This study explores whether American employees have different psychological contracts with subsidiary Korean companies than do Chinese employees, and if so, whether the different psychological contracts influence the job performance, job satisfaction, and job retention of employees of different nationalities. A survey of Chinese and American employees was conducted in China and in the USA during the summer of 2016. The 480 usable responses were analyzed with Hierarchical Multiple Regression. The results revealed significant differences in employees’ psychological contracts with Korean companies between American employees and Chines employees, indicating that psychological contracts with subsidiary Korean companies influenced job performance, job satisfaction, and job retention for all employees. However, national culture affected job performance more strongly for Chinese employees than for Americans. This result also indicated that subculture significantly influenced work efficiency and productivity. However, job satisfaction and job retention based on employees’ perceived psychological contracts was the same for Chinese and American employees. The study results implied that psychological contracts are measurable and are related to important organizational outcomes. However, interpretation of the results should be limited to study populations and Korean subsidiary companies.
2. Literature Review
2.1 Psychological contract
2.2 Psychological contract and organizational outcomes
2.3 National Culture
3.1 Survey procedure and data collection
4.1 Profile of the respondents
4.2 Analysis of the proposed model