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Research Article
 

Relationship of Intrinsic and Extrinsic Rewards on Job Motivation and Job Satisfaction of Expatriates in China



Azhar Rasool, Hou Jundong and Muhammad Tayyab Sohail
 
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ABSTRACT

Background and Objective: Over the past decade, People’s Republic of China’s foreign direct investments have been boomed. This flourishing economy of China attracted a large number of multinational companies as well as become popular host for international relocation for expatriates. Cultural difference, the language barrier is not only challenging for expats to adjust here also relations with employers and expats and working atmosphere where expatriates can highly motivated and satisfied. To promote the understanding of the linking between intrinsic and extrinsic rewards and motivation at work in the expats in China. In this study tried to examine whether demographic factors such as age differences on impact expat’s attitudes in relation to intrinsic rewards, extrinsic rewards, job motivation and satisfaction at work. This motive leaded to investigate, which inspects the perception of intrinsic and extrinsic rewards towards job motivation and job satisfaction of expatriates while living and being employed in China. Materials and Methods: For this study, empirical process has been adopted and randomly selected 225 expatriates from all over the China with different regions of nationalities. Results: From the findings of this study, concluded that relationship of intrinsic rewards with job motivation β = 0.043, p = 0.585 which showed that intrinsic rewards insignificant link with job motivation. At meanwhile extrinsic rewards β = 0.276 and p<0.5 both values show strongly linked and significant relation of extrinsic rewards in job motivation with the support of this results and expatriates working in China can motivate with extrinsic rewards for job motivation. Conclusion: Even money was essential factors in most of the expatriate’s life but for long term job satisfaction expatriates more influenced with intrinsic rewards such as responsibility in your job and sense of accomplishment.

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  How to cite this article:

Azhar Rasool, Hou Jundong and Muhammad Tayyab Sohail, 2017. Relationship of Intrinsic and Extrinsic Rewards on Job Motivation and Job Satisfaction of Expatriates in China. Journal of Applied Sciences, 17: 116-125.

DOI: 10.3923/jas.2017.116.125

URL: https://scialert.net/abstract/?doi=jas.2017.116.125
 
Received: October 29, 2016; Accepted: December 30, 2016; Published: February 15, 2017


Copyright: © 2017. This is an open access article distributed under the terms of the creative commons attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original author and source are credited.

INTRODUCTION

People’s Republic of China from past decades became world largest and emerging economic power in all over the world. This booming trend of the Chinese economy has become one of the most important investment destination for investors and multinational companies. In the time period of 2002 China over took the United States of America and become the biggest attraction and recipient of foreign direct investment and this increasing trend estimated US $53 billion1. Thriving economy and promising future of China become the most popular international relocation and number of expatriate increasing as the time pass. Recent remarkable flow in foreign direct investment in China, as results it’s invited large numbers of foreign financier and businessmen to invest in the Chinese economy as Sino-foreign joint ventures, starts wholly owned business, multinational companies opened their subsidiaries and branches2. According to HSBC survey 2014 China is the best place for expats looking to make their money expand their business and profit, with more than three-quarters 76% of expats in the country experiencing a growth in their spending capacity once they relocated. According to expat economics league tables 2014, a significant proportion of expats in China say that they are happy with the overall state of the economy 85% related with the 62% global average. This does not look set to change, as more than half 52% presently linked the country with economic growth compared with the global average of 33%. Due to its gigantic growth over the last two decades, China has continued to attract large numbers of foreigners with special skills and advanced education. This created the positive environment of healthy competition among firms. Numbers of jobs have increased and better salary packages have been determined down by job seekers from elsewhere in Asia who are keen to work for less than most Western expatriate. Different researchers those already did some work about this topic they agreed that as a result, it may be risked that over time. The expats in China may sensation more intrinsically motivated with the help of intrinsic rewards and have acquired new skills and abilities helpful in the Chinese job market, with the help of modernizations making adjustment easier. These kind of academic research are self-sufficient and mostly conducted with the same fashion in different parts of the world3. As the saying goes, ‘The appetite grows while eating’ and this may be the clarification why expats in the long run feel little restraint from psychological barriers to adjust2. Over time, expatriates in China may feel more intrinsically motivated having acquired new skills and attitudes useful in smoothing adjustment2.

