企業併購下心理契約違反與工作投入度之關係：以組織公平為調節變數

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(1)The Relationship Between Psychological Contract Breach and Job Involvement Under Mergers and Acquisitions Circumstances: The Moderating Effect of Perceived Organizational Justice by. Ya-Wen Chang. A Thesis Submitted to the Graduate Faculty in Partial Fulfillment of the Requirements for the Degree of. MASTER OF BUSINESS ADMINISTRATION. Major: International Human Resource Development. Advisor: Yi-Chun Lin, Ph. D.. National Taiwan Normal University Taipei, Taiwan June, 2014.

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(3) ACKNOWLEDFEMENT In the past two years, I spent my graduate school life at National Taiwan Normal University. 300 kilometers far away from my lovely home town Tainan, I am not familiar with everything here. The weather, traffics, and the different pace made a different life for me. What‟s more, lots of challenges happened to me in this two years, which make it more difficult for me to accomplish this thesis. I would like to show my deep appreciation to those who have helped and supported me during my graduate school life. First of all, I would like to give thanks to all of the people that gave aid to my thesis. Yi-chen Ho, and Casper Lai, who gave me a hand to do the translation when I was in emergency, then the people who helped me to deliver the questionnaires and filled up the questionnaires. Also, to everyone that had helped me to post the questionnaire information on the Facebook page. Second, I would like to thank my thesis advisor, Dr. Yi-Chun Lin, Who gave me valuable advices and instructions. Without her efforts and sponsorship, I would not have been able to complete my thesis. Also, I would like to thank my committee members, Dr. Rosa Yeh and Dr. Angela Shin-yih Chen for the detailed and thorough guide in the proposal and oral defense meetings. To other professors, Dr. Tsai, Dr. Chang, Dr. Shih, Dr. Lai, and assistants, Sandra, Jessica, Kate, and Tracy, thanks for all the knowledge sharing and helps in the graduate school life. I would also like to thank my dear classmates and seniors in IHRD. Lucie, my good partner, always remind me to relax and get rid of my anxiety. Ampi, Bonnie, Carol, Christina, Dian, Easan, Edward, Elisa, Fatou, Giselle, Khange, Linh, Louis, Mandy, Mariam, Pei, Sandy, Shaun, Sunny, Viola, Wilson, and Yankuba they gave me warm encouragement and loves. We all have the same target and spend a great time together. Under the good atmosphere, I finished my thesis smoothly..

(4) Finally, I would like to express my sincere thanks to my family. Thanks for their great support and endless love. They gave me lots of resources and assistances which are the biggest backing for my thesis. Whenever I felt depressed, they spent lots of time on encouraging me. Without their support, I would not have finished my graduate school life. Thanks to everyone and I wish you all bright future and colorful life.. Lydia, 2014.

(5) ABSTRACT The purpose of the study aims to investigate the relationships among psychological contract breach (independent variable), job involvement (dependent variable) and perceived organizational justice (moderating variable) in mergers and acquisitions (M&A) enterprises in Taiwan. To be more specific, this study has two main objectives. First, the author explored the relationship between psychological contract breach and job involvement. Second, the author tested the moderating effect of perceived organizational justice on psychological contract breach and job involvement. This study utilized the quantitative approach and the data was collected by paper-based and online questionnaires. The valid samples were 277 employees who have experienced M&A process and still continued to work in the remained companies. CFA was conducted to assess the model fit and the hypotheses were tested by hierarchical regression analysis. The results showed that psychological contract breach was significantly negative correlated to job involvement. The organizational justice had a moderating effect on the relationship between psychological contract breach and job involvement. Therefore, when companies face M&A situations, employees perceived organizational justice as an important factor, which have impact on their job involvement; even if they feel that the company violated the psychological contract with them. Keywords: psychological contract breach, job involvement, perceived organizational justice, mergers and acquisitions. I.

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(7) TABLE OF CONTENTS ABSTRACT------------------------------------------------------------------------------- I TABLE OF CONTENTS --------------------------------------------------------------- II LIST OF TABLES---------------------------------------------------------------------- IV LIST OF FIGURES --------------------------------------------------------------------- V CHAPTER I INTRODUCTION ----------------------------------------------------- 1 Background of study ---------------------------------------------------------------------------------------- 1 Statement of the problem ----------------------------------------------------------------------------------- 4 Purpose of Study --------------------------------------------------------------------------------------------- 5 Research Questions ------------------------------------------------------------------------------------------ 6 Definition of Key Terms ------------------------------------------------------------------------------------ 6. CHAPTER II LITERATURE REVIEW ------------------------------------------- 9 Mergers and Acquisitions (M&A) ------------------------------------------------------------------------ 9 Psychological Contract Breach--------------------------------------------------------------------------- 11 Job Involvement --------------------------------------------------------------------------------------------- 13 Psychological Contract Breach and Job Involvement ----------------------------------------------- 18 Perceived Organizational Justice ------------------------------------------------------------------------ 19 Moderating Effect of Perceived Organizational Justice -------------------------------------------- 23. CHAPTER III RESEAECH METHOD ----------------------------------------- 27 Research Framework --------------------------------------------------------------------------------------- 27 Hypotheses --------------------------------------------------------------------------------------------------- 28 Samples and Data Collection ----------------------------------------------------------------------------- 28 Measurement ------------------------------------------------------------------------------------------------- 29 II.

(8) Questionnaire Design -------------------------------------------------------------------------------------- 31 Translation and Back Translation ------------------------------------------------------------------------ 32 Pilot Test ------------------------------------------------------------------------------------------------------ 32 Data Analysis ------------------------------------------------------------------------------------------------ 33. CHAPTER IV FINDINGS AND DISCUSSION ------------------------------- 39 Descriptive statistics ---------------------------------------------------------------------------------------- 39 Correlations--------------------------------------------------------------------------------------------------- 41 Test of the hypotheses -------------------------------------------------------------------------------------- 42. CHAPTER V CONCLUSIONS AND RECOMMENDATIONS ------------ 47 Conclusions--------------------------------------------------------------------------------------------------- 47 Significance of the Study ---------------------------------------------------------------------------------- 48 Limitations ---------------------------------------------------------------------------------------------------- 49 Recommendations ------------------------------------------------------------------------------------------ 50. REFERENCES ------------------------------------------------------------------------- 53 APPENDIX A: DISTRIBUTION OF PAPER-BASED QUESTIONNAIRE -- 59 APPENDIX B: TWO SAMPLE T- TEST RESULT ------------------------------- 61. III.

(9) LIST OF TABLES Table 2.1. Statistic of Mergers & Acquisitions cases in Taiwan………………………. 10. Table 2.2. Summary of Research on Psychological Contract Breach……………..…...12. Table 2.3. Summary of Definitions: Job Involvement…………………………….…...14. Table 2.4. Breif of the Job Involvement Measurement………………………….……..17. Table 2.5. Classification of Organizational Justice ..…………………………………..21. Table 2.6. Organizational Justice: Dimension Used in the Previous Studies…,…….…22. Table 3.1. Reliability Test Result.………………………………………………….…...34. Table 3.2. Summary of Fit Indexes……………………………………………………..36. Table 3.3. Results of Confirmatory Factor Analysis…………………………….……...36. Table 4.1. Descriptive Statistics (n=277) ………………………………………………39. Table 4.2. Mean,Standard Deviations, Correlations, and reliability (n=277)…….…….41. Table 4.3. Results of Regression Analysis for Hypothesis……………………….…….42. Table 4.4. Results of Regression Analysis for Hypothesis……………………….…… 44. Table 4.5. Result of Hypotheses Testing………………………………………….…….45. IV.

