The Impact of an Employee’s Psychological Contract
Breach on Compliance with Information Security
Policies: Intrinsic and Extrinsic Motivation
Daeun Lee
1
, Harjinder Singh Lallie
2
, and Nadine Michaelides
3
2
Cyber Security Centre, WMG, University of Warwick, Coventry, CV4 7AL
Abstract
Despite the rapid rise in social engineering attacks, not all employees are as com-
pliant with information security policies (ISPs) to the extent that organisations expect
them to be. ISP non-compliance is caused by a variety of psychological motivation.
This study investigates the effect of psychological contract breach (PCB) of employees
on ISP compliance intention (ICI) by dividing them into intrinsic and extrinsic moti-
vation using the theory of planned behaviour (TPB) and the general deterrence theory
(GDT). Data analysis from UK employees (n=206 ) showed that the higher the PCB,
the lower the ICI. The study also found that PCBs significantly reduced intrinsic mo-
tivation (attitude and perceived fairness) for ICI, whereas PCBs did not moderate the
relationship between extrinsic motivation (sanction severity and sanctions certainty)
and ICI. As a result, this study successfully addresses the risks of PCBs in the field of
IS security and proposes effective solutions for employees with high PCBs.
Keywords: psychological contract; psychological contract breach; cybersecurity behaviour;
information system security; information security policies
Competing interests. The authors declare that we have no competing financial or non-
financial interests that are directly or indirectly related to the work submitted for publication.
1 Introduction
Organisational information security breaches can largely be explained by human error and
omission (ISF, 2020). In other words, if employees deliberately or unintentionally fail to keep
the information safe, it is insufficient to take technical countermeasures for the protection
Daeun.Lee@warwick.ac.uk
HL@warwick.ac.uk
Nadine.Michaelides@warwick.ac.uk
1
arXiv:2307.02916v1 [cs.CY] 6 Jul 2023
of the information. Accordingly, various psychological factors motivating employees’ failure
to comply with ISP compliance have been raised in the cyber security literature. Among
them, the Psychological Contract (PC) was presented as one of the significant human factors
provoking employees’ cybersecurity behaviours (Ertan et al., 2018; Leach, 2003). The PC is
a set of beliefs about reciprocal obligations between an employee and an employer (Robin-
son and Wolfe Morrison, 2000). According to the existing research, psychological contract
breaches (PCBs) provoke poor organisational citizenship behaviours (Mai et al., 2016a) and
even poor work performance (Bal et al., 2013). These results imply that employees’ PCBs
are likely to reduce their ISP compliance intentions. However, empirical studies concerning
the direct correlation between PCB and ISP compliance intentions have not been sufficiently
conducted to date.
This research aims to evaluate the impact of PCB, a new potential psychological factor,
on deficient ISP compliance intentions. The research also measures the impact of PCB on in-
trinsic and extrinsic motivation towards ISP compliance intentions in order to multifacetedly
examine the risks of PCB. Consequently, the study can address the important role of PCB
in IS security and provide a set of suggestions for employees having PCBs.
The rest of this paper is structured as follows. Section 2 aims to analyse the existing
literature on PCB and ISP compliance intention to develop research hypotheses. Section
3 presents data analysis and results based on the research framework. The discussion in
Section 4 proceeds to interpret and analyse the results to answer the research questions.
Finally, Section 5 describes the conclusions, recommendations, and limitations of this study.
2 Background
2.1 Psychological Contract
Psychological contract has emerged as one of the most crucial factors in workforce manage-
ment. Unlike the documented contract, the psychological contract is the unwritten contract
and refers to an individual’s beliefs about mutual obligations between an employee and an
organisation (Rousseau, 1989). When an employee perceives that the organisation is obliged
to reciprocity for his or her contributions, the psychological contract is created. The contract
has been constituted by paid-for-promises (e.g. high salary, promotion, long-term job secu-
rity, or career development) made in exchange for some either implied or stated consideration
such as hard work, accepting training, or transfers. Thus, psychological contracts are viewed
as unwritten promises not as expectations. This leads employees to feel disappointed when
psychological contracts are breached (Robinson and Rousseau, 1994).
The consequences of psychological contract breaches have been found to negatively impact
perceived obligations towards an employer, citizenship behaviour, commitment, satisfaction,
intentions to remain and even work performance (Robinson, 1996; Robinson and Rousseau,
1994; Robinson et al., 1994). For example, employees who experienced PCB do not tend
to contribute to their organisation since they have no expectation of future benefit, which
is the organisation’s obligation. Moreover, extreme cases of psychological contract breach
could result in retaliation, sabotage, identity theft, and aggressive behaviour (Morrison and
Robinson, 1997). Recent empirical studies have found PCB to negatively impact organisa-
2
tional behaviour (AL-Abrrow et al., 2019; Mai et al., 2016b), job satisfaction, commitment
and intention to leave (Trybou and Gemmel, 2016), user resistance for the information sys-
tem implementation (Lin et al., 2018), trust in organisation (Abela and Debono, 2019), and
productive work behaviour (Ma et al., 2019). PCB could lead to cybercrime conducted as a
result of insider threat brought about by the PCB. However, this has not been thoroughly
investigated.
2.2 The Relationship Between Psychological Contracts and Inten-
tion to comply with Information Security Policies
ISP (Information Security Policy) refers to any document that covers security programs,
system controls and user behaviour within an organisation to realise security objectives
(Landoll, 2017). ISP can be categorised into four levels: organisational-level policies, secu-
rity program-level policies, user-level policies, and system and control-level policies. Among
these, the present study focuses on user-level policies in order to identify an employee’s
psychological factors that influence their behaviour and intentions. According to ISO (In-
ternational Standards Organisation) 27001/2, user-level policies consist of eight elements;
security responsibility agreement, acceptable use of assets, security awareness program, re-
movable media disposal procedures, document control plan, mobile device security policy,
telework security policy, and disciplinary process (Landoll, 2017).
As cybercrime increases and becomes more severe and sophisticated, organisations put
greater effort into information security risk management by implementing security measures
and policies. Nonetheless, not only is the establishment of ISP within the organisation
required, but employees must actively comply with ISP, playing a key role in substantially
protecting cyber threats. Especially these days when social engineering is prevalent, the
importance of encouraging employees to conform to ISP is increasingly emphasised (Flores
and Ekstedt, 2016). Therefore, it is expected that not only the information systems but also
the users are obliged to adhere to the ISP statements.
