The Moderating Role of Power Distance in the Effect of Psychological Contract on Work Engagement: A Comparative Research

This study examines the effect of power distance on the relationship between psychological contract and work engagement. The aim of the study is to explore the relationship between psychological contract and work engagement and to compare these dynamics in the cultural contexts of Türkiye and Switzerland. By focusing on how power distance shapes this relationship, it aims to provide practical insights to increase the levels of work engagement of employees in multinational environments. This comparative analysis, using Hofstede's cultural dimensions, shows how power distance affects the interaction between psychological contract and work engagement in the two countries, Türkiye and Switzerland. This study uses a cross-sectional design by collecting data through a survey from employees in both countries. Regression analysis was conducted with a total sample of 210 employees. The results suggest that transactional psychological contracts tend to reduce work engagement, and relational contracts are positively associated with engagement. However, contrary to expectations, the negative effect of transactional contracts was stronger in low power distance environments. These findings highlight the importance of considering power distance when designing engagement strategies in multinational contexts. The findings of the study also help explain employee work engagement in an organizational context and are important for both theory and practice. This article contributes to the literature on understanding work engagement through the dynamics determined by the psychological contract, taking into account the influence of power distance. This research, conducted in the cultural diversity of Türkiye and Switzerland, provides insights into how cultural dimensions affect organizational dynamics. The results highlight the importance of considering cultural factors when designing strategies that increase the level of employee engagement.