This research aims to unfold the impact of negative shocks on Chinese employees in the service sector by conducting a mixed-method study involving a scenario-based experiment and a field survey. The findings of Study 1 show that negative shocks resulted in a psychological contract violation, high organizational cynicism, and turnover intention. Study 2 further examined the moderating roles of traditionality and organizational embeddedness. Negative shocks triggered less organizational cynicism among employees with higher levels of traditionality. Organizational embeddedness, however, did not play such a moderating role in the relationship between psychological contract violation and turnover intention. Theoretical and practical implications are discussed.
All Science Journal Classification (ASJC) codes
- Tourism, Leisure and Hospitality Management
- Strategy and Management