Psychological Contract Breach And Turnover Intention Relationship. Mergers And Acquisitions

Because of the magic effect of M & A for a company to become larger,it has become the core of financing and investment and gone popular in the world wide. However,under the cases,there are more and more companies which failed in M & A. The investigation on 115 cases of M & A during 1998-1999 by Kearney shows that 58%of the M&A transition s didn't get the planned target.Another survey by McKinsey also found that only 39%of the M & A transitions are successful in the Finance Top 500 and Financial Times Top 20.Facing the confusion,a statistics by Kearney shows that 53%of the risk comes from the reconstruction.And the research result from Robinson shows that there is positive effect of the psychological contract breach to the negative behavior.With the globalization of the world economy in the recent 20 years,there are more and more M & A cases,especially the M & A cross nations and cultures.Meanwhile,psychological contract,as an effective method in the corporate management,has gained more and more attention of researchers.Therefore, it has become an important theme on how to reduce the turnover intention during M & A.So,this essay would research on the connection between psychological contract breach and turnover intention.Meanwhile,there are few people forcing on the study of moderator variable in this case,like personal characteristics.Then,I would also try to explain some moderator variables in the model,such as integration model,the style of psychological contract and personal characteristics.In this research,we first do a survey with a sample of 71 employees from three organizations in Shanghai and Nanjing to discuss the correlation between psychological contract breach and turnover intention in the M & A activities.After that,we explore the moderate variables,which are integration model,characteristics and types of psychological contract,between psychological contract breach and turnover intention.We used SPSS15.0 to analyze the data of survey.The main results are summarized as follows:(1) The correlation between psychological contract breach and turnover intention is positive.The Pearson index is 0.688. (2)Type of psychological contract is a moderate variable between psychological contract breach and turnover intention.Alteration,balance and relational contracts have evident effect of moderation,with most effect from alteration contract.Moreover, relational contract have the negative effect with the other two have the positive effect. Transactional contract doesn't have moderate effect.(3)Integration model is a moderate variable between psychological contract breach and turnover intention.With lower degree of psychological contract breach, absorption model have the least moderate effect.The moderate effect from absorption model goes up rapidly with the increase of psychological contract breach.(4)Characteristic is a moderate variable between psychological contract breach and turnover intention.E-I and N-S type of characteristic have evidently moderate effect,whereas F-T and J-P characteristic have no moderate effect.Moreover,I-style has more moderate effect than E-style and S-style has more moderate effect than N-style.