A Psychology of Working Theory Perspective on Employee Embeddedness: The Sequential Roles of Career Growth, Contract Fulfillment, and Ownership

ABSTRACT

This study investigates the psychological pathway through which perceived career growth (PCG) fosters organizational embeddedness (OE). Uniquely employing the psychology of working theory (PWT) as a theoretical framework, we argue that this relationship unfolds through a humanistic need‐satisfaction process. We propose and test a sequential mediation model where the effect of PCG on OE is fully mediated, first by psychological contract fulfillment (PCF) and subsequently by psychological ownership (PO). Data were collected from 300 employees in Pakistan's power sector in a four‐wave, time‐lagged study with 2‐month intervals. The findings provide strong support for our model, confirming that the influence of PCG on OE is fully and sequentially transmitted through PCF and PO, with the direct path being nonsignificant. The primary value of this study lies in demonstrating the utility of PWT as a novel explanatory framework for workplace attachment, offering a need‐based alternative to traditional transactional models. For practitioners, the results provide a clear roadmap: Career growth must be delivered as a fulfilled promise to build trust, which in turn enables the cultivation of PO—the ultimate driver of retention.