contract, perception of and attribution

    for contract violations, and responses to these violations.

    Cultural Differences in Psychological Contract Formation

    Based on the above conceptualizations of culture, its cognitive and motivational influences, and the

    psychological contract, we propose that the cultural profile of individuals influences the form that

    the psychological contract takes (dominated by a transactional or relational orientation). First, through

    social cognitive processes such as attention and encoding, systematic cultural differences exist in the

    interpretation culturally different individuals have for the same organizational messages regarding the

    exchange relationship. Second, based on variation in exchange relationship motives, systematic differ-

    ences exist in the extent to which individuals attempt to formulate their contracts with a transactional

    or relational orientation. Each of these mechanisms is discussed ahead.

    Social cognition and interpretation of organizational messages

    Organizational sources, including co-workers (Miller & Jablin, 1991) and the social context (Salancik

    & Pfeffer, 1978), signal commitments and obligations to employees through such things as overt state-

    ments, expressions of policy, and references to history or reputation. Of course, how individuals inter-

    pret these messages influences the psychological contract more than the messages actually sent

    (Rousseau, 1995). Regardless of the actual content of organizational messages, values influence what

    Figure 1. Cognitive and motivational influences on the psychological contract

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    is perceived under conditions of uncertainty or ambiguity (e.g., Ravlin & Meglino, 1987). As noted

    above, not all exchange conditions between an employee and employer can be specified, and therefore,

    existing cognitive frameworks (including those based on cultural profile) provide a structure to fill the

    gaps. For example, individualists should be more likely to interpret information in transactional terms

    and collectivists in relational terms because existing mental structures indicate that these orientations

    are consistent with what is likely or what ought to happen between employee and employer. In fact, atruly parochial individual may not be aware of other options. Attention is drawn to communications

    and interpretations that fit, and these stimuli are subsequently encoded within the existing mental struc-

    ture: for example, we expect individualists would regard information about training programs in terms

    of the immediate benefits they can personally gain, including improved external marketability,

    whereas collectivists might attend to this information in terms of how these programs can improve

    their contribution to the organization and thus strengthen the organizationemployee relationship.

    In addition to effects of culture on interpretation of communications, culture also affects what infor-

    mation isidentifiedas communication, directing selective attention in different ways. For example, col-

    lectivism and individualism tend to covary with high and low context communication styles

    (Gudykunst, Ting-Toomey, & Chua, 1988). Context refers to who is communicating, under what cir-

    cumstances, and even where communication occurs. In low context cultures, messages are largely con-

    veyed by the words explicitly spoken (e.g., the United States). In high context cultures, much of themessage is implicit, conveyed by the context. In Japan, the relationship of the receiver to the sender

    may well determine the meaning of the message (Hall & Hall, 1987). Context is thus much more impor-

    tant to conveying meaning for collectivists than for individualists (Hall, 1976). This difference is in

    keeping with individualist tendencies to think in terms of the explicitquid pro quothat requires specific

    definition, and the likelihood of having a broader variety of exchange partners who are less well known.

    Collectivists, on the other hand, depend on long-term, in-depth relationships in which the nuances of a

    partners reactions convey important information. Differences in these sources of information thus also

    bias collectivists to pay more attention to the relationship information communicated by context,

    whereas individualists look for explicit information regarding inducements and contributions. For

    example, the formation of individualists psychological contract might involve information about the

    amount of promised bonuses. Collectivists recognize this information, but also remember and take into

    account that the supervisor promised them this amount during a time when the market was prospering.

    The preceding arguments lead us to the following propositions:

    Proposition 1: The cultural profile of individuals will influence formation of the psychological con-

    tract towards transactional or relational forms through cognitive processing based on existing cog-

    nitive structures.

    Proposition 1a: Selective attention and encoding, storage, and retrieval biases will influence indivi-

    dualists to interpret organizational messages to be transactional, and collectivists relational, in nature.

    Proposition 1b: Selective attention will influence the extent to which message context, or non-

    explicit communication, influences the formation of the psychological contract, such that collecti-

    vists are more likely to attend to message context than individualists.