However, if employees do not understand the importance of ISP compliance and are not
willing to comply with it, all the technical measures and strategies that organisations have
put in place will be in vain (Herath and Rao, 2009b). Hence, human factors affecting ISP
compliance intentions are needed to be understood to encourage their motivation.
The PCB has been proposed as one of the most important factors influencing employees
to perform security behaviours and to comply with security procedures. Leach (2003) stated
that employees are psychologically pressured to act in accordance with the expectations of
the organisation by voluntarily limiting and maintaining their behaviours within the range
of accepted practices. Therefore, if employees feel that the company breached their psycho-
logical contract, they could feel exasperated and compelled to get even with the company.
In addition, Abraham (2011) proposed PCB as one of the most influential factors associ-
ated with psychological ownership, organisational commitment, trust, as well as procedural
justice.
While the necessity of investigating the impact of PCB in IS security has been increased,
relevant empirical studies have not been sufficiently conducted. To the best of our knowledge
there has been only one relevant empirical study: Han et al. (2017a) examined the mediating
3
role of PCF (Psychological Contract Fulfillment) between perceived costs and ISP compli-
ance intentions. The study conducted quantitative research seperated into supervisor and
supervisee groups. As a result, it was found that PCF mitigates the negative impact of
perceived costs on ISP compliance intentions only in the supervisor group. However, in this
study, the perceived cost had no significant influence on ISP compliance intentions in both
supervisor and supervisee groups. Accordingly, the study presents the hypothesis below.
H1: High Psychological Contract Breach has a strong negative effect on ISP compliance
intentions.
2.3 Motivational Factors for ISP compliance intentions
Extensive research has been done to examine human factors which influence employee compli-
ance with ISP. Many behavioural theories (e.g. TPB (Theory of Planned Behaviour), GDT
(General Deterrence Theory), PMT (Protection Motivation Theory), SCT (Social Cognitive
Theory)) in IS literature have addressed motivators affecting ISP compliance. According to
systematic literature reviews on behavioural theories, the most frequently used theory in IS
security, was TPB followed by GDT (Alias et al., 2019; Lebek et al., 2013, 2014).
The TPB suggests that an individual’s behavioural intentions are determined by self-
direction along with efforts to perform a target behaviour, or by motivation in terms of
conscious plan and decision (Conner, 2020). The TPB is mainly composed of attitudes, self-
efficacy, and subjective norms. Attitudes are an individual’s overall assessments of a target
behaviour, and self-efficacy is an individual’s expectation of how well they can control the
target behaviour. Additionally, subjective norm is a function of normative beliefs which are
an individual’s perceptions of the preferences of those around him who believe he should en-
gage in targeted behaviour (Conner, 2020). These three components are the most important
psychological factors in motivating and predicting ISP compliance behaviours and intentions
(Lebek et al., 2014; Nasir et al., 2017).
On the other hand, the GDT explains that a psychological process is made by deterring
criminal behaviour only when people perceive that legal sanctions are clear, expeditious and
harsh (Williams and Hawkins, 1986). The GDT primarily consists of sanction severity and
sanction certainty; sanction severity refers to an individual’s perception that penalties for
non-compliance are severe and sanction certainty indicates an individual’s perception that
risk of delinquent behaviour to be detected is high (Williams and Hawkins, 1986; Safa et al.,
2019).
2.4 Intrinsic and Extrinsic Motivation
People are motivated both internally and externally to take certain actions. Organisations
typically seek to establish external measures such as sanctions and penalties for deviant
cybersecurity behaviours, rather than increasing employees’ internal motivations. Extrinsic
Motivation is defined as decision-making based on external factors such as a reward, surveil-
lance, and punishment (Benabou and Tirole, 2003) as opposed to Intrinsic Motivation, which
is an inherent desire to undertake the work even without specific rewards (Benabou and Ti-
role, 2003; Makki and Abid, 2017).
4
However, intrinsic and extrinsic motivation sometimes conflict with each other. Ac-
cording to Benabou and Tirole (2003), some researchers insist that extrinsic motivations
such as sanctions and rewards are often counterproductive since they often impede intrinsic
motivation. This is because extrinsic motivations have limited effect on current employee
engagement and reduces motivation to perform the same task later without compensation.
Therefore, many social psychology studies emphasise the necessity to increase employee self-
esteem rather than increase extrinsic motivation (Benabou and Tirole, 2003). Accordingly,
the study compares the effects of PCB on intrinsic and extrinsic motivation for ISP compli-
ance intentions to identify how to motivate people who have experienced PCB to adhere to
ISP.
2.4.1 Intrinsic Motivations
A psychological contract breach is known to induce negative emotional responses, which in
turn reduces intrinsic motivation at work (de Lange et al., 2011; Morrison and Robinson,
1997). Conversely, it has been shown that psychological contract fulfilment increases motiva-
tion towards organisational commitment (Berman and West, 2003). Therefore, the present
study suggests PCB negatively influences intrinsic motivation towards ISP compliance in-
tentions.
The study adopted attitudes and self-efficacy of TPB as intrinsic motivators of ISP
compliance intentions. This is because attitude has been studied as the most significant
intrinsic motivator (Bulgurcu et al., 2011), and intrinsic motivation consists of autonomy
and competence, which are aligned with self-efficacy (Alzahrani et al., 2018).
Additionally, employee psychological contract violations have been found to provoke neg-
ative organisational attitudes (e.g. job satisfaction, effective commitment, turnover inten-
tions) (Pate et al., 2003; Zhao et al., 2007). On the other hand, the correlation between
perceived contract violation and low job satisfaction was found to be weaker as the work-
related self-efficacy increased (De Clercq et al., 2019). Therefore, it is necessary to study the
mitigating role of self-efficacy on the negative effects of PCB.
Employees who have experienced psychological contract breach may think that following
the ISP is important but unfair, which may unwittingly lead to inadequate cybersecurity.
