Knowledge transfer in multinationals: The role of inpatriates' boundary spanning

Viewing knowledge as rooted in individuals, this study investigates knowledge transfer in multinational corporations (MNCs) from an individual‐level perspective. Specifically, the author focuses on inpatriates as a particular group of knowledge actors in MNCs and examines the role of inpatriates' boundary spanning between their home unit and the headquarters for transferring their knowledge to headquarters staff. Based on a sample of 269 inpatriates in 10 German MNCs, the author found that inpatriates' boundary spanning is positively related to inpatriates' individual efforts to transfer knowledge and inpatriates' perceptions of HQ staff efforts to acquire subsidiary‐specific knowledge. Both perceived HQ absorptive capacity and mentoring by HQ staff moderate these relationships. This study's findings contribute to our understanding of the theoretical mechanisms through which MNC knowledge flows occur and highlight key requirements for the design of international staffing practices. ©2011 Wiley Periodicals, Inc.     

The Purpose of Expatriation: Why Women Undertake International Assignments

Women international assignees have historically been successful, but they make up a relatively low proportion of organizationally assigned expatriates. By appreciating the factors that encourage women to undertake internationally mobile careers, organizations can widen their talent pool. Using a triangulated, qualitative research approach set within two case study firms in the oil and gas exploration and production industry, this article identifies contrasting views between female assignees and their organizations with respect to the purpose of expatriation and the factors women take into consideration in their decision to undertake it. This research is based on analysis of organizational policy; a survey of 71 women expatriates and in‐depth, semistructured interviews with 26 female assignees (selected from the survey returns using stratified sampling); and interviews with 14 human resource professionals responsible for international mobility policy design and implementation. Career, family, and financial precondition effects are identified. From these, a model is proposed to link stated organizational assignment purpose with women's participation rationales, and recommendations for practice to increase expatriate gender diversity are set out. © 2015 Wiley Periodicals, Inc.     

The inpatriate experience in multinational corporations: an exploratory case study in Germany

Despite inpatriates' growing importance for the scope of international business, research on this specific group of international assignees transferred to the corporate headquarters (HQ) of multinational corporations (MNCs) still remains in its infancy. Due to this research gap, a qualitative approach to the analysis of inpatriates' experiences was selected to uncover directions for subsequent research and derive factors that are relevant in the context of these cross-cultural assignments. This paper reports the results of exploratory interviews with 13 inpatriates assigned to the HQ of three German MNCs. The interviews explored the purpose of inpatriate assignments in MNCs and focused on identifying critical dimensions to assess their success. In addition, the relevance of individuals' cultural background and other factors that may impact on assignment outcomes were examined. The empirical results are instrumental in deriving two major research questions that may guide future research in the field of inpatriate assignments.     

International performance appraisal practices and approaches of South Korean MNEs in China

International performance appraisal of multinational enterprises (MNEs) in foreign subsidiaries has received inadequate research attention. The current study investigates the international performance appraisal practices, including procedures and methods, criteria and feedback, of South Korean MNEs in China and the extent to which these practices are localized or/and ethnocentric. Results of analyzing the in-depth interviews with local and expatriate managers show South Korean MNEs tend to adopt an ethnocentric approach to managing performance appraisals for expatriates and an integrative approach for host country-nationals by transferring their home appraisal practices to their Chinese subsidiaries. These approaches can be attributed to relative strength effects, i.e. the relative economic strengths and contextual differences between China and South Korea. This study adds to the knowledge base of how MNEs manage performance appraisals in their foreign subsidiaries.     

An Empirical Investigation on the Transfer of Expatriates Within MNCs from a Knowledge Perspective

We study the use of expatriates in transferring knowledge within a multinational corporation (MNC). We argue that MNCs use expatriates to allocate knowledge between headquarters and its foreign affiliates. With data from MNCs headquartered in South Korea, we trace unobservable knowledge using observable labour mobility. Our empirical analysis shows that the use of expatriates increases as communication between South Korea and the host country becomes more costly. However, the extent to which the use of expatriates relates with communication costs decreases in the sectoral complexity.     

