IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v17y2011i1p54-67.html
   My bibliography  Save this article

Moderating effects on the compensation gap between locals and expatriates in China: A multi-level analysis

Author

Listed:
  • Leung, Kwok
  • Wang, Zhongming
  • Hon, Alice H.Y.

Abstract

The large compensation gap between locals and expatriates in developing countries is associated with a number of negative reactions on the part of the former. Drawing on the sense-making perspective, this study adopts a multi-level approach to examine the moderating effect of an inclusive climate initiated by expatriates for locals and firm performance on the negative relationships between disapproval of a compensation gap and several outcome variables. As expected, disapproval of this gap is related to local employees' negative reactions to expatriates and their firms. Consistent with the sense-making perspective, a stronger inclusive climate for locals is related to a less negative relationship between disapproval of the compensation gap and reactions to expatriates, whereas better firm performance is related to a more negative relationship between that disapproval and reactions toward the organization.

Suggested Citation

  • Leung, Kwok & Wang, Zhongming & Hon, Alice H.Y., 2011. "Moderating effects on the compensation gap between locals and expatriates in China: A multi-level analysis," Journal of International Management, Elsevier, vol. 17(1), pages 54-67, March.
  • Handle: RePEc:eee:intman:v:17:y:2011:i:1:p:54-67
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425310000980
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Engelhard, Johann & Nägele, Joakim, 2003. "Organizational learning in subsidiaries of multinational companies in Russia," Journal of World Business, Elsevier, vol. 38(3), pages 262-277, August.
    2. Evans, Martin G., 1985. "A Monte Carlo study of the effects of correlated method variance in moderated multiple regression analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 305-323, December.
    3. Kwok Leung & Peter B Smith & Zhongming Wang & Haifa Sun, 1996. "Job Satisfaction in Joint Venture Hotels in China: An Organizational Justice Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 947-962, December.
    4. Michael Harvey, 1993. "Empirical Evidence of Recurring International Compensation Problems," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 785-799, December.
    5. Leung, Kwok & Zhu, Yongxin & Ge, Cungen, 2009. "Compensation disparity between locals and expatriates: Moderating the effects of perceived injustice in foreign multinationals in China," Journal of World Business, Elsevier, vol. 44(1), pages 85-93, January.
    6. Fryxell, Gerald E. & Butler, John & Choi, Amanda, 2004. "Successful localization programs in China: an important element in strategy implementation," Journal of World Business, Elsevier, vol. 39(3), pages 268-282, August.
    7. Thompson, Leigh & Loewenstein, George, 1992. "Egocentric interpretations of fairness and interpersonal conflict," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 176-197, March.
    8. Kwok Leung & Peter B Smith & Zhongming Wang & Haifa Sun, 1996. "Job Satisfaction in Joint Venture Hotels in China: An Organizational Justice Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 947-962, December.
    9. Roberson, Quinetta M., 2006. "Justice in teams: The activation and role of sensemaking in the emergence of justice climates," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(2), pages 177-192, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hon, Alice H.Y. & Lu, Lin, 2015. "Are we paid to be creative? The effect of compensation gap on creativity in an expatriate context," Journal of World Business, Elsevier, vol. 50(1), pages 159-167.
    2. repec:spr:manint:v:54:y:2014:i:1:d:10.1007_s11575-013-0190-3 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:17:y:2011:i:1:p:54-67. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.