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(11) LIST OF FIGURES. Figure 3.1.. Research Framework…………………………………………………… 27. Figute 4.1.. Interaction Plot for the Moderating Effect of Perceived Organizational. Justice……………………………………………………………………………………….43. V.

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(13) CHAPTER I. INTRODUCTION. Background of study Stigler (1989), a Nobel Prize winner, stated that large enterprises in America have grown by mergers and acquisitions rather than internal expansions. In the competitive and economic depression environment, enterprises decided to utilize Mergers and Acquisitions (M&A) as a strategy. The purpose is to make them survive as rival organizations, but also try to expand their magnitude (Aguilera & Dencker, 2004). Take more recent examples, the global financial crisis occurred in 2008. Either large or small-medium enterprises (SMEs) have faced budget deficit problems. Under this difficult dilemma, the strategy of M&A has become a solution for enterprises that are in the pain to grow stronger and sustain in the tough environment (Grave, Vardiabasis, & Yavas, 2012). In order to face the challenge brought by financial crisis, many enterprises are forced to integrate or adjust their internal environment of the organization. The difficulty is the financial and personnel issues are for most business owners or CEO while implementing M&A strategy successfully on the fusion of two different or similar backgrounds of the organizations. Under the circumstances, human resource plays an important role on dealing with M&A process in the organizations (Antila, 2006). Some predictable conflicts and troubles regarding their positions and personal benefits continuously occurred between top management and employees it can probably cause not only dispute but also low performance in the workplace (Marks & Mirvis, 2011). Therefore, solving the organization‟s financial problems and protecting employee‟s rights are always an important to the organization and government. . Taiwan passed the law of mergers and acquisitions in 2002. Since then, M&A activities and the transaction amount rise sharply among enterprises. Based on the report from 1.

(14) Commerce Industrial Services, Ministry of Economic Affairs, R.O.C. (2013), up to September, 2013, the total cases of M&A in Taiwan come to 2,028 and the total amount of the transaction is over 900 billion NT dollars. However, not all the companies suffering M&A process in Taiwan are so successful and smooth. The success of the M&A strategy is being widely discussed. Under the unstable economic environment, people are difficult to adapt to the situations. Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C. (2012) reported that most recent five years, over 70% of working laborers in Taiwan intend to leave their job. This is because the organizations already break out the long-term employment relationship. Employees are aware that they should find their own way to survive. Facing the changes of the environment, working labors meet higher pressures (Yan & Zhu, 2013). Under this condition, organizations are expected to reach the expectations or there might be an unbalance labor relationship which can also cause a lot of problems. In order to decrease the unnecessary cost and enhance employee performance, psychological contract was widely applied in the company in the end of the 20th century (Rousseau, 1995). The management of psychological contract becomes the way to acquire the competitiveness human resources gradually. While the employees have the expectation on the psychological contract not shown clearly as the visible contract, the accomplishment of it can be important to them. Psychological contract, which is regarded as the unwritten contract promised by the employers, is commonly used in the companies (Rousseau, 1995). Under M&A circumstances, entrepreneurs tend to form some psychological contract to their employees and the employees will form psychological expectation when receiving the psychological contract from the employers. However, as the economic crisis struck the enterprises, the bad situation cause the company to brought in psychological contract breach, which is known as the violation of the psychological contract between employers and 2.

(15) employees (Robinson & Rousseau, 1994). When employees find themselves being breached in their psychological contract, various behaviors such as uncooperative, idling or low performance are expected. Another issue in organization which has been widely discussed recently is organizational justice. Compared to the past, people in nowadays society are more willing to speak out for their own rights. In Career magazine, Hong and Tsai (2013) reported that employees feel respectful and be more involved to their work if the organization provides an equity working environment. Considering that people want to be treated equally, organizational justice can be regarded as the most important concern in the organization and can influence the employees‟ behavior toward work (Niehoff & Moorman, 1993). The origin of organizational justice is form from Homans (1961). He developed the equity rule from social exchange theory and adam (1965) developed the equity theory based on his point of view and it has been widely discussed in many decades. Three main kinds of justice includes distributive justice, procedural justice and interactional justice which represents the employee‟s perceived feelings of justice in duty and salary distributing, procedure in decision making and the interacting between colleagues, respectively. Robinson and Rousseau (1994) found that fifty-five percent of their sample manager observed that their organizations had failed to accomplish one or more promised obligations in the first two years of the employment relationship. These perceptions have been found to reduce employees‟ attitude such as trust, job satisfaction, intensions to stay with the organization, sense of responsibility, and in-role and extra-role performance (Robinson, 1996; Robinson & Morrison, 1995). The attitudes addressed above are some main factors to influence job involvement. Job involvement, is the attitudes to major the extent of how employees regard their job or how important is job to employees‟ self-image (Lodahl & Kejner, 1965). As enterprises find some employees did not involve in their jobs, which can 3.

(16) cause lots of problems in the organization, they tend to find out some ways to decrease the bad influence from the violation of the promises. What‟s more, social scientists are now developing ways to enhance the job involvement of the employees to the companies. Since the environment changed severely under the M&A circumstances, enterprises are told to pay more attention to the usage of the psychological contract to avoid unnecessary problems and enhance the employees‟ involvement toward jobs as they can.. Statement of the problem While M&A affects both financial and personnel aspects of the organization, employees under the M&A strategy could meet more psychological contract breach issues (Linde & Schalk, 2008). In Robinson and Rousseau‟s (1994) investigation, over fifty percent of the employees in United States had experienced the psychological contract breach, which results in some negative attitudes toward their job. These negative attitudes, such as low job performance, dissatisfaction to their job, intension to leave and lack of responsibility, affected the enterprises. Take job involvement as the factor to influence organizational effectiveness as an example, 55% of employees in the United States are not involved in their job, and 15% of them are in the mood of changing their jobs (Branham, 2005). Moreover, a newest report from Gallup (2013) indicated that only 8% of the Taiwanese people are engaged in their job while over 60 percent of the employees are not, which can directly cause low job performance and effectiveness with a huge economic loss. As job involvement often plays a pivotal role to form job engagement (Kahn, 1990; Maslach, et. al., 2001; Harter, et. al., 2002.), the low engagement might also be caused by the low job involvement and other related factors. It gave us a sign that the enterprises should make more effort on arousing employees‟ job involvement (Robbins, 1998). However, how to enhance the job involvement is a hard job for the head of the companies.. 4.

(17) As mentioned above, M&A is a long-term process which changes financial and personnel functions in the company. Some conditions toward the enterprise are different from general company. For example, we can find the reaction of the employees different when the violation of psychological contract happened (Linde & Schalk, 2008). To search the article on the periodical and the National Digital Library of Theses and Dissertations in Taiwan, most of the related researches emphasize on the accomplishment or breach and violation of psychological contract, and rarely researches on the target sample of M&A. Whether M&A strategy brings differences on the effect of psychological contract breach to the job involvement is also an interesting part to the theoretical field. Most of the employees had left the company willingly or unwillingly during the process of M&A, those who remain in the organizations are, it is interesting to find out the relationship between psychological contract breach and job involvement, especially under the changing environment. On the other hand, the researcher aimed to find out whether the organizational justice can affect the relationship between psychological contract breach and job involvement under the unstable working environment.. Purpose of Study According to the aspects addressed above, it is interesting to find out the relationship between psychological contract breach and job involvement, especially under the changing environment. On the other hand, the researcher aimed to find out whether the organizational justice can affect the relationship between psychological contract breach and job involvement under the unstable working environment. The purpose of this study was to find out how the employees under M&A circumstances react when the psychological contract is violated. The researcher aimed to analyze the relationship between breach of psychological contract and job involvement. Besides, 5.