Perceived Fairness can be defined as an individual’s perception of the fairness of an organisa-
tion’s ISP requirements, that exists within the internal context of ISP compliance (Bulgurcu
et al., 2011). Perceived fairness has been found positively affect attitudes towards ISP com-
pliance (Bulgurcu et al., 2009, 2011). In terms of the relationship between perceived fairness
and PCB, some research has found that employees’ beliefs of unfairness in the organisa-
tion’s regulations and treatments can be directly linked to psychological contract violation
(Harrington and Lee, 2015; Morrison and Robinson, 1997). Moreover, psychological contract
fulfilment has been found to raise employees’ perception of performance appraisal fairness
(Harrington and Lee, 2015). It was also found that higher perceived fairness mitigated the
negative influence of PCB on those with violated feelings (Lin et al., 2018). Hence, the
study additionally measures an employee’s perceived fairness towards ISP compliance as an
intrinsic motivational factor. Accordingly, the study proposes the following hypotheses:
H2: Higher intrinsic motivation (Attitudes, Self-efficacy, and Perceived Fairness) has a
stronger positive effect on ISP compliance intentions.
5
H3a: There is a negative effect of Psychological Contract Breach on Attitudes towards
ISP compliance intentions.
H3b There is a negative effect of Psychological Contract Breach on Self-efficacy towards
ISP compliance intentions.
H3c: H3c: There is a negative effect of Psychological Contract Breach on Perceived
Fairness towards ISP compliance intentions.
2.4.2 Extrinsic Motivations
Employees are sometimes compelled to follow organisational policies, even if they are un-
willing to do so, to avoid disadvantages such as penalties and reputational damage. The
study suggested subjective norm of TPB as well as sanction severity and sanction certainty
of GDT as extrinsic motivators to influence employee compliance with ISP. Although some
researchers have regarded subjective norms as somewhat voluntary behaviours, it has been
considered as an extrinsic motivator in IS studies since intrinsic motivations are based on
the employee’s desire to perform the task for himself or herself (Herath and Rao, 2009a).
Therefore, subjective norm, sanction severity, and sanction certainty can be classified as
extrinsic motivation factors in this study.
However, those extrinsic factors motivating employees to adhere to the policies can con-
flict with intrinsic motivation. According to a systematic literature review on IS behaviour
theories, those extrinsic motivators of GDT – sanction severity and sanction certainty – have
been found not to significantly influence IS deviant behaviours compared to TPB (Nasir
et al., 2017; Safa et al., 2019). This implies that the intrinsic motivators including PCB
can either reduce the positive correlation between extrinsic motivation and ISP compliance
intentions or reverse the direction of the positive correlation in a negative way. For instance,
higher extrinsic motivation has a less positive effect or has no distinct effect on ISP compli-
ance intentions when an employee’s PCB is high. Conversely, when an employee’s PCB is
low, higher extrinsic motivation has a higher positive effect on ISP compliance intentions.
Therefore, the study proposes the following hypotheses:
H4: High extrinsic motivation (Subjective norms, Sanction severity, and Sanction cer-
tainty) has a stronger positive effect on and ISP compliance intentions.
H5a: Psychological contract breach moderates the relationship between Subjective Norms
and ISP compliance intentions.
H5b: Psychological contract breach moderates the relationship between Sanction Severity
and ISP compliance intentions.
H5c: Psychological contract breach moderates the relationship between Sanction Cer-
tainty and ISP compliance intentions.
Lastly, since PCB can be classified as intrinsic motivation, it is assumed that PCB has
a greater negative effect on people having intrinsic motivation than those having extrinsic
motivation. Therefore, people who follow ISPs due to the external factors may not be
relatively affected by the PCB since external factors are not changed by PCB. However,
those who intrinsically seek to follow ISPs may be greatly affected by the PCB. Accordingly,
the study suggests the following hypothesis:
H6: The effect of PCB on Intrinsic Motivation is stronger than the moderating effect of
PCB between Extrinsic Motivation and ISP compliance intention.
6
Consequently, the study combines two behaviour theories, TPB and GDT, classifying
into intrinsic and extrinsic motivation based on the main research question, the negative
impact of PCB on ISP compliance intentions. Accordingly, the study can differ the impact
of PCB on intrinsic motivation to extrinsic motivation towards ISP compliance intentions.
The proposed theoretical framework is presented in Figure 1.
Figure 1: Proposed theoretical framework of the study
2.5 Research Contribution
In an era where most cyber-attack strategies target human weaknesses, it has become imper-
ative for organisations to understand which human factors impact their employees’ security
behaviour and foster their willingness to abide by the security regulations. However, enhanc-
ing employee intention requires more than providing a security awareness program. In order
to properly comply with ISP, firstly, employees should be able to understand and practically
apply the given information. Secondly, they should have attitudes and intentions to willingly
comply with the policies (Bada et al., 2019). However, the attitudes and intentions to com-
ply with ISP are accompanied by multifaceted psychological factors; employees’ evaluation
of their capabilities to obey ISP (self-efficacy), disadvantages when not following the com-
pliance (sanctions), and employees’ perceived expectations of coworkers (subjective norms)
7
(Topa and Karyda, 2015). Many behavioural theories have been researched in the field of
IS security to date, grouping the relevant psychological factors. Among the various theories,
this study will focus on social factors of TPB and GDT, dividing them into intrinsic and
extrinsic motivational factors for ISP compliance intentions.
Meanwhile, although much research has found that many psychological factors affect ISP
compliance behaviour and intentions, there are still potential factors that have not yet been
properly studied. Likewise, no research has yet focused on the direct relation between PCB
and ISP compliance intentions, although some theoretical studies Ertan et al. (2018); Leach
(2003) have implied the important role of PCB against complying with security policies.
Conversely, one research study explored the mediating role of PCF (Psychological Contract
Fulfilment) between perceived costs of Rational Choice Theory and ISP compliance intention.
As a result of the study, the impact of PCF was influential in the supervisor group, but not
prominent in the supervisee group (Han et al., 2017a). However, because they conducted the
research with only limited factors, the influence of the PC in the non-administrator group
was not thoroughly examined.
Accordingly, the research examines the research question: “How does an employee’s
Psychological Contract Breach affect Information Security Policies Compliance Intentions?”
