Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/28105
Title: Moderating effects on the compensation gap between locals and expatriates in China : a multi-level analysis
Authors: Leung, K
Wang, Z
Hon, AHY 
Keywords: Compensation gap
Expatriates
Firm performance
Inclusive climate
Multi-level approach
Sense-making
Issue Date: 2011
Publisher: Elsevier Science Bv
Source: Journal of international management, 2011, v. 17, no. 1, p. 54-67 How to cite?
Journal: Journal of International Management 
Abstract: The large compensation gap between locals and expatriates in developing countries is associated with a number of negative reactions on the part of the former. Drawing on the sense-making perspective, this study adopts a multi-level approach to examine the moderating effect of an inclusive climate initiated by expatriates for locals and firm performance on the negative relationships between disapproval of a compensation gap and several outcome variables. As expected, disapproval of this gap is related to local employees' negative reactions to expatriates and their firms. Consistent with the sense-making perspective, a stronger inclusive climate for locals is related to a less negative relationship between disapproval of the compensation gap and reactions to expatriates, whereas better firm performance is related to a more negative relationship between that disapproval and reactions toward the organization.
URI: http://hdl.handle.net/10397/28105
ISSN: 1075-4253
DOI: 10.1016/j.intman.2010.12.002
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