Idiosyncratic deals (I-deals) are individualized arrangements between individuals and their employer, intended to benefit both (Rousseau, 2005). Empirical research on I-deals has predominantly built on social exchange theory and specifically reciprocity to explain how employees respond to these personalized work deals. Yet, little research has examined the mechanisms through which employees reciprocate once the I-deal is struck. The present paper examines how and why I-deals predict supervisor perceptions of the focal employee’s behavior, in particular, innovative work behavior and in-role work performance. We argue that positive affective states following I-deal negotiations are a vital mechanism in this reciprocation process. Using data from 208 middle-level managers and their supervisors, we tested whether positive emotions and feelings of energy mediated the relationship between I-deals and supervisor rated behavioral outcomes. The results support our hypotheses and we discuss that successful I-deal negotiations can increase individuals’ resources by enhancing positive affective states. These resources in turn positively affect the focal employee’s innovative behavior and performance.
|Name||Academy of Management Proceedings|
|Publisher||Academy of Management|