Psychological contract breach and freelance outcomes : the moderating role of corporate reputation

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Psychological Contract Breach and Freelance

Outcomes: The Moderating Role of Corporate

Reputation

MSc. Business Administration – Marketing Track Mick Hendrikx - 10003325

KEYWORDS Psychological Contracts ■ Job Satisfaction ■ Organizational Commitment ■ Organizational Citizenship Behavior ■ Corporate Reputation ■ Project-Based Industries ■ Intermittent Employment

Field Corporate Branding

Supervisor Dr. Karin Venetis

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Abstract

This study examines the effect of freelancers’ perceptions that their psychological contract breach has been breached by their employer on their attitudes and behavior. Furthermore, this study investigates whether corporate reputation moderates this effect. Finally, to determine whether this moderation truly comes from corporate reputation, the moderating effect of corporate brand sensitivity on the moderation by corporate reputation is studied. A survey was conducted by means of a standardized questionnaire and data was obtained from 149 freelancers active in the creative industries. It was found that perceived breach had a negative effect on the attitude measures: job satisfaction and organizational commitment but that no effect on citizenship behavior was present. An explanation was that freelancers did not act upon breach because regarding the continuance of the relationship they are more dependent on their employer than fulltime employees. Furthermore, the study found that corporate reputation did not have an effect on any of the depicted contract breach- freelance outcome relationships. Moreover, it was found that the predicted moderation by corporate brand sensitivity on the moderation by corporate reputation was not supported. A finding worth noticing was the high correlation between contract breach and corporate reputation. An explanation from congruity theory was borrowed which explained that the perception of corporate reputation may affected the perception of breach. Theoretical and managerial implications together with directions for future research are provided.

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Statement of Originality

This document is written by Mick Hendrikx who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it.

The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Acknowledgments

This thesis represents the culmination of months of personal and professional growth. For this, I have three parties to thank. First, I am indebted to my supervisor Dr. Karin Venetis, who continuously improved my analytical skills by challenging my thinking and who I perceive as a role model for her ability to think critically. She helped me tackle difficulties that arose and provided me with the energy and enthusiasm required for lifting me up when I got stuck in my process. I am mostly grateful for the environment of continuous support and understanding she provided me with, when personal circumstances emerged. Second, I would like to thank my co-student Twan Lauwerijssen, who reassured me in moments of doubt and who I could always rely on in discussing ideas and directions and general support. Finally, I would like to extend my personal thanks to my ex-colleagues and friends with Eyesight; Alexandra Avalone and Edward Ross. Through them I obtained my first professional experience in the creative and project-based industry, which made me experience the dynamics and led to my topic choice. Moreover, they helped tremendously in my

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3.4. CONTROL VARIABLES... 36 3.5. PROCEDURE ... 38 3.6. SAMPLE ... 39 3.7. ANALYSIS TECHNIQUES ... 40 3.7.1. Regression Models ... 40 3.7.2. Estimation Method ... 46 4. Results ... 46 4.1. PRE-ANALYSIS ... 46 4.1.1. Scale Reliability ... 46 4.1.2. Manipulation check ... 47 4.1.3. Group Differences ... 48 4.1.4. Descriptive Statistics ... 49

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4.1.5. Correlations ... 52

4.1.6. Assumptions ... 53

4.1.8. Noticeable remarks ... 56

4.2. ANALYSIS ... 57

4.3 POST-HOC FEEDBACK ANALYSIS ... 67

5. Discussion... 70

5.1 Answer to research question ... 70

5.2 Alternative explanations results ... 71

5.3 Managerial Implications ... 74

5.4 Limitations and Future Research... 74

6. Conclusion ... 75

References ... 79

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1. Introduction

Driven by globalization, the marketplace and the competitive arena have become increasingly dynamic and uncertain (Starkey et al., 2000). Continuous overproduction and uncertainty regarding the success of the production outcome, cause these threats to be even more present in the creative industries (Hirsch, 1972, 2000; Peltoniemi, 2015). Firms need to be flexible to survive these threats (Porter, 1996).

As a response, firms are moving towards hybrid forms of organization, manifested between hierarchies and markets, to optimize the cost and benefits each continuum allows (Hennart, 1993; Powell, 1987; Starkey et al., 2000). Network organizations are such hybrid forms that ‘reduce costs by externalizing in-house activities, and guarantee minimum quality by holding out the promise of repeat contracting upon satisfactory performance’ (Ebbers & Wijnberg, 2009; Starkey et al., 2000, p. 299). Network organizations are present in the

project-based industries, the context of this thesis, where freelancers are hired as new projects come in (Ebbers & Wijnberg, 2009; Starkey et al., 2000).

This globalization and restructuring alter contemporary employment relationships and give rise to the importance of psychological contracts (Ebbers & Wijnberg, 2009; Robinson, 1996). Psychological contracts are ‘individual beliefs in a reciprocal obligation between the individual and the organization’ (Rousseau, 1989, p. 121). Because psychological contracts allow firms to commit to freelancers in the long run implicitly, rather than explicitly by means of a long-run employment contract, firms can easily step away from the promises made and breach the contract. The ability for firms to breach is beneficial in the short run because it provides flexibility and it does not obligate the firms to pay for freelancers when projects do not come in (Robinson, 1996).

However, there is a negative side effect to firms that breach psychological contracts. This side effects is that the high performing freelancers a firm wants to hold onto step away

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or do not longer want to work for the particular organization. From the contract literature, it was found that psychological contract breach has a negative impact on an individual’s job satisfaction (Robinson & Rousseau 1994; Zhao et al., 2007), organizational commitment (Coyle-Shapiro & Kessler, 2000; Lester et al., 2002; Robinson & Rousseau, 1994; Turnley & Feldman, 1999; Zhao et al., 2007) and organizational citizenship behavior (Robinson & Morrison, 1995; Turnley et al., 2003; Zhao et al., 2007). First, job satisfaction has several positive consequences that include a positive effect on individual’s job performance, organizational commitment and organizational citizenship behavior (Judge et al. 2001; Bateman & Organ, 1983; Roehling, 1997). Second, organizational commitment is of great importance because it allows companies to be more flexible and prevent cost such as searching, contracting, controlling and human opportunism to incur (Simon, 1991;

Williamson, 1975). Moreover, costs related to turnover are avoided because organizational commitment contributes to the physical and psychological presence of employees (Matthieu & Zajac, 1990; Tett & Meyer, 1993; Steers, 1977; Mowday et al., 1979). Another implication of commitment is that it is positively influences citizenship behavior, organizational tenure and individual motivations that in turn benefit the organization (Allen & Meyer, 1996; DeCotiis & Summers, 1987; Organ & Ryan 1995; Mowday et al., 1979). Third,

organizational citizenship behavior promotes the effective functioning of the firm (Organ, 1988; Podsakoff & MacKenzie 1997). In addition, citizenship behavior increases the performance of a firm (Koys, 2001; Organ et al., 2005). Individual’s job satisfaction, organizational commitment and organizational citizenship behavior are argued to be a necessity for a firm’s survival (Katz, 1964).

