IDEAS home Printed from https://ideas.repec.org/a/taf/apbizr/v24y2018i5p620-637.html
   My bibliography  Save this article

Organizational cynicism in multinational corporations in China

Author

Listed:
  • Marina Anna Schmitz
  • Fabian Jintae Froese
  • Anna Katharina Bader

Abstract

Organizational cynicism is a pejorative attitude toward the employing organization induced by mistrust, disillusion, and various negative experiences. Based on cognitive dissonance theory we develop and test a theoretical model of how perceived cultural differences lead to organizational cynicism which in turn results in greater turnover intentions among host country nationals (HCN) employed in foreign subsidiaries of multinational corporations. Furthermore, we argue that the negative effect of perceived cultural differences can be mitigated by localization, i.e. replacement of expatriates by local staff. Survey results from HCN employees in foreign subsidiaries in China confirm the expected relationships.

Suggested Citation

  • Marina Anna Schmitz & Fabian Jintae Froese & Anna Katharina Bader, 2018. "Organizational cynicism in multinational corporations in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(5), pages 620-637, October.
    • Handle: RePEc:taf:apbizr:v:24:y:2018:i:5:p:620-637
    DOI: 10.1080/13602381.2018.1492203
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13602381.2018.1492203
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13602381.2018.1492203?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Victor Oltra & Jaime Bonache & Chris Brewster, 2013. "A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals," Journal of Business Ethics, Springer, vol. 115(2), pages 291-310, June.
    2. Lingfang Fayol-Song, 2011. "Reasons behind management localization in MNCs in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 17(4), pages 455-471, October.
    3. Inge Ivarsson & Claes Göran Alvstam, 2017. "New technology development by Swedish MNEs in emerging markets: the role of co-location of R&D and production," Asian Business & Management, Palgrave Macmillan, vol. 16(1), pages 92-116, April.
    4. Leung, Kwok & Zhu, Yongxin & Ge, Cungen, 2009. "Compensation disparity between locals and expatriates: Moderating the effects of perceived injustice in foreign multinationals in China," Journal of World Business, Elsevier, vol. 44(1), pages 85-93, January.
    5. Connie Zheng & David Lamond, 2010. "Organisational determinants of employee turnover for multinational companies in Asia," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 423-443, September.
    6. Cohen, Aaron, 0. "An examination of the relationship between work commitment and work outcomes among hospital nurses," Scandinavian Journal of Management, Elsevier, vol. 14(1-2), pages 1-17, March.
    7. Raj Echambadi & James D. Hess, 2007. "Mean-Centering Does Not Alleviate Collinearity Problems in Moderated Multiple Regression Models," Marketing Science, INFORMS, vol. 26(3), pages 438-445, 05-06.
    8. Rangapriya Kannan-Narasimhan & Barbara Lawrence, 2012. "Behavioral Integrity: How Leader Referents and Trust Matter to Workplace Outcomes," Journal of Business Ethics, Springer, vol. 111(2), pages 165-178, December.
    9. Kenneth S Law & Lynda Jiwen Song & Chi-Sum Wong & Donghua Chen, 2009. "The antecedents and consequences of successful localization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1359-1373, October.
    10. Karen L Newman & Stanley D Nollen, 1996. "Culture and Congruence: The Fit Between Management Practices and national Culture," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 753-779, December.
    11. Hitotsuyanagi-Hansel, Azusa & Froese, Fabian Jintae & Pak, Yong Suhk, 2016. "Lessening the divide in foreign subsidiaries: The influence of localization on the organizational commitment and turnover intention of host country nationals," International Business Review, Elsevier, vol. 25(2), pages 569-578.
    12. Ang, Soon & Van Dyne, Linn & Koh, Christine & Ng, K. Yee & Templer, Klaus J. & Tay, Cheryl & Chandrasekar, N. Anand, 2007. "Cultural Intelligence: Its Measurement and Effects on Cultural Judgment and Decision Making, Cultural Adaptation and Task Performance," Management and Organization Review, Cambridge University Press, vol. 3(3), pages 335-371, November.
    13. Yixuan Zhao, 2018. "Managing Chinese millennial employees and their impact on human resource management transformation: an empirical study," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(4), pages 472-489, August.
    14. Collings, David G. & Scullion, Hugh & Morley, Michael J., 2007. "Changing patterns of global staffing in the multinational enterprise: Challenges to the conventional expatriate assignment and emerging alternatives," Journal of World Business, Elsevier, vol. 42(2), pages 198-213, June.
    15. Shuang Ren & Yuhua Xie & Ying Zhu & Malcolm Warner, 2018. "New generation employees’ preferences towards leadership style in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(4), pages 437-458, August.
    16. Vesa Peltokorpi & Fabian Jintae Froese, 2011. "Cultural distance and expatriate job satisfaction," Post-Print hal-00575631, HAL.
    17. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    18. Wong, Chi-Sum & Law, Kenneth S., 1999. "Managing localization of human resources in the PRC: a practical model," Journal of World Business, Elsevier, vol. 34(1), pages 26-40, April.
    19. Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    20. Soon Ang & Linn Van Dyne & Christine Koh & K. Yee Ng & Klaus J. Templer & Cheryl Tay & N. Anand Chandrasekar, 2007. "Cultural Intelligence: Its Measurement and Effects on Cultural Judgment and Decision Making, Cultural Adaptation and Task Performance," Management and Organization Review, The International Association for Chinese Management Research, vol. 3(3), pages 335-371, November.
