An investigation of white-collar employees in Japanese service companies in
Hong Kong reveals that shadow management exists in them. This study
attempts to identify the structural sources of, and the mechanisms that per
petuate that shadow management. The results of the findings show that the
shadow management is represented in a form of dual employment structure:
Japanese expatriates dominate the primary sector, and local employees the
secondary sector of the labour market. This dual employment structure helps
explain the existence and persistence of conflicts between Japanese expatriate
managers and local employees in these organizations.
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