Abstract
The present study examines the determinants and effects of host country national (HCN)‘s procedural justice perceptions in multinational corporation (MNC) subsidiaries in Korea. We suggest that the headquarters (HQs) centralization is negatively related with HCN’s procedural justice perceptions, and HQs formalization and HQs socialization are positively associated with HCN’s procedural justice perceptions. In addition, we propose that HCN’s procedural justice perceptions are inversely associated with HCN’s relative deprivation. Furthermore, we suggest that HCN’s procedural justice perceptions mediate the relationship between HQs control mechanisms and HCN’s relative deprivation. We test the proposed research model using sample of 704 HCNs in 85 MNC subsidiaries originating from 18 countries. Results of hierarchical regression analysis reveal that all proposed hypotheses are supported. On the basis of the empirical findings, we discuss the theoretical and managerial implications, limitations of this study and provide suggestions for future research.
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