Management & Economics Research Journal 

ISSN 2710-8856 (Online) 
ISSN 2676-184X (Print)  

Vol. 3 No. 2 (2021), pp. 22-40 
 

  https://doi.org/10.48100/merj.2021.163   
 
 

Faculty of Economics, Commercial & Management 
Sciences, Ziane Achour University of Djelfa, BP 

3117, Djelfa - Algeria  
22 

www.mer-j.com 
 

 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 
 

Monir Hamatto EL-Ghorra1, Siti Aisyah Binti Panatik 2 
 

1 PhD degree, Senior lecturer at AL-Isra University, Gaza (Palestine) 
  mony.gh@gmail.com   

2 PhD degree, Associate Professor, University of Technology Malaysia “UTM” (Malaysia) 
 sitiaisyah@management.utm.my    

 
Published: 01 -09 -2021 Available online: 17 -05-2021 Accepted: 15 -05 -2021 Received: 01 -03 -2021 

 

How to Cite: 
EL-Ghorra, M. H., & Panatik, S. A. B. (2021). Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic Work Ethics: A Moderated Mediation Study. 
Management & Economics Research Journal, 3(2), 22-40. https://doi.org/10.48100/merj.2021.163    

 

Abstract: 
We investigated how organisational identification (OID) mediates 

the influences of psychological contract breach (PCB) on two work 
outcomes [organisational citizenship behaviour (OCB) and 
counterproductive work behaviour (CWB)], and how Islamic work ethics 
(IWE) moderated the PCB–OID relationship. We collected data from 256 
Palestinian managers in Gaza Strip ministries using a self-report 
questionnaire; we employed Structural Equation Modelling in analysing the 
data using Smart PLS. Our findings reveal that OID mediates between PCB 
and the two work outcomes. Further, we show that IWE has no moderating 
influence on the PCB–OID relationship. Finally, the influence of PCB on 
the two work outcomes is insignificant. 

 
Corresponding author: AL-Isra university, Gaza (Palestine) 
[ mony.gh@gmail.com] 
 
©2021 the Author(s). This is an open-access article distributed under the terms of (CC BY-NC 4.0) 
which permits use, distribution and reproduction in any medium, provided the original work is 
properly cited and is not used for commercial purposes. 

mailto:mony.gh@gmail.com
mailto:sitiaisyah@management.utm.my
https://doi.org/10.48100/merj.2021.163
mailto:mony.gh@gmail.com
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https://doi.org/10.48100/merj.2021.163
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Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

 23  
 

Keywords: Psychological Contract Breach, Organisational Citizenship 
Behaviour, Counterproductive Behaviour, Organisational Identification, 
Islamic Work Ethics.   
JEL Codes: M5, L21. 

1. Introduction 

We explored what happens to employees’ sense of organisational 
citizenship behaviour (OCB) and its antithesis (counterproductive work 
behaviour, CWB) when they experience a breach of psychological contract 
(PCB) in their workplaces. Employees’ behaviours that contribute to 
organisational effectiveness are known as job performance. Job performance 
is considered a multidimensional construct composed of various forms of 
behaviours, including OCB and CWBs (Judge & Kammeyer-Mueller, 
2012). Positive organisational behaviour is dependent on positive 
psychology and vice versa (Dannhauser, 2007). The psychological contract 
is an essential framework to understand the diverse forms of employment 
relationships (Zhao et al., 2007). In connection with the current study, the 
researchers intend to include two domains of behavioural work outcomes, 
OCB as positive outcomes and CWB as a negative one. 

