Title

Making Justice Sense of Local-Expatriate Compensation Disparity: Mitigation by Local Referents, Ideological Explanations, and Interpersonal Sensitivity in China-Foreign Joint Ventures

Publication Type

Journal Article

Publication Date

2002

Abstract

We examined how local employees of international joint ventures (IJVs) perceived disparity between their compensation and foreign expatriates' compensation from equity theory and social justice perspectives. Chinese locals perceived less fairness when comparing their compensation with expatriates' than when comparing it with other locals'. However, fairness vis-a-vis expatriates increased if the locals were compensated higher than their peers in other IJVs or endorsed ideological explanations for expatriates' advantage. Furthermore, expatriates' interpersonal sensitivity toward locals reduced the effect of disparity on perceived fairness. Finally, perceived compensation fairness was related positively to compensation satisfaction but negatively to intentions to quit.

Discipline

Asian Studies | Human Resources Management

Research Areas

Organisational Behaviour and Human Resources

Publication

Academy of Management Journal

Volume

45

Issue

4

First Page

807

Last Page

817

ISSN

0001-4273

Identifier

10.2307/3069313

Publisher

Academy of Management