According to Ping and Hongmiao4 in 2030 China’s economy will be the largest economy in the world also expected leave behind America in terms of GDP, while India projected to lead in job industry5. In current scenario government made the policy to invite and recruit global talent within the state owned firms and Chinese educational institutions are more focused to attain international world class status6 . Expatriates can be divided into four criteria, first kind of expatriates are self-initiated want international relocation, second kind wants regular job opportunity, third criteria just want to relocate for the temporary stay and the last one because of their professional qualifications7. Currently mostly studies find that expatriates qualifications reason to their relocation, adjustment3,8-10. According to Zhang11 some latest studies of academic expats belong to Chinese educational insinuations were fully knowledgeable about Chinese work environment like guanxi and mianzi.

For keeping positive staff attitude to their work, need to be high level of employee job satisfaction moreover loyalty and greater commitments towards their companies12. Proved that employees show a low level of tendency to search a job and tendency to employee turnover in those organizations where employees have a high level of job satisfaction13. On the other side workers who fail to meet their needs, so generally attracted by competitors due to job dissatisfaction14. Most research proved that evidence, which showed the linking and relationship between service quality, loyalty, financial performance and customer satisfaction15,16 . Few studies just have to investigate from job satisfaction with the degree of subjective perspective17. In most studies on the stimulation of the distinction at the emergence of the new era, Miner18 originated that motivation remains to be a substantial position in the eyes of the researchers. Motivation is very well demonstrated by the devotion, determination and persistence, the capability to estimate these issues, those consider as trigger channel and help the overtime working behavior19 . Mostly studies conducted on the factors which influence motivation at work, it has been examined that difference can be captured with the support of some measure like self-reported personality, affection, values and interests20. It’s confirmed the positive relationship between job satisfaction and rewards and benefits, for example promotion, salary, fringe benefits and chance to learn new knowledge, skills and these kinds of benefits are well established among the employees in developed economies. Clark21 and Artz22 and also pervious socialist economies23-25. According to Linz and Semykina26 recommend about pervious socialist economies employees, suggested the relationship is strong when the benefits and rewards particularly desired. Rose27 claimed the five keys points which affect the job satisfaction, are job term and conditions, working hours, financial rewards, job conditions and job orientation for every individual worker. Deci and Ryan28 in this study also stated that some time financial motivation can cause of decrease intrinsic level of motivation and debated that monetary is controlled contingently, its decrease the level of intrinsic motivation. With base of above research background knowledge, the main purpose of this study hence, focusing and adding theories and literature from organization study, refine, extend and test relationship between rewards, job motivation and job satisfaction of expatriates in China. As far as the significance of this study concern, this study pursues to theoretical extend and refined as well with the support of empirically testing and endorsement.

MATERIALS AND METHODS

Methodology: To achieve the desired objective of this study, take support of primary and secondary data to provide accurate findings. For this study, online survey method adopted because the population lived in different cities of China.

Data collection: Online survey method is more sprightly, easy and time saving. Web based survey published different expats plate forms, like LinkedIn, Facebook, WeChat and personal 6 questions querying respondent about their personal information included gender, age, marital status, income level, experience in the organization in China (in years) and region of nationality. This part consists of 20 questions which focus on the opinion of expatriate regarding motivation at work place and this motivation depending on intrinsic rewards and extrinsic rewards receiving from employers while doing the job in China. This portion is further sub allocated into two parts, question of initial part focus on intrinsic rewards which helped to measure how intrinsic rewards influence the expatriate’s motivation like recognition, achievements, challenging job, job interest, workload. Second sub part consists of 10 questions which focus to measure how extrinsic rewards influence the expatriate’s motivation like financial benefits, salary, wages, fringe benefits, promotion, job security, relationship with supervisor, relations with colleagues and all these 10 question took from with help of literature review. For that reason, all these 20 questions from the first part sought to find the importance in which expatriates places on what level of their motivation during working in China. Likert scale was used to range 1-5 which described the level of importance (Not important at all-Extremely important). Third part is working in China. All these questions was regarding motivation at work place developed with the support of literature review. Likert scale was utilized to range 1-5 which describe the level of agreement (Strongly disagree-Strongly agree). Part fourth consists of 5 questions which appraise the level of expatriate job satisfaction while working in China. Likert scale was utilized to range 1-5 which describe the level of agreement (Strongly disagree-strongly agree).

