In this multi-study paper, we integrate Social Exchange Theory and the discretionary workplace behavior literature. Specifically, we posit that by breaching their psychological contract (PC) obligations, organizations
may trigger negative reciprocity, which in turn may increase deviant behavior. Moreover, we posit that by fulfilling their legitimately PC obligations, organizations may trigger positive reciprocity, which in turn may
increase unethical pro-organizational behavior. Across two studies (3-wave field study with traditional breach measure and 2-wave field study with expanded breach measure and polynomial regression), we found repeated evidence for our hypotheses. Specifically, we found that PC breach (Study 1) and PC under-fulfillment (Study 2) are positively related to the enactment of organizational deviance via negative reciprocity. Furthermore, we found that PC fulfillment (Study 1) and high absolute levels of PC fulfillment (Study 2) are positively related to unethical pro-organizational behavior via positive reciprocity. Implications for theory and practice are discussed.