(18) researcher also wanted to find out the moderating effect of the organizational justice between psychological contract breach and the job involvement.. Research Questions Base on the research purpose, this study attempts to answer the following questions: 1. Is psychological contract breach associate with the job involvement? 2. Does perceived organizational justice have the moderating effect on the relationship between psychological contract breach and job involvement?. Definition of Key Terms This section provides the general concept of key terms in this study, which are: Mergers and Acquisitions, psychological contract breech, job involvement and organizational justice.. Mergers and Acquisitions Mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture (Stahl & Voigt, 2005).. Psychological Contract Breach Psychological contract breach in this study is known as a personal perspective of experience, referring to the employees that run into the situation that their employers has failed to accomplish adequately promised obligations of psychological contract (Rousseau, 1989).. 6.

(19) Job Involvement In this research, job involvement is viewed as attitudes that major the extent of how employees regard their job or how important is job to employees‟ self-image (Lodahl & Kejner, 1965). What‟s more job involvement in this study can be cognitive or belief state of psychological identification in either particular job or general work (Kanungo, 1982).. Perceived organizational Justice In this research, perceived organizational justice is regarded as the perspective of how employees regarded the organization when allocating the sources and the task, the procedure when making decisions and the interaction ways with the colleagues. It is defined as how employees judge the behavior of the organization and their outcome attitude and behavior that comes from this (Greenberg, 1987).. 7.

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(21) CHAPTER II. LITERATURE REVIEW. Mergers and Acquisitions (M&A) M&A started in the end of the 20th century and has become a popular issue in world wild business. Researches were conducted to discuss about the financial issue and the executive strategy in the organizations (Smith, 1973; Fowler & Schmidt, 1989; Anand & Singh, 1997). However, few studies focus on discussing the employees‟ perspectives (Schweiger & DeNisi, 1991; Fried, Tiegs, Naughton, &Ashforth, 1996). McManus and Hergert (1988) stated that while many enterprises neglect the personnel side in the organization, it can be the key of success in M&A. Gap of management style and the lack of cultural awareness can cause the failure of M&A (Cartwright & Cooper, 1992). On February 6th, 2002, Taiwan passed the law of mergers and acquisitions. Since then, Taiwan‟s M&A activities became popular and the transaction amounts raised. Up until September, 2013, the total cases of M&A in Taiwan come to 2,028 and the total amount of the transaction was over 9 billion NT dollars. Table 2.1 below shows the details. Since M&A is active in the society, entrepreneurs have to prevent the organization from being affected by the bad consequences such as increasing turnover rate and low working performance (McManus & Hergert, 1988). However, M&A is somehow complicated and difficult for the organizations. When processing the M&A strategy, cases such as BenQ and TSMC, which cause the conflict between the employees in Acquiring Company and Target Company should be alerted in mind.. 9.

(22) Table 2.1 Statistics of Mergers & Acquisitions cases in Taiwan Total Amount Year. Type. Mergers. Acquisitions. Stock. Corporate. Unit:100. Conversion. Division. millions Dollars (NTD). Case. 36. 5. 9. 0. Amount. 254.4. 18.7. 391.4. 0.0. Case. 12. 7. 1. 0. Amount. 38.0. 35.6. 55.5. 0.0. Case. 162. 12. 11. 33. Amount. 330.0. 27.3. 176.0. 192.0. Case. 196. 10. 10. 29. Amount. 365.4. 7.6. 139.8. 127.4. Case. 181. 2. 3. 17. Amount. 1188.0. 1.9. 8.8. 66.3. Case. 173. 2. 3. 19. Amount. 827.6. 6.4. 11.7. 117.1. Case. 180. 2. 5. 29. Amount. 190.0. 0.0. 989.7. 299.3. Case. 156. 1. 4. 24. Amount. 275.0. 0.0. 20.8. 48.4. Case. 151. 1. 4. 33. Amount. 421.5. 0.4. 88.4. 288.9. Case. 139. 1. 7. 44. Amount. 125.5. 0.0. 837.0. 250.6. Case. 137. 3. 12. 34. Amount. 284.0. 6.5. 15.1. 230.4. 2013. Case. 88. 0. 6. 34. Jan-Sep. Amount. 238.8. 0.0. 90.8. 98.3. 427.9. Case. 1611. 46. 75. 296. 2028. Amount. 4538.2. 104.4. 2825.0. 1718.7. 9186.3. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012. Total. 664.5 129.1 725.3 640.2 1265.0 962.8 1479.0 344.2 799.2 1213.1 536.0. Note. Integrated the report from Commerce Industrial Services, Ministry of Economic Affairs, R. O. C., January 9th, 2014, Retrieved from http://gcis.nat.gov.tw/welcome.jsp.. 10.

(23) Psychological Contract Breach A common definition of psychological contract breach is a concept of employees‟ feelings of disappointment such as frustration and betrayal arising from their faith that their organization has broken its work-related promises. In other words, it is subjective for a person who „feels‟ breach, which we called „perceived breach‟. We can see that it is not necessary to be real. Some negative moods were from the unsatisfied expectation. People will react severely especially when they work hard but does not get the rewards they deserve (Morrison & Robinson, 1997). What‟s more, Morrison and Robinson also stated that the bigger gap of obligation and responsibility is between employees and employers, the bigger feelings of violation will be. For psychological contract, the components are basically based on psychological and economical side of employees. For example, employees can be psychological satisfied with the organizational support, chance of training and developing, and guarantee of jobs while they can be economical satisfied by annual salary and benefit. Employees will not only assess the extent of violation but also evaluate the magnitude and importance of the violation (Morrison & Robinson, 1997). Robinson, Kraatz, and Rousseau (1994) proposed that when individuals perceived that the promise made by employers will not be fulfilled, the psychological contracts were breached. It will cause negative impact such as intention to leave the organization or low performance to the organization. More studies for psychological contract breach are listed in Table 2.2.. 11.

(24) Table 2.2 Summary of Research on Psychological Contract Breach Authors / Year. Main findings. Guzzo, Noonan & Elron (1994). a) Research for expatriate. b) Psychological contract violation reduced organizational commitment and increased turnover rate. a) Investigate the new employees graduated from MBA. b) 54.8% of the participants have the feeling of psychological contract breach.. Robinson & Rousseau (1994). Robinson & Morrison (1995) Robinson (1996) Shalk & Freese (1997) Keith & Newstrom (1997) Turnley & Feldman (1998, 1999). Kickul & Lester (2001). Kickul, Neuman, Parker, & Finkl (2001). c) Psychological contract breach is negatively related to trust, organizational satisfaction, job satisfaction and intention to stay. Psychological contract breach is positively related to turnover rate. Increasing turnover rate, reducing work performance, and reducing the devotion for organizational citizen behaviors are all relative to psychological contract breach. When the incentive to the employees can not be fulfilled, employees will have When the employees didn‟t reach their expectation, they will have lower job satisfaction and performance. The employees might also quit under the circumstances. a) Psychological contract breach will cause the reduction of employee‟s job satisfaction, organization commitment, and both in-role and extra role behaviors on performance. On the other hand, it will cause the increase of turnover. b) The relationship between psychological contract breach and employees‟ attitude (OCB, job satisfaction, and negative affect). Equity sensitivity has the moderating effect on some relationship between psychological contract breach and Negative affect and job satisfaction and OCB. Indicated that when the employees feel not only psychological contract but also procedural justice and interaction justice had been violated, they will show the anti-citizenship behavior.. Note. Author organized the above table In the previous study, there are different ways to measure the psychological contract breach. Robinson and Morrison (2000) combine two scales to measure psychological contact breach, which are perceived breach and feeling of violation. Kickul and Lester (2001) gave 12.