Statistical methods: Signify frequency of marks related with distinct categories by utilizing the tables. Furthermore, standard deviation and mean of every result was calculated. After knowing the expatriates attitude and response, Confirmatory Factor Analysis (CFA) was used for data validity and reliability, further mean, standard deviation, correlation test conducted to know impact of age, gender influence the intrinsic rewards, impact on extrinsic, motivation and satisfaction with regards to different gender and age group. Finally, regression analysis used for hypotheses test.

Theoretical model and hypotheses development: Literature review provided us fundamental overview on intrinsic rewards, extrinsic rewards, job motivation and job satisfaction. Initial theoretical model developed based on the analysis of motivational theories and then hypotheses formulated. The conceptual framework for this study is demonstrated in Fig. 1. The conceptual framework explained in below figure consists of three parts. First part is composed of intrinsic and extrinsic rewards these are the key predictor variables. Second part consists of job motivation and job satisfaction, while the third part composed of age as a control variable. Each part of the framework composed with the support of theories. The first part is intrinsic and extrinsic rewards and explored the theories about these rewards, famous researchers illustrated this phenomenon such as Maslow’s need of hierarchy theory. Scholars stated Maslow’s theory also consists of two parts intrinsic and extrinsic need. Basic needs related with extrinsic part and this level satisfied it switched to upper level esteem and self-actualization needs which are closely related with intrinsic rewards:

H1a: Intrinsic rewards are positively related with job motivation at work
H1b: Extrinsic rewards are positively related with job motivation at work
H2a: Intrinsic rewards are positively related with job satisfaction at work
H2b: Extrinsic rewards are positively related with job satisfaction at work

Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China
Fig. 1:Conceptual framework

H3: Job motivation is directly related with job satisfaction
H4a: Ages of expatriates will impact on the relationship of intrinsic rewards and job motivation at work
H4b: Ages of expatriates will impact on the relationship of extrinsic rewards and job motivation at work
H5a: Ages of expatriates will impact on the relationship of intrinsic rewards and job satisfaction at work
H5b: Ages of expatriates will impact on the relationship of extrinsic rewards and job satisfaction at work
H6: Ages of expatriates will impact on the relationship of job motivation and job satisfaction at work

RESULTS

Around more than 5 months, 225 expatriates filled online questioners. Firstly, categorical variables frequencies tested to get the clear picture and profile of expatriates in China. The demographic characteristics of expatriates’ respondents were analyzed to test age, gender, income, work experience and nationality of respondents as mentioned in Table 1. In this exploration, mostly respondents are male accounted for 71.6% and female expatriates accounted 28.4%. As far as age concerned mostly respondents between the age of 26-35 years that accounted for 59.30% of total respondent and second majority between 36-45 years which 23.1% of total respondents.

In total 225 respondents 52.9% accounted as single expatriates and 46.7% married. Considering the income level of expatriates in China in this study majority of respondent earned 8,001-12,000 RMB per month accounted as 41.3% and second most earned more than 12,001 RMB per month accounted as 24.9% of total. As for as working experience in China concerned in this study major 1-3 years accounted as 42.7% of total respondents.

Table 1:Respondents’ background information
Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China
Source: Field study (2015/16)

As China is a big country with a booming economy so it's attract expats from all over the world in this study tried to get a response from all the regions.

