The Effect of Leader-Member Exchange on Psychological Entitlement and Organizational Silence: The Mediator Role of Psychological Contract Breach

Abstract

This study investigates the impact of leader-member exchange on psychological entitlement as well as organizational silence, focusing on the mediating identity of psychological contract breach. Utilizing a correlational model within the general screening framework, an online survey was administered to 294 white-collar employees selected through convenience sampling. The results have revealed that, the leader-member exchange has a negative significant impact on psychological contract breach, the leader-member exchange has a notable negative effect on organizational silence, psychological contract breach has a positive substantial effect on psychological entitlement, and psychological contract breach has a significant negative effect on organizational silence. Psychological contract breach mediates the leader-member exchange and organizational silence relationship. Leader-member exchange does not affect psychological entitlement substantially, and psychological contract breach does not mediate the leader-member exchange and psychological entitlement relationship. As a result, the excellence of leader-member exchange and the psychological contracts made with the organization directly impact employees' behavior.