    Differing motives in social exchange

    As noted above, individuals from collectivist cultures (characteristically interdependent self-concept)

    are motivated to create long-term moral obligations by keeping relationships open and dynamic

    (Tse, Lee, Vertinsky, & Wehrung, 1988; Yang, 1993). They tend to locate themselves in a large

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    in-group that affects many areas of their lives (Triandis, 1988), and tend to extend their definition of

    in-group to a network of interdependency (Goodwin & Tsang, 1991). In contrast, individualists have

    short-term orientations and expect quid pro quo responses in social exchange (Erez & Earley, 1993;

    Triandis, 1989). Individualists get involved with more in-groups, each with a specific purpose (Erez &

    Earley, 1993). Relational contracts are thus more consistent with the goal orientations of collectivists,

    while transactional contracts reflect the motives of individualists. That is, individuals will be motivatedto regulate their behavior to develop their psychological contract in a form that enhances self-image.

    Thus we would expect individualists to negotiate for tangible individual incentives, such as bonuses,

    based on their contribution, whereas collectivists might promote aggregate-level rewards to emphasize

    harmonious relationships.

    The motive to achieve consensus is a key component of the constellation of motives surrounding self

    worth in a collectivist context. A feature of collectivist cultures is high agreement on what constitutes

    culturally correct behavior, referred to by Pelto (1968) as tightness. Collectivists are more likely to

    report that they are influenced by social norms than are individualists (Trafimow & Finlay, 1996). This

    tightness often occurs in homogeneous cultures with a view to maintaining harmony, while indivi-

    dualist cultures often have conflicting norms, and deviants are not necessarily sanctioned (Triandis,

    1995) because it is acceptable to express individual self-interest. For example, Japanese (tight culture)

    have been shown to exhibit less individual variation in understanding concepts than Americans (looseculture) (Chan, Gelfand, Triandis, & Tzeng, 1996) and to perceive greater threats of shame and embar-

    rassment (reductions in self worth) for non-compliance with organizational norms (Kobayashi,

    Grasmick, & Friedrich, 2001). Because there is less emphasis on independence of thought and action,

    and a propensity for consensus in responses, collectivists are more motivated by a norm for consensus

    in forming the psychological contract than are individualists. Relational (social/normative) contracts

    reflect a social consensus and reinforce specific behaviors and exchange patterns, and thus are more

    consistent with collectivist motives to avoid differentiation or deviance from the aggregate. As noted

    above, collectivists should prefer organizational practices such as reward policies that limit the differ-

    entiation between them and other employees, rather than emphasizing their unique contribution, in

    order to facilitate a harmonious consensus. In summary, self worth motives as embedded in the cultural

    profile of individuals will influence formation of the psychological contract towards transactional or

    relational forms.

    Proposition 2: Individualist cultural values will motivate individuals to form a more transactional

    psychological contract to enhance the independent self, whereas collectivist cultural values will

    influence individuals to form a more relational contract to enhance the interdependent self and

    to satisfy related motives toward consensus.

    Cultural Differences in Perception of Violationsof the Psychological Contract

    Much of our understanding of psychological contracts has been derived from the study of contract

    violations. Violations depend on the interpretations individuals give to the circumstances surrounding

    failure of one party to comply with the perceived terms of the contract (Morrison & Robinson, 1997).

    In one type of violation, calleddisruption(Rousseau, 1995), circumstances make it impossible for one

    party to meet the contract terms despite a willingness to do so. For example, changing economic or

    environmental conditions might force an organization to alter its existing employment relationships. In

    contrast,breach of contractoccurs when the party is capable of meeting the terms, but refuses to do so.

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    For example, organizational agents may not meet specific terms of employment relationships because

    they perceive that the costs of fulfilling the agreement outweigh the costs of reneging. We propose that

    culture influences interpretation of non-compliance with terms of the psychological contract through

    both cognitive and motivational mechanisms, as described in the following.

