TITLE

Compensation disparity between locals and expatriates: Moderating the effects of perceived injustice in foreign multinationals in China

AUTHOR(S)
Leung, Kwok; Zhu, Yongxin; Ge, Cungen
PUB. DATE
January 2009
SOURCE
Journal of World Business;Jan2009, Vol. 44 Issue 1, p85
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: A large compensation gap exists between local and expatriate employees in foreign multinationals in China. A survey in the Suzhou area confirmed that local employees regarded their compensation vis-�-vis that of expatriates as unfair. Trustworthiness of expatriates by locals showed a stronger effect on their evaluation of expatriates than on their job satisfaction and organizational commitment, whereas perceived compensation received by locals showed the opposite pattern. Trustworthiness of expatriates moderated the negative effect of perceived distributive injustice on evaluation of expatriates, whereas perceived compensation moderated the relationships between perceived distributive injustice and job satisfaction as well as organizational commitment.
ACCESSION #
35771014

 

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