Drivers of Employee Organizational Identification: A Study of Three Star Hotels in Taiwan

This study tested whether psychological contract breach affects employee organizational identification, as well as investigated whether leader-member-exchange (LMX) and generational difference moderate the effect of psychological contract breach on employee organizational identification. Participants were 316 employees of 3-star hotels in Taiwan and the data were collected by using a two-wave survey approach. The results indicated that psychological contract breach leads to a low employee organizational identification and LMX can alleviate such negative effect. The results also showed that Millennials display lower identification toward organizations than Generation X employees if psychological contract with employers breaches. Based on these findings, important theoretical and practical implications were discussed.