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Moving from the developing to the developed: compensation disparities of C hinese expatriates
Author(s) -
Shen Kathy Ning,
Xie Xuanli
Publication year - 2018
Publication title -
asia pacific journal of human resources
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.825
H-Index - 33
eISSN - 1744-7941
pISSN - 1038-4111
DOI - 10.1111/1744-7941.12113
Subject(s) - distributive justice , multinational corporation , china , mainland china , equity (law) , interactional justice , business , subsidiary , compensation (psychology) , economic justice , procedural justice , expatriate , demographic economics , social psychology , political science , psychology , economics , perception , finance , law , neuroscience
This research examines Chinese expatriates working in Chinese multinational companies subsidiaries in the United Arab Emirates. We identify three salient social referents used by Chinese expatriates to assess distributive justice, i.e. employees working in mainland China, locals from the host country, and employees working in developed country multinational companies in the host country. For each referent, we explore the determinants of perceived distributive justice. The results show that equity and non‐monetary rewards are stable and influential factors for perceived distributive justice. Compensation disparity vis‐à‐vis employees working in mainland China and in international multinational companies has a significant effect on perceived distributive justice. However, compensation disparity is not used when it comes to assessing perceived distributive justice compared to locals in the host country. Finally, our findings suggest that only equity and non‐monetary rewards have significant effects on expatriation satisfaction, not perceived distributive justice.