A comparative study of Economic Inflation’s effect on Counterproductive Work Behavior: Mediating role of Psychological Contract Breach

This study investigates the impact of economic inflation on counterproductive work behavior (CWB) among teaching assistants at Egyptian universities, with a focus on the mediating role of psychological contract breach (PCB) and the moderating role of individual value systems. The research draws on a sample from Alexandria University (a governmental university) and Pharos University (a private university) to compare how inflation-related pressures manifest in different organizational and economic contexts.
The findings revealed that economic inflation can indirectly lead to increased CWB through the erosion of psychological contracts, as employees feel that the institution is failing to meet implicit expectations, especially in light of rising living costs. Interestingly, teaching assistants at Pharos University reported higher levels of psychological contract breach than their counterparts at Alexandria University, despite receiving relatively higher financial compensation. This suggests that unmet psychological or professional expectations may play a stronger role than monetary rewards in shaping perceptions of fairness and obligation.
Moreover, the study highlighted that individuals with dominant economic or political value orientations exhibited stronger reactions to inflation-related stressors, including higher tendencies toward counterproductive behavior. In contrast, those prioritizing religious or social values were less affected behaviorally by economic pressures.
These results provide new insights into how prolonged inflation influences workplace dynamics in academia and emphasize the importance of understanding both psychological and value-based dimensions when addressing employee behavior under economic strain.