Second-Class Citizens or Free Agents? Social Construction of Equity Perceptions of Contractors in Global Offshoring Arrangements

Abstract

This study examines the ways in which perceptions of equity are socially constructed among contractors involved in global offshoring arrangements. A comparative case study of two global software organizations involved in offshore outsourcing reveals that global contractors across sites constructed different equity perceptions of similar foreign assignments due to a number of contextual factors. These contextual differences combined to produce social comparison processes that led to the construction of different equity perceptions. Drawing on a perceptual model of equity theory, we find that global contractors from one case felt stigmatized and treated inequitably as “second-class citizens”, while those from the other case felt empowered as “free agents.” Our findings contribute a context-sensitive explanation for the construction of different equity perceptions in global offshoring arrangements, with implications for global work design more broadly.