(25) another way to evaluate the extent of the psychological contract breech which measures the different kind of psychological contract of employees first then to see how well the organization fulfilled it. Other studies are having similar methods as these two studies. Since this study only wants to know if the breaches happened to employees, we don‟t have to measure the exact items that employees want. Therefore, we will adopt scale that developed by Robinson and Morrison (2000).. Job Involvement Gostick and Elton (2009) stated that the wrong management strategy cause some problems. „Presenteeism‟, means those who are presented but are not focus on the job. These employees did nothing good for the organization performance. Hemp (2004) reported that the presneteeism directly or indirectly costs over $150 billion to United States‟ business. Sirota (2005) also mentioned in „The enthusiastic employee‟ that those who don‟t concern about the organization are like bombs which bring disadvantages. Hence, job involvement is not merely about individual‟s psychology but the organizational performance issue (Kanungo, 1982). For Managers, how to maximize employees‟ value and to enhance the employee‟s job involvement in organization is always a big issue. The importance of job involvement can never be over emphasized. The earliest study for job involvement can be traced back to Lodahl and Kejner (1965). They combined central life interests (Dubin, 1956) and ego-engagement (Allport, 1947) and proposed the concept of job involvement. As it was regarded as an important issue in the organization, some researchers started to do research on this new term (Lawler & Hall, 1970; Saleh & Hosek, 1976; Kanungo, 1982). Some researches took job involvement as a variable to find the relationship with other variables in the workplace (Jones, James, & Bruni, 1975; Weissenberg & Gruenfeld, 1968; Huselid & Day, 1991; Brown & Leigh, 1996).. 13.

(26) Definition of Job Involvement. There were many researchers give different definition to job involvement. The origin of the Job involvement started from Allport (1947) defined as the situation in which the person “engages the status seeking motive” in his work. Lodahl and Kejner (1965) Proposed that job involvement is a multidimensional attitude and give two statements while Lawler and Hall (1970) considered it is different between two statements proposed by Lodahl and Kejner. In 70‟s research tended to stated job involvement as how individual considered their job in their life (Saleh & Hosek, 1976; Robinowitz & Hall, 1977; Reitz & Jewell, 1979.) After 80‟s, job involvement become a more psychological issue for employees. Take Kanungo (1980) for example, it had been defined as an individual‟s psychological identification with a certain job which can satisfy their current need. Several definitions are listed in Table 2.3. Table 2.3 Summary of Definitions: Job Involvement. Scholars /year. Definition. Allport (1947). Ego- involvement was defined as the situation in which the person “engages the status seeking motive” in his work. (p.123). Lodahl & Kejner (1965). Proposed that job involvement is a multidimensional attitude. a) An extent of how employees regard their job or how important is job to employees‟ self-image. b) It is influenced by self-esteem and personal job performance.. Lawler & Hall (1970). They argued that the statements that proposed by Lodahl and Kejner (1965) are different type of attitude, which can not be represented in one term. They think that the first statement can be regarded as job involvement while another can be explained by expectancy theory. In this study they also consider the second statement to be intrinsic motivation since people realized that job performance can satisfy their self-esteem and can be reached when individual works hard for it.. (Continued) 14.

(27) Table 2.3 (continued) Saleh & Hosek ( 1976). People will have job involvement under four conditions: a) When individual considers their job as their center of life. b) When individual take the initiative to participate their job. c) When individual regards job performance as self-honor. d) When individual think that their job performance is in the same concept as themselves.. Robinowitz & Hall (1977). Reviewed the literature of job involvement and give two definitions: a) performance-self-esteem contingency For those who think work is a very important part of their life and who is very much personally affected by his whole job condition: his coworkers, the work itself, the company, etc. b) component of self-image The extent to how individual identified psychologically with his work, or the importance of work in his total self-image.. Reitz & Jewell (1979). Job involvement is the extent to which one's work is an important part of his life. To which can influence job performance and other worker behaviors.. Kanungo (1982). Argued that involvement either in particular job or in general work can be viewed as a “cognitive or belief state of psychological identification.” (p. 342) The study also stated that two factors will influence the job involvement: a) The saliency of one‟s both extrinsic and intrinsic needs. b) One‟s perceptions about the need-satisfying potentialities of the job (or work).. Robbins (1998). Stated that job involvement is the psychological identification to one‟s job, which means the importance of job satisfaction to one‟s self-worth.. Paullay, Alliger, &. Separated job involvement into work- centrality (WC) and job. Stone-Romero (1994). involvement (JI). WC is how work is important to one‟s life and for which can influence by the socialization. Thus, WC is stable (it will not change as well when the working environment had been changed.) JI is how individual commit and concern to their present job.. Note. Author organized the above table.. 15.

(28) According to the summary above, we can find that most of the researchers agreed that job involvement is how people value their job. That is, when individual perceived the job performance can satisfy one‟s self-esteem need, job involvement will formed. Thus, job involvement is always a main factor to influence one‟s satisfaction and self-growth in organization. In addition, it can also be an important component to motivate employees and fulfill the goal of companies (Hackman & Lawer, 1971). After the comparison of previous studies, this study will adopt the definition of Kanungo (1982) which is the cognitive or belief state of psychological identification.. Theoretical Perspectives on Job Involvement. Synthesized the previous study, Rabinowitz and Hall (1977) proposed the comprehensive model that most of the literature agreed with the following three influencing factors of job involvement: a). Job Involvement as an Individual Difference Variable: Under this perspective, job involvement can be regarded as an independent variable of. personal characteristic which are personal gender, age, education level, tenure and marital condition. Dubin (1956) indicated that job involvement will have strong relationship with the moral character of work, one‟s work ethic, and a sense of personal responsibility. Lodahl & Kejner (1965) put it as the internalization of values toward work or the importance of work in the worth of the person. Other researchers who advocated this perspective considered the job involvement depends on one‟s attitude toward job. They proposed that there won‟t be any difference for their attitude and behavior toward job even if there are other situational factors (Hall & Mansfield, 1971; Runyon, 1973). b). Job Involvement as a Function of the Situation: 16.

(29) For this perspective, researcher considered the cognitive and attitude of job will influence by working environment. McGregor (1960) stated that job involvement will influence by organizational condition. Researchers of this perception think that the degree of job involvement will be influenced by working environment such as leadership and organizational climate. They also argued that individual‟s personal characteristic will influence job involvement in the organization (Vroom, 1964; Bass, 1965). c). Job Involvement as an Individual-Situation Interaction: Farris (1971) argued that job involvement was functioned by the interaction of. individual with his environment. It can not be considered solely in an individual characteristic. This perspective emphasized on the interaction of Individual and situation since they considered job involvement will be influenced by both of them (lawler & Hall, 1970; Wanous, 1974).. Measure of Job Involvement This study lists two major measurements for job involvement in Table 2.4. Table 2.4 Brief of the Job Involvement Measurement Authors / Year. Brief. Lodahl & Kejner (1965). a) Widely used by research on job involvement. b) 20 items through 5-point Likert scale. c) Multidimensional. To test the identity toward job and the influence of performance to self-esteem. d) Criticized by some researchers because of the vague descriptions. (Rabinowitz & Hall, 1977; Paullay, Alliger,& Stone,1994) (Continued). 17.

