Publication Type
Journal Article
Version
publishedVersion
Publication Date
8-2002
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
10.5465/3069313
Publisher
Academy of Management
Citation
CHEN, Chao C.; CHOI, Jaepil; and CHI, Chu-Cheng.
Making justice sense of local-expatriate compensation disparity: Mitigation by local referents, ideological explanations, and interpersonal sensitivity in China-foreign joint ventures. (2002). Academy of Management Journal. 45, (4), 807-817.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1727
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/3069313