Hybridization: striking a balance between adoption and adaptation of human resource management practices in French multinational corporations and their Tunisian subsidiaries

International management research has tended to approach the transfer of human resource management (HRM) practices by examining the one-way transfer from parent companies to their subsidiaries, their adaptation to the subsidiaries’ local context and, more recently, the reverse transfer of HRM practices from subsidiaries to their headquarters. This article aims to analyse the transfer of HRM practices from headquarters to their foreign subsidiaries through the process of hybridization. Although numerous studies focus on the transfer of HRM practices between economically developed countries or from these countries to transitional economies, few have considered French multinational corporations (MNCs) operating in ex-colonized countries. This paper addresses the ways in which the HRM hybridization process is implemented in two French subsidiaries operating in Tunisia. It focuses on the dual perspectives of managerial staff at headquarters and subsidiaries as well as shop floor employees in the subsidiaries. A range of HRM practices (recruitment and selection, compensation, performance appraisal and career management) is analysed from their transfer to their reinterpretation. The results show the importance of the concept of hybridization on HRM practice transfer through a multi-level analysis of the strategies used by various stakeholders during the hybridization process. The paper also provides useful insights into the factors of hybridization that may foster or inhibit the transfer and adoption of HRM practices by foreign subsidiaries. These include the relational context, the type of practices transferred, the interests of different professional categories and their social interactions. Based on these factors, several hybridizations are identified. The study points out the specificity of the Tunisian context and shows that institutional factors have less influence on the transfer of HRM practices in ex-colonized countries than cultural factors that have a transversal influence on different HRM practices. Key cultural factors constraining the transfer include emotional relationships and interpersonal trust. Moreover, the international transfer of HRM practices from MNCs to ex-colonized transitional countries requires taking into account the post-colonialism and fascination effects.     

An investigation into international assignment directions of R&D MNE employees: evidence from Greece

In this study, we explore the effects of the roles of research and development (R&D) laboratories, roles of subsidiaries and level of technological intensity of the sector in which multinational enterprise (MNE) subsidiaries operate on international assignment directions of R&D employees. International assignments are an underinvestigated issue in the international human resource management literature despite its significant research and managerial importance. In particular, to the best of our knowledge, no prior research on international assignments of R&D employees has been undertaken and so the current study aims at filling this void in the literature. Based on a large quantitative research on MNE subsidiaries operating in Greece, the findings suggest that variables of the aforementioned categories of factors influence different international assignment directions, with roles of the R&D subsidiary exerting the most crucial effect. Researchers may examine the unexplored issue of R&D employee international assignments to a larger extent, while MNE management can particularly take into account the micro (laboratory) context of R&D international assignees when developing effective international human resource management programmes.     

Expatriate staffing in foreign subsidiaries of Japanese multinational corporations in the PRC and the United States

This study examines expatriate staffing in foreign wholly-owned subsidiaries and joint ventures of Japanese firms located in the People's Republic of China and the United States. Expatriates are conceptualized as performing two primary functions. The first is a control function in which the expatriate works to align the operations of the subsidiary with that of the Japanese parent. The second function is a knowledge role. In this role, either the expatriate acts to transfer the Japanese parent's knowledge to the subsidiary or the expatriate is an agent for the acquisition of host-country knowledge. We tested for these two functions using subsidiary-level data on Japanese firms' operations in China and the US. Our results indicate that the control function was more prominent in joint ventures in China than in the US. The results also indicate that expatriates played a more significant knowledge-transfer function role in technology and marketing-intensive industries in China than in the US. A lack of MNC experience in China was found to be associated with limited use of expatriates. Finally, expatriate employment was negatively related to the number of subsidiaries of the parent company worldwide.     

Expatriate or local? Predicting Japanese,subsidiary expatriate staffing strategies

Can Dunning's OLI (Ownership, Location, Internalization) framework be extended from predicting FDI location decisions and entry mode choices to other international strategic decisions? Using data from 891 new (two years or younger) Japanese foreign subsidiaries, we investigate the relationship between Dunning's OLI variables and expatriate staffing ratios (the ratio of expatriates to local employees). We found empirical support for Dunning's framework as a predictor of Japanese new subsidiary expatriate staffing ratios. Implications and directions for future research are discussed.     

Conditional altruism: Effects of HRM practices on the willingness of host‐country nationals to help expatriates

The assistance of host‐country nationals (HCNs) both within the workplace and in the external environment plays a significant role in expatriate adjustment and work performance on international assignments. Extant research exploring antecedents of HCNs' attitudes and behaviors toward expatriates focuses on personal and intrapersonal factors but overlooks organizational contextual effects. In this study, we propose and test a model that HCNs' willingness to help expatriates is influenced by HRM practices in international subsidiaries of multinational enterprises (MNEs). Results of analyzing data collected from Chinese subsidiaries of South Korean MNEs showed that high‐commitment HRM practices directly and indirectly influence HCNs' willingness to help expatriates through the mediation of perceived organizational support (POS). Socially responsible HRM indirectly influences the criterion variable through the mediation of organizational identification. Moreover, POS and organizational identification sequentially mediate the effect of high‐commitment HRM on HCNs' willingness to help expatriates. These findings shed some light on organizational antecedents that go beyond personal and intrapersonal factors of HCN attitudes and behavior toward expatriates.     