Given the fact that firms benefit from breach in the short run and that there is a negative side effect present; is this side effect for every firm similar or are there particular circumstances under which firms may suffer less from this effect? Perhaps corporate

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reputation plays a role in the negative effect of psychological contract breach on job

satisfaction, organizational commitment and organizational citizenship behavior. Depending on the perceived benefits freelancers derive from working for a highly reputable firm, they may feel less inclined to react on breach.

If corporate reputation truly weakens the negative effect of psychological contract breach on freelance outcomes, it is expected that when freelancers have a high sensitivity towards the corporate brand this weakening impact increases. More specifically, freelancers that engage with a highly reputable firm and are sensitive towards corporate brands may be even less prone to react on breach.

In summary, faced by an increased dynamic and uncertain environment more firms move towards hybrid forms of organization, such as network organizations present in project-based industries, to gain flexibility (Ebbers & Wijnberg, 2009; Hennart, 1993; Powell, 1987; Starkey et al., 2000). Due this transition psychological contracts play a more dominant role. Psychological contracts are beneficial for firms because it allows them to breach the contract and benefit from the flexibility it provides in the short run (Ebbers & Wijnberg, 2009;

Robinson, 1996). However, there is also a negative side effect present. The freelancers a firm wants to hold onto might step away or do not longer want to work for the firm following breach. It is argued that dependent on the corporate reputation a firm enjoys, firms may suffer less from this effect. In addition to its corporate reputation, firms may even suffer less when freelancers have a high sensitivity towards the corporate brand. Therefore, in this thesis an answer will be given to the following research question: What is the moderating effect of corporate reputation on the psychological contract breach- freelance outcome relationship?

An answer to the research question will be provided through the following formulated sub-questions:

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- What is a psychological contract and which types are present in project-based industries? - What types of freelance outcomes are present in project-based industries, and how do they contribute to the organization?

- What is psychological contract breach, how does it occur and what is the effect on freelance outcomes?

- What is corporate reputation?

- What is the moderating effect of corporate reputation on the psychological contract breach – freelance outcome relationship?

- What is the moderating effect of corporate brand sensitivity on the moderating effect of corporate reputation on the psychological contract breach - freelance outcome relationship?

In the investigation of the negative side effect of psychological contract breach on employee outcomes, previous research focused solely on fulltime employment

(Coyle-Shapiro & Kessler, 2000; Robinson & Morrison, 1995; Robinson & Rousseau, 1994; Turnley et al., 2003). In the fulltime context, employer and employee are mostly bound by physical and psychological contracts. However, in the context of intermittent employment long-term contracts are not present and because of that employer and employee are mostly bound by psychological contracts (Ebbers & Wijnberg, 2009; Robinson, 1996). From a theoretical point of view, given the dominant role of psychological contracts in this context, it makes it even more relevant to study the negative side effect in the context of freelancers. First, by investigating if the same negative effect is present. Second, by investigating whether the negative side effect depends on the corporate reputation a firm enjoys. By doing so this thesis attempts to deliver a consensus shifting contribution.

This thesis aims at contributing to managerial practices by showing that when managers invest in the corporate brand, the balance between the firm’s short-run benefit and

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the negative side effect following breach becomes more favorable. This thesis proofs whether corporate reputation plays a role in weakening the negative effect of psychological contract breach on job satisfaction, organizational commitment and organizational citizenship behavior.

This thesis proceeds as follows. Chapter 2 consists of a literature review. This review provides answers to the sub-questions and develops hypotheses. In addition, this chapter presents the conceptual model in place. Chapter 3 describes the research design, the constructs in use and the analysis techniques to test the hypotheses. In chapter 4 the results are discussed and support for each hypothesis is rejected or confirmed. This chapter guides the answer to the research question. Chapter 5 contains a discussion of the findings, adds support to existing theory and provides implications for real world practices and future research. Finally, chapter 6 presents a conclusion.

2. Theoretical Framework

In this chapter the literature is consulted to provide answers to the sub-questions posed in the introduction. First, psychological contracts are discussed together with the types present in the project-based industries. Second, the types of freelance outcomes in the project-based industries and their impact on the organization are explained. Psychological contract breach, its occurrence and the effect on freelance outcomes is described thereafter. Fourth, the

corporate reputation construct will be touched upon. This is followed by an explanation of the moderating effect of corporate reputation on the psychological contract breach- freelance outcome relationship. Finally, the moderating effects of corporate brand sensitivity on the moderating effects of corporate reputation is discussed.

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2.1. PSYCHOLOGICAL CONTRACTS

Psychological contracts are defined as ‘individual beliefs in a reciprocal obligation between the individual and the organization’ (Rousseau, 1989, p. 121). More specifically, the

psychological contract consists of the individual’s beliefs regarding his or her promises made to the organization and the individual’s beliefs regarding the organization’s promises made to him or her (Turnley et al., 2003). Psychological contracts play an important role in

determining the behavior of actors involved in an exchange relationship (Ebbers & Wijnberg, 2009; Schein, 1980). The psychological contract is characterized by the beliefs of the

beholder that the obligations are mutual and a general understanding of what each party owes the other (Rousseau, 2001). However, because each party can hold different believes

regarding the existence and content of the psychological contract, these believes do not have to be mutual and are often subjective and idiosyncratic (Robinson & Rousseau, 1994;

Rousseau, 1990; 1995). Beliefs regarding the obligations are not about individuals’ intentions of doing things but rather capture the agreements of doing things (Rousseau, 1995). In

addition, they should not be confused with expectations in the sense that psychological contracts are ‘promissory and reciprocal’ (Rousseau, 1990, p. 390).

Psychological contracts emerge when individuals believe they receive a return from their organization upon completion of a certain contribution (Robinson & Rousseau, 1994; Rousseau, 1989). These believes are influenced by social cues that includes shared norms and beliefs regarding a firm’s action and intend (Rousseau & McLean Parks, 1993). The

existence of psychological contracts provides benefits to both individuals and organizations. Due its functioning in the broader context of goals, these contracts increase productivity of both parties (Rousseau, 1995). Moreover, these contracts foster mutual predictability which contribute to the coordination and planning of activities (Rousseau, 1995).

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Psychological contracts can be distinguished between two ends of a contractual continuum: transactional and relational contracts (MacNeil, 1985; Rousseau, 1989). Transactional contracts involve economic exchanges, have a closed-ended/ specific time frame and are publicly understood, whereas relational contracts involve economic and non-economic exchanges, have an open-ended/ indefinite time frame and are subjectively understood (MacNeil, 1985). In addition, transactional contracts are short-term focused and contain specified performance terms, whereas relational contracts are long-term focused and contain unspecified performance terms (Rousseau, 1995). Moreover, transactional contracts tend to be more explicit, whereas relational contracts tend to be more implicit (Baker et al., 2002; Ebbers & Wijnberg, 2009). Finally, obligations can be linked to each end of the continuum. Transactional obligations included hard work in return for high pay and career advancement and relational obligations included loyalty and minimum length of stay in return for job security (Rousseau, 1990).