3 Methodology
3.1 Data collection
We used an online survey and recruited an FTSE 250 UK industrial goods and services
company as a partner company for the survey. A single specific company was selected
because it was important to ensure that participants were members of a company which
had an appropriate ISP and that employees are aware of the ISP. Therefore, rather than
distributing the survey to any employees, we decided to partner with a large corporation
that provides a dedicated ISP. The survey was distributed only to employees working in
the UK to facilitate communication and scheduling. A total sample size of 1,000 employees
was selected through simple random sampling from a population of 3,021 employees of the
partner company in the UK. As a result, 265 survey responses were received and only 208
responses were fully completed. Accordingly, the survey response rate was roughly 26.5%
and the survey completion rate was over 78.4%. As a result of simply screening the data,
there was two invalid responses within the 208 completed survey responses. Therefore, 206
completed responses remained valid for data analysis.
3.2 Measures
The questionnaire for this study was developed and combined, adopting reliable existing
studies to collect quantitative data. The questionnaire is divided into the first part for the
personal characteristics and the second part for the factors for substantial analysis. In part
1, a questionnaire for an employee’s demographic characteristics has been asked which are
primarily identified as control variables in relevant empirical studies. Therefore, the following
five variables have been included in the questionnaire. On the other hand, part 2 presents the
8
substantial constructs of this study, consisting of 8 factors - Psychological Contract Breach
(PCB), Attitudes (ATT), Self-efficacy (SE), Perceived Fairness (PF), Subjective norms (SN),
Sanction Severity (SS), Sanction Certainty (SC), ISP Compliance Intention (ICI) - and 35
indicators. The full questionnaire is shown in Appendix A.
3.3 Analysis and Results
The data analysis was conducted, divided into 1) descriptive statistics for identifying per-
sonal characteristics, 2) measurement model analysis for construct validity and reliability, 3)
structural model analysis for hypothesis testing, and 4) bivariate analysis for investigating
the correlation between variables. The study employed IBM SPSS for descriptive statistics
and SmartPLS 3.0 for confirmatory factor analysis (CFA).
3.3.1 Descriptive Statistics
The personal characteristics collected in the Part 1 of the survey are shown in Table 1. The
age group over the age of 19 is almost evenly distributed in all groups except for the oldest age
group. Similarly, responses were received almost evenly from female and male respondents.
By position, there were about twice as many non-managers as managers. Additionally,
more than 40% of respondents have worked for this organisation for one to five years and
rates between about 9% to 21% have been shown in other tenure groups. Lastly, employee
types have been divided into temporary and permanent type, with approximately 90% of
respondents were regular workers.
The normality test results of Part 2 are shown in Table 7 in Appendix B. The mean
value ranged from 1.42 (PCB8) to 2.23 (PCB4) for PCB and from 3.35 (SS2) to 4.83 (ICI1) for
others. These statistics indicate that most respondents had moderately positive responses for
the constructs of the study. The skewness value ranged from -2.862 (ATT2) to 2.354(PCB8),
excluding ATT1 and ICI 1-3. Similarly, the kurtosis value ranged from -0.817 (PCB4) to
9.21(ATT2), except for ATT1 and ICI 1-4. ATT1 and ICI 1-4 failed the normality test since
ATT1 and ICI 1-3 had absolute skewness values greater than or equal to 3.0, and ATT1 and
ICI 1-4 had absolute kurtosis values greater than or equal to 10.0 (Brown, 2015). Therefore,
a linear regression model, which is a non-parametric method that does not require normally
distributed data, was additionally used in this study for variables that failed a normality
test (Fathian et al., 2014).
Additionally, the descriptive statistics, including the mean, minimum and maximum
values of PCB and ICI according to personal characteristics, are described in Table 2.
Firstly, younger groups tend to have higher PCB. Additionally, the older group was more
likely to comply with ISP overall, while the 20-29-year age group (4.78) had almost as high
ICI as the 40-59-year age group (4.76). Secondly, managers (4.78) are more willing to comply
with ISP than non-managers (4.73) although they have higher PCB. By tenure, the group
with the shortest tenure had the lowest PCB (1.23) and ICI (4.71). Lastly, non-regular
workers (1.45) had a much lower PCB level than regular workers (1.81), and their intention
to comply with ISP (4.80) was higher than that of regular workers (4.74). Comparatively,
there was no significant difference by gender in samples.
9
Table 1: Personal characteristics of the survey
Personal characteristics Value Frequency Percent Cumulative Percent
Age
Under 20 0 0 0
20-29 30 14.6 14.6
30-39 51 24.8 39.3
40-49 51 24.8 64.1
50-59 58 28.2 92.2
60 and above 16 7.8 100
Gender
Female 99 48.1 48.1
Male 107 51.9 100
Job position
Manager 67 32.5 32.5
Non-manager 139 67.5 100
Tenure
less than 1 year 18 8.7 8.7
1-5 years 86 41.7 50.5
6-10 years 30 14.6 65
10-15 years 28 13.6 78.6
more than 15 years 44 21.4 100
Employment type
temporary 21 10.2 10.2
permanent 185 89.8 100
Table 2: Descriptive statistics for PCB and ICI according to the personal characteristics
Personal characteristics Value
PCB ICI
Mean Min. Max. Mean Min. Max.
Age
Under 20 N/A N/A N/A N/A N/A N/A
20-29 1.96 1.00 4.33 4.78 3.25 5.00
30-39 1.89 1.00 4.67 4.60 2.00 5.00
40-49 1.76 1.00 4.78 4.76 2.00 5.00
50-59 1.69 1.00 4.22 4.76 1.00 5.00
60 and above 1.50 1.00 3.44 4.91 4.50 5.00
Gender
Female 1.75 1.00 4.33 4.74 1.00 5.00
Male 1.80 1.00 4.78 4.74 2.00 5.00
Job position
Manager 1.86 1.00 4.78 4.78 2.00 5.00
Non-manager 1.74 1.00 4.67 4.73 1.00 5.00
Tenure
less than 1 year 1.23 1.00 2.00 4.71 3.00 5.00
1-5 years 1.85 1.00 4.67 4.75 3.00 5.00
6-10 years 1.95 1.00 4.78 4.80 2.00 5.00
10-15 years 1.89 1.00 3.89 4.85 4.00 5.00
more than 15 years 1.68 1.00 3.56 4.63 1.00 5.00
Employment type
temporary 1.45 1.00 3.33 4.80 3.25 5.00
permanent 1.81 1.00 4.78 4.74 1.00 5.00
10
3.3.2 Inferential Statistics
To verify construct validity and reliability, Confirmatory Factor Analysis (CFA) was per-
formed in this study. The higher the factor loading size (0.8), the better the condition
(Wiktorowicz et al., 2016). However, since the factor loading of 0.4 has been also considered
as significant (MRC, 2013), the construct validity and reliability of all items in this study
are significantly good or moderate, see Table 8 in Appendix C. In Table 9 of Appendix
C, the constructs were additionally verified through multiple measurement models including
Cronbach’s Alpha, rho A, CR, and AVE.
