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

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...

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Bibliographic Details
Authors: Li, Jiatao (Author) ; Ng, Carmen K. (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2013
In: Journal of business ethics
Year: 2013, Volume: 114, Issue: 4, Pages: 643-653
Further subjects:B Payment arrears
B Deviance
B Normalization
B Ethics in management
B Non-performing loans in China
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Summary: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.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-013-1710-6