The benefits of being understood: The role of ethnic identity confirmation in knowledge acquisition by expatriates

In this article, we propose that the concept of ethnic identity confirmation (EIC), the level of agreement between how expatriates view the importance of their own ethnic identity and how local employees view the importance of expatriates' ethnic identity, can explain why expatriates who are ethnically similar to host‐country employees are sometimes less effective than expected when working overseas. Multinationals often choose ethnically similar expatriates for international assignments, assuming these expatriates can more effectively acquire knowledge from local employees. Thus, understanding the specific challenges that endanger the realization of this potential is crucial. Our survey, administered to a sample of 128 expatriate–local employee dyads working in China, reveals that both ethnically similar and ethnically different expatriates acquire more local knowledge when EIC is high. However, the association between ethnic (dis)similarity and knowledge acquisition is direct for ethnically different expatriates, whereas for ethnically similar expatriates it is indirect via their perception of local employees' trustworthiness. We discuss this study's important implications and provide recommendations for multinationals on how to provide tailored support to expatriates who face different identity challenges.     

Multinational Firm Knowledge,Use of Expatriates,and Foreign Subsidiary Performance

The impact of knowledge transfer on foreign subsidiary performance has been a major focus of research on knowledge management in multinational enterprises (MNEs). By integrating the knowledge‐based view and the expatriation literature, this study examines the relationship between a multinational firm's knowledge (i.e. marketing and technological knowledge), its use of expatriates, and the performance of its foreign subsidiaries. We conceptualize that expatriates play a contingent role in facilitating the transfer and redeployment of a parent firm's knowledge to its subsidiary, depending on the location specificity of the organizational knowledge being transferred and the time of transfer. Our analysis of 1660 foreign subsidiaries of Japanese firms over a 15‐year period indicates that the number of expatriates relative to the total number of subsidiary employees (1) strengthened the effect of a parent firm's technological knowledge (with low location specificity) on subsidiary performance in the short term, but (2) weakened the impact of the parent firm's marketing knowledge (with high location specificity) on subsidiary performance in the long term. We also found that the expatriates' influence on knowledge transfer eventually disappeared. The implications for knowledge transfer research and the expatriate management literature are discussed.     

Examining the overseas staffing options utilized by Australian headquartered multinational corporations

MNCs need to use a range of options to manage their international operations. The aim of this study was to enhance understanding of how MNCs staff international management positions using a sample of top Australian MNCs across a range of industries. The rationales executives gave for their MNCs' staffing of international management supported selecting managers with higher competency levels for complex overseas assignments. Staffing options were chosen to reduce risks from cultural friction, divergent goals, and asymmetry in knowledge between the parent company and the host operation, chiefly through staffing by parent country nationals (i.e. long-term expatriates, Australians or Westerners already living in the host country or abroad, domestic international managers). Host country managers were used to reduce risks that arose from not being responsive to the host environment and to avoid costs, and when they were least risky to the firm. By contrast, the staffing options also served practical purposes, including deploying expatriate managers to provide skills (competencies) and, less frequently, to develop managers for future management positions in the organization.     

Repatriates and reverse knowledge transfer in MNCs

There is widely held assumption that knowledge is one of the most important drivers of firm’s performance. Multinational companies (MNCs) have the potential advantage of acquiring and utilizing knowledge across borders. But for this potential advantage to become real, the knowledge generated in any of their units around the world should be transferred to their other units. This paper adopts an innovative approach for the study of intra-MNC knowledge transfer by focusing on the role of repatriates as transferors of knowledge from foreign subsidiaries to the headquearters, which is an under-researched topic. In particular, the paper studies the impact of repatriates’ abilities and motivation to share knowledge (disseminative capacity) on the transfer of knowledge from subsidiaries to headquarters (reverse knowledge transfer). In addition, the paper examines the determinants of repatriates’ disseminative capacity. After reviewing the relevant literature and proposing the hypotheses, this paper presents an empirical research with a sample of Spanish MNCs. The findings provide evidence that repatriates’ disseminative capacity is positively associated with reverse knowledge transfer. The paper also identifies some drivers of this: the knowledge the repatriates acquired during the expatriation and the firm’s international assignments policy.     

