Do psychological contract and organizational citizenship behavior affect organizational performance in non-profit organizations?

The purpose of this paper is to survey volunteers and full-time employees in international non-profit organizations (NPOs) and explore the relationships among psychological contract (PC), organizational citizenship behavior (OCB) and organizational performance (OP).

Using 573 usable responses, a linear structural equation model (SEM) was developed to examine the relationships.

The results demonstrate significant positive relationships between PC and OCB, OCB and OP and PC and OP. They also show the mediating effect of OCB on the relationship between PC and OP.

Beside mediation effect, OCB and other variables might exert significant moderation effect on the relationship between PC and OP. Companies could conduct longitudinal studies to examine the changes of PC and OCB impacts on OP.

Companies pursuing Chinese market should cooperate with NPOs in multiple ways including marketing for philanthropic purposes, supporting volunteer services and sponsoring the NPO. This way the company’s image will improve and its business will expand among its Chinese clientele.

Budget concerns often force NPOs to downsize full-time staff, making considerable portion of their operations rely on a large number of volunteers. This study offers practical guidelines for NPOs to effectively entice and support both volunteers and employees for achieving its organizational goals.