    Cognitive influences on perception of a violation

    Conceptions of the psychological contract tend to endure until the situation forces a reevaluation

    (Rousseau, 1995). However, cognitive bias is likely to influence the threshold for the perception of

    a violation (Morrison & Robinson, 1997). One aspect of cognitive bias in perception is the fact that

    people attend to information that confirms their prior cognitions, and ignore disconfirming information

    (Detto & Lopez, 1992; Olson & Zanna, 1979). Collectivists, therefore, have a bias toward perceiving

    information as supporting a relational contract, and individualists toward perceiving information as

    supporting a transactional contract. This bias will continue to dominate perception until the incoming

    information becomes so inconsistent that it cannot be assimilated into existing structures (Robinson,

    1996). Therefore, unmet terms are perceived as a contract violation only when they indicate an imbal-

    ance in the exchange relationship that is sufficiently unfavorable to exceed a perceptual threshold.This threshold should partially depend on culturally based expectations that individuals have of the

    organization. Morrison and Robinson (1997) suggest that equity sensitive individuals (an individualist

    tendency; Hui, Triandis, & Yee, 1991) are more attentive to information regarding balance and

    immediate compensation for effort, and thus will have lower thresholds for perceiving violations. Con-

    versely, collectivists are less likely to expect direct, immediate compensation for their contributions,

    and are more tolerant of unequal outcomes (Triandis, 1995). Because of higher trust in the relational

    basis of the exchange, collectivists may be less vigilant (Morrison & Robinson, 1997) in monitoring

    changes in the exchange relationship. Given selective attention, encoding, and storage processes, they

    may likely be more sensitive to unmetrelationalaspects of the exchange. However, because of the less

    explicitly reciprocal and longer-term relationships expected by collectivists, the broader nature of their

    tie to their organization, and the greater difficulty of assessing whether relational obligations have been

    met, we also expect them to have a higher overall threshold for concluding that violations haveoccurred within any given time frame. Stated more generally, we anticipate that culturally biased per-

    ceptions, by way of selective attention, encoding, and storage, lead to cultural variation in the threshold

    for perceived psychological contract violations.

    For example, the failure to receive a promotion has both transactional (economic) and relational

    (acceptance) elements. First, we anticipate that individualists attend to and further process more infor-

    mation regarding the range of possible economic consequences than do collectivists. Further, collec-

    tivists should be more attentive to and further process outcomes related to lowered perceptions of

    acceptance than collectivists. However, we suggest that individualists are more likely to identify such

    a situation as a violation of the psychological contract while collectivists may not recognize it as such

    because individualists expect and look for explicit, defined outcomes in the context of their psycho-

    logical contract, whereas collectivists see a much broader range of possible behavior on the part of

    both parties to the relationship.

    Proposition 3: The cultural profile of individuals will influence the extent to which unmet obliga-

    tions are perceived as violations of the psychological contract, based on differences in selective

    attention, encoding, and storage of communication regarding unmet obligations.

    Proposition 3a: Individualists are more likely to perceive unmet transactional obligations as viola-

    tions, whereas collectivists are more likely to perceive unmet relational obligations as violations.

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    Proposition 3b: Collectivists will have a higher overall threshold for the perception of a psychological

    contract violation than will individualists.

    Within the encoding process, attributional differences are likely to exist as well between individuals

    with differing cultural profiles. Attributions help us to react to our environment by linking observation

    of an event to its causes. The search for, and assignment of, cause for behavior seems to be a mental

    process that operates in similar ways across cultures (Schuster, Fosterlung, & Weiner, 1989). In attri-

    buting behavior, we rely on situational cues indicating the extent to which the actors are in control

    (Kelley, 1972). Sometimes, however, these cues are inconclusive. Then we rely on information we

    have in memory (Darley & Fazio, 1980). This information can be based on culturally driven expecta-

    tions of normative behavior (e.g., howshouldpeople behave in that situation?) or on our own culturally

    driven behavior in the situation (e.g., what would cause me to behave that way?). We propose that

    individuals fill in incomplete information by relying on culturally based cognitions relevant to their

    psychological contract.

    In the case of individualism and collectivism, collectivists view the exchange relationship as longer

    term, and believe that the organization will look after them in exchange for their loyalty (Hofstede,

    1980). Organizational agents have a responsibility to employees based on their position in the

    exchange relationship (Fung, 1994). Brockner et al. (1997) note that questions about trust in an orga-nization may in fact stimulate the sensemaking process, and thus, as noted earlier, collectivists are less

    likely to engage in a reevaluation of the contract than individualists. Expectations are that obligations

    will eventually be met. Also, collectivists have been shown to be less likely to exhibit correspondence

    bias (bias toward explaining behavior in terms of target attributes) than individualists, when situational

    constraints are evident (Choi, Nisbett, & Norenzayan, 1999). Based on this finding, and their long

    term, flexible, and context dependent view of organizational obligations, collectivists will be likely

    to attribute unmet expectations to factors outside of organization control (disruption).