Although the importance of behavioural work outcomes such as OCB 
and CWB, they have been rarely investigated in the Palestinian public 
sector. However, the Palestinian context is considered a unique context due 
to the volatility in the operating environment. Recently, the public sector in 
Palestine has been experiencing greater challenges and pressures in 
delivering services. Particularly, in the Gaza Strip which is the southern part 
of Palestine, this is due to a political situation that has put Gaza under 
blockade for more than a decade. Consequently, this situation has affected 
the ability of the Gaza government to meet the obligations toward public 
sector employees. Employees working in the Gaza government have not 
received salaries for years, which means the compensation system for the 
Gaza government is not stable. Rousseau (1990), stressed the importance of 
the compensation system in shaping psychological contract and its effects 
on employees’ perceptions of mutual obligations.  Similarly, Turnley and 
Feldman (1999) concentrated on those most frequently used elements: the 
amount of pay and merit pay as the main factors that may affect PCB. 
However, although public sector managers in the Palestinian ministries have 
not received salaries for a long time, they have been still delivering services 
to the public, which provides an avenue to examine the relationship between 



 

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PCB and behavioural work outcomes among managers working in the 
Palestinian ministries. 

However, it is worth to be mentioned that the Gaza government is an 
Islamic one and has controlled Gaza since 2007. It is considered as the first 
Islamic government that adopts the Islamic ideology and tries to implement 
Islamic rules in all aspects of human life. As pointed out by Sayigh (2010) 
the Gaza government upholds Islamist social ideology as its core principles. 
Religious beliefs could make a significant difference in employee behaviour 
and performance.  The study of Osman et al. (2013) revealed that religiosity 
has a positive significant relationship with employee performance. The 
religion of Islam provides a comprehensive system of life rooted in ethics. 
Islamic work ethics (IWE) guides Muslims' attitude and behaviour in the 
workplace and contributes to the welfare of societies (Rokhman & Hassan, 
2012). An employee with high work ethics tends to view hard work as 
normal work ethics (Mudrack & Mason, 2010). Therefore, based on the 
above argument it is important to observe the potential moderating role of 
IWE on employee attitudes when PCB takes place.  

Besides that, organisational identification (OID) is considered one of 
the most important factors to reflect the psychological state of the employee 
with the organisation and maybe a crucial variable for explaining 
behavioural outcomes (Edwards, 2005). Oakes (1987) pointed out that the 
more psychologically significant the group membership will be, the more 
notable the identity, and the more psychologically affect the behaviour. OID 
considers as a psychological state that reflects the strength of the connection 
between employees and the organisation. Previous studies have reported 
that, behaviours such as: increase in-role and extra-role behaviour and 
decrease turnover are positively related to high OID and influence the 
organisational performance (Peters et al., 2010; Riketta, 2005; Van Dick et 
al., 2006). Chen et al. (2013) found a positive relationship between OID and 
OCB. 

Moreover, Demir (2015) pointed out that, until recently, OID has 
received little attention as a research topic within organisations. AlAtwi and 
Bakir (2014) revealed that the mediation role of OID is still unclear and 
needs more investigation. The authors also implied that the relationship 
between OID and negative behaviour such as CWB is still unexplored. A 
study conducted by Epitropaki (2013) reported that the association between 
breaching psychological contract and job performance through OID has 
rarely been examined. The above discussion demonstrated the existing 
theoretical gap that calls for intensive study to examine the mediating role 



 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

 25  
 

of OID between PCB and behavioural work outcomes. 
However, the traditional perspective on the influence of PCB on 

employees' attitudinal and behavioural outcomes are based on social 
exchange theory (Aselage and Eisenberger, 2003). Social exchange theory 
postulate that employment is an exchange of material and socio-emotional 
benefits and both employees and employer enter into contractual 
relationships to maximize benefits (Blau, 1964). Social exchange theory has 
been widely employed to explain employees’ potential reactions as a 
response to breaching or fulfilling the psychological contract (Lester et al., 
2002; Turnley et al., 2003). Therefore, in this study, social exchange theory 
was advanced to explain the effects of PCB on work attitudinal and 
behavioural outcomes. Furthermore, the researchers draw a perspective 
from social exchange theory to examine OCB directed toward organisation. 
This theory posits that employees reciprocate their efforts with the source 
they receive benefits. Thus, it is expected that managers may mutually 
exchange their attitudes and behaviour with the organisation as a reciprocate 
with their salaries. Hence, based on the above argument the study 
conceptual framework was developed. 