Table 2:Results of the confirmatory factor analysis
Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China

Table 3: Mean, standard deviation and correlation
Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China
**p<0.01

So majority are Asian expats 29.3% second majority are European 26.7% and third American 23.1% of total respondents. As far as confirmatory factor analysis is concerned. Table 2 showed the value of Cronbach’s alpha 0.882 for intrinsic rewards, extrinsic rewards 0.899, job motivation and job satisfaction calculated 0.853 and 0.857, respectively.

Bivariate analysis of key construct: Table 3 presented the values of mean, standard deviation and correlation of construct. Correlation analysis overview shows that all the construct values were according to required standards and highly significant with some high and moderate values of correlation. Intrinsic rewards have mean value of 3.71 with 0.582 standard deviation. Intrinsic rewards are highly correlated with extrinsic rewards (r = 0.572, p<0.01), followed by job satisfaction (r = 0.368, p<0.01). Extrinsic rewards have mean value of 3.56 with standard deviation value of 0.642. The relationship of extrinsic rewards with other key construct shows significant results. Furthermore, extrinsic rewards highly correlated with job motivation (r = 0.301, p<0.01) followed by job satisfaction (r = 0.220, p<0.01). Job motivation has mean value of 3.44 with the value of standard deviation value 0.698. Job motivation presented highly correlation with job satisfaction (r = 0.379, p<0.01).

After the performing the different data analysis stages next measurement model analysis technique used to verify the construct validity and reliability. In next stage structural model evaluation performed by using the path coefficient and R2 value was used. For strength of variable relationship coefficient magnets, the independent and dependent variables. Although measurement of R2 reflects the strength of dependent variables in the research model which also help to assess the significance and estimation model path. The results of analysis illustrated in Fig. 2. Beta coefficient value as path coefficient. The results of test presented in Table 4 and 5. The relationship of intrinsic rewards with job motivation β = 0.043, p = 0.585 which showed that intrinsic rewards insignificant link with job motivation. At mean, while extrinsic rewards β = 0.276 and p<0.5 both values show strongly linked and significant relation of extrinsic rewards in job motivation with the support of this results, the present study proposed hypotheses H1a rejected and H1b supported.

Figure 2 showed that relationship of intrinsic rewards and extrinsic as dependent variable and job satisfaction as an independent variable.

Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China
Fig. 2:Structural model test results

Table 4:Regression predicting models (Dependent variable job motivation)
Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China
SE: Standard error, Sig: Significant

Table 5:Regression predicting models (Dependent variable Job Satisfaction)
Image for - Relationship of Intrinsic and Extrinsic Rewards on Job Motivation
and Job Satisfaction of Expatriates in China
SE: Standard error, Sig: Significant

The value of intrinsic rewards β = 0. 354 and p<0.5 which show positive impact between intrinsic rewards and job satisfaction. As far as the relationship of extrinsic rewards with job satisfaction value of β = -0.070 and p = 0.340 which reflect insignificant impact of extrinsic rewards with job satisfaction. These results supported our hypothesis H2a and rejected H2b. Relationship of job motivation and job satisfaction of considering dependent and independent, respectively show the value of β = 0.327 and p<0.5 strong impact with satisfaction, this relationship also supported proposed hypothesis H3.

Table 5 shown the relationship of intrinsic rewards and expatriate age with job motivation considering as independent variable. The value of intrinsic rewards and age β = -0.010 and p = 0.988 which shows that intrinsic rewards with expatriate age insignificant impact and negative impact on job motivation. At meanwhile extrinsic rewards expatriate age β = 0.151, p = 0.934 and which is more than standard p<0.5 both values showed insignificant relation of extrinsic rewards expatriate age with job motivation with the support this results our proposed hypotheses H4a rejected and H4b rejected.