    Conversely, individualists are less likely to trust the organization to meet agreement terms

    (Brockner et al., 2000; Cavenaugh & Noe, 1999; Robinson, 1996). Individualist cultures deemphasize

    fulfilling normative role obligations and emphasize free will and independence (Triandis, 1995). If

    legitimacy is based in the outcomes of parties to a transactional contract, an individualist would expect

    either party to violate the agreement subject to changes in expected outcomes. This suggests that indi-vidualists are more likely than collectivists to believe that unmet expectations are within the control of

    the organization (breach), consistent with their expectations of instrumental behavior on the part of the

    organization and their tendency toward correspondence bias. For example, on failing to receive an

    expected promotion, individualists might blame their supervisor and organization for using an inade-

    quate performance evaluation process. Collectivists might attribute this unmet expectation to the

    impossibility of evaluating all information and the inevitable subjectivity in all personnel decisions.

    In summary, we expect the cultural profile of individuals will influence the attributions that are made

    for the cause of unmet expectations within the psychological contract.

    Proposition 4: Individualists are more likely to attribute perceived unmet expectations to factors

    within organizational control than are collectivists.

    Culturally based motives and violation perceptions

    Cognitive processes, as we described above, lead to attention and encoding biases against perceiving a

    violation, or attributing unmet expectations to factors under the control of the organization. However,

    social exchange motives play a different role in the conception of contract violations.

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    Different concepts of the self result in inherently differential commitment and trust in organizational

    relationships. People with an interdependent self-concept have been found to be more sensitive to pro-

    cedural (as opposed to distributional) fairness in evaluations of outcomes (Brockner et al., 2000)

    because fair procedures and interpersonal treatment signal to individuals their status and confirm their

    membership in the in-group (Leung, 2001; Lind, 2001). Trust in the organization to be fair, character-

    istic of those who view the psychological contract as legitimized through moral obligation rather thanpragmatism, is more important for collectivists than individualists. Also, collectivists are more likely

    to expect unconditional benevolence in exchange relationships (Leung, 2001), consistent with a psy-

    chological contract founded in moral obligation. Some research suggests that organizations unfavor-

    able actions have a more profound effect on individuals with a strong relational orientation, such as

    those high in organizational commitment (Brockner, Tyler, & Cooper-Schneider, 1992). We suggested

    previously that collectivists might initially tolerate a higher level of unmet terms by assimilating these

    behaviors into prior cognitions, and also attribute them to external factors. However, because of inter-

    dependence motives in social exchange, including a preference for unconditional relationships and

    trust in the organization to be fair, we also suggest that when the situation becomes so unfavorable

    that collectivists do come to attribute it to factors the organization controls (breach), the breach will

    be more severe than for individualists, and cause concomitant psychological reactions of stress, ten-

    sion, and internal conflict.Building on our example of an individual denied an expected promotion, initially cognitive assim-

    ilation should occur for collectivists, as they attribute the event to causes outside of the organizations

    control. If the denial seems based on unfair procedures, however, self-worth needs are no longer being

    met. A breach is indicated, and greater levels of stress, tension, and internal conflict based on self-reg-

    ulatory failure will result for the collectivist in comparison to the individualist. To the individualist, on

    the other hand, transactional needs can be met with different partners. In summary, we expect that

    cultural variation in social exchange motives will influence psychological states in reaction to psycho-

    logical contract violations (breach).

    Proposition 5: Collectivists, based on motives to maintain their self-enhancing relationship with the

    organization, will experience greater stress, tension, and internal conflict when experiencing a

    breach than will individualists.

    Cultural Variation in Behavioral Responses to Contract Violations

    Behavioral responses to perceived violations of the psychological contract involve attempts to reestab-

    lish balance in the exchange. These behaviors have been categorized as exit, voice, loyalty, and neglect

    (EVLN) (Rusbult, Farrell, Rogers, & Mainous, 1988; Thomas & Au, 2002; Turnley & Feldman, 1999).

