Search results

Query: faculty: "FEB" and publication year: "2010"

AuthorM. Li
TitlePerceived Inequity, supervisor-subordinate guanxi and psychological contract breach of local employees in China.
SupervisorS. T. Mol
Year2010
FacultyFaculty of Economics and Business
AbstractThis paper explores the inequity local employees might have perceived in multinational companies (MNCs) in China. The compensation disadvantage and lacking promotional opportunities are two typical inequity local employees may perceive which are possibly related to psychological contract breach. China, as an ascending country which attracts numerous MNCs to establish business there offers a good setting to investigate this topic. A quantitative research was conducted in 5 MNCs in China to investigate whether these two inequities local Chinese staffs perceive may lead to psychological contract breach. Supervisor-subordinate guanxi, which is a variable specific to the Chinese context, was also examined as a cause which may lead to local Chinese‘ psychological contract breach. This study also tests whether psychological contract breach will lead to local employee‘s job dissatisfaction, turnover intentions and workplace deviance in eastern China. Data collected from local Chinese employees working with similar qualified international assignees support most of the hypotheses. Results suggest that the compensation advantage of expatriates over local Chinese impacts their psychological contract breach significantly; conversely, lacking of promotional opportunities is not associated with breach. For local Chinese employees, psychological contract breach is negatively related to job satisfaction, positively related to turnover intentions and workplace deviance. Implications for practical working, limitations of this study and suggestions for future study are discussed in the end.
Document type scriptie master
Download paper