Caught in a Dilemma: The Impacts of Dual Organizational Identification on Host Country Nationals in the Face of Ethical Controversies

Ya Xi Shen (), Chuang Zhang (), Long Zhang (), Ting Liu () and Sijia Zhao ()
Additional contact information
Ya Xi Shen: Hunan University
Chuang Zhang: Hunan University
Long Zhang: Hunan University
Ting Liu: Kyoto University
Sijia Zhao: Tongji University

Journal of Business Ethics, 2024, vol. 195, issue 4, No 8, 857 pages

Abstract: Abstract Dual organizational identification (DOI) is generally considered beneficial to multinational corporations (MNCs) and their employees. However, this study challenges this consensus by exploring the potential negative impacts of DOI in the ethical controversy context when MNCs and host countries have conflicting views on a business decision and both feel that they are ethically correct. Integrating role identity theory, we propose that the DOI of host country nationals (HCNs) may create conflict in their work-related perceptions and behaviors amid an ethical controversy. In Study 1, we interviewed 51 HCNs from MNCs’ Chinese subsidiaries and found that HCNs’ DOI caused their role conflict during ethical controversies, which in turn affected their perceptions (i.e., perceived isolation, ethical pressure) and behaviors (i.e., procrastination, exit, voice, headquarters (HQ)–subsidiary cooperation). We also found that the job level of HCNs played a key role in moderating the above relationship. In Study 2, we tested the theoretical framework developed in Study 1 using a multi-wave survey from a sample of 300 HCNs working in MNCs’ Chinese subsidiaries. The results generally validated the Study 1 model. Theoretical and practical implications are discussed.

Keywords: Dual organizational identification (DOI); Role conflict; Ethical controversies; Host country nationals (HCNs); Role identity theory (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10551-023-05586-8 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:195:y:2024:i:4:d:10.1007_s10551-023-05586-8

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2

DOI: 10.1007/s10551-023-05586-8

Access Statistics for this article

Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman

More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().