    Exitis quitting, transferring, and similar behaviors;voiceincludes working to improve the situation by

    discussing and suggesting solutions;loyaltyis staying with the organization and providing support by

    waiting, hoping for improvement, and trusting the organization to do the right thing; neglectimpliesthat recovery is not possible and includes reduced effort, chronic lateness or absenteeism, and similar

    responses. These responses differ along the dimensions of constructiveness versus destructiveness, and

    activity versus passivity. According to Rusbult et al. (1988), exit is active and destructive, voice is

    active and constructive, neglect is passive and destructive, and loyalty is passive and constructive.

    Cultural differences result in different cognitive scripts (Abelson, 1981) employed by individuals to

    guide their behavior. Cultural differences will exert a direct effect on responses to violations when a

    situational script is triggered and prescribes a culturally normative response. Also, cultural values

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    reflect individuals needs, and prescribe behavior required to satisfy those needs (Erez & Earley, 1993).

    Thus, in addition to cognitive effects, characteristic differences between cultural groups in their social

    exchange motives will also influence behavioral responses to violations and to situational variables

    (for example, quality of job alternatives).

    Cognitive influences: the role of culturally based scripts

    Behavioral scripts are used in interactions based on contextual cues. They consist of a particular action

    plan indicated for the situation (Lord & Kernan, 1987). Cultural differences occur in the content of

    scripts because scripts are often guided by cultural values (Brett & Okumura, 1998; Miller, 1994;

    Thomas, Ravlin, & Wallace, 1996). We suggest that cultural differences in responses to perceived psy-

    chological contract violations can be partially attributed to the extent to which individuals hold and

    retrieve culturally appropriate scripts for themselves in specific organizational situations. For example,

    individualists and collectivists are expected to differ in the extent to which they hold a constructive

    response script for voice versus exit as their dominant behavioral option. Individualists cognitions

    contain more information about internal capacities, including their own ability to effect change and

    withstand social pressure (Triandis, 1995). Collectivists, on the other hand, have cognitive structures

    that contain more information about fitting in, and working together with others to effect change and

    are thus less likely to exhibit non-conforming behavior (Bontempo & Rivero, 1992). Voice is assertive

    and non-conformist in that it is change oriented (LePine & Van Dyne, 1998), and organizations often

    interpret such behavior as threatening to cohesiveness (Nemeth & Staw, 1989). While consistent with

    individualist beliefs that organizations are willing and able to respond (Withey & Cooper, 1989), a

    strong voice script among collectivists is inconsistent with the avoidance and compromise schemas

    that represent collectivists dominant modes of conflict resolution (Leung & Wu, 1990; Trubisky,

    Ting-Toomey, & Lin, 1991).

    Exit is vague as to the target of behavior, and is thus a subtler response to a dissatisfying situation

    that avoids confrontation (Au & Bemmels, 2000). It may therefore be a more prevalent script for col-

    lectivists once a violation is ultimately perceived. Evidence consistent with this idea is provided byresearch on situations of declining job satisfaction, which showed a dominant response of exit for col-

    lectivists, and voice for individualists (Thomas & Au, 2002).

    Individualists and collectivists may also differ in the extent to which they hold active versus passive

    scripts. Loyalty has been conceptualized as a distinct response (Leck & Saunders, 1992) typified by

    patiently waiting for things to improve. As a passive and non-confrontational response that emphasizes

    maintenance of harmony and conflict avoidance, loyalty is consistent with collectivist, rather than indi-

    vidualist, culturally based cognitions. Individualists are unlikely to maintain a relationship when the

    perceived costs of maintenance exceed the benefits (Bhawuk, 2001; Kim et al., 1994). Additionally,

    individualists have strong beliefs concerning their ability to control their own destiny, which argues

    against this cultural group suffering in silence. Neglect, like loyalty, is inconsistent with the active pur-

    suit of conflict resolution characteristic of individualists (Leung & Wu, 1990). However, given a trans-

    actional view of the psychological contract, individualists may balance the relationship through thistype of behavior. Farh, Earley, and Lin (1997) provide an example of this point in a study in which they

    observed individuals high on modernity values (more transactional orientations) reduce their citizen-

    ship behavior when they experienced perceptions of injustice. Traditionalists, on the other hand, did

    not change their level of citizenship behavior.