In the project-based industries both types of psychological contracts are present. In these industries, two types of organizations are present: the project-based organization and the latent organization (Ebbers & Wijnberg, 2009; Starkey et al., 2000). The project-based organization is a ‘temporary organization that dissolves as soon as the project is completed for which it was set up’ (Ebbers & Wijnberg, 2009, p. 988). The latent organization is a ‘form of organization that bind together configurations of key actors in ongoing relationships that become active/manifest as and when projects demand’ (Starkey et al., 2000, p. 299). Members of a project-based organization are bound through transactional contracts and members of a latent organization through relational contracts (Ebbers & Wijnberg, 2009).

However, Sels et al. (2004, p. 463) argue that psychological contracts should not be distinguished between relational and transactional contracts but rather should be interpreted based on dimensions, such as time frame or degree of implicitness. They supported their

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claim by the inconsistence in measuring the constructs: elements used to measure the transactional contract in Rousseau (1990) are used to measure the relational contract in Robinson et al. (1994). In addition, Rousseau (1990) challenged this distinction with the 2x2 model of contemporary contracts, adding transitional and balanced contracts to the

psychological contract spectrum.

In summary, psychological contracts are beliefs regarding reciprocal obligations between the individual and the organization. These beliefs may differ per party and therefore, each party may not necessarily hold similar beliefs regarding the exchange agreement. There is a body of literature that distinguishes between transactional and relational psychological contracts that differ in terms of focus, time frame, tangibility, performance terms, explicitness and type of obligations. In the project-based industries transactional contracts are linked to the project-based organization and relational contracts to the latent organization. Because, there is disagreement as to what elements belongs to which continuum and the existence of a continuum, this thesis will focus on the psychological contract in its aggregate.

2.2. FREELANCE OUTCOMES 2.2.1. Job Satisfaction

Job satisfaction is defined ‘a function of the perceived relationship between what one wants from one's job and what one perceives it as offering or entailing’ (Locke, 1969, p. 316). From this definition, job satisfaction can be seen as a measurement of met expectations. Because met obligations, represented by psychological contract breach, are difficult to distinguish by met expectations, job satisfaction can be used as proxy to control for this in studies relating to breach (Coyle-Shapiro & Kessler, 2000). Job satisfaction is determined by several job

characteristics. Hebzberg et al. (1959) distinguished between the actual work itself, the responsibility received, career advancement, achievement of tasks and recognition of

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contributions made. They argued that the first three characteristics are the most important determinant of a lasting satisfaction with the job. Moreover, they argued that recognition does not necessarily have to come solely from the superiors but that recognition by other parties such as colleagues, clients or customers also contribute to the level of job satisfaction in the job. Job satisfaction is also determined by the extent to which the psychological contract is perceived. Robinson and Rousseau (1994) argued that when what is promised is not fulfilled, there is dissonance with what was expected and perceived. In line with the definition by Locke (1969) this negatively impacts the extent to which one is satisfied with their job.

Consequences of job satisfaction include, job performance organizational

commitment and citizenship behavior. A meta-analysis by Judge et al. (2001) consisting of 312 samples showed and concluded that a significant relationship existed between an

individuals’ level of job satisfaction and its job performance. These results confirm the often-criticized notion of “a happy worker is a productive worker” (Saari & Judge, 2004).

According to Roehling (1997), job satisfaction determined organizational commitment. In this study, it was argued that for an exchange relationship to be continued, both parties need to provide mutual satisfaction. When freelancers were not satisfied with their job they did not have a high intention to continue the relationship with their employer and thus were less committed to the organization. Moreover, Bateman and Organ (1983, p. 588) found and argued that job satisfaction determined citizenship behavior through social exchange theory. They argued that ‘people seek to reciprocate those who benefit them’. Furthermore, they reasoned that prosocial behavior such as citizenship behavior is most likely to occur when an individual experiences a positive affective state (Bateman & Organ, 1983). Thus, freelancers that are satisfied with their job are more likely to exert citizenship behavior.

In summary, job satisfaction can be interpreted as the extent of met expectations and is defined in this study as: ‘a function of the perceived relationship between what one wants

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from one's job and what one perceives it as offering or entailing’ (Locke, 1969, p. 316). Job satisfaction is construed by several job characteristics that include the work itself,

responsibility, advancement, achievement and recognition (Hebzberg et al. 1959). Finally, it was found that job satisfaction leads to job performance, organizational commitment and organizational citizenship behavior (Judge et al. 2001; Bateman & Organ, 1983; Roehling, 1997).

2.2.2. Organizational commitment

Whether individuals in the project-based industries continue working with an organization depends on how committed they are. Some may work just once with a particular

organization, whereas others may work multiple times with the same organization. In this thesis, organizational commitment is defined as ‘the relative strength of an individual’s identification with and involvement in a particular organization’ (Mowday et al., 1979, p. 226). Organizational commitment is featured by individuals’ (a) strong belief in and

acceptance of the organization’s goals and values, (b) willingness to exert considerable effort on behalf of the organization and (c) desire to maintain membership in the organization (Mowday et al., 1997, p. 226).

Mowday et al. (1982, p. 26) distinguished between attitudinal and behavioral commitment. Attitudinal commitment captures the extent to which individuals think their values and goals are in line with those of the organization, whereas behavioral commitment concerns the extent to which individuals have become locked into an organization and how they act upon this.

Apart from the attitudinal and behavioral distinction, Meyer et al. (1993) treated commitment as a psychological state that can be divided into an affective, a continuance and a normative component. The affective component referred to individuals’ willingness to

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remain with an organization, the continuance component referred to individuals’ need to remain with an organization, and the normative component referred to individuals’ belief they ought to remain with an organization (Meyer et al., 1993, p. 539).

Although the conceptualization of organizational commitment by Mowday et al. (1979) and Meyer et al. (1993) differed, for measurement purposes both can be used

interchangeably as both measures were highly correlated with one another (Allen & Meyer, 1996). In this thesis, the previous mentioned definition by Mowday et al. (1979, p. 226) that tapped into commitment-related attitudes and features that are related to behavior was used.

Katz (1964) pointed out the importance of organizational commitment and argued that individuals should be induced to remain with an organization for the effective functioning and survival of the firm. However, does this proposition still hold in the new era of

globalization and restructuring? Meyer and Allen (1997) agreed, they argued that success of the organization still depends on individuals and that in the case of contracting freelancers, the scope of commitment might be on the contract or project level. In addition, they reasoned that individuals have a need for commitment so if they lack this towards their organization, their commitment together with individual’s implications will be directed towards something else and contributions will not necessarily be directed towards the organization (i.e.

occupation or industry).