 
 
 
 

 
Figure.1: Research Model 

 
 
 
 
 
 
 



 

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2. Literature Review and Hypothesis Formulation 

2.1. PCB and the Two Behavioural Work Outcomes 

 The crucial employee behaviour that derives from the effect of 
psychological contract is OCB (Coyle-Shapiro & Kessler, 2002; Robinson 
& Morrison, 1995; Robinson & Rousseau, 1994; Rousseau, 1989). A recent 
study conducted by Yang et al. (2020) revealed that Psychological contract 
under fulfilment is negatively related to OCB. Wright and Cropanzano 
(2004) found that psychological well-being significantly predicted employee 
performance. OCB has been considered as an important factor enhancing 
organisational performance (Podsakoff et al., 2009), and employee 
performance (Chiang &Hsieh, 2012). Previous research has reported that 
PCB negatively affects work outcomes task performance and OCB (Lee et 
al., 2014; Shih & Chuang, 2012; Suazo, 2009). 

However, understanding individual psychological processes has long 
been argued as the best way to explain unethical behaviour in organisations 
(Barsky, 2011). CWB or workplace deviance refers to a deviant behaviour 
that is directly harmful to the organisation (Bennett & Robinson, 2000). 
Tomprou and Nikolaou (2011) reported that, when an employee apprehends 
their employer’s failure to perform his expected obligations, the PCB is 
likely to occur, and this will lead to workplace deviance. 

Previous studies have widely reported consistent results that, PCB is 
negatively associated with positive behaviour such as OCB, while the 
relationship between PCB and negative work behaviour such as CWB is still 
unclear. Although the few empirical studies that investigate the relationship 
between PCB and CWB, the majority have a positive association between 
PCB and CWB. The study of Manzoor et al. (2015) reported that PCB 
positively related to CWB. 

Additionally, the majority of previous studies conducted in 
developed countries and none has empirically investigated this relationship 
in the Palestinian public sector. Therefore, this study advanced a conceptual 
framework to investigate the relationship between PCB and behavioural 
work outcomes (i.e. OCB and CWB) in the Palestinian context. Consistent 
with the previous findings, it is predicted that PCB is negatively related to 
OCB while will positively associate with CWB among Palestinian managers 
in Gaza Strip ministries. Hence, the following hypotheses can be posited as 
follow: 

 



 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

 27  
 

H1a: PCB will negatively affect OCB among Palestinian managers in Gaza 
Strip ministries. 

 
H1b: PCB will positively affect CWB among Palestinian managers in Gaza 

Strip ministries. 

2.2. PCB and OID 

PCB is more strongly related to attitudes than behaviour (Conway & 
Briner, 2009). OID implies a psychological connection and a sense of 
oneness with the organisation (Mann, 2010). Compared with many 
organisational behaviour concepts, little attention has been paid to the OID 
construct (Demir, 2015). Reviewed literature, show that very few studies 
examined the association between PCB and OID and none of these studies 
were conducted in the public sector (Epitropaki, 2013; Li et al., 2016; 
Restubog et al., 2008). More importantly, none of the previous studies has 
been conducted in one of the developing countries, such as Palestine. 
Therefore, the current study will empirically investigate the influence of 
PCB on OID among managers in the public sector in Palestine. It can be 
argued that when PCB take place it is expected to negatively affect OID. 
Therefore, the following hypothesis can be formulated: 

 
H2: PCB will negatively affect OID among Palestinian managers in Gaza 
Strip ministries. 

2.3. OID and the Two Behavioural Work Outcomes  

According to Oakes (1987), the more psychologically significant the 
group membership will be, the more notable the identity, and the more 
psychologically affect the behaviour. Zhang et al. (2011) stated that 
employees who are strongly identified with their organisations are more 
willing to present extra-role performance. The study conducted by Li et al. 
(2016) revealed that OID can be significant predictors of job performance. 
From the literature review, the researchers found very few studies have been 
examined the effects of OID on OCB (Demir, 2015; Jiang, 2010; Wu & Wu, 
2010), moreover, all of these studies reported the positive significant effects 
of OID on OCB and conducted in developed countries contexts. 

