APPLIED PSYCHOLOGY: AN INTERNATIONAL REVIEW, 2006, 55 (4), 563–585

Workplace Familism and Psychological Contract

RESTUBOG
Original
WORKPLACE
Blackwell
Oxford,
Applied
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0269-994X
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XXX Article
International
2006UK and
FAMILISM
BORDIA
Psychology:
Publishing
Association
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for CONTRACT
LtdInternational BREACH
Applied Psychology, 2006

Breach in the Philippines

Simon Lloyd D. Restubog*
The University of Queensland, Australia

Prashant Bordia
The University of South Australia, Australia

Cette étude cherche à promouvoir des investigations à fondement théorique sur

le vécu familial du travail. Elle apporte sa contribution en proposant et en évaluant
la fonction régulatrice du vécu familial du travail en ce qui concerne aussi bien
la rupture du contrat psychologique que le comportement civique. Nous avons
enquêté auprès de 267 salariés à plein-temps et avons mis en évidence des effets
majeurs des deux sortes de vécu familial du travail (c’est-à-dire le vécu familial
organisationnel et le vécu familial de la relation avec le supérieur hiérarchique)
et de la rupture des obligations relationnelles sur les conduites civiques. Le vécu
familial des rapports avec le supérieur intervient aussi dans la relation entre la
rupture et le comportement civique, la relation négative entre ces deux termes
étant plus affirmée quand le vécu familial vis-à-vis du chef est fort. On peut en
conclure que les salariés vivant une étroite relation de type familial avec leur
supérieur risquent de se sentir trahis et par suite de réagir plus négativement
s’ils sont confrontés à une rupture de contrat. On analyse les retombées de ces
travaux sur la pratique et les orientations des recherches à venir.

The present study addresses the call for theory-based investigations on work-
place familism. It contributes to the literature by proposing and testing the
moderating role of workplace familism between psychological contract breach
and civic virtue behaviour. We surveyed 267 full-time employees and found main
effects of both types of workplace familism (i.e. workplace organisational and
workplace supervisor familism) and breach of relational obligations on civic
virtue behaviour. Workplace supervisor familism also moderated the relation-
ship between breach and civic virtue behaviour, with the negative relationship
between breach and civic virtue behaviour stronger when workplace supervisor

* Address for correspondence: Simon Lloyd D. Restubog, School of Psychology, The Uni-
versity of Queensland, St Lucia, 4072, QLD, Australia. Email: simonr@psy.uq.edu.au
An earlier version of this manuscript was presented at the 6th Australian Industrial/Organ-
isational Psychology Conference, 2 July 2005, Gold Coast, QLD, Australia. We would like to
thank Marigirl Arcibal, Chris Asuncion, and Franco Quodala for assistance in data collection,
and Flora Calleja for logistical support. We are also grateful to Professor Peter Smith and the
two anonymous reviewers for the insightful comments and direction they have provided.

© 2006 The Authors. Journal compilation © 2006 International Association for Applied
Psychology. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ,
UK and 350 Main Street, Malden, MA 02148, USA.
564 RESTUBOG AND BORDIA

familism was high. This suggests that employees with a high level of work-
place supervisor familism may feel a sense of betrayal and, therefore, respond
more negatively to contract breach. Implications for practice and directions
for future research are discussed.

INTRODUCTION
Within collectivist cultures, the form of governance focuses on the mutuality
between management and employees where interpersonal relations and
communication are emphasised as integral components of organisational
functioning (Erez, 1994; Hofstede, 1980, 1997; Misumi, 1989; Sinha, 1999).
For example, the nature of employment relationships is likened to a familial
relationship (Aycan, in press; Aycan, Kanungo, Mendonca, Yu, Deller,
Stahl, & Kurshid, 2000; Hofstede, 1997). It is characterised as familial
because leaders and subordinates seem to assume specific roles which are
typically found in a family environment. Leaders tend to display strong
paternalistic attitudes and often times assume a fatherly role providing guid-
ance and direction to their constituents (Kashima & Callan, 1994; Lincoln,
Hanada, & Olsen, 1981). This parental role is reinforced by employees who
also have an expectation that they will be supported, taken care of, and
helped in ways similar to a parental relationship (Aycan et al., 2000; Hofstede,
1997). Workplace familism emphasises the salience placed on familial
interpersonal processes in the workplace, especially in a collectivist work
environment. The need for belongingness and more importantly the desire
for good interpersonal relationships is part of most need theories (Alderfer,
1972; Maslow, 1954; Wiley, 1997). Drawing from this, workplace familism
comprises employees’ beliefs and behaviours toward their organisation and
supervisor. It reflects the extent to which the employees consider their
organisation and supervisor as a parental figure and also treat them in ways
similar to a family.
The current study contributes to our understanding of the psychological
basis of employment relationships in the Philippine context. First, despite
preliminary evidence suggesting that workplace familism is evident in col-
lectivist cultures and has implications for employee attitudes and behaviours,
there has been limited systematic empirical investigation on this topic with
the exception of Aycan (in press). Aycan proposed a four-type conceptual-
isation of paternalism: benevolent paternalism, exploitative paternalism,
authoritarian approach, and authoritative approach and also designed a
measure of paternalism. An interview study conducted by Restubog,
Bordia, and Tang (2005) supported the notion that employment relation-
ships, particularly in the Philippine context, are akin to a familial relation-
ship. The current study addresses the call for theory-based investigations on
workplace familism.