Subsequently, the study analysed motivational process for ISP compliance intention with
various constructs, by dividing into three structural models. The first model consists of PCB
and ICI to investigate the direct correlation between them. In the second model, intrinsic
motivation factors including ATT, SE, PF were added to the constructs in the first model.
The third model was to determine the moderating effect of PCB on the relationship between
extrinsic motivators such as SN, SS, SC, and ICI. The structural models were examined with
T test, path coefficient, and P values to multifaceted investigate the relationships between
factors.
Table 3 shows the result of the structural analysis for the hypotheses of this study. The
direct correlation between PCB and ICI (H1) was verified to be strongly significant with
p values of 0.002. Moreover, with the -0.195 value of path coefficient, the weak negative
effect of PCB on ICI was shown. On the other hand, the relationship between intrinsic
motivation and ICI (H2, H3) was assessed to be partially significant because only ATT
among the three intrinsic motivators was significantly related to ICI. However, ATT-ICI
and PCB-ATT relationships were found to have p values of 0.008 and 0.000 respectively.
Additionally, indirect relationship of PCB-ATT-ICI had p values of 0.028. On the other
hand, the impact of PCB was found to be the most significant on PF through t test and path
coefficient along with p values. However, since PF-ICI relationship was not supported, the
impact of PCB on PF towards ICI was not proved through a structural analysis. Therefore,
while SE and PF were not found to be significant, the impact of PCB on ATT towards
ISP compliance intentions were shown to be very strong. Lastly, among the three extrinsic
motivators (H4, H5), the impacts of both SN and SC on ICI were very strong with p
values of 0.000 and 0.001 respectively, while there was no relevance between SS and ICI.
Comparatively, the moderating effect of PCB was not significant on SN, SS, as well as SC.
Figure 2 demonstrates the results of statistical analysis based on the theoretical framework
of this study.
3.3.3 bivariate analysis
Figure 3 shows scattered plots with simple linear regression analyses. The PCB has negative
correlation with all intrinsic motivation (ATT, SE, PF) as well as ICI, supporting hypotheses
1, 3, and 5. On the other hand, hypotheses 2 and 4 were supported by the positive correlation
between ICI and all constructs except PCB (ATT, SE, PF, SN, SS, SC).
11
Table 3: Pearson correlation coefficient analysis between PCB, ATT, SE, and PF and ICI
PCB ATT SE PF ICI
PCB
Pearson Correlation 1 -.219** -0.078 -.331** -.158*
Sig. (2-tailed) 0.002 0.268 0 0.023
ATT
Pearson Correlation -.219** 1 .300** .496** .520**
Sig. (2-tailed) 0.002 0 0 0
SE
Pearson Correlation -0.078 .300** 1 .193** .230**
Sig. (2-tailed) 0.268 0 0.005 0.001
PF
Pearson Correlation -.331** .496** .193** 1 .407**
Sig. (2-tailed) 0 0 0.005 0
ICI
Pearson Correlation -.158* .520** .230** .407** 1
Sig. (2-tailed) 0.023 0 0.001 0
** Significant at the 0.01 level (2-tailed).
* Significant at the 0.05 level (2-tailed).
4 Discussion
As a result of the hypothesis test, it was found that the intention to comply with ISP
was significantly affected by PCB, ATT, SN, and SC. Firstly, it has been shown that the
higher the PCB of an employee, the more likely they are to be compliant with ISP. Of the
three intrinsic motivators (ATT, SE, PF), only the ATT-ICI relationship was found to be
Figure 2: Structural statistics for theoretical framework of the study
12
Figure 3: Linear regression analysis for the impact of PCB (top) and the predictors of ICI
(bottom)
13
Table 4: Pearson correlation coefficient analysis between SN, SS, and SC and ICI
SN SS SC ICI ICI
SN
Pearson Correlation 1 .254** .346** .433** -.158*
Sig. (2-tailed) 0 0 0
SS
Pearson Correlation .254** 1 .530** .203** .520**
Sig. (2-tailed) 0 0 0.003 0
SC
Pearson Correlation .346** .530** 1 .411** .230**
Sig. (2-tailed) 0 0 0 0.001
ICI
Pearson Correlation .433** .203** .411** 1 .407**
Sig. (2-tailed) 0 0.003 0 0
** Significant at the 0.01 level (2-tailed).
significant while both SE and PF did not appear to affect ICI. In addition, PCB had a great
negative effect on ATT and the indirect relationship of PCB-ATT-ICI was also found to
be significant. Thus, PCB were found to have a negative impact on attitudes towards ISP
compliance intentions. On the other hand, the PF-ICI relationship was too weak to support
the hypothesis although PCB had a negative impact on PF for ISP. Accordingly, only the
impact of PCB on ATT towards ICI was supported in the second model.
Among the three extrinsic motivators (SN, SC, SS), SN and SC showed a positive relation
with ICI as expected by the existing theories. In contrast, the effect of SS on ICI was
not significant. Additionally, the moderating role of PCB between the three factors and
ICI was not significant at all, suggesting that PCB do not moderate the strongly positive
SN-ICI and SC-ICI relationships. Subsequently, H6 was significantly supported. Among
intrinsic motivators, PCB negatively influenced ATT, which had a correlated effect on ICI
to a significant extent. On the other hand, while SN and SC were found to affect ICI
positively, they were not moderated by PCB. This result can be interpreted that PCB
can reduce positive intrinsic motivation for ICI while PCB does not influence the extrinsic
motivation for ICI. Therefore, the effect of PCB on intrinsic motivation is stronger than
the moderating effect of psychological contract breach between extrinsic motivation and ISP
compliance intention.