    Proposition 6: The cultural profile of individuals will influence the content of behavioral scripts

    retrieved and enacted in response to a violation of the psychological contract.

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    Proposition 6a: Individualists are more likely to respond to violations in the psychological contract

    by retrieving and enacting voice and neglect scripts than collectivists.

    Proposition 6b: Collectivists are more likely to respond to violations in the psychological contract

    by retrieving and enacting loyalty and exit scripts than individualists.

    Social exchange motives: direct and indirect effects

    Social exchange motives should exert both direct and indirect effects on responses to perceived viola-

    tions. Culture should directly impact the extent to which action reflects a desire to maintain a connec-

    tion with the organization, and the felt moral obligation embedded in this connection that enhances the

    interdependent self. The importance of relationship maintenance for collectivists is evident in recent

    findings with regard to leadership characteristics (Smith, Peterson, Bond, & Misumi, 1992), group

    dynamics (Earley, 1989), and conflict resolution (Trubisky et al., 1991). Loyalty best reflects a motive

    to maintain the relationship, avoid disharmony, and fulfill felt moral obligations. In contrast, voice is

    most consistent with attempts to obtain desired outcomes within the employment relationship after a

    perceived violation.

    Social exchange motives also are likely to produce indirect cultural influences on responses to viola-tions because cultural values specify preferences for particular end states or modes of behavior. Consis-

    tent with evidence of cultural differences in decision processes (Radford, Mann, Ohta, & Nakane, 1991)

    and choice behavior (Chu, Spires, & Sueyoshi, 1999), we suggest that based on their motives, culturally

    different individuals have different preferences regarding situational characteristics related to the

    exchange relationship with their employer. Cultural differences operate to moderate the effect of specific

    situational characteristics, such as the presence of high-quality job alternatives, on behavior. For exam-

    ple, in a U.S. study, Turnley and Feldman (1999) found that high-quality job alternatives promoted exit

    in response to psychological contract violations. However, individualists, consistent with their indepen-

    dent nature, high value for freedom of choice, and more transactional motivation, should be more sus-

    ceptible to the influence of the quality of alternatives outside of the present job than collectivists. As

    Triandis (1995) suggests, individualists are always motivated to look for the best deal they can get,

    tending to emphasize the advantages and disadvantages of a particular situation with a goal of maximiz-ing self-interest (Ting-Toomey, 1994). Thus, situational characteristics, such as quality of job alterna-

    tives, should be more influential for individualists than for collectivists, implying an interaction effect

    of cultural profile and situational characteristics on responses to a perceived contract violation. We would

    anticipate that an individualist and collectivist faced with the same quality of external job alternatives

    would have different preferences for these alternatives based on the collectivist preference to maintain

    relationships, and the individualist preference to locate the best inducements/contributions ratio.

    Proposition 7: The cultural profile of individuals will have both direct and moderating effects on

    responses to violations of the psychological contract through social exchange motives.

    Proposition 7a: Individualists are more likely to prefer and respond with voice to psychological

    contract violations than collectivists.

    Proposition 7b: Collectivists are more likely to prefer and respond with loyalty to psychological

    contract violations than individualists.

    Proposition 7c: Quality of job alternatives will have a greater influence on response behavior

    for individualists than for collectivists, such that (ceteris paribus) in the case of high-quality job

    alternatives individualists will be more likely to prefer and choose exit in response to psychological

    contract violations than will collectivists.

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    Contributions and Implications

    Psychological contract theory is fundamentally concerned with employee willingness to rely on

    employer promises, and to feel obligated in return. The psychological contract is a perceptual process

    based in social cognition and social exchange motives. In this article, we draw attention to the fact thatsystematic variation in the cultural orientation of individuals influences the conception of the psycho-

    logical contract, how such conceptions form, how violations of the contract are perceived, and what

    dominant responses to violations might exist. The approach we have identified provides both a frame-

    work for understanding the effects of culture and an agenda for future research.

    Recent research (Rousseau & Schalk, 2000) has documented the differences that exist in various

    societies in the psychological contract. In this article we identify both cognitive and motivational

    mechanisms through which a fundamental feature of society, its culture, manifests its influence.