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 WORKPLACE FAMILISM AND CONTRACT BREACH 565
Second, although much theoretical and empirical work has been con-
ducted on psychological contracts, studies to date have tended to focus on
situational (e.g. Kickul, Lester, & Finkl, 2002) and dispositional character-
istics (Ho, Weingart, & Rousseau, 2004; Kickul & Lester, 2001) which are
likely to influence the relationship between breach and employee outcomes.
Scholars have devoted limited attention to the role of cultural context espe-
cially in collectivist cultures such as the Philippines. Yet this is a salient issue
to understand because an experience of contract breach has serious impli-
cations for working relationships especially in collectivist cultures. Prior
research suggests that employees in collectivist cultures expect their leaders
to take a parental role thereby providing nurturance, guidance, and com-
mitment towards their growth (Aycan, in press; Aycan et al., 2000). As
such, failure on the part of the organisation to adequately meet the psycho-
logical contract of its employees may be construed as a form of betrayal (i.e.
the inability of the leader or the organisation to fulfil its parental role). This
study contributes to the literature by developing an understanding of work-
place familism and its role in the psychological contract dynamics. We begin
this article by describing the nature of psychological contracts and conse-
quences of breach. Next, we review the literature on workplace familism.
Based on the review of existing theory and prior research, hypotheses are
formulated and tested.

NATURE OF PSYCHOLOGICAL CONTRACTS AND

CONSEQUENCES OF BREACH
A psychological contract is generally understood as a set of beliefs regarding
exchange terms and conditions between the employer and the employee
(Rousseau, 1995). It is characterised as perceptual and idiosyncratic in
nature (Rousseau, 1995), and hence, “exists in the eye of the beholder”
(Rousseau, 1995, p. 6). Research on psychological contracts has adapted
MacNeil’s (1985) typology of contracts as a means of categorising the dif-
ferent nature of employment obligations. Transactional contracts refer to
economic exchanges between parties over a specific and limited period of
time (Rousseau, 1995). Conversely, relational contracts are based on less
specific exchanges and a long-term relationship with the organisation,
reflecting relationship-focused and open-ended arrangements without any
fixed termination date (Rousseau, 1995).
Psychological contract breach takes place when one party in the relation-
ship perceives that the other has failed to meet its promises (Rousseau,
1995). A plethora of research has demonstrated that psychological contract
breach has negative consequences for organisations (Lester, Turnley, Blood-
good, & Bolino, 2002; Restubog, Bordia, & Tang, in press; Restubog,
Bordia, Krebs, & Tang, 2005; Robinson & Rousseau, 1994; Robinson &

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Psychology.
566 RESTUBOG AND BORDIA

Morrison, 1995; Rousseau, 1990; Turnley, Bolino, Lester, & Bloodgood,

2003). The social exchange theory (Blau, 1964) has been used to explain the
harmful effects of contract breach (e.g. Robinson & Morrison, 1995;
Turnley et al., 2003). According to the social exchange theory, when one
party provides something to another party, the second party is under pres-
sure to give something in return. Underlying this exchange is the norm of
reciprocity which maintains that if an individual does something favourable
to another party, the other party is obligated by social convention to return
the favour (Gouldner, 1960). When employees feel let down by their employer,
they perceive a breach of the social exchange. As a consequence, employees
are likely to withhold discretionary acts that favour the organisation, such
as organisational citizenship behaviours (OCBs).
OCBs represent a broad category of actions involving performance of
non-obligatory duties which transcend prescribed job requirements (Organ,
1988; Podsakoff, MacKenzie, Paine, & Bachrach, 2000). There is consistent
empirical evidence which suggests that OCBs can be negatively influenced
by failure on the part of the organisation to satisfactorily deliver the psy-
chological contract of its employees (Lester et al., 2002; Restubog et al., in
press; Restubog et al., 2005; Turnley & Feldman, 1999; Turnley et al., 2003).
In the present study, we focus on civic virtue or the willingness to actively
participate and show concern for organisational activities and processes
(Podsakoff et al., 2000). Civic virtue behaviours are voluntary behaviours
which are clearly directed towards the organisation. Previous research has
noted that civic virtue behaviour is mostly affected whenever there is a
perceived contract breach (Restubog et al., in press; Robinson & Morrison,
1995; Turnley et al., 2003). For example, Restubog and his colleagues (in
press) found that non-fulfilment of the psychological contract resulted in
reduced civic virtue behaviours. Drawing from social exchange theory and
the norm of reciprocity, when employees feel that they are treated well by
their employers, they will reciprocate by helping the organisation. Con-
versely, when employees feel that their organisation has failed to provide
what is due to them, they will reciprocate by performing only their required
responsibilities and reducing OCBs. Consistent with these empirical findings
and the social exchange theory, we hypothesise that:

Hypothesis 1: Psychological contract breach will be negatively related to civic

virtue behaviour.

