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Compensation disparity between locals and expatriates in China: A multilevel analysis of the influence of norms
Kwok Leung1; Xiaowan Lin2; Lin Lu3
2014
Source PublicationMANAGEMENT INTERNATIONAL REVIEW
ISSN0938-8249
Volume54Issue:1Pages:107-128
Abstract

In developing countries, there is a large gap in the compensations of locals and expatriates, which is related to negative attitudes of locals. A multilevel study was conducted in China on the influence of low compensation parity in MNC operations. Findings show that the negative effects of low compensation parity on outcome variables, namely, evaluation of and knowledge sharing with expatriates, as well as job satisfaction and intention to quit, were fully mediated by distributive justice based on a comparison with expatriates. Personal pro-disparity norm regarding low compensation parity played a buffering role and was related to a weaker relationship between compensation parity and comparative distributive justice. Organizational pro-disparity norm showed a similar cross-level buffering effect. Trust climate was related to a weaker relationship between compensation parity and comparative distributive justice, and fully mediated the moderating effect of organizational pro-disparity norm. The findings have important theoretical and managerial implications for mitigating the negative influence of low compensation parity in multinational firms, and point to some important topics for future research on the social integration of locals and expatriates.

KeywordCompensation Disparity Distributive Justice Locals Expatriates China Norms
DOI10.1007/s11575-013-0190-3
Indexed BySSCI ; SSCI
Language英语
WOS Research AreaBusiness & Economics
WOS SubjectManagement
WOS IDWOS:000331636200005
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Cited Times [WOS]:11   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionFaculty of Business Administration
DEPARTMENT OF MANAGEMENT AND MARKETING
Affiliation1.City University of Hong KongHong Kong
2.University of Macau
3.Shanghai Jiao Tong University
Recommended Citation
GB/T 7714
Kwok Leung,Xiaowan Lin,Lin Lu. Compensation disparity between locals and expatriates in China: A multilevel analysis of the influence of norms[J]. MANAGEMENT INTERNATIONAL REVIEW,2014,54(1):107-128.
APA Kwok Leung,Xiaowan Lin,&Lin Lu.(2014).Compensation disparity between locals and expatriates in China: A multilevel analysis of the influence of norms.MANAGEMENT INTERNATIONAL REVIEW,54(1),107-128.
MLA Kwok Leung,et al."Compensation disparity between locals and expatriates in China: A multilevel analysis of the influence of norms".MANAGEMENT INTERNATIONAL REVIEW 54.1(2014):107-128.
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