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

Jiatao Li () and Carmen Ng ()

Journal of Business Ethics, 2013, vol. 114, issue 4, 643-653

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

Keywords: Normalization; Deviance; Ethics in management; Non-performing loans in China; Payment arrears (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s10551-013-1710-6

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