This study aims to examine the relationship between organizational justice and employee retaliation. By incorporating psychological contract violation (PCV) as a mediating variable, this study uncovers the underlying psychological pathways through which perceptions of unfairness lead to employees’ decisions to retaliate. Furthermore, this study examines individual power distance orientation as a moderating factor, offering insights into how cultural values influence individual perceptions of and reactions to perceived injustice.
Through a two-wave survey design, the authors screened for full-time employees through Qualtrics. The authors have used confirmatory factor analysis to examine the measurement model fit. In addition, the authors have performed regression-based path analysis using Mplus to test their hypotheses.
This study has found that PCV fully mediates the impact of organizational justice on employee retention. The results also revealed two distinct mechanisms through which power distance orientation affects individual reactions to perceived unfairness. Specifically, it was also found that cognitive and motivational effects occur simultaneously yet in the opposite direction, such that power distance orientation weakens the impact of procedural justice on PCV but exacerbates the relationship between PCV and retaliation directed at supervisors and coworkers.
The analysis of the mediating role of PCV enables the authors to tease apart the cognitive and motivational impacts of power distance orientation, shedding light on existing mixed empirical findings. In addition, this study advances the understanding of psychological contract development by illustrating the impact of cultural orientation, such that it not only aligns individuals’ expectations with prevailing cultural norms but also influences the significance attributed to these expectations. Lastly, the study contributes to cross-cultural research on organizational justice and retaliation by showing individual perceptions of and reactions to lack of justice depending on cultural orientations.
