Work engagement, psychological contract breach and job satisfaction ABSTRACT This study extends both Social Exchange Theory and the Job-Demands Resources model by examining the link between psychological contract breach (PCB) and work engagement, and by integrating job satisfaction into this exchange relationship. We argue that PCB reflects employees’ feelings of resource loss, and that these feelings impact work engagement through their impact on job satisfaction. Levels of employee work engagement can therefore be viewed as reciprocation for the exchange content provided by employers. We conduct structural equation modeling on longitudinal survey data from 191 employees, and our results suggest that the negative effect of psychological contract breach on work engagement is mediated by job satisfaction. Keywords: work engagement; psychological contract breach; job satisfaction; mediation; structural equation model.
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