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.
Original language | English |
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Pages (from-to) | 54-67 |
Number of pages | 14 |
Journal | Journal of International Management |
Volume | 17 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Mar 2011 |
Keywords
- Compensation gap
- Expatriates
- Firm performance
- Inclusive climate
- Multi-level approach
- Sense-making
ASJC Scopus subject areas
- Business and International Management
- Finance
- Strategy and Management