There are several consequences linked to organizational commitment that benefit the organization. First, organizational commitment allowed companies to be more flexible and prevented cost such as searching, contracting, controlling and human opportunism to incur (Simon, 1991; Williamson, 1975). Second, in several studies organizational commitment was found to be negatively related with intention to leave, intention to search, actual turnover and absenteeism and positively related to attendance at work (Matthieu & Zajac, 1990; Tett & Meyer, 1993; Steers, 1977; Mowday et al., 1979). A high turnover is costly and individuals

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should not just be physically present but also psychologically (Katz, 1964). In other studies, organizational commitment was positively related to organizational citizenship behavior (Organ & Ryan 1995), organizational tenure and performance (Mowday et al., 1979), job satisfaction (Allen & Meyer, 1996) and predicted individual motivation (DeCotiis & Summers, 1987).

High levels of organizational commitment can also harm the organization. Randall (1987) argued that high organizational commitment led to the ineffective use of human resources and made it harder for organizations to be flexible, adopt and innovate.

In summary, in this thesis organizational commitment is defined as ‘the relative strength of an individual’s identification with and involvement in a particular organization’ (Mowday et al. 1997). In the new era of globalizations and restructuring organizational commitment still plays an important role. The lack of organizational commitment harms the firm through an intention to leave, intention to search, actual turnover, absenteeism and lower attendance at work. Firms can benefit from organizational commitment through its positive impact on organizational citizenship behavior, organizational tenure and performance, job satisfaction and individual motivation. Apart from the positive consequences of

organizational commitment, individuals with a very high level of commitment can also harm the organization through the lack of adoption, innovation and flexibility.

2.2.3. Organizational citizenship behavior

When individuals work on projects in the project-based industries they perform a set of activities that is expected from them and what their reward is based upon. Accomplishment of these activities are presented by an individual’s ‘in-role job performance’ (Meyer & Allen, 1997, p. 28). However, sometimes individuals also perform tasks that are not expected from them and that do not benefit the focal individual. This behavior is referred to as ‘extra-role

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behavior’ or ‘organizational citizenship behavior’ (Meyer & Allen, 1997 p. 33; Katz, 1964). More specifically, Organ (1988, p. 4) defined organizational citizenship behavior (OCB) as: ‘Individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the

organization’. OCB can be distinguished into five types of behavior: altruism, consciousness, sportsmanship, courtesy, and civic virtue (Organ, 1988). Altruism was defined by ‘all the discretionary behaviors that have the effect of helping a specific other person with an organizationally relevant task or problem (Organ, 1988, p.8). Consciousness referred to ‘various instances in which organizations members carry out certain role behaviors well beyond the minimum required levels’ (Organ, 1988, p. 9). Sportsmanship referred to the instances where individuals ‘avoid complaining, petty grievances, railing against real or imagined slights, and making federal cases out of small potatoes’ (Organ, 1988, p. 11). Courtesy referred to the instances where individuals ‘touch-base with those parties whose work would be affected by one’s decisions or commitments’ (Organ, 1988, p. 12). Civic virtue measured ‘an individual’s sense of involvement of what policies are adopted and what candidates are supported’ (Organ, 1988, p. 12).

The literature suggested several antecedents to the presence of OCB. Firstly, OCB is positively related to job satisfaction (Bateman & Organ, 1983; Motowidlo, 1984; Smith et al. 1983; Organ& Ryan, 1995). Secondly, perceived fairness regarding organizational behavior of supervisors and decisions taken positively related to OCB (Moorman, 1991; Niehoff & Moorman, 1993; Organ & Moorman 1993; Organ& Ryan, 1995). Thirdly, the extent to which individuals are committed to their organizations related positively also with OCB (Shore & Wayne, 1993; Organ& Ryan, 1995). However, although each antecedent has an effect on OCB this is not the case when the relative effects are tested. In a study by Schappe (1998)

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where the relative effect of each antecedent was tested, only organizational commitment explained the unique variance in OCB.

Consequences of OCB were studied as well. A study by Podsakoff & MacKenzie (1997) on the empirical evidence of four different studies found that OCB was positively related to organizational effectiveness. Although causality was assumed in all the four different studies, they suggested an investigation of causality for future research. Later, a review by Organ et al. (2005, p. 239) concluded that OCB indeed led to organizational effectiveness but that measurements of this constructs mostly focused on financial measures. In addition, they argued that OCB increased organizational performance (Organ et al., 2005, p. 212). Lastly, a longitudinal study by Koys (2001) suggested that OCB led to an increase of the profitability of the firm. In his study, OCB was a significant predictor of profitability in the hospitality industry.

In summary, OCB is referred to as behavior performed by individuals that goes beyond an individual’s job requirements or what is expected from them. This construct consists of five dimensions including: altruism, consciousness, sportsmanship, courtesy, and civic virtue. Although antecedents of OCB, such as job satisfaction, fairness perceptions and organizational commitment, have been widely studied, outcomes of OCB studied mostly focused on its contributions to generic measures of organizational effectiveness and performance.

2.3. PSYCHOLOGICAL CONTRACT BREACH AND FREELANCE OUTCOMES This section builds upon psychological contract theory, discussed in section 2.1, and defines psychological contract breach first. Thereafter, it is described when and how contract breach occurs. In addition, how individuals react on breach will be discussed. Finally, a conclusion

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will be drawn together with the hypothesized effects of contract breach on freelance outcomes.

When psychological contracts are defined by an individual’s reciprocal believes in the mutual obligations of an exchange relationship between two parties, breach occurs when one party perceives that the other one does not fulfill its promised obligations (Rousseau, 1989; Robinson & Rousseau, 1994). Although these parties can include both organizations and individuals, this thesis focused on individuals only (Ebbers & Wijnberg, 2009). The terms ‘violation’ and ‘breach’ of the psychological contract were used interchangeably in the literature, therefore, no distinction was made in this thesis either (Zhao et al., 2007; Coyle-Shapiro & Parzefall, 2008).

Robinson and Rousseau (1994, p. 246) stated that ‘a psychological contract emerges when one party believes that a promise of future return has been made, a contribution has been given and thus, an obligation has been created to provide future benefits’. Obligations for organizations on each end of the psychological contract continuum includes high pay and career advancement, related to the transactional contract, and job security, related to the relational contract (Rousseau, 1990). Breach occurs when one of those obligations are not fulfilled, depending on which psychological contract type is in place.

Breach of the psychological contract for freelancers in the project-based industries is likely to occur. Firstly, high pay cannot be guaranteed due the uncertain demand and outcome of output in creative industries such as event and film production (Menger, 1999). Secondly, career advancement is not likely to occur because organizations hire freelancers for their existing skills and do not want to invest in the development of new skills; freelancers get stuck in the so-called ‘career progression paradox’ (O’Mahoney & Bechky, 2006). Thirdly, because of its decentralized structure and high flexibility requirements, it is hard for

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1994). Apart from the distinction between relational and transactional contract breach, psychological contract breach is likely to occur in the continuous changing circumstances firms face (Rousseau & McLean Parks, 1993). Robinson (1996, p.574) argued that as a result, firms need to ‘repeatedly manage, renegotiate, and alter the terms of the employment

agreement continually’ and ‘may be less willing or less able to fulfill all of their promises’. In addition, both Coyle-Shapiro & Kessler (2000) and Robinson & Rousseau (1994) found that the majority of their samples had perceived psychological contract breach.