The Pearson correlation coefficient explained that all relationships in the theoretical
framework of the study are correlated, except for PCB-SE relationship. Additionally, con-
trary to the structural analysis results, the PF-ICI and SS-ICI relationships were shown to
have a significant positive correlation. Furthermore, as a result of simple linear regression
analysis, PCB showed a negative correlation with intrinsic motivation and ICI, whereas all
motivation factors except PCB have a positive correlation with ICI.
To sum up the results, it was confirmed that the negative correlation and causal rela-
tionship between PCB and ICI were significant, verifying hypothesis 1. These results can
contribute to expanding existing research on the negative effects of PCB in organisations.
Second, the study aimed to investigate how psychological factors such as intrinsic and ex-
trinsic motivators for ICI could be negatively affected by PCB. As a result, ATT for ICI was
significantly negatively affected by PCB, suggesting that PCB could decrease positive atti-
tudes towards ICI. Lastly, it was shown that PCB did not moderate the positive correlation
between extrinsic motivation and ICI.
Based on the findings, the study can propose that increasing intrinsic motivation and
14
establishing extrinsic factors for prevent employees with PCB from performing inadequate
cybersecurity behaviour. In particular, organisations should pay attention to fulfil their em-
ployees’ psychological contracts and strive to improve their attitudes for ISP compliance.
Additionally, to address the risk of psychological contract breaches, organisations can en-
courage employees’ extrinsic motivation by building a cybersecurity culture and establishing
certain sanctions for ISP compliance breaches.
5 Conclusions
Most cyber threat actors today often leverage human factors, as known as social engineering
attacks or people hacking, which makes employee ISP compliance much more important.
Nevertheless, not all employees are willing to be ISP compliant as the organisation expects
them to be. Although most employees claim that they do not have enough time to comply
with all ISPs during work, ISP noncompliance is rather driven by a variety of psychological
motivations. Psychological contract breach has emerged as a major issue in the business
environment because it fosters negative employee beliefs against the organisation. There-
fore, the study conducted an empirical study to investigate the effect of PCB on ICI. In
this study, the psychological factors of the Theory of Planned Behaviour and General Deter-
rence Theory were additionally applied by classifying it as intrinsic and extrinsic motivation.
Data analysis primarily revealed that high PCB significantly led to low ISP compliance in-
tentions. As a result, it was found that PCB greatly reduced intrinsic motivation (attitudes
and perceived fairness) for ICI but did not moderate the relationship between extrinsic mo-
tivation (subjective norms and sanction certainty) and ICI. Overall, this study showed that
an employees’ PCB played a significant role in influencing ISP compliance intentions.
5.1 Recommendations
Based on the findings, the study can propose that increasing intrinsic motivation and es-
tablishing extrinsic factors prevent employees with PCB from performing inadequate cy-
bersecurity behaviour. In particular, organisations should pay attention to fulfilling their
employees’ psychological contracts and strive to improve their attitudes for ISP compliance.
Additionally, to address the risk of psychological contract breaches, organisations can en-
courage employee extrinsic motivation by building a cybersecurity culture and establishing
certain sanctions for ISP compliance breaches.
In addition to establishment of ISP, employee ISP compliance is essential to avoid threats
of people hacking and social engineering. Therefore, reducing PCB is important not only for
employee engagement and work performance but also for information security risk manage-
ment. The most important ways to address the risks of employee PCB is to make promises
clear from the beginning. Alternatively, PCB can be mitigated by open communication, trust
in the supervisor, and specific obligations (e.g. job content, career development, organisa-
tional policies, leadership and social contacts, work-life balance, job security, rewards) (van
Gilst et al., 2020). Besides, it was found that the relationship between PCB and work perfor-
mance was moderated in employees having high social interaction, perceived organisational
support, and trust (Bal et al., 2010).
15
Second, organisations should strive to increase positive attitudes and perceived fairness.
In addition to fulfilling the employee psychological contract, a manager’s persuasive strategy
can increase employee attitudes and intrinsic motivation more effectively than an assertive
strategy (Chiu, 2018). In addition, organisations should identify why employees perceive that
the ISP compliance requirements are unfair. Third, the study also suggests that an organ-
isation’s cybersecurity culture can mitigate an employee’s undesirable security behaviours,
which can be caused by high PCB. Organisations must make significant investments in imple-
menting transformational change to build a cybersecurity culture that goes beyond simply
offering a SETA program (Alshaikh, 2020). In addition, despite the PCB, employees are
inevitably inclined to comply with the ISP to avoid their misbehaviours getting caught up.
Thus, the final proposal of this study is to pay attention to employee behaviour and ISP com-
pliance. Organisations can also establish security measures to monitor and alert employees
for breaches of security compliance.
5.2 Limitations and Directions for Future Research
This study conducted a cross-sectional survey that measured only partial and static phe-
nomenon due to the time frame of the study (Bravo et al., 2019). Therefore, the path
coefficient was analysed in order to examine the causal relationship between PCB and mo-
tivators as well as ICI. Nevertheless, the study was unable to identify whether PCB was
created before other psychological factors. Accordingly, a longitudinal study is proposed to
be employed in future research.
In addition, the average value of PCB collected from the partner company was very low
(1.78), while the average ICI was very high (4.74). Therefore, this might have affected the
significance of the impact of PCB on ICI. Out of the 206 valid responses, only 30 employees
had PCBs of 3.0 or higher and 176 employees had PCBs less than 3.0. Therefore, the study
was unable to divide the sample into breached and non-breached groups. Furthermore, only
3 employees had an ICI of less than 3, while 203 employees had an ICI of 3 or much higher.