The effect of corporate-level organizational factors on the transfer of human resource management practices: European and US MNCs and their Greek subsidiaries

One of the central questions in the literature on MNCs is the extent to which their subsidiaries act and behave as local firms (local isomorphism) versus the extent to which their practices resemble those of the parent company or some other global standard (internal consistency). Drawing on the resource-based view and resource-dependency theory, this paper aims to provide an insight into the interplay of several corporate-level organizational factors that affect the transfer of HRM practices across borders. Data collected from 80 European and US multinationals with subsidiaries in Greece are used to test specific hypotheses. Our results indicate that the level of importance attached to HRM by the MNC's top management and international experience have the highest explanatory power for the transfer of HRM practices, while international competitive strategy, informal control and the presence of expatriates also have a marginally significant influence.     

Balancing global and local strategic contexts: Expatriate knowledge transfer,applications, and learning within a transnational organization

We investigate how expatriates contribute to the transnational firm's strategic objectives of global efficiency, national (”local”) responsiveness, and worldwide learning. We focus on expatriate knowledge application and experiential learning achievements, two assignment‐based outcomes of potential strategic value to the firm. We assess how the individual's everyday knowledge access and communication activities, measured by frequency and geographic extent, affect these assignment outcomes. Within our case organization, a prototype transnational firm, we find that expatriate knowledge applications result from frequent knowledge access and communication with the corporate headquarters and other global units of the firm. In contrast, their experiential learning derives from frequent access to hostcountry (local) knowledge that subsequently is adapted to the global corporate context. From a practical perspective, we conclude that experiential learning is an invaluable resource for both present and future corporate assignments. © 2007 Wiley Periodicals, Inc.     

Perceived organizational support and expatriate performance: understanding a mediated model

What are the mechanisms by which multinational corporations (MNCs) can facilitate the effective performance of their expatriate staff in foreign countries? There is a substantial literature on expatriation, yet few studies have addressed how perceived organizational support (POS) may impact upon expatriates' work adjustment and affective commitment, and then on their job performance. We use data on 118 expatriates working at the German subsidiaries of Japanese MNCs, and demonstrate that career POS has a direct positive influence on work adjustment and affective commitment. Our results indicate that work adjustment fully mediated the relationship between career POS and task performance. We further discovered that both work adjustment and affective commitment play a pivotal role in mediating the impact of career POS on contextual performance. We discuss the practical implications of these findings and provide suggestions for future research.     

Researching expatriate types: the quest for rigorous methodological approaches

International talent flow is critical to meeting the needs for skilled human capital in global and multinational organisations and in developed and developing countries. Recent decades have witnessed a boom in research into long‐term skilled international mobility, especially the traditional category of international assignees, but also skilled immigrants and a relatively new expatriate type: self‐initiated expatriates. The upsurge in empirical interest has highlighted a number of issues relating to the way the research has been conducted. This article examines methodological issues associated with research into the three expatriate types and seeks to advise researchers on how future research can be conducted to improve the robustness of results. In this way, practitioners and policy makers may be able to make more use of the empirical evidence.     

The effects of expatriate demographic characteristics on adjustment: A social identity approach

As demand increases for expatriates to manage far‐flung operations in a global economy, scholars and practitioners are focusing their attention on the factors that contribute to expatriate success. One such factor is the support that expatriates receive from host country nationals (HCNs) with whom they work. Researchers interested in understanding expatriate success have not closely examined the phenomenon from an HCN perspective, however. At the same time, although we have gained a significant understanding of the roles of psychological, organizational, and contextual variables in the international assignment, there is still much to be understood about how expatriates' demographic characteristics affect their experiences in international assignments. Current findings regarding the effects of demographic characteristics often are inconsistent, highlighting the need for more complex theorizing. This article reviews recent research on the effects of expatriate demographic characteristics and proposes a social identity approach to understanding how these characteristics affect HCN support for the expatriate. It also seeks to develop a theory that addresses discrepancies in extant empirical findings, provides propositions to guide future research in the study of expatriates, and discusses implications for both researchers and practitioners. © 2009 Wiley Periodicals, Inc.     

Taking stock of expatriates’ career success after international assignments: A review and future research agenda

This systematic literature review explores studies addressing the objective career success and subjective career success of company-assigned and self-initiated expatriates after their long-term international assignments. Expatriate work is defined as high-density work that affects employee learning and career trajectories. We develop a holistic expatriate career success framework exploring the following questions: 1) What individual career impact results from international assignments? 2) What are the antecedents of such career success? and 3) What are the outcomes of assignees’ career success? A previously neglected range of theoretical perspectives, antecedents, and outcomes of expatriate career success is identified. Subsequently, a threefold contribution is made. First, we extend the conceptualization of international work density to unveil the differences between general and global career concepts. Second, we identify promising theories that have not been utilized in expatriation research, emphasizing context-related and learning theories that chime with the specific nature of global careers. Lastly, we suggest an extensive future research agenda.