Concerning CWB the study of AlAtwi and Bakir (2014) found that 
OID negatively affects CWB, the researchers also reported inconclusive 



 

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outcome on the relationship between OID and negative behaviour such as 
CWB. Furthermore, the majority of previous studies were conducted in 
developed countries and little attention has been paid to developing Islamic 
countries. Therefore, the current study will empirically investigate the effect 
of OID on behavioural work outcomes (OCB and CWB) among public 
sector managers in Palestine. Based on the above arguments it is expected 
that OID will positively correlate with OCB while will negatively associate 
with CWB. Hence, the following hypotheses were advanced: 

 
H3a: OID will positively affect OCB among Palestinian managers in Gaza 

Strip ministries. 
H3b: OID will negatively affect work CWB among Palestinian managers in 

Gaza Strip ministries. 
 

Literature review shows that OID may potentially mediate the 
relationship between PCB and behavioural work outcomes. Additionally, 
previous studies show that the mediating role of OID between the 
association of PCB with behavioural work outcomes is still unclear and 
need more investigation (AlAtwi & Bakir, 2014; Epitropaki, 2013). 
Therefore, the researchers intend to examine the mediating effect of OID on 
the relationship between PCB and behavioural work outcomes (i.e. OCB 
and CWB). Consequently, the following hypotheses can be posited 

 
H4a: OID will be a significant mediator between PCB and OCB among 

Palestinian managers in Gaza Strip ministries. 
H4b: OID will be a significant mediator between PCB and CWB among 

Palestinian managers in Gaza Strip ministries. 

2.4. IWE as a Moderator between PCB and OID 

The concept of work ethic refers to the values, beliefs, intentions and 
objectives that people apply to their work (Clarke, 1983). The Islamic work 
ethic guides Muslim's attitude and behaviour in the workplace and 
contributes to the welfare of societies (Rokhman & Hassan, 2012). 
Individuals with high work ethics tend to view hard work and sacrifice as 
normal work ethics (Mudrack & Mason, 2010). However, by reviewing the 
literature, it is found that there are several variables have potential 
moderating the effects on the PCB and work outcomes relationship. For 
instance, Agarwal and Bhargava (2013) found that educational level 



 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

 29  
 

moderates the association of PCB and affective commitment.  Shih and 
Chuang (2013) found that self-esteem moderates the relationship between 
PCB and OCB. Furthermore, Bavik and Bavik (2014) revealed that moral 
identity has moderating effects on the link between PCB and incivility 
behaviour. Bordia et al. (2008) reported that self-control moderates the 
relationship between PCB and CWB. While Ahmed et al. (2019) found a 
positive relationship between IWE and OCB.  However, from the previous 
discussion, it can be seen that many variables could moderate the effects of 
PCB on work attitudinal and behavioural outcomes. Whereas, none of these 
variables reflects the Islamic perspective. Which indicate that the potential 
moderating role of IWE is still unexplored. Thus, it is empirically 
significant to observe the potential moderating effects of IWE on the 
relationship between PCB and OID. 

Additionally, most of the previous research has been conducted in 
Western economies, these countries follow different cultures and hold 
different religions. The culture of these countries is individualistic and non-
Islamic. This study is one of few studies conducted in developing, Arab and 
Muslim countries specifically Palestine. Unlike Western and European 
countries, Palestine considers a unique context that holds a collectivist 
culture and follows Islam as the main religion. Therefore, the uniqueness of 
the Palestinian context provides a potential research opportunity to fill the 
observed theoretical and contextual gap. Hence, the following hypothesis 
was formulated: 

 
H5: IWE moderate the relationship between PCB and OID. Whereas high 

IWE will weaken the effects of PCB on OID. 