    Cognitive influences include selective attention to organizational information, differences in the

    encoding of similar organizational messages, bias in attribution regarding violation controllability,

    and the holding and retrieval of culturally based behavioral scripts in response to violations. Social

    exchange motives are based on preferences that culturally different individuals have that are regulated

    by self-concept enhancement. They result in differences in the form (transactional versus relational) thepsychological contract takes and differences in the extent to which conceptions of the psychological

    contract are shared. Motives also affect psychological responses to breach of contract, the extent

    to which individuals wish to maintain a connection with the organization in the context of their response

    to contract violations, and in different evaluations of situational factors in response to contract

    violations.

    One strength of our approach is that it improves the cross-cultural generalizability of the literature

    on the psychological contract without undermining its theoretical base. Our focus on cognitive pro-

    cesses and social exchange motives defines the influence of culture as occurring through identifiable

    psychological processes. Future research can build on this development in several ways.

    First, we provide the opportunity for empirical verification of the proposed general effects of the

    cultural profiles of individuals. We chose to emphasize the process mechanisms whereby individual

    cultural profiles have their effects, and we argue that these mechanisms can be extended to a variety

    of cultural content. Our discussion of cultures influence on the psychological contract gives examples

    based on the cultural dimensions of collectivism and individualism as a parsimonious approach to cate-

    gorizing culture. While these dimensions are well documented and powerful in predicting cultures

    influence, future research should also examine a wider array of cultural variation (e.g., Earley &

    Gibson, 1998).

    For example, interesting hypotheses can be generated based on the cultural dimension of power dis-

    tance (Hofstede, 1980), or verticality (Triandis, 1995). McLean Parks and Smith (1998) consider sym-

    metric (horizontal) and asymmetric (vertical) power distributions combined with transactional and

    relational components of the psychological contract. When power relationships are asymmetric, addi-

    tional contract types such as custodial (relational) and exploitive (transactional) can also be identified.

    Research on communal relationship orientations has shown expectations by subordinates of custodialrelationships in some collectivist groups (Chen, Lee-Chai, & Bargh, 2001) that are consistent with

    McLean Parks and smiths framework. An additional link may be made to research in strategic human

    resource management. Over-investment strategies may resemble custodial relationships, in which

    organizations provide employment security, but have fairly narrow requirements of employees, and

    under-investment may be symptomatic of exploitive relationships, in which more is expected of

    employees, but the organization provides little (Tsui, Pearce, Porter, & Tripoli, 1997). Various types of

    human resource strategies used in different cultures should be differentially effective, depending on the

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    employment expectations of the workforce (Ferris et al., 1998). At the individual level, while we make

    predictions regarding the effect of culture on behavioral responses designed to re-establish balance in

    the exchange relationship, it is also possible to envision cultural differences in the physical and mental

    health outcomes of psychological contract violations.

    Second, we ground our theoretical predictions in empirical results from literature on culture, the

    psychological contract, social cognition, and social exchange. However, there may be otherpsychological processes that are also plausible. Empirical tests of the proposed relationships would

    identify strengths and weaknesses of our individual-level theory. Future research could also benefit

    by examining the individual mechanisms proposed in the context of differing societal- and firm-level

    constraints. Features of particular firms within a society shape the extent to which the cultural profiles

    of individuals are influential, for example, how the absence of the enforcement of promises affects

    individuals motives for forming transactional versus relational contracts. Third, while recognizing

    the dynamic nature of the psychological contract, our approach does not capture all the complexity

    associated with how psychological contracts change over time. We can envision numerous feedback

    loops and interactions that iterate between elements, such as between perceived contract violations

    and the subsequent form of the contract. For example, violation of a relational contract may suggest

    that future relationships will be more transactional in some cultures, but not in others. One issue

    related to the evolution of the psychological contract over time is whether, and how, theorganization becomes defined by the individual as a part of the in-group. Clearly, this definition of

    social identity is central to how culturally different individuals will interpret and respond to organiza-

    tional situations.

