The Impact of Psychological Contract on Personal Initiative. “An Empirical Study on the Egyptian Banking Sector”

Abstract

Given the high growth potential of the Egyptian banking sector, the future positioning of its banks will depend on their ability to see and leverage the growth opportunities. Therefore, proactive employees who take the initiative to leverage the opportunities that their organizations cannot see and persist on pursuing them will be a source of a competitive advantage. This study tries to foster employee proactivity and initiative taking through investigating the impact of employees' perception of psychological contract content, feelings experienced because of contract violation, and level of knowledge application on their personal initiative. 2. Research Problem: The research problem can be stated as" identifying employees perception of the psychological contract content, feelings arise from contract violation , level of practicing personal initiative, and level of practicing knowledge application behaviors and investigating the impact of psychological contract content and violation on personal initiative through the mediation of knowledge application in the Egyptian banking sector". 3. Research objectives: 1. Reviewing the psychological contract, its content, and its outcomes in the literature. 2. Reviewing the personal initiative, its antecedents and its outcomes in the literature. 3. Reviewing the knowledge management processes, and particularly, knowledge application in the literature. 4. Assessing employees’ perception of psychological contract content and experience of it violation in the Egyptian banking sector. 5. Identifying the levels of practicing personal initiative in the Egyptian banking sector. 6. Identifying the levels of practicing knowledge application behaviors in the Egyptian banking sector. 7. Examining the impact of psychological contract content and violation on personal initiative in the Egyptian banking sector. 8. Examining the role of knowledge application behavior in the relationship between psychological contract content & violation and personal initiative.

4. Research Hypotheses:

1. Knowledge application mediates the impact of economic obligations on personal initiative. 1.1. There is a significant effect for economic obligations on knowledge application. 1.2. There is a significant effect for economic obligations on personal initiative. 1.3. There is a significant effect for knowledge application on personal initiative. 1.4. There is a significant effect for economic obligations and knowledge application on personal initiative.