And if expatriates decide to leave the organization? The mediating effect of psychological contract in the relationship between turnover and HR management practices

Abstract

Internationalization takes, today, an important role in the competitive advantage of companies. As a way to counteract the financial instability we are experiencing in Europe and all over the world, we have been witnessing a steady and growing movement of mergers and acquisitions, joint ventures and strategic alliances and internationalization decisions seeking new markets which inevitably leads to an increase in the number of employees working abroad – the expatriates. However, the high failure rate refered in literature in this type of international missions brings severe consequences for companies either financially or strategic level. This study thus aims, to analyse the relationship between Human Resource Management Practices (HRMP) and the voluntary turnover and to investigate what is the role the perception of psychological contract fulfillment of this relationship. Results, based on a sample of 100 expatriates mostly in Angola, suggest a negative relationship between HRMP and turnover intentions and a total mediating effect of psychological contract in this relation. We conclude that HRMP directly influence the perception of fulfilment of expectations that people create for the organization and it is from the formulation of these expectations that employees decide to stay or leave the company.