3. Methodology 

This study employed the quantitative approach to examine the 
relationships between variables. The study target population is 900 
managers distributed among 15 ministries located in different areas in Gaza 
Strip. A sample of 270 was randomly selected from the target population 
(Krejcie & Morgan, 1970; Saunders et al., 2012). A total of 300 self-
administered questionnaires were distributed, 280 questionnaires were 
returned representing a 93% rate of return. By checking the missing data, a 
sum of 7 questionnaires was removed because of uncompleted answers. 
After checking the missing data, a total of 273 completed questionnaires 
were entered into SPSS version 24 to screen data statistically. A total of 17 



 

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 30  
 

cases were identified as multivariate outliers and were deleted because they 
could result in non-normality of the data which could in turn influence 
statistical results (Hair et al., 2010). However, after removing the outliers, 
the remaining 256 usable cases were retained to proceed to the next stage of 
data analysis. 

3.1 Measurement 

To measure PCB, this study adopted the most commonly used scale 
developed by Robinson and Morrison (2000). This scale has five items with 
reliability Cronbach's alpha is 0.92. The reliability in this study is high as it 
is found Cronbach’s Alpha 0.788, composite reliability 0.855 and AVE 
0.543. To measure IWE, the researchers adopted the 17 items scale 
developed by (Ali, 2005). The reliability of this scale Cronbach alpha was 
0.89. in the current study, it is found that this scale has high reliability and 
validity with 0.861, 0.886 and 0.531 for Cronbach's Alpha, Composite 
Reliability and AVE respectively. To measure OID, the widely used scale of 
Mael and Ashforth (1992) was adopted.  The scale includes 6 items and the 
reported coefficient alpha was 0.87. In this study, it is found that the scale 
has the acceptable and required level of validity and reliability with values 
0.86, 0.896 and 0.59 for Cronbach's Alpha, Composite Reliability and AVE 
respectively. To measure OCB, the seven items scale developed by 
Williams and Anderson (1991) was employed. The coefficient alpha is 0.72. 
with regard to the current study, the scale has an acceptable level of validity 
and reliability with values of 0.623, 0.798 and 0.569 for Cronbach's Alpha, 
Composite Reliability and AVE respectively. To measure CWB a scale 
developed by Bennett and Robinson (2000) was adopted.  The scale consists 
of 12 items to assess organisational deviance toward the organisation. In this 
study the scale has high-reliability Cronbach's Alpha is 0.8, Composite 
reliability is 0.858. in addition, the construct validity found AVE is 0.503. 

4. Data Analysis 

The Statistical Package for Social Science (SPSS) 24 for the window 
was utilized to log in and clean the data. Then, SEM-PLS software 
(SmartPLS) was employed to test the relationships among variables. 

 
 



 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

 31  
 

5. Findings 

H1 proposed that PCB will significantly affect work outcomes (OCB 
and CWB). It is found that (β= -0.112, t= 1.764, p= 0.078) for the effects of 
PCB on OCB and (β= 0.042, t= 0.471, p=0.638) for the effects on CWB. 
These results reveal the insignificant effects of PCB on both behavioural 
outcomes included in this study. Thus, it can be said H1a and H1b are not 
supported. H2 stated that PCB will negatively affect OID. It is found (β= -
0.318, t= 4.98, p= 0.000 which is less than 0.05), which provide support to 
this hypothesis. H3 stated that OID will significantly affect work outcomes 
(OCB and CWB). The findings reveal that (β= 0.246, t= 2.62, p= 0.009 
which is less than p<0.05) for the effects on OCB and (β= -0.284, t= 2.869, 
p= 0.004 which is less than p<0.05) for the relationship with CWB which 
provide support to H3. Table 1 summarizes the results of this study. 

 
 

Table 1. The Result of Hypothesis Testing 
H. No. Path (β) T Statistics P Values Result 

H1a PCB -> OCB -0.112 1.764 0.078 Not supported 

H1b PCB -> CWB 0.042 0.471 0.638 Not supported 

H2 PCB -> OID -0.318 4.98 0.000 Supported 

H3a OID -> OCB 0.246 2.62 0.009 Supported 

H3b OID -> CWB -0.284 2.869 0.004 Supported 

 
On the other hand, the mediating role of OID between the PCB and 

work outcomes (OCB and CWB) was stated in H4. Table 2 shows the 
findings of the mediation hypothesis. The results show the significant 
relationship for this hypothesis as (β= -0.078, t= 2.076, p= 0.038 which is 
less than p<0.05) for OCB and (β= 0.09, t= 2.185, p= 0.029 which is less 
than p<0.05) for CWB, which provide support for this hypothesis, 
suggesting that OID function as a mediator between the association of PCB 
and work outcomes (OCB and CWB). 

