Crux of the matter: How Psychological Contract Contribute in knowledge intensive firm’s success?

Madiha Kanwal, Dr. Salman Iqbal
Business School, University of Central Punjab Lahore, Pakistan

This study investigates the relationship between Psychological Contracts,
knowledge management in knowledge intensive firms and the factors that influence the knowledge sharing. In this technological era, learning new knowledge is most important but that is only possible with the help of employee positive attitude towards organization. Hence exploring this phenomenon is substantial. To observe the relation between Psychological contract and knowledge sharing this paper is concentrating on different behavioral factors. Job security guaranteed from employer
including high wage, promotion, training, organizational culture and benevolence leadership provoke employee to share knowledge and due to trust on organization employee willingly do extra work and adjust itself into different situations. Through the review of the existing literature, we have established that a little research has done on the discourse of Psychological contract and Knowledge Intensive Firms of Pakistan. Therefore, it is important to conduct a study that explores this behavioral
phenomenon in context of Pakistan. It attempts to see that how Psychological contract influence the employee’s behavior towards sharing knowledge and it support managers in shaping the exchange behaviors of their subordinates for the success of PC for developing country like Pakistan. This study is conducting System dynamics
approach which supports to structure the system in model form and provide feedback loops to assist us to identify the model In-depth. Interviews conducted from employees of high-tech industries, which will strengthen the findings of this study. The finding shows that how different factors like communication, reciprocity, organizational citizenship behavior, trust and leadership style influence the PC.
Furthermore, it also aids managers in shaping employee exchange behavior for the effective job performance, which eventually guide the team to create new process and products which will leads to innovation.

Keywords: Knowledge intensive firms, Psychological contract, Knowledge sharing,System dynamics Pakistan, Benevolence leadership
JEL Code: M10: Business Administration, General

InTraders Uluslararası Ticaret Kongresi = InTraders international conference on international trade
(II. : 2018: Sakarya)
II. InTraders uluslararası ticaret kongresi: özet kitabı = The second InTraders international conference
on international trade : abstract book / editörler Kürşat Çapraz, Mustafa Yılmaz. – İstanbul: Hiperlink
Yayınları, 2
80 s. ; 24 sm. — (Hiperyayın; 264)
ISBN: 978-605-281-118-4
e-ISBN: 978-605-281-117-7



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