(30) Table 2.4 (continued) Authors / Year. Brief. Kanungo (1982). a) Stated that the previous measurement is not appropriate because of the unclear description and having too many dimensions. b) Separate the concept of Job involvement and work involvement c) 10 items for job involvement questionnaire (JIQ) d) Also widely used by research on job involvement.. Note. Author organized the above table. Brown (1996) found out that Kanungo‟s measurement can lower the confusion of the items. Since it is more precise, clear and can indicate the core of the meaning, the researchers adopted the measurement developed by Kanungo (1982).. Psychological Contract Breach and Job Involvement In a number of the previous studies, psychological contract breach was viewed as a factor to cause many unpleasant work- related consequences. For example, reduce the job satisfaction and intention to stay (Robinson & Rousseau, 1994; Davis & Newstrom, 1997). Studies that show the impact of psychological contract breach to some job attitudes are easily to find. Zhao, Wayne, Glibkowski, and Bravo (2007) have previously observed how psychological contract breaches impact employee productivity. Griffin, Neal, and Parker (2007) indicated that beyond influencing productivity, psychological contract breaches may also impact how adaptable and proactive employees are at work. Ng, Feldman, and Lam (2010) made the research on the relationship of Psychological contract breach with Innovation-related behavior and affective commitment. Job involvement, regarded as one of the job attitudes (Hollon & Chesser, 1976; Janasz, Forret, Haack, &Jonsen, 2013), can also be influenced by psychological contract breach. Psychological contract breach was defined as a feeling of anger, injustice, discomfort and 18.

(31) mistrust that caused by failing to complete the promise to employees (Rousseau, 1989). Thus, low job satisfaction and commitment and the intension to leave the organization cause the employees low involvement toward their job. In organizational behavior or psychological field, few studies explain the direct relationship between psychological contract breach and job involvement in the organization. According to some empirical studies, perceived psychological contract breach and feeling of violation can have negative relationship with job attitudes (Schmit, Amel & Ryan, 1993; Robinson, 1996). From some other studies, researchers can see the relationship of job involvement and the mentioned job attitudes (Loadhl & Kejne, 1965; Kanungo, 1982). Thus, based on the limited studies, the author came up the hypothesis: Hypothesis 1: Psychological contract breach is negatively correlated with job involvement.. Perceived Organizational Justice Organizational justice, which is an essential issue for managers, can be a main factor that influences employees‟ behaviors (Dittrich & Carrell, 1979; Niehoff & Moorman, 1993; Masterson Lewis, Goldman, & Taylor, 2000). The origin of the justice will be traced back to 1960s. Homans (1961) developed the equity rule from social exchange theory. He stated that people behave for rewards or escape from punishment. Adams (1965) developed the equity theory based on Homans point of view. He proposed that people will compare the rate of output/ Input, to see whether they were treated equally. It is the idea for distributive justice (Yochi & Spector, 2001). However, this concept missed the distributing process which can not represent the reaction to the inequity that happened to employees (Crosby, 1976; Folger, 1984). Researchers started to pay attention to the procedural justice which focused on the process before distributing. Greenberg (1987) then specified the concept of procedural justice and advocated the 19.

(32) perceived equity in the communicating process. He argued for the justice when pursuing goals. Bies and Moag (1986) considered that in the previous study, the interaction of individual with others has been overlooked. They proposed the concept of interactional justice to measure whether the organization respect their employees when making the decision. They argued that although procedural justice and interactional justice have significant relationship, interactional justice can still make up the deficiency to the explanation of procedural justice. It emphasized on the interaction of employees and employers during the process. Greenberg (1987) considered organizational justice to be individual‟s feeling of being treated fairly in the organization, which can also be described as the equity in the working environment. That is, whether the employers showed equity or not can influence employees‟ behaviors (Organ, 1988). When the employees interact with others, they will involve themselves to the organization by the degree of how they feel fair to the organization. In other words, equity theory can explain how employees were satisfied with the organization. (Schermerhorn, 1996). The study categorized three dimension of the organizational justice in Table 2.5, which are distributive justice, procedural justice and interactional justice.. 20.

(33) Table 2.5 Classification of Organizational Justice Category. a) Distributive justice. Brief . . . . . b) Procedural justice. . . . . c) Interactional justice. . .  . The earliest concept developed from Social Exchange Theory and Equity Theory (Homans, 1961; Adams, 1965). It is to measure if the employees perceive fairness in distributing resources (Fogler & Greenberg, 1985). It emphasized on the employees‟ feeling of the result-oriented (Adams, 1965; Leventhal, 1976). The degree of how they think to the distribution of the payment (Robbins, 1998). How employees perceive the equity of distributing (Niehoff & Moorman, 1993) Traced back to the research on the equity of the law (Thibaut &Walkers, 1975). Stated that the procedure is important in any law cases. They also indicated that if individual react positively related to the perceived equity in distributing process. Emphasized on the feeling of the process- oriented (Fogler & Greenberg 1985) Kim and Mauborgne (2005) proposed that the procedural justice is more important than the distributive justice. Konovsky and Pauh (1994) stated that procedural justice is the reliable predictor to employees‟ behaviors. Developed from the procedural justice and put more emphasis on the interaction side in decision making process (Bies & Moag, 1986. p.44) Fogler and Skarlicki (1997) stated that both procedural justice and distributive justice did not mention the importance of the interaction of people. Bies and Moag (1986) proposed that the relationship of procedure→Interaction→outcome. Note. Author organized the above table. Since organizational justice is been regarded as multidimensional (Scholl, Cooper, & Mckenny, 1987), the study synthesizes the previous study. The result is listed in Table 2.6.. 21.

(34) Table 2.6 Organizational Justice: Dimension Used in the Previous Studies. Scholar/year. dimension. Note. Adams (1965). Distributive. Perceive equity of individual‟s payment and the job involvement.. Thibaut & Walker (1975). Distributive. Earliest research on procedural justice.. procedural. Stated that people want to have the right to have the power during decision making process.. Bies & Moag (1986). Procedure. Proposed. the. Interact. dimensions.. relationship. of. three. Outcome Greenberg (1987). Greenberg (1990). Reactive-proactive. Use these two dimensions to develop the. Process-content. distributive and procedural justice.. Distributive. Distributive justice as the attitude toward. Procedural. the distributive result.. Interactional. Procedural. justice. influences. how. employees evaluate the organizations. Interactional. justice. influences. the. perception of how individual been treated in the decision making process. Aquino (1995). Distributive. Research on the relationship of annual. Procedural. salary inequity, procedural justice and. Interactional. organizational citizenship behaviors.. To confirm the existence of procedural and interactional justice.. Skarlicki & Latham. Distributive. Find the highly relationship between. (1997). procedural. procedural and interactional justice. Proposed that we can combine them together.. Note. Author organized the above table.. 22.