Once breach of the contract has occurred, individuals tend to react on this (Robinson & Morrison, 1995). Turnley & Feldman (1999) stated that psychological contract breach increased the employee’s intention to leave, the likelihood of an employee to communicate with upper management to seek for improvement, careless behavior and decreased

employer’s loyalty towards the organization. Robinson & Rousseau (1994) found that contract breach had a negative effect on individual’s trust, satisfaction and intentions to remain, and a positive effect on turnover. A study by Lester et al., (2002) showed that breach had a negative effect on organizational commitment and job performance as indicated by their supervisors. Zhao et al. (2007) did a meta-analysis on the outcomes following breach. They argued that breach was positively associated with violation, mistrust and turnover intentions and negatively related to job satisfaction, organizational commitment, in-role performance and OCB (Zhao et al., 2007). The results from a study by Coyle-Shapiro & Kessler (2000) showed that psychological contract fulfillment had a positive effect on

employees’ perceived organizational support, organizational commitment and organizational citizenship behavior. Robinson & Morrison (1995) found that breach had a negative effect on trust and civic virtue, one of the five dimensions of OCB, and that trust functioned as a mediator in this relationship. In addition, Turnley et al. (2003) found a similar relationship with OCB. In their study, psychological contract fulfilment had a positive effect on two types

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of OCB: OCB directed at individuals within the organization and OCB directed at the organization (Turnley et al., 2003).

In summary, there is a large body of literature suggesting that psychological contract breach has a negative effect on job satisfaction (Robinson & Rousseau 1994; Zhao et al., 2007), organizational commitment (Coyle-Shapiro & Kessler, 2000; Lester et al., 2002; Robinson & Rousseau, 1994; Turnley & Feldman, 1999; Zhao et al., 2007) and

organizational citizenship behavior (Robinson & Morrison, 1995; Turnley et al., 2003; Zhao et al., 2007). The following main effects are therefore hypothesized.

H1 There is a negative effect between the level of Psychological Contract Breach perceived by the freelancer and the level of Job Satisfaction of the freelancer.

H2 There is a negative effect between the level of Psychological Contract Breach perceived by the freelancer and the level of Organizational Commitment of the freelancer.

H3 There is a negative effect between the level of Psychological Contract Breach perceived by the freelancer and the level of Organizational Citizenship Behavior of the freelancer.

2.4. CORPORATE REPUTATION

To explore the role of corporate reputation in the psychological contract breach – freelance outcome relationship, first the defining landscape of corporate reputation is touched upon together with the identifying traits of this construct. Thereafter, organizational-level benefits

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for companies with a high corporate reputation are discussed followed by an analysis of the benefits for the individual.

There is a lot of research on corporate reputation and most of the research uses divergent definitions of the construct (Barnett et al., 2006). Fombrun and Van Riel (1997) integrated six different views on corporate reputation consisting of the economic, strategic, marketing, organizational, sociological and accounting view. Fombrun and Van Riel (1997, p. 10) proposed the integrative definition by Fombrun and Rindova (1996): ‘A corporate reputation is a collective representation of a firm’s past actions and results that describes the firm’s ability to deliver valued outcomes to multiple stakeholders’. In defining the construct, corporate reputation was often identified as being a perception (Balmer, 1998; Einwiller & Will, 2002; Roberts and Dowling 2002) subjective (Fombrun, 2001; Fombrun & Van Riel, 1997) and some sort of aggregate (Fombrun & Rindova, 2000; Fombrun & Van Riel, 1997). Because the trait of the construct being a perception was not sufficiently emphasized by Fombrun and Rindova (1996), it seemed more appropriate to follow the definition by Weiss et al. (1999). Weiss et al. (1999, p. 75) defined corporate reputation as an individual’s ‘global perception of the extent to which an organization is held in high esteem or regard’. According to them a firm enjoys a high corporate reputation when a firm is considered to be highly regarded, professional, successful, well-established and stable (Weiss et al., 1999).

There are several organization-level benefits for firms that enjoy a high corporate reputation. Gray & Balmer (1998) argued that having a high corporate reputation helps a firm survive. More specifically, having a high corporate reputation is important because it plays an important role in employees’ pursuit of a particular job (Belt & Paolillo, 1982; Gatewood, Gowan, & Lautenschlager, 1993). Moreover, firms benefit because individuals in a network proof to be more willing to join a particular organization given a high reputation (Turban & Cable, 2003). One can argue that firms may regard the attraction of labor as irrelevant given

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the oversupply of labor of which creative industries are characterized by (Menger, 1999). However, Turban & Cable (2003) provided a counter argument. In their study, firms with a high reputation did not only attract more applicants but also higher quality applicants (Turban & Cable 2003). Especially the latter seems crucial for firms to develop a competitive

advantage.

There are also several benefits for individuals that work for a firm with a high

corporate reputation. First, from a branding perspective, when a corporate brand and another entity are linked to each other a transfer of secondary associations takes place (Keller, 2005). Corporate reputation can be considered as one of those associations and an individual

working for a company another linked entity (Lei et al., 2008; Yu & Lester, 2008).

Individuals can benefit from working for companies that enjoy a high reputation because the association of being highly reputable is transferred to the individuals when the company’s name is present on their resume. Second, a company with a high reputation has a positive effect on individuals’ trust (Keh & Xie, 2009). Freelancers often provide their employers with flexibility, by making their resources available without insisting on immediate

compensation (Ebbers & Wijnberg, 2009). Although this can be a risky practice, companies that enjoy a high reputation are able to provide freelancers with trust in the return of their investment. Another benefit for individuals is the positive influence a high corporate

reputation has on employee identification (Keh & Xie, 2009). Employee identification takes place when a company is able to fulfill the individual’s self-definitional needs and is

beneficial to the individual because it strengthens the employee- employer relationship (Bhattacharya & Sen, 2003).

In sum, the defining landscape for corporate reputation is broad and based off common traits of perception, subjectivity and being an aggregate, the definition by Weiss et al (1999) was argued to be most suitable. They defined corporate reputation as an

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individual’s ‘global perception of the extent to which an organization is held in high esteem or regard’ (Weiss et al., 1999, p. 75). Organizational-level benefits included, the ability to survive, the positive role in employees’ pursuit of a particular job and the attraction of not only higher number but also more qualified applicants (Belt & Paolillo, 1982; Gray & Balmer, 1998; Turban & Cable, 2003). The individual-level benefits for working for a high reputable firm were the transfer of reputation from the firm to the individual, the signaling and perception of trust in the employer and an increased level of identification with the firm (Keh & Xie, 2009; Keller, 2005; Lei et al., 2008; Yu & Lester, 2008).

