Abstract
Although diverse studies have investigated
Psychological capital (PsyCap) and the
psychological contract as separate constructs, it
seems that the effect of breach on PsyCap has not
been investigated before. PsyCap has the potential
to advance the competitive advantage of business.
Psychological contract breach (PCB), on the other
hand may lead to adverse negative effects in
business. An exploratory quantitative investigation
on a sample of 597 individuals shows a significant
negative effect of breach on each of the PsyCap
scales, varying between 10.6 and 6.1%. This is a
clear indication to management that possible
violations of the psychological contract, resulting in
breach, should be prevented at all cost to preserve a
healthy PsyCap work environment.