(35) Greenberg‟s (1990) concept to the justice is adopted in this study. The author measures the three dimension of the organizational justice. The author adopted Moorman‟s (1991) measurement in the questionnaire.. Moderating Effect of Perceived Organizational Justice Moderators between psychological contract breach and Job attitude: Since there are rare empirical studies directly related to the psychological contract breach and job involvement, the author tried to search some moderators on the relationship between psychological contract breach and relative job attitudes. Previous studies were consistent in their finding of psychological contract violation will have negative impact on employee‟s job attitudes and behaviors (Robinson & Rousseau, 1994; Robinson, et al., 1994; Guzzo, et al., 1994; Robinson & Morrison, 1995; Robinson, 1996; Turnley & Feldman, 1998, 1999). People are likely to have intension to leave and unwillingness to form the organizational citizen behaviors when the promises made by employers are not fulfilled. Turnley and Feldman (1999) formed a discrepancy model of psychological contract violations which proposed some moderator variables such as conscientiousness, exit cost and employees replaceability on the relationship between psychological contract violation and the employees‟ response. Kickul and lester (2001) argued that equity sensitivity to be a moderator on relationship between psychological contract breach and employees‟ attitude and behaviors. In Bal, et al., (2008) meta- analysis study, the hypothesis of age as a moderator on relationship between psychological contract breach and job attitudes such as trust, satisfaction and commitment was fully supported. Organizational justice as a moderator: To make sure if organizational justice is appropriate to be the moderator for the study, searching the literature for organizational justice as a moderator is necessary. Vermunt and 23.

(36) Steensma (2005) stated that distributive justice can have moderating effect on the relationship between procedural justice and stress. Aquino,Tripp and Bies (2006), found the moderating effect of procedural justice on power and status. Searching for the keyword „organizational justice‟ in Networked Digital Library of Theses and Dissertations, we can also find a few literatures to use organizational justice as a moderator. The thing worth mentioned is that we find out that Kickul, Laster, and Finkl (2001) stated that organizational justice can moderate the relationship between psychological contract breach and employee job satisfaction. Also, In the discrepancy model of psychological contract, Turnly and Feldman (1999) also stated that procedural justice and interactional justice are moderators of relationship between psychological contract violation and employees responses. We can infer that the organizational justice might have the chance to be the moderator on relationship between PCB and JI. Organizational justice can positive related to job involvement: Hardly to find the direct literature of moderating effect of organizational justice as a moderator on relationship between PCB and JI, the study tried to clarify it by examine the relationship between OJ and JI. Hutchison, Sowa, Eisenberger, and Huntington, (1986) stated that according to the organization support theory, organizational support is highly positive related to job involvement. Meanwhile, the organizational justice is the most significant in organizational support. Lawer and Hall (1970) stated that when people perceived that they can strive good performance through their effort (concept of equity theory), they are willing to form job involvement. In addition, some research argued that when individual perceived inequity in the organization, they will reduce their job involvement (e. g., Adams 1963; Greenberg,. 24.

(37) 1987). Through these literatures, we can find the positive relationship between organizational justice and job involvement. This study is set to investigate whether organizational justice has a moderating role in relationship between psychological contract breach and job involvement. According to the review, the study made up another hypothesis: Hypothesis 2: Perceived organizational justice will have positive moderating effect on the relationship between psychological contract breach and job involvement.. 25.

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(39) CHAPTER III. RESEAECH METHOD. Research Framework The independent variable is psychological contract breach, and job involvement is the dependent variable. Perceived organizational justice is the moderator between the psychological contract breach and job involvement. The perceived organizational justice consists of three dimensions which are distributive justice, procedural justice and interactional justice. Figure 3.1 shows the research framework.. Perceived Organizational Justice. Controls: Company Type Job Position Annual Salary. H2. H2 \\. Job Involvement. Psychological Contract Breach. H1. Figure 1. Research Framework. 27.

(40) Hypotheses Based on the previous literatures, the research purpose, and the research questions, hypotheses are listed below: Hypothesis 1.. Psychological involvement.. contract. breach is. negatively correlated. with. job. Hypothesis 2.. Perceived organizational justice moderates the relationship between psychological contract breach and job involvement.. Samples and Data Collection This study utilized the quantitative approach and the data were collected by paper-based and online questionnaires. Since the study aimed to analyze the employees‟ behavioral under the unstable working environment the researcher tried hard to focus the target sample to the employees who have been through M&A process and still worked in the remained companies in Taiwan. Until September, 2013, over 2,000 M&A cases happened in Taiwan and had created over 900 billion NT Dollars of transaction amounts which seemed to be a huge pool for researchers. However, under the M&A circumstances, lots of employees left the job willingness or unwillingness, and the enterprises were likely to regard the M&A strategy as confidential, which can made it a difficult task for researcher to approach large amount of the participants. The researcher approached to the employees or the managerial level of those companies which were known to have the experience of the M&A process without any industry constraint and requested them for helping the delivery of the paper based questionnaire. Also, researcher designed the on-line questionnaire and spread by the social networking website and board bulletin system to do the snowball sampling strategy.. 28.

(41) The sample of this study was 277 in 510 responses. The researcher delivered 550 paper-based questionnaires to 13 companies which were known to have the experienced of M&A process and got 383 questionnaires back, the response rate is 70%, and 247 respondents (45%) fit the sample of the study. The detail of the distribution was listed in Appendix A. In addition, the researcher got 127 responses through on-line questionnaires and 30 responses fit the sample of this study.. Measurement Psychological Contract Breach This study adopted the psychological contract breach and violation scale which was done by Robinson and Morrison (2000). The Cronbach alpha for the origin scale was .92. Seven -point Likert scale (ranging from 1= „strongly disagree‟ to 7= „strongly agree‟) was used in this study to measure how well one‟s contract has been fulfilled by one‟s employer and the level of feeling violated. The sample item of perceived contract breach is as follows: „I have not received everything promised to me in exchange for my contributions.‟ „I feel betrayed by my organization‟. A higher score represents the higher level of psychological contract breach.. Perceived Organizational justice This study adopted the scale based on Moorman (1991). Twenty items with three dimensions are in this scale, including the distributive justice, formal procedures justice, and interactional justice. The reported reliabilities were all above .93. The respondents answered by the five-point Likert scale, which measures the extent to how they agree or disagree. The sample item of perceived organizational justice is as follows: „My work schedule is fair.‟ „I. 29.

(42) think that my level of pay is fair.‟ The higher score is regarded as higher perceived organizational justice.. Job involvement This research adopted the Job Involvement Questionnaire (JIQ) which was done by Kanungo (1982). The Cronbach alpha was .87 on the JIQ. The respondents answered the five-point Likert scale to measure the extent of how they agree or disagree to 10 questions. The sample item of job involvement is as follow: „the most important things that happen to me involve my present job.‟ „I am very much involved personally in my job.‟ A higher score is regarded as higher level of job involvement.. Control variables Looking through the previous literatures, many researchers specified some demographic variables that can influence job involvement. Therefore, the demographic variables were gathered through the personal information part of the questionnaire. In this study, according to the previous studies, we adopted the following demographics and chose company type (organization), job position, and annual salary as the control variables. Company type. Brown (1996) stated that different type of organization form different organizational culture and influenced employees‟ job involvement. The participants were asked to indicate the most proper way to identify their company type. Answering “domestic company” was coded as “1”, “foreign company” was coded as “2”. Job position. Mckelvey and Sekaram (1977) proposed that higher position (manager) will have higher job involvement. The participants were asked to indicate their job position during the M&A process happened. Answering “general employee” was coded as “1”, “junior manager” was coded as “2”, “middle manager” was coded as “3”, “senior manager” was coded as “4”, and “others” was coded as “5”. 30.

