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

Jiatao Li, Carmen K. Ng

Research output: Journal PublicationArticlepeer-review

8 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)643-653
Number of pages11
JournalJournal of Business Ethics
Volume114
Issue number4
DOIs
Publication statusPublished - Jun 2013
Externally publishedYes

Keywords

  • Deviance
  • Ethics in management
  • Non-performing loans in China
  • Normalization
  • Payment arrears

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting (all)
  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics
  • Law

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