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Purpose

The study aimed at understanding the relationship between psychological contract breach, well-being indicators, i.e. subjective well-being and mental well-being and innovative behaviour.

Design/methodology/approach

Data were collected via a structured questionnaire through Google docs from 238 academicians working at different capacity in Indian academic industries. The hypotheses were tested using structural equation modelling.

Findings

Psychological contract breach was positively impacting occupational stress and occupational stress was negatively impacting work engagement. Work engagement positively impacted innovative behaviour and well-being indicators. Occupational stress and work engagement mediated the relationship between psychological contract breach and well-being and innovative behaviour.

Research limitations/implications

The data for the study were collected from the employees working in education industry during the unlock COVID-19 pandemic situation.

Originality/value

The study contributes by integrating social exchange theory (SET) and job-demands resources (JD-R) theory in the pandemic situation. In the current COVID-19 pandemic circumstance, the results showed precise factual evidence that answers the question of how unfulfilled expectations have a negative impact on academicians and educational institutions.

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