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.     

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.     

Not all expatriates are the same: non-traditional South Korean expatriates in China

Non-traditional expatriates, those expatriates whose assignments tend to be shorter, involve specialist work and often do not involve families relocating, have not been the subject of sustained research. What we do know about this group of expatriates has been mainly derived from research on Western multinational enterprises (MNEs). The current study explores the trend towards, and the management of, these non-traditional expatriates in South Korean MNEs operating in China. Using a qualitative case study approach involving in-depth, semi-structured interviews with expatriates and local managers, this study reveals that the use of non-traditional expatriates has been on rise in the sample MNEs and that they undertake similar roles to the long-term expatriates including control, problem-solving, management development and knowledge transfer. This shift towards non-traditional expatriation has been brought about by the decreased need for long-term assignments and the desire to gain more organizational flexibility. We conclude that such changes represent a strategic response to the longer term issues surrounding traditional expatriates such as family, career and expatriate failure. Such a shift is not without problems as the research found that there was a lack of formal recruitment and selection processes and that training for non-traditional expatriates was limited.     

Staffing venture capital firms' international operations

International staffing is relatively unexplored for service firms as much of the literature focuses on manufacturing firms. We draw on the knowledge-based perspective to analyze three key issues related to venture capital firms' international staffing: composition of the international staffing pool; reasons for the deployment of expatriates; and the process through which staff co-ordinate international decision-making, respectively. These research questions are investigated in an exploratory study combining a survey and qualitative interviews. The results suggest that the recruitment of local executives is significantly more important than the deployment of expatriates, and expatriation is significantly more important for transferring knowledge than for other motives suggested in the literature. In VC firms, investment committees play a key role in international decision-making, which allows them to manage challenges that otherwise would require deployment of expatriates. Implications of these results for future IHRM research and for the management of venture capital firms are discussed.     

Factors affecting international staffing in Chinese multinationals (MNEs)

While the existing models explain factors determining approaches to international staffing of multinational enterprises (MNEs) from developed countries, there is little known about MNEs of developing and transforming economies. This qualitative empirical research explores the factors determining international staffing in Chinese MNEs and argues that Western models are generally applicable to the Chinese context. However, the same categories of determining factors have sometimes different underlying meanings or varied contents. Contrary to the prevailing literature, this study shows international experience is a catalytic agent of change rather than a determinate of international staffing approach. Moreover, some factors that have not been much considered in the literature have been evidenced to be important factors affecting international staffing particularly in Chinese MNEs. Further study directions and implications for practitioners are also discussed.     

Recruitment and selection in Chinese MNEs

This article explores HRM issues in Chinese multinational enterprises (MNEs), in particular, the recruitment, selection and repatriation of expatriate management in ten Chinese MNEs. Owing to the rapid growth of internationalization of Chinese firms, IHRM in the Chinese context has been attracting both academic and practitioners' interest. The approach of Chinese MNEs to IHRM has become an urgent area of management study. This article represents one part of the results of a recent study of Chinese IHRM. It concludes that, even though recruitment and selection policies and practices in Chinese MNEs are more progressive in adopting modern HRM concepts than is the case in domestic Chinese firms, current practices are still divergent from those of major Western MNEs.     

Strategic international human resource management approaches in the maquiladora industry: a comparison of Japanese,Korean and US firms

The maquiladora option has made Mexico an increasingly attractive off-shore manufacturing site for multinational enterprises (MNEs) seeking global competitiveness. However, MNEs often encounter human resource management (HRM) challenges as they attempt to leverage these maquiladora benefits. MNEs use three approaches to international human resource management (IHRM) design in addressing these challenges – a mechanistic, ‘control’ approach; a paternalistic, ‘human relations’ approach; and a developmental, ‘human resource’ approach. This paper compares and contrasts these IHRM design approaches in Japanese, Korean and US maquiladora manufacturing operations in Mexico, identifies implications for the management of diversity based on these findings, and discusses the related competitiveness implications.     

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.     

Emerging issues and challenges in global staffing: a North American perspective

Multinational enterprises (MNEs) recognize that human resources play an important role in gaining a competitive advantage in today's highly competitive global business environment. While all aspects of managing human resources are important, staffing, continues to be an essential IHRM activity that helps MNEs in their need for coordination and control across widely dispersed units. As such, researchers and practitioners alike are interested in addressing the key issues and challenges in staffing the several types of employees that comprise the global or multinational workforce. We focus on three issues that have emerged in recent years regarding how MNEs staff their multinational workforce including: 1) managing different types of employee groups; 2) selection and management of employees posted to international assignments; and, 3) receptivity to international careers among early career individuals. We review these and then describe an empirical study conducted on the third issue.     

Multinational corporation management strategies and international human resources practices: bringing IHRM to the bottom line

This paper examined the relationship between multinational corporations' global management strategies and the resulting international human resource practices. Four global strategies, which vary in their extent of global integration and local responsiveness, were examined (ethnocentric, regiocentric, polycentric and geocentric). Data from international human resource professionals in forty-six companies generally supported the hypothesis that HR practices (recruitment, selection, socialization) varied by global strategy. In particular, strategies varied especially between the ethnocentric and geocentric companies. These strategies were further found to be related to a composite Multinational Corporation Success Index of economic variables (return on capital, sales growth, return on equity, profit margin). Companies which had ethnocentric strategies were found to be less successful than companies operating under any of the other three strategies. Findings suggested that local responsiveness should be incorporated into the global strategy of multinational companies. Recommendations for international human resource practices based on these results have been given.     

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.     

