The Normalization of Deviant Organizational Practices: The Non-performing Loans Problem in China |
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Authors: | Jiatao Li Carmen K Ng |
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Institution: | 1. Department of Management, Hong Kong University of Science and Technology, Clear Water Bay, Hong Kong SAR
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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. |
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