WORKPLACE FAMILISM
Familism is generally conceptualised as a belief system that includes loyalty,
reciprocity, and solidarity towards members of the family and construes the
family as an extension of oneself (Triandis, 1995). Other dimensions of

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 WORKPLACE FAMILISM AND CONTRACT BREACH 567
familism include obligations, support, closeness, and respect (Triandis, 1995).
Familism may also extend to organisational settings which we will term
workplace familism. Employment relationships in general can be described
from the perspectives of two different parties (i.e. employees and their
employers). That is, employment relationships can be viewed in terms of how
employees relate with their organisations and supervisors (i.e. employee ori-
entation) as well as how employees believe their organisation and supervisors
treat them (i.e. employee evaluation/treatment). In the current study, our
focus is on the employee orientation dimension of workplace familism and
the consequences for how employees respond to psychological contract
breach.
In a collectivist culture such as the Philippines, an organisation is con-
strued by employees as a symbolic representation of a parent (Hofstede, 1997).
As such the organisation is regarded as both a provider and a caregiver. In
other words, the organisation is expected to provide the basic necessities
and also protect the interests of its employees. Along similar lines, immedi-
ate supervisors are regarded as parent substitutes who should be accorded
loyalty, respect, and obedience by their subordinates (Hofstede, 1997). In
the Philippine context, emphasis is placed on hierarchy, obedience, and
respect (Enriquez, 1994). Filipinos are generally characterised as respectful
of parents, elders, and other individuals who represent authority (e.g. super-
visors). This attribute stems from child-rearing practices which have been
depicted as authoritative and overprotective. Deference and obedience are
expected from children (Liwag, de la Cruz, & Macapagal, 1998). For example,
children and even adults customarily use verbal expressions such as po or
opo (a word that expresses an individual’s respect to an elder or a person
held in high esteem) which is uttered before and after every sentence, and
non-verbal behaviours such as pagmamano (kissing the hand where the per-
son bows slightly to be touched on the forehead by an elder’s hand) as signs
of reverence accorded to the elderly and authority figures (Church, 1987).
These ideas closely resemble the concept of paternalism or patriarchal-
caring leadership as it relates to how people of authority should take care
of their constituents. Paternalism is a salient cultural value dimension which
is inherent in a number of Asian, Latin American, and Middle Eastern
countries (Aycan, Kanungo, & Sinha, 1999; Aycan et al., 2000). In this type
of relationship, the role of the supervisor goes beyond the work-oriented
employee–employer relationship. The supervisor is perceived as a parent,
providing guidance, nurturance, and protection in the professional and per-
sonal lives of their subordinates. In exchange, the subordinate demonstrates
loyalty and obedience to his/her supervisor. For example, Filipino employees
often value workplace familism within their work environment while sub-
scribing to Western management philosophies and methods (Mathur,
Zhang, & Neelankavil, 2001; Neelankavil, Mathur, & Zhang, 2000). Leaders

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568 RESTUBOG AND BORDIA

establish close interpersonal relationships with their subordinates and

co-workers. For instance, a manager may be invited by his/her subordinate
to serve as a sponsor in ceremonial occasions (e.g. baptism, confirmation,
or marriage). This bond of ritual kinship, known as compadrazgo, which
means god-parenthood or sponsorship, strengthens personal alliances and
is considered as an informal invitation to become a friend or an extended
member of the family.
Workplace familism can be conceptualised at two levels: organisational
and supervisor. Similar distinctions have been made in other areas of organ-
isational behaviour research (Rhoades & Eisenberger, 2002). For example,
the organisational support theory suggests that employees develop relation-
ships at the organisational and individual levels (i.e. supervisor; Rhoades
& Eisenberger, 2002). While organisational policies and practices create a
relationship context, it is distinct from the everyday interactions that occur
with the supervisor. Thus, the organisation and supervisor can be considered
as two distinct relationship foci.
Previous research also suggests that employees in collectivist contexts are
more relationship-focused (Hofstede, 1997; Earley & Gibson, 1998; Erez,
1994). At an individual level, scholars have described the relationship
between the immediate supervisor and their employees as similar to a parent
and children and the dynamics of the interaction as akin to a family
(Hofstede, 1997; Mathur et al., 2001; Neelankavil et al., 2000). For example,
Asian managers place emphasis on a patriarchal type of leadership (Aycan
et al., 2000; Misumi, 1989; Redding, Norman, & Schlander, 1990; Sinha,
1999) and group maintenance activities (Bass, Burger, Doktor, & Barrett,
1979). The implication of this idea is that workplace supervisor familism can
facilitate the creation and maintenance of favourable working relationships
and eliminate barriers that may impede positive work outcomes. Furthermore,
previous researchers (Aycan et al., 2000; Hoftede, 1997) used the analogy of
the parent to explain how the organisation is viewed by its constituents in
collectivist cultures. A good parent is depicted as a good provider and
ensures the welfare and safety of his/her children. Thus, if employees perceive
the organisation as being a good parent, the employees are more likely to
reciprocate by exemplifying positive behaviours which contribute to organisa-
tional effectiveness. Drawing from these ideas, we argue that employees
who feel that their needs are adequately satisfied by their organisation and
who also feel that their leaders have demonstrated parent-like concern will
most likely reciprocate in the form of desirable behaviours. Thus, we suggest
that workplace familism in these two relationship foci should be positively
related to civic virtue behaviour.

Hypothesis 2a: Workplace supervisor familism will be positively related to

civic virtue behaviour.

© 2006 The Authors. Journal compilation © 2006 International Association for Applied
Psychology.
 WORKPLACE FAMILISM AND CONTRACT BREACH 569
Hypothesis 2b: Workplace organisational familism will be positively related
to civic virtue behaviour.

