Organizational cynicism in multinational corporations in China |
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Authors: | Marina Anna Schmitz Anna Katharina Bader |
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Institution: | 1. Cologne Business School, Center for Advanced Sustainable Management (CASM), Cologne, Germany;2. Chair of Human Resources Management and Asian Business, University of Goettingen, Goettingen, Germany |
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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. |
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Keywords: | China cognitive dissonance theory expatriates localization organizational cynicism perceived cultural differences PRC turnover intention |
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