Psychological Contract and Retention in Community-Based Tourism Co-ops: The Role of Customary (Adat) Norms
Abstract
Community-Based Tourism (CBT) cooperatives have emerged as an important mechanism for empowering rural communities in Sabah and Sarawak. However, these cooperatives face persistent challenges in retaining active members. Retention issues often arise when members feel overburdened, perceive unfair distribution of benefits, or believe that cooperative practices violate cultural expectations. In indigenous contexts, customary (adat) norms strongly shape perceptions of fairness, reciprocity, and communal responsibility. Yet, little research has examined how adat influences the psychological contract of cooperative members and how this relates to burnout and intent to stay. This study aims to explore (1) how adat expectations shape psychological contracts within CBT cooperatives, (2) how organizational justice mediates the relationship between adat expectations and retention, and (3) how burnout influences members’ intent to stay. A qualitative multiple-case study design was employed across six CBT cooperatives in Sabah and Sarawak. Semi-structured interviews were conducted with 36 cooperative members, including elders, leaders, and younger participants, supplemented by focus group discussions and field observations. Data was thematically analysed using NVivo software, guided by Braun and Clarke’s (2006) six-step framework. Findings revealed that adat norms defined fairness as communal balance—equal workload rotation, respect for elders, and reciprocal contribution. When adat-consistent practices were upheld, members perceived strong organizational justice, reinforcing loyalty to the cooperative. Conversely, perceived violations of adat weakened psychological contracts, leading to disengagement. Burnout was a critical moderating factor; even members with strong cultural obligations considered leaving when overwhelmed by dual responsibilities. This study concludes that CBT retention strategies must embed adat values in management practices while addressing workload distribution to reduce burnout. Future research could adopt a mixed-methods approach or examine gender differences in adat expectations.
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