    Finally, the approach presented here lays groundwork for examination of the psychological contract

    in cross-cultural interactions. In our discussion, the extent of cultural differences of the parties to the

    psychological contract was not emphasized. However, because of globalization, it is increasingly

    likely that organizational agents can represent one cultural profile and employees another. The differ-

    ent parties to the contract have different mental representations (culturally based schemas) about the

    exchange between them, what constitutes a violation of the terms of the exchange, and what are appro-

    priate responses to a violation. Both the specifics of the cultural profiles represented in the exchange

    and the degree of difference between them should influence interpretation of information about psy-

    chological contract formation, perceptions of violations, and the extent to which responses to viola-

    tions follow culturally based scripts (see Yan, Zhu, & Hall, 2002, for a discussion of issues in the

    mismatch of expatriate and organizational expectations in the context of psychological contracts).

    Theoretical elaborations proposed here also have implications for both employees and organiza-

    tional agents regarding improvement of cross-cultural understanding. Both parties can begin by

    recognizing that in cross-cultural exchange relationships, systematic differences in cognition and moti-

    vation will affect the extent to which terms of the relationships are clearly understood. Some vagueness

    and ambiguity will always exist in cross-cultural relationships. Explicit discussions clarifying the

    terms of the employeefirm relationship help to minimize misunderstandings and inadvertent

    violations of the psychological contract. As suggested by Morrison and Robinson (1997), one of

    the best ways to reduce such violations is through better management of the contract formation pro-

    cess. This may be especially true when the parties to the exchange relationship are culturally different.Finally, organizational agents cannot assume culturally different employees responses to organiza-

    tional messages are consistent with how they themselves would react in similar circumstances. Nor-

    mative behavior in a particular culture, as well as the differing value that culturally different

    individuals place on situational contingencies, can affect behavioral responses to organizational

    actions. Continuous dialog and feedback are necessary to insure more accurate perceptions and iso-

    morphic attributions, and can contribute to the development of multiple methods of meeting diverse

    social exchange motives.

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    Acknowledgements

    An earlier version of this article was presented at the Academy of Management Meeting, Toronto,

    2000, and appears in the proceedings. We thank Rabi Bhagat, Kurt Dirks, Mary Jo Hatch, Brenda

    Lautsch, Kwok Leung, Bruce Meglino, Larry Pinfield, Sandra Robinson, Dean Tjosvold, RosalieTung, special issue editor Lynn Shore and three anonymous reviewers for their comments. This

    research was supported by a grant to the first author from the Social Science and Humanities Research

    Council of Canada.

    Author biographies

    David C. Thomas (PhD, University of South Carolina) is Professor of International Management in

    the Faculty of Business Administration, Simon Fraser University, Canada. He is the author ofEssen-

    tials of International Management: A Cross-Cultural Perspective from Sage Publications. Addition-ally, his research has appeared in such journals as Journal of Applied Psychology, Journal of

    International Business Studies,Journal of Cross-Cultural Psychology,Advances in International Man-

    agement,Leadership Quarterly, andOrganizational Dynamics. He is currently the International Busi-

    ness Area Editor for the Canadian Journal of Administrative Sciences and serves on the editorial

    boards of theJournal of World Business,Advances in International Management,International Jour-

    nal of Organizational Analysis, and the International Journal of Cross-Cultural Management.

    Kevin Au is Associate Professor of Management at the Chinese University of Hong Kong. He grad-

    uated (BBA and MPhil) from the Chinese University of Hong Kong and earned a PhD in management/

    international business from the University of British Columbia. His research has appeared in such jour-

    nals as theJournal of International Business Studies,Organizational Behavior and Human Decision

    Processes, and the Journal of World Business. Dr Au currently serves of the editorial boards of the

    Journal of International Business Studiesand the Canadian Journal of Administrative Sciences. Hisresearch interests include international HRM, social networks, and research methodology.

    Elizabeth C. Ravlinis on the faculty of the Moore School of Business, University of South Carolina,

    where she is currently Associate Professor of Organizational Behavior and Management. She received

    her PhD degree in Organizational Behavior from the Graduate School of Industrial Administration,

    Carnegie Mellon University. Dr Ravlin currently serves on the editorial boards of the Journal of Man-

    agementand Human Resource Management Review. Her research interests include interpersonal pro-

    cesses and team effectiveness, work values and ethics, and status influences in organizations. Her

    publications have appeared in such journals and annuals as Journal of Applied Psychology,Organiza-

    tional Behavior and Human Decision Processes,Personnel Psychology,Journal of Management, and

    Research in Organizational Behavior.

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