The Effects of High-Performance Work Practices on Turnover Intention with Mediating Role of Psychological Contract Breach: A Case of IT Firms in Oman.

Abstract

The study aimed to test the HPWS and its employee outcomes in the IT sector in Oman with mediating role of Psychological Contract Breach (PCB). The study utilized a quantitative approach along with a cross-sectional survey method for data collection. Data is collected from the staff of selected IT firms (n=124). AMOS is used for analysis which consisted of two stages. In the first stage, the reliability and validity of the construct are tested; while, in the second stage, regression analysis is used for hypotheses testing. The study result shows that recruitment & selection, training & development, job security, and communication exerted negative and significant influence on staff turnover intentions; while, the result for promotion and autonomy turned out to be insignificant and negative insignificant. Furthermore, recruitment and selection, job security, and autonomy had negative and significant effects on employees’ perceived psychological contract breach (PCB), whereas training and development, promotion, and communication had small effects. PCB partly mediates between HPWS dimensions and staff turnover intentions, according to mediation studies based on indirect impact analysis. Based on these findings, we concluded that HPWS is critical for IT companies to generate positive employee outcomes.