We also expect workplace familism to play a moderating role between

psychological contract breach and civic virtue behaviour. The moderating
role of workplace familism can be explained in the light of the betrayal
framework (Elangovan & Shapiro, 1998; Jones & Burdette, 1994). Drawing
from prior research in social and organisational psychology, betrayal has
been conceptualised as a serious violation of the norms and expectations of
a relationship (Elangovan & Shapiro, 1998; Jones & Burdette, 1994; Reina
& Reina, 1999). Personal expectations generally comprise the rules governing
the relationship which serve as the building block for trust within that relation-
ship and help to maintain the close ties between two parties (Elangovan &
Shapiro, 1998; Reina & Reina, 1999). Expectations develop and are renego-
tiated based on socially communicated norms and unique understanding of
the interaction of the two parties (Jones & Burdette, 1994). In the context
of this study, employees have an expectation that their organisation and
immediate supervisor will provide them material and emotional support. Psy-
chological contract breach or a failure to adequately meet their expectations
may be construed as a form of betrayal especially for those employees who
regard their organisation and supervisor as family (i.e. high workplace
organisation and supervisor familism). This expectation would be even higher
among employees with high workplace familism. That is, an experience of
breach is contrary to employees’ personal expectations that they would be
taken care of and nurtured by their organisation and their supervisor. When
employees perceive that their organisation and supervisor are not fulfilling
their role as a good parent, they are likely to feel betrayed. Thus, we predict:

Hypothesis 3a: Workplace supervisor familism will moderate the relationship

between psychological contract breach and civic virtue behaviour. The nega-
tive impact of contract breach on civic virtue behaviour is stronger when
workplace supervisor familism is high rather than low.

Hypothesis 3b: Workplace organisational familism will moderate the relation-

ship between psychological contract breach and civic virtue behaviour. The
negative impact of contract breach on civic virtue behaviour is stronger when
workplace supervisor familism is high rather than low.

METHOD

Participants and Procedure

Two hundred and sixty-seven full-time employees (179 females, 88 males)
enrolled in a part-time MBA programme from three large universities in the

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Psychology.
570 RESTUBOG AND BORDIA

Philippines participated in the study. Eighty per cent were between the ages
of 20 to 30 years. The average job tenure was 4.04 years (SD = 4.07). A wide
variety of business sectors were represented, including educational and
training institutions (22.2%), government agencies (18.8%), financial institu-
tions (14.7%), service and hospitality (10.2%), manufacturing (8.6%), sales
and retail (9.0%), and information technology and telecommunications
(5.3%).

Procedure
We obtained permission from the Dean of the Graduate School of Business
of each participating institution to administer survey-questionnaires during
class sessions. At the beginning of data collection, a brief introduction
explaining the purpose of the research was provided. Confidentiality was
assured. Participation in the survey was voluntary. Only those with full-time
employment were included in the study. The questionnaires were prepared
in English because this language is considered an official language in the
Philippines and is taught to most Filipinos at a young age (Bautista, 2000).

Measures
Psychological Contract Breach. This measure assessed the extent of
breach on transactional and relational dimensions. Participants were pre-
sented a list of commitments generally made by employers/organisations to
their employees. They were instructed to rate the extent to which promises
regarding various organisational outcomes (e.g. pay rises, benefits, fairness,
etc.) were fulfilled by their employer. This set of items was adopted from
previous research (Turnley & Feldman, 1999). Participants responded using
a 7-point Likert scale (1 = Not fulfilled at all and 7 = Extremely fulfilled ).
All items were reverse-scored to operate as an index of psychological con-
tract breach.
The psychological contract breach measure was examined using confirm-
atory factor analysis. A two-factor solution was supported, χ2 (64, N = 267)
= 175.83, p < .001, χ2/df = 2.74. All the items also loaded significantly onto
their specified factor. The key fit indices were as follows: GFI = .91, TLI =
.92, CFI = .93, and RMSEA = .081. Furthermore, this two-factor model fit
the data significantly better than a one-factor model, χ2 (65, N = 267) = 506.44,
p < .001, χ2/df = 7.79, GFI = .70, TLI = .68, CFI = .73, and RMSEA = .16.
The two-factor solution yielded in this analysis was consistent with previous
empirical research in which employer obligations clearly loaded on two dis-
tinct factors: transactional and relational obligations (Robinson & Rous-
seau, 1994). All the manifest indicators for both breach of transactional
obligations (path coefficients ranging between .59 and .86) and relational

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 WORKPLACE FAMILISM AND CONTRACT BREACH 571
obligations (path coefficients ranging between .69 and .79) have moderate
to high path coefficients from their latent constructs. Cronbach’s alphas
were .84 and .90 for transactional obligations and relational obligations,
respectively.