(43) Annual salary. Ruh, White and Wood (1975) stated in their study that people have higher salary will form higher job involvement. In this study, in order to make sure the author can compare the participants‟ salary in the same scale, the participants were asked to indicate the best way to describe their annual salary level. Answering “below NTD 500,000” was coded as “1”, “500,000 NTD~ 700,000 NTD” was coded as “2”, “700,000 NTD ~ 800,000 NTD” was coded as “3”, “800,000 NTD ~ 1,000,000 NTD” was coded as “4”, and finally, “over 1,000,000 NTD” was coded as “5”.. Questionnaire Design The questionnaire for this research adopted the scales which were all developed maturely. All of the scale‟s items are valid. The original questionnaires were in English version. Considering the participants of this research are Taiwanese, it is more adequate for them to answer the questionnaire in Chinese version. Therefore, the questionnaire was translated into traditional Chinese version. Since the independent and dependent variables will be answered by the same person and the same period of time, it may cause some common method variance (CMV) problem. To avoid the CMV problem, Author has made some effort on it. First of all, based on the suggestion mentioned in the Common Method Variance in behavioral research: A critical review of the literature and recommended remedies (Podsakoff, MacKenzie, Jeong, & Podsakoff, 2003), the purpose and the variables in this study was not explained in the questionnaire. Second, the researcher adopted the reverse items in the questionnaire to prevent the respondents from filling the questionnaire randomly. Third, different point Likert scale was used in different variables. For instance, psychological contract breach adopted seven-point Likert scale while perceived organizational justice and job involvement adopted five-point Likert scale.. 31.

(44) In order to enhance the response rate of the questionnaire, the researcher told the participants that the questionnaires are anonymous and we will not reveal the exact name of the company they represents. The researcher also provided the cash coupon to some participants and held the raffle draw on the on-line survey.. Translation and Back Translation The original questionnaire was written in English. Since the participants in this research are Taiwanese, the researcher translated the questionnaire into Chinese. In order to make sure the Chinese translation maintain the original meaning of English, the author conducted the back translation. The researcher found two friends, who have good English proficiency to help the translation and back translation. One of them was asked to translate the English version questionnaire into Chinese and another one was asked to back translate the Chinese version questionnaire into English. The main purpose is to ensure whether the Chinese versions are in the same meaning with the English version or not. The researcher also asked the thesis advisor to confirm both versions to make sure the words are translated into the consistent meaning.. Pilot Test This research is a quantitative approach. The study did the pilot test before collecting the data. The researcher distributed the pilot questionnaire to 55 people to check the reliability of the questionnaire and examine the relationships between all variables. The researcher delivered 35 questionnaires to three target companies and 20 from the on-line questionnaire. The reliability was tested by Cronbach alpha value. In pilot test of this study the Cronbach‟s alpha for each instrument were: 0.93 for psychological contract breach, 0.97 for perceived organizational justice, and 0.92 for job involvement. The measurements scales of 32.

(45) all three main variables were reliable with an acceptable cronbach‟s alpha value of above 0.7 (Nunnally & Berstein, 1994).. Data Analysis This quantitative study was constructed by delivering and analyzing the questionnaire. We use Statistical Package for the Social Sciences (SPSS) 22 version to analyze the data we collected from our target group. The analysis method included t-test, reliability and validity, descriptive statistics, Pearson correlation analysis confirmatory factor analysis and hierarchical regression analysis.. Two sample t- test For this research, the researcher found it significant that people under M&A or not makes different to their job involvement. The researcher compared job involvement of another group of employees that had no M&A experience in their career with the participants in this study. As respected, the job involvement was significant difference between two groups of participants. In addition, the author also do the two sample t-test of the PCB and POJ, it showed no significant between two groups of participants. It indicated that employees under different kinds of circumstances perceived same feeling of psychological contract breach and organizational justice in their workplace, but the employees in different circumstances have different job involvement. The result of the t-test is listed in appendix B.. Reliability The reliability was the way to test the internal consistency and stability. Reliability is a concept that determines the precision of the measurements. The degree of precision can be indicating by Cronbach‟s alpha coefficient to show the stability and consistency of measurements. The higher value of cronbach alpha means a higher consistency of each dimension. According to Nunally and Berstein, 1994, it is reliable and acceptable if the 33.

(46) Cronbach alpha value is over 0.7. In this study, the Cronbach‟s alpha of psychological contract breach is 0.94. The Cronbach‟s alpha of perceived organizational justice serving as a mediator was .98. and the three dimension are all above 0.94. The Cronbach‟s alpha of job involvement was .90. The detail was listed in Table 3.1. Table 3.1 Reliability Test Results Variables. Number of items. Cronbach‟s Alpha. Psychological contract breach. 9. .94. Perceived Organizational Justice. 20. .98. Job involvement. 10. .90. Descriptive statistics The study adopted descriptive statistics (means, standard deviations, percentages and frequencies) to describe the characteristics of the participants. By doing the percentage and frequencies report, we knew the participants‟ distribution pattern. Therefore, the descriptive statistics in this study contained the result of the control variables information which includes company type, job positions and annual salary.. Pearson Correlation Analysis The study adopted Pearson Correlation Analysis to see the relationship between variables. By the method, we knew the positive and negative relationships among the variables. The Pearson‟s r ranged from -1 to +1. A correlation of +1 represents the perfect positive linear relationship between two variables while -1 represents the perfect negative linear relationship between them. A correlation of 0 means there is no linear relationship between two variables. What‟s more, different correlation coefficient means different level of. 34.

(47) correlation. (e. g., below .4 of correlation coefficient means low correlation, .4 to .7 is medium correlation, and above .7 means high correlation).. Confirmatory Factor Analysis (CFA) Before testing the hypothesis, confirmatory factor analysis (CFA) was conducted to assess the distinctiveness of the measurement used in the study by using AMOS 20. The validity of the questionnaire will be tested through CFA to confirm whether the data suit a hypothesized measurement model based on theory or previous researches. This research adopted indicators that had been proposed in previous study to examine the construct validity of the psychological contract breach, job involvement and perceived organizational justice. The most commonly test is the Chi-square (χ²) test, which is to determine the whole model fit and shows the difference between expected and observed covariance matrices. The values lower than 3 infer a good model fit (Jöreskog & Sörbom, 1993). Since the Chi-square test can have a better power in a sample below 200 but with some bias (MacCallum, Browne, & Sugawara, 1996), some other statistical tests will also be used in this study to check the goodness of fit of the theoretical value and experimental value. Root Mean Square error of approximation (RMSEA), which is used to determine the fit in the large sample sizes. When RMSEA value below 0.08 implied good model fit. The value range from 0.05 to 0.1 shows a medium model fit and the value higher than 0.1 indicates a bad model fit (Browne, Cudeck, Bollen, & Long, 1993). Comparative Fit Index (CFI) and Tuckers-Lewis index (TLI)/Non Norm Fit Index (NNFI) takes sample size into account based on Normed Fit Index (NFI). NFI, represents a ratio of the difference in the value for the model and the independent model. If these three values are higher than .9, it can be a desirable index (Bentler and Bonett, 1980; Tucker and Lewis, 1973). Finally, when the value of Goodness of Fit Index (GFI) higher than .8 indicate the observed data fit in the experimental distribution well (Carmines & McIver, 1981). Table 3.2 makes a short summary of the fit indexes. 35.

