Shadow Management in Japanese Companies in Hong Kong *

An investigation of white‐collar employees in Japanese service companies in Hong Kong reveals that shadow management exists in them. This study attempts to identify the structural sources of, and the mechanisms that perpetuate that shadow management. The results of the findings show that the shadow management is represented in a form of dual employment structure: Japanese expatriates dominate the primary sector, and local employees the secondary sector of the labour market. This dual employment structure helps explain the existence and persistence of conflicts between Japanese expatriate managers and local employees in these organizations.