Workplace Familism. The workplace familism measure was designed

based on the study conducted by Restubog, Bordia, and Tang (2005). In this
study, they interviewed 30 employees to explore the nature of employment
relationships in the Philippine context. Qualitative analysis supported the
notion of workplace familism in the Philippine context. Workplace familism
involves the creation of a family atmosphere (“in this organisation, we are
one big happy family”), considering the workplace as a family context (“this
organisation is my second home”), and according respect and treatment to
the supervisor as a parental figure (“my supervisor is like a father or mother
figure to me”). These findings are supported by previous theoretical writings
on Philippine culture where smooth interpersonal relationships are main-
tained not only within the family but also in other societal units, such as
business organisations (Enriquez, 1994; Jocano, 1999a, 1999b).
The scale consisted of two factors: workplace organisational familism and
workplace supervisor familism. The items and loadings on the two factors
are presented in Table 1. Principal components factor analysis using ortho-
gonal rotation was conducted to examine the underlying structure of the
scale. A two-factor solution was derived which attained eigen values above
1.0, and accounted for 74.54 per cent of the variance. Factor 1 comprised
four items that reflected a familial atmosphere that exists within the organ-
isation. Item loadings on this factor accounted for 17.75 per cent of the
variance. Factor 2 consisted of six items reflecting a family-oriented relation-
ship between the employees and their immediate supervisor. Item loadings
on this factor accounted for 56.79 per cent of the variance. The workplace
organisational familism and the workplace supervisor familism yielded an
alpha coefficient of .92 and .91, respectively.

Civic Virtue Behaviour. Civic virtue behaviour was measured using the
items designed by Podsakoff, Mackenzie, Moorman, and Fetter (1990). Par-
ticipants were instructed to assess the degree to which they participate in
organisational activities. A sample item is, “I keep updated with the changes
in this organisation”. This scale yielded an alpha coefficient of .72.

Control Variables. Past research has noted that attitudes and behaviours
at work can be significantly influenced by demographic characteristics
(Rousseau, 1990; Robinson & Rousseau, 1994). In light of this, participants
were asked to report their gender, age, and tenure. These demographic
characteristics were controlled in our statistical analysis.

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RESTUBOG AND BORDIA
TABLE 1
Factor Analysis of the Workplace Familism Scale Items

Factor 1: Workplace Factor 2: Workplace

Items organisational familism supervisor familism

1. To me working in this organisation is like being a member of a family .94 .02

2. I regard this organisation as my second home .92 .03
3. Working hard for this organisation is similar to working hard for my own family .85 .04
4. I feel part of a family in this organisation .83 .19
5. I feel shamed when someone insults my supervisor .06 .91
6. My supervisor is like a father or mother figure to me .08 .85
7. I seek counsel from my supervisor if I have a personal problem .06 .83
8. I am personally insulted when someone criticises my supervisor .06 .80
9. I respect my supervisor in the way I respect my father or mother .12 .71
10. I show loyalty to my supervisor because I consider him or her as part of my family .29 .69

Eigen-value 5.68 1.78

Percentage of variance explained 56.77 17.75
Cumulative percentage of variance explained 56.77 74.54
 WORKPLACE FAMILISM AND CONTRACT BREACH 573
RESULTS

The means, standard deviations, inter-correlations, and internal consistency

reliabilities for the study variables are summarised in Table 2. Internal con-
sistency estimates were all above .70. All of the correlations were in the
predicted direction. There were also significant correlations between the
study variables and demographic characteristics. For example, workplace
organisational familism was positively related to age (r = .18, p < .05) and
tenure (r = .17, p < .05). Given these relationships, we controlled for demo-
graphic characteristics in subsequent analyses.
A series of hierarchical multiple regressions were used to examine the
relationships between psychological contract breach and civic virtue behaviour.
We conducted hierarchical regression for the two measures of psychological
contract breach in combination with a type of workplace familism. Follow-
ing Aiken and West (1991), we entered control variables (i.e. gender, age,
and tenure) in the first step of the regression equation. In the second step,
we entered the two measures of psychological contract breach in conjunc-
tion with a specific type of workplace familism (e.g. breach of relational
obligations and workplace supervisor familism; breach of transactional obli-
gations and workplace supervisor familism) to test for main effects. Finally,
two-way multiplicative terms were computed between the moderator and
the independent variable (e.g. breach of relational obligations × workplace
supervisor familism) to test for two-way interaction effects and were entered
in the third and fourth steps. In order to reduce multicollinearity, the
independent and moderator variables were centred at their means prior to
the creation of the interaction terms (Aiken & West, 1991). To fully test
Hypotheses 3a and 3b, we followed the guidelines suggested by Aiken and
West (1991) for moderated regression. In particular, we examined the sign
and significance of the slope of the relationship between each type of breach
and workplace familism. We plotted the slopes at one standard deviation
above and below the mean of workplace familism (which represent high and
low levels of workplace familism, respectively).
Hypothesis 1 predicted that psychological contract breach was negatively
related to civic virtue behaviour. As shown in Table 3, breach of relational
obligations was negatively related to civic virtue behaviour (β = −.19, p <
.01). However, the hypothesised relationship between breach of transac-
tional obligations and civic virtue behaviour was not supported (β = −.00,
ns). Thus, Hypothesis 1a was partially supported.
Hypothesis 2a predicted that workplace supervisor familism was posi-
tively related to civic virtue behaviour. Our results showed that there was a
positive relationship between workplace supervisor familism and civic virtue
behaviour providing evidence for Hypothesis 2a (β = .16, p < .05). Hypo-
thesis 2b predicted that workplace organisational familism was positively

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TABLE 2
Means, Standard Deviations (SDs), and Inter-correlations for the Study Variables