(48) Table 3.2 Summary of Fit Indexes Fit Indexes. Threshold. References. Chi-Square/ df RMSEA CFI NFI. <2 or 3 <.08 >.9 >.9. Jöreskog and Sörbom (1993) Browne et al. (1993); Bentler and Bonett (1980) Bentler and Bonett (1980). TLI/NNFI GFI. >.9 >.9 or >.8. Tucker and Lewis (1973) Carmines and McIver (1981). Note. Author organized the above table. In our analysis, the results of CFA for each variable were shown in Table 3.3. The perceived organizational justice presented good fit indexes while some of the fit indexes, especially in χ²/df and RMSEA, in psychological contract breach and job involvement are not successfully to reach the standard proposed by Byrne (1998). Table 3.3 Results of Confirmatory Factor Analysis (N=277) χ² df χ²/df RMSEA CFI. NFI. IFI. TLI. GFI. PCB. 147.062. 25. 5.64. .13. .95. .94. .95. .93. .91. POJ. 404.768. 167. 2.39. .07. .97. .94. .97. .96. .87. JI. 172.595. 33. 4.94. .12. .91. .90. .92. .88. .89. Notes. RMSEA = Root Mean Square Error of Approximation; CFI = Comparative Fit Index; NFI = Normed Fit Index; IFI = Incremental Fit Index; TLI = Tucker–Lewis Index, GFI = Goodness of Fit Index.PCB represents psychological contract breach, POJ represents perceived organizational justice, and JI represents Job Involvement.. Hierarchical Regression Analysis Based on Baron and Kenny (1986), the moderation effect can test by hierarchical regression analysis. We adopted this method to examine the relationships between variables and their sub-dimensions. Since both Independent and dependent variables are continuous 36.

(49) variable, hierarchical regression analysis was used to examine the hypothesis in this study to see how the independent variables impact the dependent variables. Besides, the moderating effect was also tested by hierarchical regression analysis. Three steps were done to test the moderating effect of perceived organizational justice and its three dimensions between psychological contract breach and job involvement. The first step was to enter the control variables. Next, the psychological contract breach was entered to see the impact on the dependent variable. Finally, perceived organizational justice (moderator) was entered each time in order to test the moderating effect.. Common Method Variance Test. Since all measures used in the current study were completed by single participant and used a similar response format, Harman‟s one-factor test (Podsakoff, et al., 2003) was conducted to detect potential bias caused by common method variance (CMV). If a single factor emerges or one general factor explains most of the covariance in the independent and dependent variables, it is reasonable to conclude that a significant CMV is present (Podsakoff et al., 2003). We entered all scale items into a principal components analysis and examined the unrotated factor solution. Six factors possessing an eigenvalue greater than 1.0 emerged, which accounted for 76.11% of variance. The first factor accounted for 47.26% of variance, which showed that the items loaded on a general single factor. Although it is not greater than 50% which mentioned form Podsakoff et al. (2003), but it still can be considered to have some CMV problems.. 37.

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(51) CHAPTER IV. FINDINGS AND DISCUSSION Descriptive statistics. The data was collected from 510 participants with or without the experience of M&A in their working experience. 277 valid samples which fit the requirement of this study are from the respondents who stay in the remained company even though their company had been through M&A. To collect the information of the respondents, there were several questions written into demographic information. They were gender, age, education level, position, tenure, yearly income, company types and the M&A happened year. The written answers such as age, tenure and the M&A happened year were transferred into certain levels. The gender of the respondents was pretty equal. Most of them were aged from 26 to 35 years old (40.8%). When it comes to the education background, over 78.4% of participants had bachelor degree or above. Regarding their working position, most of them were general employees (57.0%) and their tenure was principally for 1 to 5years (34.7%). The frequency and percentage of the demographic information are summarized in Table 4.1. Table 4.1 Descriptive Statistics (n=277) Item. Sample characteristics. Gender. Age. Frequency. Percentage. 0. Female. 142. 51.3. 1. Male. 138. 49.8. Total. 277. 100. 1. 25 and below. 11. 4.0. 2. 26-35. 113. 40.8. 3. 36-45. 94. 33.9. 4. 46-55. 49. 17.7. 5. 56-65. 10. 3.6. Total. 277. 100. (Continued). 39.

(52) Table 4.1 (continued) Item. Sample characteristics. Educational level. Company type. Frequency. Percentage. 1. Elementary and below. 4. 1.4. 2. Middle school. 4. 1.4. 3. High school. 52. 18.8. 4. College. 178. 64.3. 5. Graduate school and above. 39. 14.1. Total. 277. 100. 0.. Local. 162. 58.5. 1.. Foreign. 114. 41.2. 1. 0.4. 277. 100. Missing value Total Job position. 1.. General employee. 158. 57.0. 2.. Supervisor. 73. 26.4. 3.. Mid-level manager. 36. 13.0. 4.. High level manager. 6. 2.2. 5.. Others. 2. 0.7. 2. 0.7. 277. 100. Missing value Total Annual salary. 1.. 500,000NTD and below. 87. 31.4. 2.. 500,001NTD ~700,000 NTD. 79. 28.5. 3.. 700,001NTD ~800,000 NTD. 38. 13.7. 4.. 800,001NTD ~1,000,000 NTD. 25. 9.0. 5.. Above 1,000,001NTD. 40. 14.4. 8. 2.9. 277. 100. Missing value Total Tenure. 1.. Less than 1 year. 10. 3.6. 2.. 1 ~ 5 years. 96. 34.7. 3.. 6~10years. 78. 28.2. 4.. 11~15years. 37. 13.4. 5.. 16years and above. 61. 22.0. 0. 0. 277. 100. Missing value Total. 40.

(53) Correlations Pearson‟s correlations analysis was conducted for the three main variables which are psychological contract breach, Perceived Organizational Justice and Job involvement. Plus three demographics as control variables, they are company type, job position and annual salary. The correlations are shown in Table 4.2. As stated in H1, psychological contract breach has a significantly negative correlated to job involvement (r= -.38, p<0.05). For H2, psychological contract breach has a significantly negative correlated to perceived organizational justice (r=-.58, p<0.05). All control variables (experienced time, company type, job position, and annual salary) were significant related to job involvement (p<0.05) as anticipated. Table 4.2 Mean, Standard Deviations, Correlations, and Reliability (n=277) Mean. SD. 1. 2. 3. 4. 5. 1. Company type 1.41. .492. 2. Job position. 1.63. .846. .228***. 3. Annual salary. 2.42. 1.393. .170**. 4. PCB. 3.33. 1.135. -.254*** -.235*** -.105+. (.94). 5. POJ. 3.38. .731. .251***. .240***. .119+. -.596*** (.98). 6. JI. 3.61. .610. .239***. .305***. .285**. -.378*** .587***. 6. .488***. (.90). Note. Note. Numbers in the brackets represent the Cronbach’s Alpha values of the variables.. PCB represents psychological contract breach, POJ represents perceived organizational justice, and JI represents job involvement. +. P<0.1,*P<.05, **p<0.01, ***p<0.001. 41.

(54) Results of Hypotheses Test Hierarchical regression was used in this research for statistical analysis. Demographic factors such as experienced time, company type, job position and annual salary were included as control variables. Regression equations were constructed in order to test the proposed hypotheses results were shown in Table 4.3 and Table 4.4. Table 4.3 Results of Regression Analysis for Hypothesis Job involvement Model 1. Model 2. β. β. Company type. .16**. .087. Job position. .18**. .107*. Annual salary. .17*. .178**. Variables Step 1: Controls. Step 2: Main Effect -.32***. PCB R². .14. .23. Adj. R². .13. .22. ΔR². .14. .09. 14.06***. 19.26***. F. ***. 14.06 30.16*** ΔF Note. *p< .05, **p< .01, ***p< .001, PCB represents psychological contract breach. Hypothesis1 proposed that psychological contract breach had a negatively effect on job involvement. In Model 1, all the control variables showed significant effect on job involvement (p<.05). As for Model 2, psychological contract breach was added to examine its relationship with job involvement. The result showed that psychological contract breach was significantly and negatively related to job involvement (β=-.32, p<.05). Therefore, psychological contract breach had negatively effect on job involvement. It implied that 42.