Navigating Turbulence in the Pharmaceutical Industry: Understanding the Psychological Contract Breach through JDR Framework and Its Impact on Turnover Intention

Abstract

The research aims to explain the impact of psychological contract breach on
employees in foreign-owned pharmaceutical companies in Indonesia, with a focus on
the turbulent conditions within the pharmaceutical industry due to digitalization. To
achieve this objective, a deductive logical hypothetical causal study method was
employed, involving a sample of 487 employees in foreign-owned pharmaceutical
companies in Indonesia. Data analysis was conducted using Structural Equation
Modeling (SEM). The study's findings are discussed based on two key theories,
namely, the theory of learned helplessness and the Job Demands-Resources (JD-R)
theory, to analyze the effects of psychological contract breaches and gain a deeper
understanding of how such breaches affect the mental health and motivation of
employees. The research results provide valuable insights for addressing issues
arising from disruptions in the pharmaceutical industry and contribute to the
understanding of employee well-being and turnover amidst changing conditions.