Variable Mean SD 1 2 3 4 5 6 7 8

1. Gendera 1.67 .47

2. Ageb 2.90 1.16 −.07
3. Tenure 4.04 4.07 −.05 .73**
4. Transactional 3.82 1.12 .06 −.09 −.09 (.84)c
5. Relational 3.32 1.13 .06 .04 .04 .48** (.90)
6. Workplace organisational familism 4.65 1.41 −.02 .18* .17* −.31** −.53** (.92)
7. Workplace supervisor familism 4.40 1.33 .08 .04 .09 −.20** −.53** .51** (.91)
8. Civic virtue behaviour 5.82 .93 −.09 .08 .06 −.14* −.28** .30** .26** (.72)

Note: N = 267; * p < .05; ** p < .01. Values in parentheses are coefficient alphas for scaled variables.
a
1 = male, 2 = female.
b
1 = under 20 years old, 2 = 20–25, 3 = 26–30, 4 = 31–35, 5 = 36–40, 6 = 41–45, 7 = 46–50, 8 = Over 50.
c
Internal consistency alphas are in parentheses along the diagonal.
Psychology.
© 2006 The Authors. Journal compilation © 2006 International Association for Applied

TABLE 3
Summary of Hierarchical Regression Analysis for the Moderating Role of Workplace Familism Between Two Types of Breach
and Civic Virtue Behaviour

WORKPLACE FAMILISM AND CONTRACT BREACH

Workplace organisational familism as moderator Workplace supervisor familism as moderator

Predictors Step 1 Step 2 Step 3 Step 4 R2 ∆R2 Step 1 Step 2 Step 3 Step 4 R2 ∆ R2

Age −.08 −.07 −.07 −.07 −.08 −.08 −.09 −.08

Gender .07 .05 .05 .05 .07 .08 .09 .09
Tenure .01 .00 .01 .02 .01 .01 .01 .00 .01 .01
Breach of relational obligations (RO) −.19** −.22** −.23** −.19** −.25** −.24**
Breach of transactional obligations (TO) .00 .04 .04 .00 .01
Workplace organisational familism (WOF) .20** .22** .22** .12** .11**
Workplace supervisor familism (WSF) .16* .19** .19** .11** .10**
RO × WOF −.11 −.12 .13 .01
TO × WOF .02 .13 .00
RO × WSF −.16* −.15* .13* .02*
TO × WSF −.02 .13 .00

* p < .05; ** p < .01.

575
576 RESTUBOG AND BORDIA

FIGURE 1. The interaction between breach of relational obligations and

workplace supervisor familism on civic virtue behaviour.

related to civic virtue behaviour. Table 3 shows a similar pattern of relation-

ship for workplace organisational familism. Workplace organisational
familism was positively related to civic virtue behaviour (β = .20, p < .01).
These results support Hypothesis 2b.
Hypothesis 3a predicted that workplace supervisor familism moderates
the relationship between breach and civic virtue behaviour. Entry of the two-
way interaction term (breach of relational obligations × workplace super-
visor familism) explained a significant amount of additional variance in
civic virtue behaviour, R∆2 = .02, F(1, 259) = 6.01, p < .05. Simple slope
analysis was performed to determine the relationship between psychological
contract breach and civic virtue behaviour at high and low levels of work-
place supervisor familism. The slope for high workplace supervisor familism
was statistically significant, t(126.5) = −4.14, p < .01, whereas the slope for
low workplace supervisor familism was not, t(126.5) = −1.67, ns. As
depicted in Figure 1, civic virtue behaviour demonstrated a sharp decrease
as contract breach increased for those with high workplace supervisor
familism. However, the hypothesised relationship involving breach of trans-
actional obligations and workplace supervisor familism in predicting civic

© 2006 The Authors. Journal compilation © 2006 International Association for Applied
Psychology.
 WORKPLACE FAMILISM AND CONTRACT BREACH 577
virtue behaviour was not supported, R∆2
= .00, F(1, 258) = .72, ns. Overall,
Hypothesis 3a was partially supported.
Hypothesis 3b predicted that workplace organisational familism moder-
ates the relationship between breach and civic virtue behaviour. Our results
revealed that the interactive effect between breach of relational obligations
and workplace organisational familism was approaching significance, R∆2 =
.01, F(1, 259) = 3.06, p < .081. Although the significance level of the mod-
erating effects does not conform to standard statistical conventions, the
interactive relationships between these variables warrant further investiga-
tion. No interaction effects were found between breach of transactional
obligations and workplace organisational familism, R∆2 = .00, F(1, 258) =
.10, ns. On the whole, Hypothesis 3b was not supported.

DISCUSSION

Pattern of Results
The obtained results generally support our argument that psychological
contract breach has detrimental consequences for civic virtue behaviour. Our
research showed that breach of relational obligations was negatively related
to civic virtue behaviour while breach in transactional obligations was not.
Thus, it appears that employee appraisal of the extent to which the organi-
sation adequately fulfilled its relational obligations is a more important cor-
relate of civic virtue behaviour than transactional obligations. This result is
consistent with previous research that examined the negative effects of breach
of relational and transactional obligations on a wide range of employee
attitudes and behaviours (Robinson, Kraatz, & Rousseau, 1994; Turnley et al.,
2003).
Our results showed that both types of workplace familism were signifi-
cantly related to civic virtue behaviour. This suggests that a high level of
workplace familism increases the likelihood of civic virtue behaviours. When
employees perceive that there is a familial relationship between them and their
organisation and supervisor, they are likely to contribute positive behaviours.
In other words, workplace familism may serve as a motivating factor for
employees to engage in behaviours which benefit their organisation.
Consistent with our hypothesis, we found a stronger negative relationship
between breach and civic virtue behaviour when workplace supervisor familism
was high. Betrayal generally elicits negative emotions and undesirable behaviours
(Reina & Reina, 1999). Prior research on the social psychology of relation-
ships has revealed that an experience of betrayal results in intense negative
emotions, an erosion of trust, and relational dissolution (Jones & Burdette,
1994; Reina & Reina, 1999). For example, Jones and Burdette (1994) assessed
the nature of a personal relationship after betrayal by asking participants who