Table 5 shown the relationship of intrinsic and extrinsic rewards as dependent variables with age as mediator and job satisfaction as an independent variable value of intrinsic rewards β = -0.187 and p-value 0.770 show insignificant impact between intrinsic rewards and job satisfaction. As far as the relationship of extrinsic rewards with job satisfaction value of β = 1.179 and p = 0.065 which reflect insignificant impact of extrinsic rewards age with job satisfaction. These results rejected our both hypothesis H5a and H5b. Relationship of job motivation and job satisfaction of considering dependent and independent, respectively and age as mediator show the value of β = 0.473 and p = 0.273 reflected insignificant link with job satisfaction, this relationship also rejected proposed hypothesis H6.

DISCUSSION

The first hypothesis was to depreciate the relation of between intrinsic rewards and job motivation at work, while working as expatriates in China as the host country. The analysis showed an insignificant relationship between intrinsic rewards and job motivation. Firstly, according to Maslow’s Hierarchy of need theory explained that employee is motivated by top stage of triangle self-esteem and self-actualization. Furthermore, when the level first of Hierarchy of Needs has been fulfilled, then the individual will try to shift the second level of hierarchy which leads to higher motivation29,30. Intrinsic rewards are the stimuli to encourage employees. According to the expatriate scenario where expatriates working in a host country, where the finds many problems to adjust in the new environment, new culture and new life style. Expatriates still struggling the first level of Maslow’s Hierarchy in host country.

The second hypothesis extrinsic rewards and motivation at work were appreciated this relationship. The analysis showed positive and significant linking between extrinsic rewards and job motivation while working in China as expatriates. Expatriates to satisfy the basic need for survival extrinsic rewards factors which gave them relief. This phenomenon also supported in Maslow’s theory, which explained that the need of higher stages can be attained only when the biological, psychological and safety needs are fulfilled31. Furthermore, other researchers and theorist supported that non-monetary type of rewards can be more effective than monetary types of rewards in longer prospective32,33. Therefore, organizations which have expatriates while working in China should be motivated their expatriates by providing the extrinsic types of rewards which support them to adjust to the new environment, new culture and fulfill their basic needs.

The H2 hypothesis intrinsic rewards and job satisfaction at work were appreciated this relationship. The analysis showed positive and significant linking between intrinsic rewards and job satisfaction while working in China as expatriates. Intrinsic type of rewards relates with psychological rewards which leads to improve job performance and job satisfaction, like sense of responsibility, acceptance, authority to perform, achievement, challenge, grooming of skills, interested work and chance of promotion34. The second hypothesis of H2 was to depreciate the relation of between extrinsic rewards and job satisfaction at work while working as expatriates in China. The analysis showed an insignificant relationship between extrinsic rewards and job satisfaction. The researchers found that the use of high performance work systems at the department level is linked with the improved level of job satisfaction and organizational loyalty and psychological content35. Finally, H2 hypothesis expatriate’s preference towards jobs satisfaction more relay on intrinsic rewards compared with extrinsic rewards. Extrinsic rewards applicable for short run for long run employee commitment and loyalty employer should give more importance intrinsic rewards.

The scope of H3 hypothesis job motivation and job satisfaction at work was appreciated this relationship. The analysis showed positive and significant linking between job motivation and job satisfaction while working in China as expatriates. This result also acknowledged by Deci and Ryan36 study stated that extrinsic motivation and intrinsic motivation related each other and this roots to enhancement in general worker’s motivation and job satisfaction. Nevertheless, both kind of rewards intrinsic and extrinsic linked in order to get the desired result and performance37.

The scope of H4 hypothesis was to depreciate the linking between intrinsic rewards with age as mediator and job motivation work. The analysis shows that there is the insignificant relationship between intrinsic rewards and job motivation when age mediator applied. As far as extrinsic rewards are concerned this relationship also insignificant. The analysis reflected that extrinsic rewards with age as mediator were insignificant linking between job motivations while salaried as an expat in China. The study of Eden and Leviatan38 also support hypothesis H4b which stated that motives of cooperative employees and prove that employees with old age whose age are more than 45 years are to be expected as motivated employees with their job which relive them by offering better condition and convenient work environment.

