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The Normalization of Deviant Organizational Practices: The Non-performing Loans Problem in China

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  • Jiatao Li
  • Carmen Ng

Abstract

Research on deviant organizational practices has demonstrated that normative and cognitive institutional forces contribute to making deviance acceptable. Data from a survey of 3,751 Chinese firms were applied to test the idea that a clearly articulated alternative identity is necessary if a firm is to resist the normalization of deviance. Widespread acceptance of delinquency in repaying loans was shown to make it more likely that a firm adopts that practice, but this normalization process is less likely for firms with a stronger anti-deviance identity. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Jiatao Li & Carmen Ng, 2013. "The Normalization of Deviant Organizational Practices: The Non-performing Loans Problem in China," Journal of Business Ethics, Springer, vol. 114(4), pages 643-653, June.
    • Handle: RePEc:kap:jbuset:v:114:y:2013:i:4:p:643-653
    DOI: 10.1007/s10551-013-1710-6
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    2. Karlo Kauko, 2021. "The Vanishing Interest Income of Chinese Banks," Asian Economic Papers, MIT Press, vol. 20(3), pages 94-113, Fall.
    3. Shijiao Chen & Jing A. Zhang & Hongzhi Gao & Zhilin Yang & Damien Mather, 2022. "Trust Erosion During Industry-Wide Crises: The Central Role of Consumer Legitimacy Judgement," Journal of Business Ethics, Springer, vol. 175(1), pages 95-116, January.
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    5. Atif Ansar & Bent Flyvbjerg & Alexander Budzier & Daniel Lunn, 2016. "Does infrastructure investment lead to economic growth or economic fragility? Evidence from China," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 32(3), pages 360-390.
    6. Juelin Yin & Ali Quazi, 2018. "Business Ethics in the Greater China Region: Past, Present, and Future Research," Journal of Business Ethics, Springer, vol. 150(3), pages 815-835, July.

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