 
 

 



 

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Table 2. The findings of the mediation hypothesis 
H. No. Path  (β) T Statistics P Values Result 

H4a PCB -> OID -> OCB -0.078 2.075 0.038 Supported 

H4b PCB -> OID -> CWB 0.09 2.185 0.029 Supported 

 
As can be seen from the above table, it can be said that OID 

significantly mediates the relationship between PCB and both OCB 
and CWB. 

Finally, hypothesis H5 tests the moderating influence of IWE 
on the PCB–OID relationship. The findings reveal that (β= 0.159 t= 
1.349; p= 0.178 which are greater than p> 0.05). However, the P-value 
is still above the significance level which indicates that H5 is not 
supported. It can be said IWE do not moderate the effects of PCB on 
OID. Table 3 shows the result of the moderation hypothesis. 

 
 

Table 3. The Result of Moderation Hypothesis 
Path  (β) T Statistics  P Values Result 

H5: IWEs*PCB-> OID 0.159 1.349 0.178 Not supported 

6. Discussion 

The first hypothesis stated that there is a significant relationship 
between PCB and behavioural work outcomes (OCB and CWB). Previous 
research has reported that PCB negatively affects work outcomes such as 
OCB (Lee et al., 2014; Shih & Chuang, 2012; Suazo, 2009), and is 
positively related to CWB (Manzoor et al., 2015). Surprisingly, the findings 
of the current study did not support the findings of previous studies. It is 
found there is no significant relationship between PCB and both constructs 
of work behaviour (OCB, and CWB). 

However, the findings from the present study are consistent with 
(Schaupp, 2012) who found no significant relationships between PCB and 
work outcomes (OCB and CWB). Similar findings are provided by Guo 
(2016) who found no significant relationship between the five dimensions of 
PCB and extra-role performance. In relation to these findings, Conway and 
Briner (2009) pointed out that, PCB is more strongly correlated with work 



 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

 33  
 

attitudes than actual behaviour. Furthermore, Morrison and Robinson (1997) 
established that breach refers to the cognitive evaluation while violation 
represents a mental state of readiness for action, which can lead to negative 
behavioural responses. 

The results may be attributed to the recognition of Palestinian 
managers in Gaza Strip ministries that the reason behind breaching the 
psychological contract is out of government control. Therefore, managers 
serving in the Gaza government may have believed the government does not 
play a big role in breaching the psychological contract, they believed the 
psychological contract has been breached due to external forces. However, 
managers may be resistant to the external political forces and support the 
government. Moreover, another alternative explanation to these is that the 
entire study population is Muslim and holds Islamic values. As mentioned 
earlier in this study, ethical Islamic values can be a source of action guides 
and a source of personality building as well. 

The Prophet (SAW) describes the core characteristics of the Muslim 
character. He (SAW) said: “A Muslim is the one who avoids harming 
Muslims with his tongue and hands.” (Sahih al-Bukhari hadith no. 10). 
Therefore, the Islamic values promote to produce positive behaviour and 
they further prevent Muslims to provide negative behaviour such as CWB. 
The second hypothesis proposed that PCB will negatively affect OID. Like 
the western context, the findings of this study confirmed that PCB is 
negatively associated with OID. This result is in line with the previous 
studies Specifically, (Epitropaki, 2013; Kreiner & Ashforth, 2004; Li et al., 
2016; Restubog et al., 2008). The similarity of findings in both Palestine and 
western contexts provide the possibility to generalize the negative 
relationship between PCB and OID. However, all the previous studies were 
conducted in UAS, Philippines, Greek, and China, none of them was 
conducted in eastern societies, this provides additional empirical evidence 
from a non-western, different and phenomenal context which is Palestine. 
This finding is also consistent with social exchange theory which has been 
widely employed to explain employees’ potential reactions as a response to 
breaching the psychological contract. This result indicates that when 
managers perceive the PCB takes place, they will react by decreasing OID 
toward their ministries. 

