chapter  9
17 Pages

Psychological contract in Japanese companies: An explorative study on contents, fulfillment, and breach of contracts


This chapter examined the contents of the psychological contract in Japanese companies, and how fulfillment/breach of such contents influences employees’ trust in the company. We conducted a survey study of 128 employees of Japanese companies. The results of a factor analysis were contrary to the findings of previous works. Psychological contracts in Japanese companies did not emerge as a simple dichotomy (relational/transactional); instead, they were a more complicated set of contracts. The result demonstrated that the contents and the latent structure of psychological contracts in Japanese companies are different from those in European and American companies. Then, we conducted an ordered probit regression analysis to analyze the manner in which the latent factors and their fulfillment influence an employee’s trust in his/her company. Although the ways in which contracts influence trust are different from each other, the fulfillment/breach of contracts affects trust.