Such biased data could have affected the significance of relationships between factors. Thus,
in future research, it is desirable to recruit multiple companies to diversify the range of PCB
and ICI. The structural model analysis found that SE, PF, and SS were not significant for
ICI. There were also no significant effects of SE for ICI with correlation efficient although
SE has been long studied to have very strong correlation with ICI in IS studies (Lebek
et al., 2014; Nasir et al., 2017). On the contrary, PF and SS showed a significant correlation
with ICI through correlation coefficient analysis. This can lead to the conclusion that the
relationship between PCB and the three factors were not fully investigated. Therefore,
these relationships should be further investigated in future studies, especially in longitudinal
studies.
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Appendix A
PART ONE: Personal Characteristics
1. What is your age?
[ ] under 20
[ ] 20-29
[ ] 30-39
[ ] 40-49
[ ] 50-59
[ ] 60 and above
2. What is your gender?
[ ] Female
[ ] Male
3. What is your job position?
[ ] Manager
[ ] Non-manager
4. How long have you worked in this organisation?
[ ] less than 1 year
[ ] 1-5 years
[ ] 6-10 years
[ ] 10-15 years
[ ] more than 15 years
5. What is your type of employment?
[ ] Temporary
[ ] Permanent
22
PART TWO: Motivational process for ISP compliance intention
To what extent do you agree?
* ISP (Information Security Policy) prescribes employee’s cybersecurity behaviour within an or-
ganisation (e.g. use of personal computers, access to the internal systems, opening emails and
attachments, data leakage from social media, password management, and software downloads from
the internet).
Table 5: Research Questionnaire
Factor Item Item Description Sources
Psychological
contract breach
PCB1 Almost all the promises made by my em-
ployer during recruitment have been kept so
far. AL-Abrrow
et al. (2019);
Robinson and
Wolfe Morri-
son (2000)
PCB2 I feel that my employer has come through
in fulfilling the promises made to me when I
was hired.
PCB3 So far my employer has done an excellent job
of fulfilling its promises to me.
PCB4 I have not received everything promised to
me in exchange for my contribution.
PCB5 My employer has broken many of its
promises to me even though I’ve upheld my
side of the deal.
PCB6 I feel a great deal of anger toward my organ-
isation.
PCB7 I feel betrayed by my organisation.
PCB7 I feel that my organisation has violated the
contract between us.
PCB9 I feel extremely frustrated by how I have
been treated by my organisation.
Intrinsic Motivation
Attitudes
ATT1 Following the organisation’s ISP is a good
idea.
Ifinedo (2012)
ATT2 Following the organisation’s ISP is a neces-
sity.
ATT3 Following the organisation’s ISP is beneficial.
ATT4 Following the organisation’s ISP is pleasant.
Self-efficacy
SE1 I would feel comfortable following most of
the ISP on my own. Herath and
Rao (2009b);
Ifinedo (2012)
SE2 If I wanted to, I could easily follow ISP by
on my own.
SE3 I would be able to follow most of the ISP
even if there was no one around to help me.
SE4 I believe that it is within my control to pro-
tect myself from information security viola-
tions.
23
SE5 I have the necessary skills to protect myself
from information security violations.
Perceived Fairness
PF1 I believe the requirements of the ISP that I
am required to comply with are unfair. Bulgurcu
et al. (2010)PF2 I believe the requirements of the ISP that I
am required to comply with are unreason-
able.
PF3 I believe the expectations of the organisation
that I should comply with the ISP is unfair.
Self-developed
PF4 I believe the expectations of the organisation
that I should comply with the ISP is unrea-
sonable.
Extrinsic Motivation
Subjective Norms
SN1 My boss thinks that I should follow the or-
ganisation’s ISP.
Ifinedo (2012)
SN2 My colleagues think that I should follow the
organisation’s ISP.
SN3 My organisation’s IT department pressures
me to follow the organisation’s ISPs.
SN4 My subordinates think I should follow the
organisation’s ISP.
Sanction Severity
SS1 The organisation disciplines employees who
break information security rules.
Herath and
Rao (2009b)
SS2 My organisation terminates employees who
repeatedly break security rules.
SS3 If I were caught violating organisation infor-
mation security policies, I would be severely
punished.
Sanction Certainty
SC1 Employee computer practices are properly
monitored for policy violations.
Herath and
Rao (2009b)
SC2 If I violate organisation security policies, I
would probably be caught.
ISP Compliance
Intentions
ICI1 I intend to follow the organisation’s ISP. Herath and
Rao (2009b);
Han et al.
(2017b)
ICI2 I am likely to follow the organisation’s ISP.
ICI3 It is possible that I will comply with ISP to
protect the organisation’s information sys-
tems.
ICI4 I am certain that I will follow organisational
ISP.
Note - 1: Strongly disagree, 2: Somewhat disagree, 3: Neither agree nor disagree, 4: Somewhat
agree, 5: Strongly agree
24
Appendix B
For analysis, the values of PCB 1-3 were reverse coded as PCB represent a negative factor,
whereas PCB 4-9 remained the same. Similar, the values of PF 1-4 were reverse coded as perceived
fairness was a positive motivator. Therefore, a low value for the PCB indicator can be interpreted
as positive, while a high value is associated with a positive factor for the other 25 indicators.
Table 6: Results showing normality test of factors
Indicator
Range
Statistics
Min. Statistics
Max.
