Making Justice Sense of Local-Expatriate Compensation Disparity: Mitigation by Local Referents, Ideological Explanations, and Interpersonal Sensitivity in China-Foreign Joint Ventures
Hong Kong University of Science & Technology Business School Research Paper
Academy of Management Journal, Vol. 45, No. 4, pp. 807-817, 2002
12 Pages Posted: 3 Aug 2007
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.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
An Analysis of Strategic Determinants, Learning and Decision-Making in Sino-British Joint Ventures
By Yanni Yan and John Child
-
Success Factors for Managing International Joint Ventures: A Review and an Integrative Framework
By Michael Nippa, Schon Beechler, ...
-
Processes, Procedures and Journal Development: Past, Present and Future
-
Human Resources and International Joint Venture Performance: A System Perspective
By Yaping Gong, Oded Shenkar, ...
-
Does Power Sharing Matter? The Role of Power and Influence in Alliance Performance
-
By Yadong Luo and Justin Tan
-
Knowledge Management in Strategic Alliances: A Review of Empirical Evidence