2.5. CORPORATE REPUTATION AND THE CONTRACT BREACH – FREELANCE OUTCOME RELATIONSHIP

In this section, the moderating effect of corporate reputation on the psychological contract breach- freelance outcome relationship is discussed. First the impact of corporate reputation on the attitudes job satisfaction and organizational commitment is discussed together with the moderating effect of corporate reputation on the contract breach – freelance attitude

relationship. Second, the impact of corporate reputation on organizational citizenship behavior is explained together with the moderating effect of corporate reputation on the contract-breach- organizational citizenship behavior relationship.

It is expected that corporate reputation positively determines the attitude of an individual due the presence of reputation transfer from the firm to the individual (Keller, 2005). The more reputable a firm is the more benefit is perceived and thus satisfaction is derived. In addition, when an employer is highly reputable freelancers want to spend more time with this company (commitment) to obtain more transfer of reputation. As discussed before, when freelancers perceive breach of the contract, they tend to be less satisfied and committed to the focal organization. However, when the company is considered highly

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reputable, freelancers may be less inclined to react on breach because benefits of transfer of reputation outweigh the incurred cost of breach. The following hypothesis captures this predicted relationship.

H4a The negative effect of Psychological Contract Breach on Job Satisfaction is moderated by Corporate Reputation, so that this effect becomes weaker as Corporate Reputation increases.

H4b The negative effect of Psychological Contract Breach on Organizational Commitment is moderated by Corporate Reputation, so that this effect becomes weaker as

Corporate Reputation increases.

The benefits of trust and identification, linked to working for a highly reputable firm determine individual’s citizenship behavior. First, according to Robinson & Morrison (1995) trust had a positive effect on civic virtue behavior. Because civic virtue behavior is one of the dimensions of organizational citizenship behavior, trust is expected to impact OCB (Organ, 1988). Trust triggers individuals to exert effort beyond that is expected from them. Even though extra-role activities are not rewarded by the formal reward system, trust in an organization can assure them that going the extra mile will be reciprocated (Organ, 1988; Rousseau 1989). Second, when individuals work for a company they identify themselves with they are more likely to exert citizenship behavior. This is because when identification with the company takes place, any activity, including extra-role behavior, adds to the fulfillment of an individual’s self-identification need (Bhattacharya & Sen, 2003). In short, corporate

reputation has a positive effect on an individual’s citizenship behavior via trust and identification. A study by Robinson & Rousseau (1994) found that contract breach had a

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negative impact on trust, and presumably on the level of identification. Because individuals that work for a highly reputable company have higher levels of trust and identification, individuals may feel less inclined to react on breach because a threshold of trust and identification is not reached. Given this reasoning, the following prediction is made.

H4c The negative effect of Psychological Contract Breach on

Organizational Citizenship Behavior is moderated by Corporate Reputation, so that this effect becomes weaker as Corporate Reputation increases.

2.6. CORPORATE BRAND SENSITTIVTY AND THE MODERATING EFFECT OF CORPORATE REPUTATION

This section the moderating effect of corporate brand sensitivity on the moderating effect of corporate reputation on the psychological contract breach – freelance outcome relationship is discussed. In order to determine whether the relationship between contract breach and

freelance outcomes are truly moderated by corporate reputation and not something else, corporate brand sensitivity was included in the model as additional moderator. First, it is discussed what brand sensitivity is and what role it plays in the context of employment in the creative industries. This is followed by argumentation for the moderating effect of brand sensitivity on the moderating effect of corporate reputation on the contract breach – freelance outcome relationship.

In the context of a customer, Beaudoin et al. (2003, p. 25) argued that a customer can be considered brand sensitive ‘if the brand plays a significant role in the psychological process that precedes his/her purchase’ (Beaudoin et al., 2003, p. 25). In addition, Brown et al., (2010, p. 195) defined brand sensitivity as ‘the extent to which brand names receive active consideration in organizational buying deliberations’. Because both customer and

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employees can be considered as users of a brand, the scope of the definition can be altered towards the context of the employee. In this thesis, corporate brand sensitivity can therefore be considered as the extent to which the corporate brand receives active consideration in the psychological process that precedes the individual’s decision to work by an organization (Beaudoin et al., 2003; Brown et al., 2011). Brands fulfill a role of a “risk-reduction heuristic” that becomes more important in situations where high levels of risk are present (Brown et al., 2010). More risk results into higher levels of brand sensitivity and this

relationship is moderated by competition (Brown et al., 2010). Since the creative industries are characterized by uncertainty regarding the output of production (risk) and a continuous oversupply of labor (competition) it can be expected that brand sensitivity plays a prominent role in the context of this study (Menger, 1999).

It is argued that if the initial moderating effect truly comes from corporate reputation, the moderating effect will be even stronger for higher levels of brand sensitivity. Freelancers that have a high level of corporate brand sensitivity are expected to work for more reputable companies because they value the benefits that come with it (i.e. transfer of reputation, trust and identification). Because of this, it was predicted that freelancers with a high level of corporate brand sensitivity feel even less inclined to react on breach when they work for a highly reputable company. These relationships are hypothesized below for job satisfaction, organizational commitment and organizational citizenship behavior respectively.

H5a The moderating effect of Corporate Reputation on the Psychological Contract Breach – Job Satisfaction relationship is moderated by the freelancer’s sensitivity towards corporate brands, so that the effect becomes stronger as Corporate Brand Sensitivity increases.

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H5b The moderating effect of Corporate Reputation on the Psychological Contract Breach – Organizational Commitment relationship is moderated by the freelancer’s

sensitivity towards corporate brands, so that the effect becomes stronger as Corporate Brand Sensitivity increases.

H5c The moderating effect of Corporate Reputation on the Psychological Contract Breach – Organizational Citizenship Behavior relationship is moderated by the freelancer’s sensitivity towards corporate brands, so that the effect becomes stronger as

Corporate Brand Sensitivity increases.

An overview of the conceptual model, including all previous discussed hypothesized relationships, can be found in figure 2.1

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3. Method

In this chapter, a description of the research design is discussed first. Thereafter, the results of the pretest are presented. This is followed by a description of the constructs in use together with the adopted measures. In the fourth section the control variables are touched upon. The fifth section presents the details of the procedure. This is followed by a description of the sample of this research. In the final section, the analysis techniques in place for hypotheses testing are touched upon.