The H5a scope of hypotheses intrinsic rewards with age as mediator and job satisfaction at work was depreciated this relationship. The analysis showed an insignificant relationship between intrinsic rewards and job satisfaction mediator as age of expatriate while working in China. As far as H5b hypothesis concerned there is depreciated the relationship of between extrinsic rewards and job satisfaction and mediator as age of expatriate while working in China. The analysis showed an insignificant relationship between extrinsic rewards with mediator age and job satisfaction. These results support the idea of Luchak and Gunderson39 stated that employees who’re near the retirement ages are entitled to gain increase salary. Thus, it can be discussed that employee had extrinsic rewards after satisfying this they more focus on their intrinsic rewards like the sense of achievement, completion and responsibility. The scope of H3 hypothesis job motivation and job satisfaction with age as mediator at work was depreciated this relationship. Analysis showed insignificant linking between job motivation and job satisfaction age as mediator while being employed in China as expats. Jackson and Warr40 acknowledged that the worker with middle age gives more preference to have financial kinds of rewards because they have need to stable financial needs like children, house rent etc. This study large portion of respondent age was between 25-35 years. They are beginning of their professional career. So, they more focused on tangible rewards to take care of their family and build their professional career. It can conclude from the findings of 10 hypotheses that motivation and job satisfaction of expatriates while working in China as host country they needed to be motivated with extrinsic rewards, meanwhile if organization want expatriates job satisfaction for long run the need to prefer intrinsic rewards rather than extrinsic. Extrinsic rewards are most effective for short term, contract based and young age expatriates. In the age point of view more than half respondents of this study between 25-35 years old, they motivated with extrinsic rewards such as salary, fringe benefits bonuses and other monetary rewards are more effective. For expatriates those are more experienced and looking for long term relationship with their employer they needed to be satisfied with intrinsic rewards such as promotions, recognitions, authority, career development and other intangible benefits. Finally, it can be discussed that there is a relationship between intrinsic rewards and extrinsic rewards towards the perception of expatriates working and living in China.

CONCLUSION

The study results obtained from this study analysis have some implications for those organizations managers recruit expatriates in their organization while operating in China. Generally, job motivation is directly linked with rewards system, hence, it’s important for managers to aware what aspects of rewards are more influence on expatriates for their better job performance. The results of this study showed that expatriate while working and living in China prefer to be motivated by both extrinsic and intrinsic rewards with the condition of work duration, expatriates with beginning of their professional career they more focused on extrinsic rewards. Expatriates with experience want a long term relation with their organization preferred to be satisfied with intrinsic rewards. Moreover, prospect of progress and flexibility and independence to act are perceived as strong motivators in intrinsic rewards, for job satisfactions responsibility in your job and sense of accomplishment are more influenced. Finally, motivation conditions can be convinced by keeping the balance between intrinsic rewards. As far as future directions of this study concern it would be worthwhile to investigate reasons behind expatriate’s turnover, its leads to increase expatriates tenure while working in China as highly motivated and satisfied employees. According to the current scenario Chinese government focus to rival of silk road "One belt one road" initiative, Chinese firms expanding and starting new projects in other countries. This study will be also very effective for both host countries firms and guest firm to understand their employee’s behavior towards rewards.

SIGNIFICANCE STATEMENTS

Comprehensive expatriates insights and real-time information about rewards, job motivation and satisfaction
Important to determine the perceived effect of intrinsic and extrinsic rewards on job motivation of expatriate in China
Determine the perceived effect of intrinsic and extrinsic rewards on job satisfaction expatriate in China
Can be implemented on one belt, one road

ACKNOWLEDGMENT

I am heartily thankful to my research supervisor Associate Professor Hou Jundong, for his kindness, expertise, guidance great support including valuable recommendations. Mr. Rizwan Shabbir for his great support and encouragement. Finally, China Scholarship Council for supporting financially.

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