Psychological Contract Breach as a Mediator Between Organizational Politics and Employee Misidentification in Higher Education

Abstract

This study validates the relationships between organizational politics, employees’ work behavior, and organizational dis-identification, with Psychological Contract Breach (PCB) examined as a mediating mechanism in Higher Education Institutions (HEIs) of Khyber Pakhtunkhwa, Pakistan. Grounded in Conservation of Resources (COR) theory and Social Exchange Theory, the research explains how perceptions of organizational politics often manifested through self-serving actions and informal power dynamics erode employees’ psychological resources and disrupt reciprocal employment relationships. The study proposes that organizational politics does not influence employee outcomes directly alone; rather, it operates through the perception of Psychological Contract Breach, which subsequently shapes employees’ behavioral responses. These responses include reduced job performance, lower organizational citizenship behavior (OCB), increased counterproductive work behavior (CWB), and the development of organizational dis-identification (ODI), where employees psychologically distance themselves from their institution. Data were collected through structured questionnaires administered to faculty and administrative staff working in HEIs. Using regression-based mediation analysis, the findings reveal that organizational politics significantly predicts PCB, which in turn leads to adverse work behaviors and stronger organizational dis-identification. The results confirm PCB as a critical explanatory mechanism linking political organizational environments to dysfunctional employee outcomes. This study contributes to the literature by empirically validating a mediation framework that clarifies how and why organizational politics influences employee attitudes and behaviors within academic institutions. Practically, the findings highlight the need for transparent governance, ethical leadership, and trust-building practices to prevent psychological contract violations and foster a more engaged and performance-oriented workforce.