    21. Yanhan Zhu & Diwan Li, 2016. "Supervisor–subordinate Guanxi violations: Trickle-down effects beyond the Dyad," Asian Business & Management, Palgrave Macmillan, vol. 15(5), pages 399-423, December.
    22. Jan Selmer, 2003. "Staff localization and organizational characteristics: Western business operations in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 10(1), pages 43-57, October.
    23. Mahajan, Ashish & Toh, Soo Min, 2014. "Facilitating expatriate adjustment: The role of advice-seeking from host country nationals," Journal of World Business, Elsevier, vol. 49(4), pages 476-487.
    24. Lutao Ning & Dylan Sutherland & Xiaolan Fu, 2017. "Local context and innovation in China," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 117-129, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Margelytė-Pleskienė Aida & Vveinhardt Jolita, 2018. "The Quintessence of Organizational Commitment and Organizational Cynicism," Management of Organizations: Systematic Research, Sciendo, vol. 80(1), pages 67-88, December.
    2. Yong Suhk Pak & Qinglu Sun & Yi Yang, 2019. "Influences of expatriate managerial styles on host-country nationals’ turnover intention," Asian Business & Management, Palgrave Macmillan, vol. 18(4), pages 263-280, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yong Suhk Pak & Qinglu Sun & Yi Yang, 2019. "Influences of expatriate managerial styles on host-country nationals’ turnover intention," Asian Business & Management, Palgrave Macmillan, vol. 18(4), pages 263-280, September.
    2. Michailova, Snejina & Fee, Anthony & DeNisi, Angelo, 2023. "Research on host-country nationals in multinational enterprises: The last five decades and ways forward," Journal of World Business, Elsevier, vol. 58(1).
    3. Caligiuri, Paula & Bonache, Jaime, 2016. "Evolving and enduring challenges in global mobility," Journal of World Business, Elsevier, vol. 51(1), pages 127-141.
    4. repec:rai:zfpers:doi_10.1688/1862-0000_zfp_2013_02_remhof is not listed on IDEAS
    5. Bebenroth, Ralf & Froese, Fabian J., 2020. "Consequences of expatriate top manager replacement on foreign subsidiary performance," Journal of International Management, Elsevier, vol. 26(2).
    6. Jack Pegram & Gioia Falcone & Athanasios Kolios, 2018. "A Review of Job Role Localization in the Oil and Gas Industry," Energies, MDPI, vol. 11(10), pages 1-18, October.
    7. Hitotsuyanagi-Hansel, Azusa & Froese, Fabian Jintae & Pak, Yong Suhk, 2016. "Lessening the divide in foreign subsidiaries: The influence of localization on the organizational commitment and turnover intention of host country nationals," International Business Review, Elsevier, vol. 25(2), pages 569-578.
    8. Alvarado-Vargas, Marcelo J. & Hermans, Michel & Newburry, William, 2020. "What’s in it for me? Local employees’ anticipated career opportunities derived from firm internationalization," Journal of Business Research, Elsevier, vol. 117(C), pages 201-211.
    9. Felker, Julie & Gianecchini, Martina, 2015. "Influence of pre-graduation international experiences on early career internationalization: The mediation effect of career capital," European Management Journal, Elsevier, vol. 33(1), pages 60-70.
    10. Bonache, Jaime & Zárraga-Oberty, Celia, 2020. "Compensating international mobility in a workers’ cooperative: An interpretive study," Journal of World Business, Elsevier, vol. 55(5).
    11. Elenkov, Detelin S. & Manev, Ivan M., 2009. "Senior expatriate leadership's effects on innovation and the role of cultural intelligence," Journal of World Business, Elsevier, vol. 44(4), pages 357-369, October.
    12. Lim, Jia Hui & Tai, Kenneth & Kouchaki, Maryam, 2021. "Ambivalent bosses: An examination of supervisor expressed emotional ambivalence on subordinate task engagement," Organizational Behavior and Human Decision Processes, Elsevier, vol. 165(C), pages 139-152.
    13. Ahrens, Carolin & Oehmichen, Jana & Wolff, Michael, 2018. "Expatriates as influencers in global work arrangements: Their impact on foreign-subsidiary employees’ ESOP participation," Journal of World Business, Elsevier, vol. 53(4), pages 452-462.
    14. Yamao, Sachiko & Yoshikawa, Toru & Choi, Daejeong & Toh, Soo Min, 2020. "When do host country nationals help expatriates? The roles of identification with the multinational enterprise and career development support by the subsidiary," Journal of International Management, Elsevier, vol. 26(3).
    15. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    16. Annelies Costers & Yves Van Vaerenbergh & Anja Van den Broeck, 2019. "How to boost frontline employee service recovery performance: the role of cultural intelligence," Service Business, Springer;Pan-Pacific Business Association, vol. 13(3), pages 581-602, September.
    17. Dimitrova, Mihaela & Chia, Sherwin Ignatius & Shaffer, Margaret A. & Tay-Lee, Cheryl, 2020. "Forgotten travelers: Adjustment and career implications of international business travel for expatriates," Journal of International Management, Elsevier, vol. 26(1).
    18. Saeed Nosratabadi & Parvaneh Bahrami & Khodayar Palouzian & Amir Mosavi, 2020. "Leader Cultural Intelligence and Organizational Performance," Papers 2010.02678, arXiv.org.
    19. McWha-Hermann, Ishbel & Jandric, Jakov & Cook-Lundgren, Emily & Carr, Stuart C., 2022. "Toward fairer global reward: Lessons from international non-governmental organizations," International Business Review, Elsevier, vol. 31(1).
    20. Sousa, Cátia & Gonçalves, Gabriela, 2019. "Multiculturality as an antecedent to work wellbeing and work passion," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 7(2), pages 101-124.
    21. Laura BRANCU & Valentin MUNTEANU & Ionut GOLET, 2016. "A Comparative Approach of Cultural Intelligence Profile of Management and Non-Management Romanian Students," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(4), pages 308-319, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apbizr:v:24:y:2018:i:5:p:620-637. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FAPB20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.