3.1. RESEARCH DESIGN

To answer the research question, a deductive research approach appealed the most because hypotheses were developed from the existing literature and tested. The test results of the hypotheses guided the answer to the research question. The study was explanatory in nature because it was attempted to explain relationships between variables as depicted by each hypothesis. To test the hypotheses, a sample needed to be drawn and an appropriate research strategy needed to be devised. The survey seemed the most appealing strategy. First, a survey allowed a structured collection of data that enabled to attach quantitative values to variables. This was important because it allowed the variables to be subject to statistical tests such as correlation and regression required to determine relationships of causality and moderation, as depicted by the hypotheses. Second, given the presence of a time frame to write the thesis, this strategy allowed to collect data from a sizeable population in a short period of time. This timeframe also led to the choice of a mono-method and collect data at one point in time (cross-sectional) rather than multiple points in time (longitudinal). As data collection tool a questionnaire was used with a set of standardized questions tapping into each variable. For the focal variables, scales were adopted from the literature. The questionnaire was completed

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by respondents online to further increase the efficiency of this research strategy due the easy distribution.

To determine the relationships between the variables and test the hypotheses, it was required that each variable varied. Because psychological contract breach and corporate reputation were the main independent variables of this research, it was attempted to maximize the variation in these variables. Maximization of variation of corporate reputation was

attempted by manipulating the introduction each respondent received. Respondents were asked to keep a company in mind they (had) worked for with either a high or a low reputation in the industry. With equal probability of occurrence, each respondent was randomly assigned to an introduction version (high vs. low reputation) by clicking on the link that gave access to the online questionnaire. Although variation of corporate reputation was maximized through manipulation, variation of psychological contract breach was generated through

randomization. This expectation was based on the premise that dependent on the type of introduction a respondent received, breach of the contract was just as likely to be present as absent. More specifically, psychological contract breach was expected to be independent of the type of introduction received because companies with a high reputation are just as likely to breach as companies with a low reputation in the industry. This premise was tested in the pre-test that is presented in the next section to prevent a measurement error

There are some threats to the reliability and validity of this research design. First, by choosing a survey as research strategy, the data obtained are less detailed than through different strategies (e.g. case study, grounded theory). Moreover, by using a questionnaire a common method bias was present that stems from respondent’s self-reporting. In addition, the questionnaire measured the perception rather than actual behavior of respondents. Since the starting point of the research are freelancers’ perceptions (psychological contract breach) this method seemed suitable regardless. Finally, by the collection of cross-sectional data

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rather that longitudinal data, the internal validity and the established causality was lower in comparison.

3.2. PRETEST

Before the questionnaire was distributed over the sample, a pretest was done first prior to data collection to cancel out any issues that could possibly arise. A total of six people participated and each participant was asked to indicate the extent to which the instructions were clear, the time allotted was correct, the layout was clear and attractive, the topics were relevant and whether it looked like the measures measured the constructs they were supposed to measure to assure face validity. In addition, respondents were asked if there were any misunderstood questions and to provide any other comments they may had. Finally, in order to prevent a possible measurement error discussed in the previous section it was tested whether participants of the pretest differed in perceived contract breach based on the introduction received. More specifically, each participant was asked what types of experiences they had with the companies they selected in the introduction to keep in mind. The could choose from “only those that treated me fair”, “only those that treated me unfair” and “I held both type of companies into consideration”. This was done to avoid a measurement error.

The results from the pilot suggest that face validity of the constructs was assured: all respondents agreed that the items measured the construct they were supposed to measure. In addition, respondents were just as likely to hold companies into consideration where they were treated fair as unfair, limiting the bias that could arise from the manipulation of the two different introductions. Finally, several small adjustments have been made regarding the instructions and items linked to each construct to make it more applicable to the context and easier to understand for the population. The complete questionnaire can be found in

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3.3. MEASURES

In this section the variables used in this thesis are presented together with the adopted scales and operational definitions. Constructs central to this thesis include: psychological contract breach, job satisfaction, organizational commitment, organizational citizenship behavior, corporate reputation and corporate brand sensitivity. This thesis adopted several valid and reliable scales. Validity of the scales is assured by adopting validated measures from the literature and through the face-validity that was derived from the pretest. Scales were adopted from the literature when the particular study yielded a Cronbach’s alpha exceeding 0.7. This proved internal consistency, and with that, reliability (Cronbach, 1951). Some scales included counter-indicative items that are reverse scored to eliminate response-set bias. All items scored on 5-point Likert-type scale ranging from (1) ‘Strongly disagree’ to (5) ‘Strongly agree’. The complete list of the items used to measure each construct together with their sources can be found in Appendix 2.

3.3.1. Psychological Contract Breach

To measure the independent variable psychological contract breach, the scale of Robinson and Morrison (2000) was adopted. The scale consists of five items in total of which three are reverse scored. Sample items included: ‘I feel that my employer has come through in

fulfilling the promises made to me when I was hired’ (reverse scored) and ‘My employer has broken many of its promises to me even though I've upheld my side of the deal’. Apart from the replacement of ‘employees’ by ‘freelancers’ the operational definition of psychological contract breach by Robinson and Morrison (2000, p. 534) is used and defined as:

‘Freelancers' perceptions of how well their psychological contracts had been fulfilled by their organization’. Robinson and Morrison reported a Cronbach alpha of 0.92 for these five items, indicating excellent reliability.

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3.3.2. Job Satisfaction

To measure the dependent variable job satisfaction, the scale of Agho et al. (1992) was adopted. The scale consists of six items and included: ‘I feel fairly well satisfied with my job’ and ‘I find real enjoyment in my work’. The scale scored sufficient reliability (α = 0.78). The operational definition of job satisfaction is described as ‘the extent to which employees like their work’ (Agho et al., 1992, p. 185).

3.3.3. Organizational Commitment

The dependent variable organizational commitment is measured through the ‘Organizational Commitment Questionnaire’ (OCQ) by Mowday et al. (1979). This scale consists of nine items including: ‘I talk up this organization to my friends as a great organization to work for’ and ‘I really care about the fate of this organization’. In their research, the OCQ scale

indicated excellent reliability (α = 0.90). In this thesis, the following operational definition used by Mowday et al. (1979, p. 226) is in place: ‘the relative strength of an individual’s identification with and involvement in a particular organization’. In addition, Mowday et al. (1979, p. 226) state that organizational commitment is characterized by: ‘a strong belief in and acceptance of the organization’s goals and values, a willingness to exert considerable effort on behalf of the organization and a strong desire to maintain membership in the organization’.

3.3.4. Organizational Citizenship Behavior

To measure the dependent variable organizational citizenship behavior (OCB) the scale from MacKenzie et al. (1993) has been adopted. This scale consists of twelve items, spread out over four dimensions that each consists of three items. The dimensions in use are: civic virtue

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(α = 0.78), sportsmanship (α = 0.85), altruism (α = 0.88) and conscientiousness (α = 0.80). Only the three items in the sportsmanship dimension are reverse scored. Sample items

included: ‘I am willing to risk disapproval in order to express my beliefs about what's best for the company’ and ‘I return phone calls and respond to other messages and requests for

information promptly’. All four dimensions of OCB are discretionary behaviors that according to Organ (1988) are a personal choice of the freelancer and are not punishable when these types of behavior are not performed. Definitions by MacKenzie et al. (1993, p. 71) were used, apart from slight alterations to assure applicability of the definitions to the specific context of this thesis. Organizational citizenship behavior is discretionary behavior on the part of a freelancer that directly promote the effective functioning of an organization, without necessarily influencing a freelancer’s objective productivity. A freelancer performs civic virtue when he or she responsibly participates in, and is concerned about, the life of the company. Sportsmanship is the willingness of a freelancer to tolerate less than ideal circumstances without complaining. Altruism refers to behavior where a freelancer helps a specific other person with an organizationally relevant task. Finally, conscientiousness refers to instances in which a freelancer carries out certain role behaviors well beyond levels that are minimum required. Please note that courtesy, the fifth dimension, has not been included because it has not been reported before and overlapses with altruism (Organ, 1988).