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Psychology.
578 RESTUBOG AND BORDIA

were betrayed to evaluate their relationship outcomes. Results showed that 90

per cent of the relationships worsened, while 5 per cent remained the same. In
the context of this study, psychological contract breach is interpreted as a
form of betrayal. As workplace familism involves loyalty, support, closeness,
and respect, a salient aspect of it has to do with the supervisor’s obligation
(as a parent substitute) to provide material and emotional support for his/her
employees. Failure to do so is perceived as a violation of trust within the
relationship and may be considered as an act of betrayal. Therefore, employees’
symbolic representation of the supervisor as a parent is shattered, resulting
in a loss of faith in the employment relationship.
These findings can also be interpreted based on the cultural characteristics
of the Philippines. Filipinos generally emphasise the importance of palabra
de honor (word of honour) in interpersonal relationships and transactions
(Enriquez, 1994; Jocano, 1999a, 1999b). It is considered a form of commitment
or assurance made to another party. Once uttered or spoken, it creates an
expectation of the other person or entity (Rousseau & Schalk, 2000). Failure
on the part of the other party to fulfil its palabra de honor suggests that the
other party does not have honour. Along similar lines, Aycan and her col-
leagues (2000, p. 201) noted that, “in paternalistic cultures where loyalty
towards community is of great importance, fulfillment of obligations to one
another in society as well as in organisation(s) is among the primary respon-
sibilities of individuals”.
While we have attempted to conceptualise and measure the indicators of
workplace familism, we were unable to differentiate this newly developed
construct from other variables frequently used in organisational behaviour. For
example, workplace familism may share similar conceptual underpinnings
with perceived organisational and supervisor support given its socio-emotional
supportive functions. Workplace familism and affective commitment are
also comparable in that both constructs suggest an affective bond between the
organisation and its employees. Finally, both workplace supervisor familism
and leader–member exchange highlight the favourableness of the relationship
shared between the immediate supervisor and subordinate. Despite these
commonalities, we should point out, however, that a key defining attribute
of workplace familism is the cultural meaning embedded within it which is
not found in Western-oriented constructs. In the next section, we attempt
to conceptually differentiate workplace familism from other organisational-
and supervisor-related constructs commonly used in organisational behaviour
research.
Workplace organisational familism and perceived organisational support
both reflect a positive regard for the well-being of the employees. In the
same way, workplace organisational familism and affective commitment
represent an employee’s strong emotional ties with the organisation. However,
what distinguishes workplace organisational familism from these constructs

© 2006 The Authors. Journal compilation © 2006 International Association for Applied
Psychology.
 WORKPLACE FAMILISM AND CONTRACT BREACH 579
is the source of the emotional ties and the underlying cultural meaning.
While perceived organisational support and organisational commitment are
likely to be based on a history of support and social exchange, the source
of emotional ties in workplace familism is the family status accorded to the
organisation and the supervisor. In collectivist cultures, an organisation is
construed as a symbolic representation of a parent (Aycan et al., 2000;
Hofstede, 1997). As such, the organisation is perceived as a provider and
also a caregiver. In other words, the organisation is expected to provide the
basic needs and also to protect the interests of its employees. Another dif-
ferentiating feature of workplace organisational familism is that it incorpo-
rates the notion that the organisation is not merely a workplace per se but
also a social representation of a family institution—one that is characterised
by hierarchy and authority relations. By analogy, the organisation embodies
the head of the family while the employees represent the children.
Workplace supervisor familism can be considered similar to perceived
supervisor support in that both have socio-emotional supportive functions.
Along the same lines, workplace supervisor familism and leader–member
exchange are both dyadic in nature and reflect a closely knit interaction
between the leader and the subordinate. Despite these shared themes, work-
place supervisor familism is distinct from perceived supervisor support and
leader–member exchange. In the Philippine context, respect for authority is
based on the special honour paid to an elder member of the family, and by
extension, to anyone in a position of power (e.g. supervisors in the work-
place). Traditionally, an immediate supervisor represents a parent substitute,
and thereby should be accorded loyalty, respect, and obedience by subordi-
nates (children). Perceived as a parent substitute (“My supervisor is like a
father or mother figure to me”), an immediate supervisor not only provides
direction and guidance in carrying out work, but also offers counsel and
nurturance (e.g. an employee seeks counsel from his/her supervisor if he/she
has a personal problem) to his/her subordinates. Another differentiating
characteristic of workplace supervisor familism is the social dynamics that
occur between supervisor and employee which are in some ways similar to
a parental relationship. Subordinates become a social extension of their
immediate supervisors. For example, negative criticisms made against the
supervisor may be construed also as a form of personal attack against the
subordinate (e.g. the employee feels personally shamed when someone insults
his/her supervisor).
We believe that the present study explores a distinct and relevant research
question which makes several contributions to the existing literature. First,
it draws empirical attention to the psychological basis of employment relation-
ships in the Philippine context. Second, we were able to identify the salient
role of workplace familism in the Philippine context. The results revealed that
employees who have strong family-oriented feelings are likely to demonstrate