Statistics
Mean
Std. Deviation Statistic Variance Statistics Skewness Kurtosis
Statistics Std. Error
PCB1 4 1 5 1.92 0.072 1.04 1.081 1.218 1.055
PCB2 4 1 5 1.96 0.073 1.047 1.096 1.067 0.579
PCB3 4 1 5 2.02 0.069 0.988 0.975 0.851 0.286
PCB4 4 1 5 2.23 0.091 1.303 1.699 0.677 -0.817
PCB5 4 1 5 1.75 0.077 1.101 1.212 1.302 0.617
PCB6 4 1 5 1.52 0.068 0.976 0.953 1.805 2.414
PCB7 4 1 5 1.52 0.07 1.006 1.012 1.95 2.898
PCB8 4 1 5 1.42 0.062 0.889 0.791 2.354 5.352
PCB9 4 1 5 1.67 0.081 1.163 1.352 1.562 1.179
ATT1 4 1 5 4.71 0.049 0.706 0.498 -3.145 11.337
ATT2 4 1 5 4.68 0.051 0.734 0.539 -2.862 9.21
ATT3 4 1 5 4.62 0.054 0.773 0.597 -2.365 5.831
ATT4 4 1 5 3.83 0.07 1.011 1.023 -0.414 -0.469
SE1 4 1 5 4.14 0.064 0.913 0.834 -1.331 1.945
SE2 4 1 5 3.93 0.068 0.97 0.942 -1.06 1.052
SE3 4 1 5 3.91 0.072 1.034 1.07 -1.096 0.956
SE4 4 1 5 4.14 0.067 0.955 0.912 -1.44 2.321
SE5 4 1 5 4.07 0.065 0.935 0.873 -1.222 1.631
PF1 4 1 5 4.53 0.051 0.737 0.543 -1.892 4.577
PF2 4 1 5 4.55 0.051 0.736 0.542 -1.727 3.06
PF3 3 2 5 4.65 0.044 0.629 0.396 -1.812 3.011
PF4 3 2 5 4.65 0.043 0.621 0.386 -1.801 3.084
SN1 4 1 5 4.54 0.055 0.788 0.62 -1.641 2.11
SN2 4 1 5 4.31 0.064 0.922 0.849 -1.186 0.726
SN3 4 1 5 3.54 0.084 1.212 1.469 -0.493 -0.545
SN4 4 1 5 3.95 0.071 1.023 1.046 -0.555 -0.319
SS1 4 1 5 3.44 0.066 0.949 0.901 -0.125 0.09
SS2 4 1 5 3.35 0.061 0.875 0.765 0.138 0.781
SS3 4 1 5 3.73 0.065 0.938 0.88 -0.41 0.121
SC1 4 1 5 3.87 0.065 0.939 0.882 -0.531 0.069
SC2 4 1 5 4.08 0.065 0.936 0.876 -0.995 0.884
ICI1 4 1 5 4.83 0.039 0.56 0.314 -4.567 24.429
ICI2 4 1 5 4.73 0.049 0.708 0.501 -3.386 12.741
ICI3 4 1 5 4.69 0.053 0.765 0.586 -3.096 10.39
ICI4 4 1 5 4.72 0.042 0.598 0.357 -2.858 10.697
25
Appendix C
Table 7: Factor loadings and Cross-loading
ATT ICI PCB PF SC SE SN SS
ATT 1 0.941 0.517 -0.223 0.445 0.291 0.247 0.418 0.126
ATT 2 0.948 0.504 -0.24 0.495 0.29 0.253 0.417 0.124
ATT 3 0.93 0.527 -0.246 0.525 0.346 0.287 0.394 0.155
ATT 4 0.584 0.308 -0.172 0.259 0.321 0.23 0.203 0.19
ICI 1 0.467 0.895 -0.141 0.347 0.372 0.204 0.446 0.159
ICI 2 0.403 0.902 -0.154 0.348 0.338 0.168 0.438 0.18
ICI 3 0.415 0.795 -0.099 0.288 0.267 0.137 0.357 0.146
ICI 4 0.552 0.82 -0.218 0.432 0.476 0.312 0.406 0.26
PCB 1 -0.312 -0.194 0.871 -0.368 -0.376 -0.109 -0.339 -0.21
PCB 2 -0.3 -0.191 0.889 -0.361 -0.361 -0.107 -0.33 -0.195
PCB 3 -0.27 -0.174 0.876 -0.347 -0.334 -0.074 -0.287 -0.161
PCB 4 -0.081 -0.021 0.619 -0.176 -0.179 -0.015 -0.113 -0.084
PCB 5 -0.214 -0.137 0.824 -0.258 -0.286 -0.084 -0.286 -0.185
PCB 6 -0.091 -0.121 0.724 -0.197 -0.255 -0.073 -0.172 -0.235
PCB 7 -0.141 -0.151 0.79 -0.247 -0.265 -0.061 -0.241 -0.257
PCB 8 -0.028 -0.076 0.772 -0.197 -0.199 -0.035 -0.247 -0.237
PCB 9 -0.171 -0.172 0.853 -0.263 -0.278 -0.074 -0.239 -0.264
PF 1 0.461 0.376 -0.367 0.916 0.344 0.185 0.416 0.139
PF 2 0.445 0.365 -0.295 0.908 0.353 0.192 0.353 0.155
PF 3 0.512 0.415 -0.319 0.958 0.33 0.182 0.412 0.099
PF 4 0.499 0.425 -0.342 0.967 0.353 0.184 0.418 0.129
SC 1 0.265 0.356 -0.338 0.327 0.907 0.219 0.335 0.474
SC 2 0.378 0.445 -0.34 0.351 0.941 0.194 0.405 0.52
SE 1 0.306 0.234 -0.096 0.18 0.176 0.868 0.315 0.132
SE 2 0.243 0.216 -0.026 0.17 0.149 0.879 0.236 0.1
SE 3 0.223 0.187 -0.01 0.106 0.156 0.829 0.245 0.092
SE 4 0.234 0.204 -0.161 0.186 0.236 0.853 0.31 0.174
SE 5 0.244 0.231 -0.09 0.191 0.221 0.872 0.298 0.206
SN 1 0.431 0.513 -0.274 0.429 0.388 0.318 0.888 0.193
SN 2 0.406 0.438 -0.343 0.424 0.416 0.322 0.932 0.248
SN 3 0.128 0.207 -0.145 0.106 0.073 0.044 0.507 0.146
SN 4 0.287 0.28 -0.245 0.287 0.296 0.282 0.784 0.27
SS 1 0.125 0.182 -0.224 0.097 0.491 0.152 0.185 0.862
SS 2 0.081 0.127 -0.168 0.025 0.4 0.132 0.131 0.834
SS 3 0.187 0.237 -0.226 0.186 0.477 0.145 0.31 0.873
26
Table 8: Construct validity and reliability
Construct Cronbach’s Alpha rho A CR AVE
ATT 0.877 0.918 0.92 0.748
ICI 0.877 0.889 0.915 0.73
PCB 0.935 0.97 0.943 0.65
PF 0.954 0.957 0.967 0.879
SC 0.831 0.861 0.921 0.854
SE 0.913 0.921 0.934 0.74
SN 0.801 0.902 0.868 0.632
SS 0.826 0.878 0.892 0.734
27