3.3.5. Corporate Reputation

For the measurement of the moderator corporate reputation, we adopted the three-item scale from Keh & Xie (2009). The scale consists of three items including: “The focal company is a highly-regarded company” and “The focal company is a well-established company”. The scale scored excellent on reliability (α = 0.91). Corporate reputation is defined as ‘a global perception of the extent to which an organization is held in high esteem or regard’ (Weiss et

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al., 1999, p. 75). A unidimensional measure is used in this thesis because people tend to make global evaluations of an organization’s reputation (Weiss et al., 1999).

3.3.6. Corporate Brand Sensitivity

To measure the additional moderator corporate brand sensitivity, the scale by d'Astous & Gargouri (2001) was adopted. Because both consumers and employers are users of a brand, this scale that measures from the consumer perspective has been slightly adopted to fit the employee perspective. The scale consists of three items and sample items included: ‘For me, the corporate brand name is very important information’ and ‘A corporate brand tells a lot about the quality of a firm’. Reliability was proven to be good (α = 0.84). Corporate brand sensitivity is defined as the extent to which the corporate brand receives active consideration in the psychological process that precedes the individual’s decision to enter an organization (Beaudoin et al., 2003; Brown et al., 2011).

3.4. CONTROL VARIABLES

In this thesis, several control variables have been included to filter out the true prediction of the independent variable of interest and eliminate alternative explanations of the dependent variables job satisfaction, organizational commitment and organizational citizenship behavior.

First, all models controlled for organizational tenure, work experience, education level, gender and age. Organizational tenure measure the tenure of the respondent of the company he or she kept in mind whilst answering the questions. The longer the freelancers worked for the organization, the higher the likelihood of job satisfaction, organizational commitment and citizenship behavior. This was expected because if they worked for a longer period of time for the particular organization, they must have been satisfied otherwise they

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would have already altered their behavior and left the organization earlier. The more work experience a respondent has, regardless of the company he or she kept in mind, the lower the likelihood of satisfaction, commitment and citizenship behavior. Freelancers that have obtained a lot of experience and build a great portfolio do not necessarily have to run the extra mile and feel less satisfied and committed, given the comparing work experience they possess. Since this is construct is linked to age, this variable was included as control variable too. Moreover, it was expected that freelancers that enjoyed a higher education, had more opportunities and, therefore, were more likely to work on projects they felt satisfied with, committed to and willing to run the extra mile. Finally, gender was included as control variable. Clark (1997) states that women are more satisfied with their jobs than men. It is expected that female respondents scored higher on job satisfaction and because of that are more committed to the organization and more likely to perform citizenship behavior.

Second, in the literature review it was argued that job satisfaction determined organizational commitment (Roehling, 1977). This variable was therefore included as additional control variable in all model that predicted organizational commitment.

Third, it predicting organizational citizenship behavior, both job satisfaction and organizational commitment were included as additional control variables. In the literature review it was argued that, based on social exchange theory and prosocial behavior, job satisfaction determined organizational citizenship behavior (Bateman & Organ, 1983). In addition, it was expected that the more committed an individual was the more he or she was likely to exert citizenship behavior. This expectation was based on the premise that attitudes lead to behavior and was supported by a meta-analysis of Organ and Ryan (1995) that found that organizational commitment was a significant predictor of citizenship behavior. In this thesis, it is argued that job satisfaction leads to commitment and that commitment in turn leads to citizenship behavior.

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3.5. PROCEDURE

The survey took place in the United States, The Netherlands and online by means of a questionnaire. This questionnaire was constructed with Qualtrics’ research software and consisted of four parts. The first part contained a brief introduction to the topic together with the manipulation of each respondent to take a company in mind they work with or had worked for with, dependent on the manipulation, a high or a low corporate reputation in the industry. The second part consisted of items tapping into the independent variable

psychological contract breach, the dependent variables job satisfaction, organizational commitment and organizational citizenship behavior, the moderator corporate reputation and the control variable organizational tenure. In the third part respondents were asked to forget the particular company they had in mind whilst answering the final set of questions. In this part data was collected that was not company specific. Items presented tapped into the additional moderator corporate brand sensitivity and the additional control variables work experience, education level, gender and age. The fourth and final part presented a thank you note together with contact details of the author to leave any comments or questions.

After the questionnaire was designed and updated with the results from the pretest, the main study took place. The link with access to the questionnaire together with an invitation letter was distributed over forums and emails. The invitation letter (Appendix 3) included a promise to publish the research results afterwards in order to give individuals an incentive to participate. The total data collection period was two weeks.

Anonymity of respondents was ensured by distributing Qualtrics’ anonymous link with access to the questionnaire. This link does not collect any identifying information and highly identifiable questions such as name, company name and residency are left out in the questionnaire. Confidentiality of the collected data was ensured through reporting aggregates

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instead of individual specific data. In addition, the collected data was subject to Qualtrics’ above industry standard protection (please visit https://www.qualtrics.com/security-statement/ for more details). Finally, only the author of this thesis had access to this data.

3.6. SAMPLE

The population consists of all individuals that work as freelancers in the creative industries. These industries include film-, television-, theatre-, musical-, music-, events-, dance- production and advertising among others. The total number of freelancers in the creative industries is not present, but to provide an indication; over four million self-employed workers are members of the creative class in the U. S. (Florida, 2013). To create a sample that accurately reflected the population, the following three sampling procedures were in place: purposive sampling, snowball sampling (Goodman, 1961) and self-selection sampling. These are all non-probability sampling techniques because a complete list of the population was not present. With the attempt to reduce the likelihood that those excluded from the

survey differed from those included, multiple non-probability sampling techniques were used. Purposive sampling took place first by sending out an email to people present in the author’s personal network that were active as freelancer in the creative industries. Thereafter, by means of snowball sampling, people were asked to forward the message to other

freelancers they knew and worked in the creative industries. Finally, by means of self-selection sampling, invitations to participate were posted on forums (Reddit & Facebook) to reach online communities of specialists. The majority of the forums targeted represented a community of specialists present in the creative industries. The complete list of all forums targeted can be found in Appendix 4.

The survey was completed by 222 respondents. First, respondents that completed the survey without filling out any questions were excluded from the analysis (53 respondents).

Psychological contract breach and freelance outcomes : the moderating role of corporate reputation