The third hypothesis stated that OID will significantly be associated 
with behavioural work outcomes (OCB and CWB). It is found that OID is 
significantly and positively related to OCB. Contrarily, it is negatively 



 

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correlated to CWB. These results are in line with the findings of AlAtwi and 
Bakir (2014); (Demir, 2015; Jiang, 2010; Wu & Wu, 2010) who show that 
OID has a significant positive relationship with OCB while negatively 
correlated with CWB. These results are consistent with social exchange 
theory. In accordance with the view of (Dasgupta et al., 2012; Harrison et 
al., 2006) who argued that positive work attitudes lead to well-adjusted 
behaviours vice versa. The results might be attributed to the fact that study 
respondents are completely aware of the difficulties and obstacles that have 
faced the Palestinian ministries for a decade. Thus, they protect and support 
their ministries in this difficult situation by reducing the negative behaviour 
and saving properties of their ministries, regardless of their respective 
ministries. 

The fourth hypothesis proposed that OID significantly mediates the 
association between PCB and behavioural work outcomes (OCB and CWB). 
The results show that OID significantly mediates the relationship between 
PCB and behavioural work outcomes. These findings confirm that when a 
psychological contract takes place, employees who are strongly identified 
themselves with their organisations, are more willing to present positive 
behaviour such as OCB and less willing to do unwholesome actions such as 
CWB. 

The last hypothesis examined the moderating role of IWE on the 
relationship between PCB and OID. The findings showed IWE 
insignificantly moderate the effects of PCB on OID. In other words, the 
interaction between IWE and PCB has no effects on OID. A possible 
explanation for this insignificant moderating effect is that there is a strong 
negative impact of breaching the psychological contract on managers' OID. 
According to Baron and Kenny (1986), the moderating variable is 
introduced when there is a weak or inconsistent relation between the 
predictor and the criterion variable.  Therefore, it can be said the 
identification for managers at the Palestinian ministries will be negatively 
affected when PCB occurs regardless the level of IWE is high or low. 

7. Conclusion  

The results of this study could in part contribute to the literature by 
providing new insights into the effects of PCB on behavioural work 
outcomes. Additionally, this study extended the knowledge in PCB and 
organisational behaviour literature by introducing job OID as a mediator. 
More importantly, the study contributes to the literature by including IWE 



 

Psychological Contract Breach, Behavioural Work 
Outcomes, Organisational Identification, and Islamic 

Work Ethics: A Moderated Mediation Study 

EL-Ghorra, M. H., & 
Panatik , S. A. B. 

 

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as a moderator variable. Therefore, this study provides the needed empirical 
evidence on moderating role of IWE. By achieving research objectives and 
answering research questions, the results provide more understanding of the 
interrelationships that have been investigated in the current research model. 
The findings revealed that the influence of PCB on behavioural work 
outcomes (OCB and CWB) was insignificant, while negatively affecting 
OID. The results confirm the mediating role of OID between PCB and 
behavioural work outcomes (OCB and CWB). Moreover, the findings show 
that IWE does not moderate the relationship between PCB and OID.  

Future research can include in-role performance as one of the 
behavioural work outcomes. Additionally, the current research model 
focuses on OCB from a general view, it may be valuable if future studies 
focus on a more specific perspective such as including OCB from an Islamic 
perspective. Moreover, this research model concentrates more on the 
outcomes of perceived PCB, this provides an opportunity to investigate the 
antecedents and the factors that lead to PCB. Future research could also 
employ the qualitative research methodology to gain an in-depth 
understanding of employee organisation relationship. Finally, examining the 
research model in other contexts outside Palestine would be a promising 
area for further research. 

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