Localizing management in foreign-invested enterprises in China: practical,cultural, and strategic perspectives

The business case for the rapid localization of management has often been argued. This paper takes a critical look at the assumptions underlying such arguments. This exploration utilizes data gathered from a variety of Japanese, Korean, Hong Kong, and European ventures in China. Evidence from these case studies is incorporated within a broader exploration of Chinese cultural values and attitudes derived from ethnographic research and approaches to the strategic management of multinational enterprises. It is suggested that localization is likely to proceed at a much slower pace than its main advocates may wish or anticipate, and that there are practical, cultural, and strategic factors which may, and perhaps should, inhibit rapid localization. Such factors range from the lack of suitably qualified local managers, to control and surveillance functions and expatriates' roles as trainers, co-ordinators, and relatively neutral 'outsiders'. It is proposed that the development of a core of culturally literate expatriates can become a valuable resource for MNEs and that their selection, support, and compensation packages should be considered as an investment in firms' long-term strategic development.     

Antecedents of commitment to a parent company and to a local operation: empirical evidence from western employees working for multinational companies in Vietnam

Rising business of multinational companies in Asia has been paralleled with an increase in the number of western expatriates sent overseas. This has created challenges for the multinational companies as how to develop dual commitment of these expatriates to the parent companies and to the local operations during international assignments. In this study, we simultaneously examined the nature of dual organizational commitment among 254 western expatriates currently working for the subsidiaries of the multinational companies in Vietnam, and investigated specific antecedents of the dual commitment by using multi-dimensional approach. The results confirmed the existence of two distinct commitment foci and proved that the commitment to a parent company was stronger than that to a local operation. Tenure in a parent company, clarity of repatriation process, promotion and compensation were responsible for the differences in level of commitments with regard to two foci. While promotion, compensation and clarity of repatriation process more significantly predicted components of parent company commitment, pre-departure training was more associated with components of local operation commitment. Pre-departure training, promotion, compensation and transformational leadership were primarily indicated to predict dual commitment in terms of high levels to both foci. The results were discussed in the light of dual commitment and international human resource management.     

Work-life balance – a neglected issue among Austrian female expatriates

Previous research has highlighted the importance of subjective well-being and the expatriate's supportive personal environment for the success of an international assignment. As studies focusing on work-life balance of expatriates are still very rare, and research dealing with this topic from a gender perspective seems to be almost non-existent, this study emphasizes the work-life balance situation of female expatriates on foreign assignments. After having interviewed 10 female expatriates, results clearly support the existing state of the art in this field. Thereby work intrusion into family life, for example, has proven to have stronger impact on an expatriate's life than vice versa. Furthermore, several issues so far neglected in the literature have been revealed that influence women's work-life balance abroad. The importance of leisure time, social networks, sports and personal confidence can be determined. Additionally, as work-life balance has an individual meaning, support measures offered by companies are thus also required to be tailored individually. This paper reports on narrative interviews with female expatriates and provides more insight into the subject of work-life balance of international women managers. It begins by reviewing the literature on work-life balance and expatriation before analysing the specific matters of work-life balance of female expatriates and asking how women deal with the additional stress and pressure arising on an international assignment. Then, the underlying Grounded Theory Method is discussed before presenting the findings and discussing their implications in terms of future research.     

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.     

Do race and gender matter in international assignments to/from Asia Pacific? An exploratory study of attitudes among Chinese

Based on a survey of EMBA students in China and South Korea, this article examines how two sensitive but potentially salient criteria—race and gender—affect the selection of an executive to head the (a) foreign operations of a U.S. multinational in China and South Korea and (b) newly acquired U.S. operations of a Korean multinational. The results reveal a fairly complex picture of how gender, race, and the interplay of these two factors might affect these decisions. In the Korean sample, competencies mattered more than race and gender in a senior executive appointment to the U.S. operations of Korean multinationals. Also in the Korean sample, race and gender outweighed competencies in assignments to Korea. In the Chinese sample, competencies outweighed race and gender in a senior executive appointment in China. Overall, Koreans had a more positive attitude toward foreign‐born Koreans than the Chinese toward foreign‐born Chinese for senior executive appointments. Implications for international human resource management and diversity management, both theoretical and applied, are discussed. © 2008 Wiley Periodicals, Inc.     

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.     

Chinese multinationals’ approach to international human resource management: a longitudinal study

Abstract

This study explores how emerging market service firms, operating in developed markets, approach human resource management (HRM). Data analyzed in this article were drawn from a longitudinal case study of the Australian subsidiary of a Chinese multinational bank. We find that subsidiary HRM follows host country and global best practices. However, the way that this hybrid HRM system was implemented shows traces of Chinese origin. A key finding from this study is that although our case bank officially adopted a polycentric approach to subsidiary staffing, employing host country nationals, the subsidiary predominantly employed locals with a Chinese ethnic background. We also find the case bank’s strategy in international HRM has evolved from a focus on localization to global standardization. This global standardization, however, is shaped in line with global best practices rather than home country management model. These findings highlight the need for future studies to adopt a more nuanced approach to examining international HRM strategies, especially when analyzing host country effect or localization strategy.     

Career coordination strategies among dual career expatriate couples

The combination of two trends common in working life – international work and a dual career situation – is challenging for both genders. In order to cope with the situation, international dual career couples have to be able to coordinate their careers. The purpose of this article is to identify how dual career expatriates view their career coordination strategies with their partners, and how these views differ between the genders. Semi-structured interviews were carried out among 39 expatriates on assignment who had a partner working, at least before the assignment. Our findings identify three career coordination strategies applied by dual career couples, and confirm gender plays an essential role in the formation of those strategies. Male expatriates predominated among the group adopting a hierarchical strategy and female expatriates predominated among the group adopting an egalitarian and a loose coordination strategy. Strategies also seemed prone to change over time. Companies should pay attention to both the career development of the partner and the relationship coping skills of the couple to maximize the chances of dual career expatriate assignments being successful.