A Cross-Domain Exploration of Performance Benefits and Costs of Idiosyncratic Deals

Abstract

Drawing on justice theory and the side-bet theory of commitment, we explored the nuanced relationship between idiosyncratic deals and outcomes. We developed a model that posits affective commitment as a mediator between idiosyncratic deals and positive work outcomes, whereas continuance commitment mediates the relationship between idiosyncratic deals and negative nonwork domain outcomes. Furthermore, we hypothesized moderated mediation in that the employee’s assessment of organizational justice will moderate the relationship between idiosyncratic deals and continuance commitment, which in turn influences the nonwork domain outcomes. Data collected from 182 employee–manager dyads indicated support for our conceptual model. The implications of these findings are discussed in terms of how to manage both the benefits and the costs of idiosyncratic deals.