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Psychology.
580 RESTUBOG AND BORDIA

behaviours which are beneficial for the organisation. Thus, the role of work-
place familism highlights the significance of personal relationships in the
workplace especially in a collectivist culture like the Philippines. While work-
place familism has been found to be prevalent in most Asian, Latin American,
and Middle Eastern cultures (Aycan, in press), there has been limited empirical
investigation on this topic. Thus, our study addresses the call for theory-
based investigations on workplace familism. Third, our study provided a
new insight into the way employees with a high level of workplace familism
respond to contract breach. Because contractual transgressions occur in a
family-oriented context, they may be interpreted as a form of betrayal. This
suggests that contract breach is a failure to live up to the personal expecta-
tions of workplace familism that govern the relationship.

Limitations and Directions for Future Research

There are limitations in this study that should be noted. First, because of
the cross-sectional design, we were unable to determine causal relationships
among the study variables. Another limitation is related to the use of self-
report data which may have contributed to inflated relationships (e.g. com-
mon method variance; Podsakoff, MacKenzie, Lee, & Podsakoff, 2003). To
examine whether common method variance was a threat to our study, we
conducted Harman’s one-factor test (Podsakoff & Organ, 1986). A factor
analysis was conducted on all items assessing the five variables using the
eigen-value greater than one criterion (Tabachnick & Fidell, 1996). Five
factors were extracted which explained 66.20 per cent of the variance. The
first factor accounted for only 34.52 per cent of the variance. Given that one
single factor did not explain the majority of the variance and five distinct
factors were obtained, common method variance may not be a concern in
the study. Along similar lines, the observed moderating effects of workplace
supervisor familism between breach of relational obligations and civic virtue
behaviour were complex interactions that could not easily be explained by
common method variance (Brown, Ganesan, & Challagalla, 2001). Never-
theless, future research should obtain objective data from multiple sources
such as peer or supervisor ratings of civic virtue behaviour to minimise the
influence of common method variance (Podsakoff et al., 2003).
Third, we collected quantitative data only in the Philippines. Thus, our
research may not generalise to other collectivist cultures. Previous research
shows that collectivist cultures are different from one another. For example,
Gupta, Surie, Javidan, and Chhokar (2002), in their GLOBE study, found
that the Philippines scored highest on charismatic, team-oriented and par-
ticipative leadership, and lowest on self-protective and autonomous leadership
in comparison to Iran, India, Thailand, Malaysia, and Indonesia. While it is
possible that workplace familism may also exist in other collectivist contexts,

© 2006 The Authors. Journal compilation © 2006 International Association for Applied
Psychology.
 WORKPLACE FAMILISM AND CONTRACT BREACH 581
we suspect that its conceptualisation and behavioural manifestations may
vary from one country to another.
Future research is needed to explore the nature of employment relation-
ships from the employer’s point of view to validate the familial-like inter-
actions between the employee and the organisation/supervisor. There is also
a need to increase our understanding of the antecedents, mediating mecha-
nisms, and resulting outcomes of workplace familism. Along similar lines,
future research also needs to examine the construct validity of workplace
familism by determining its relationship with other organisation- (e.g. affec-
tive commitment, perceived organisational support) and supervisor-related
(e.g. leader–member exchange and perceived supervisor support) constructs
and their theoretically linked antecedents and outcomes (Churchill, 1979;
Cronbach & Meehl, 1955). Future research should also seek to understand
the mechanisms through which both types of workplace familism operate
and the functions they serve. Does workplace familism always result in
positive work outcomes? Is a particular type of workplace familism more
effective in moderating the impact of breach on work behaviours directed
at the organisation or directed at other individuals? Is workplace familism
only beneficial to organisations in collectivist contexts? Answers to these
research questions may be of considerable interest to researchers in the field
of cross-cultural organisational behaviour.

Practical Implications
The findings of this study have considerable practical implications. The
results of the study suggest that workplace familism is vital in managing
Filipino employees. Therefore, organisations should implement programmes
aimed at improving the relationship between management and employees.
We recommend an open communication process which would allow
employees to voice their needs and concerns which directly or indirectly
affect them. There are also benefits to be derived in initiating organisational
activities (e.g. team building, family-organisation picnics, etc.) which foster
a sense of solidarity and family-orientedness among managers and employees.
These strategies would make employees feel that they are not merely paid
workers, but rather are recognised as persons and valued members of “one
big happy family”. Managers and those responsible for the supervision of
staff also have a significant role as they serve as agents of the organisation
directly responsible in managing and relating with their subordinates. Thus,
it is suggested that they be trained in the softer side of management, empha-
sising genuine “interpersonal thinking rather than organizational thinking”
(Hui, Lee, & Rousseau, 2004, p. 233). Particular attention should be given
to the development of interpersonal and communication skills, which are
essential in the maintenance of positive employment relationships.

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Psychology.
582 RESTUBOG AND BORDIA

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