Capital gains: expatriate adjustment and the psychological contract in international careers

This paper argues that the notion of adjustment to careers involving international assignments needs to be developed further than the current literature reflects. An expatriate assignment is an expatriate's opportunity to build career capital and a company's opportunity to generate social and intellectual capital. The extent of the capital gains will depend considerably on the expatriate's adjustment during and after the assignment, which is influenced by the psychological contract. We argue that our understanding of the career impact of expatriation will be enhanced by a more refined picture of the adjustment that expatriates experience during the assignment and during repatriation. In particular, we examine adjustment as process rather than as event. We propose a broad conception of expatriate adjustment and its link to careers. © 2009 Wiley Periodicals, Inc.     

You're from where? The influence of distance factors on New Zealand expatriates’ cross-cultural adjustment

This study empirically tests the influence of various distance factors on expatriate cross-cultural adjustment. Expatriate perceptions of home and host country differences, objective measures of distance and the accuracy of expatriate evaluations of host country distance were compared as predictors of expatriate adjustment difficulty in the host country. The results revealed that perceived distance, objective cultural distance and the expatriate's perceptual inaccuracy had a significant effect on expatriate adjustment difficulty for one's first assignment. However, on subsequent assignments all measures of distance were significant. Adjustment became more difficult as perceptual accuracy improved. The implications of these findings are discussed.     

Expatriate adjustment as a multifaceted phenomenon: individual and organizational level predictors

A conceptual model is proposed that identifies critical antecedents of expatriate adjustment. Adjustment is conceptualized as the degree of fit between the expatriate manager and the environment, both work and socio-cultural. Adjustment is marked by both reduced conflict and increased effectiveness. As a multidimensional phenomenon, expatriate adjustment can be identified in psychological, socio-cultural and work domains. The model predicts that psychological and socio-cultural adjustment are the most immediate predictors of work adjustment. In this paper, it is asserted that the success of the expatriation process depends not only on the expatriate manager's competencies and skills, but also on organizational (both parent-company and local-unit) support and assistance prior to and during the assignment. Various international human resource management models are utilized to examine the organizational level antecedents of expatriate adjustment. Managerial resourcefulness, acculturation attitudes, personality dimensions and coping strategies are discussed in relation to individual predictors, whereas MNCs' international structure, value orientation, organizational life-cycle, diversity training, strategic planning and socialization are proposed as organizational predictors of expatriate adjustment.     

The impact of expatriate supporting practices and cultural intelligence on cross-cultural adjustment and performance of expatriates in Singapore

We test the relationships between corporate expatriate supporting practices, cross-cultural adjustment, and expatriate performance. Specifically, we propose that the facets of cultural intelligence moderate the expatriate supporting practices–expatriate adjustment relationship. Analyzing 169 expatriates residing in Singapore, we found that expatriate supporting practices were positively related to adjustment as well as performance. Further, we demonstrated that metacognitive and cognitive cultural intelligence negatively moderated the links between expatriate supporting practices and adjustment, while motivational cultural intelligence had a positive moderating effect. These findings have implications for organizations providing support for expatriates and the expatriate selection and training processes.     

Comparing the success of male and female expatriates from a US-based multinational company

This paper examines the differences between male and female expatriate employees along three criteria of global assignments: (1) cross-cultural adjustment, (2) desire to terminate the assignment and (3) supervisor-rated performance. Participants were ninety-eight expatriate employees from a US-based multinational organization. The countries to which these expatriates were assigned varied along the four work values proposed by Hofstede (1980). These dimensions were used first to determine which of the underlying cultural work values are associated with the number of women in managerial positions. The results suggest that all of the dimensions, except masculinity, were related to the participation of women in managerial roles. Second, these dimensions were used to examine whether these work values differentially affect male and female expatriates' success. Two work-values (power distance and masculinity) negatively affect the cross-cultural adjustment of expatriate women (compared to their male counterparts). These results suggest there are no significant differences between men and women in either supervisor-rated performance or desire to terminate the assignment, regardless of cultural values. The implications for why certain work values may negatively affect women's cross-cultural adjustment are discussed.     

Career success for international professional women in the land of the equal? Evidence from Norway

This study investigates the career success of international expatriate women in Norway. Norwegian and international women were compared on both objective and subjective career success. Participants were 125 Norwegian women and 168 international expatriate women who answered a 58 item questionnaire. Although Norwegian women achieved higher career success than the expatriate group, these effects disappeared for objective career success when expatriate women had a high level of education, high English language competency and motivation. Motivation, self focused conflict resolution and language competency were positively associated with subjective career success. Results suggest that although being foreign can be a disadvantage in Norway, expatriate women can overcome this liability through investment in education, language and motivation. Implications for international expatriate women are discussed.     

A risk management model for research on expatriates in hostile work environments

Abstract

Although much has been written about the causes of expatriate adjustment, more research is needed on managing the fear and anxiety experienced when expatriates work in hostile environments. The perceived risks of terrorism, kidnapping, crime, and civil unrest can have negative effects on the performance of expatriates and the organizations that employ them. While research has begun to examine expatriates’ stress in hostile environments, there is comparatively little research on the effectiveness of management practices that can reduce such stress. We integrate the expatriate adjustment, psychological contract, and risk management literature to develop a model that can guide efforts to reduce environmental stress and its negative effect on expatriate adjustment. Specifically, we build on recent work by Bader and colleagues to develop propositions to guide future research with the aim of improving the conditions of expatriates working in hostile environments.     

Adjustment,turnover, and performance: the deployment of minority expatriates

While in the domestic work environment, minorities are more likely to have turnover intentions and receive lower performance evaluations; the findings in this study indicate that minorities, when deployed overseas, receive higher performance evaluations than Caucasian expatriates. For Caucasian expatriates, cultural adaptability improved interaction adjustment and reduced turnover intentions, but not to the extent to which minority status improved these outcomes. These findings suggest that studying minority expatriates is a critical but overlooked factor in understanding expatriate success.     

Nationality,social network and psychological well-being: expatriates in China

Expatriate social networks constitute an under-emphasized area in expatriate literature. The current study contributes to the expatriate adjustment literature by empirically testing the relationship between expatriate personal networks and psychological well-being. The current study also investigates the hypothesis that expatriates from different cultural backgrounds will establish different social networks and adjust differently in China. A survey of 166 expatriates in China from North America, Europe and other countries in Asia showed significant support for the hypothesis that expatriate network characteristics have a direct and significant influence on expatriate psychological well-being. In addition, as predicted, expatriates in China from different cultural backgrounds (Overseas Chinese, other Asian, North American and European) established personal networks with different characteristics.     

Does it really work? Re-assessing the impact of pre-departure cross-cultural training on expatriate adjustment

Cultural adjustment is considered to be a prerequisite for expatriate success abroad. One way to enhance adjustment is to provide employees with knowledge and awareness of appropriate norms and behaviours of the host country through cross-cultural training (CCT). This article analyses the impact of pre-departure CCT on expatriate adjustment and focuses on variations in participation, length and the comprehensiveness of training. Unlike previous research, the study focuses on the effectiveness of pre-departure CCT for non-US employees expatriated to a broad range of host country settings. Employing data from 339 expatriates from 20 German Multinational Corporations (MNCs) the study finds CCT has little if any effect on general, interactional or work-setting expatriate adjustment. However, a significant impact of foreign language competence was found for all three dimensions of expatriate adjustment. We used interviews with 20 expatriates to supplement our discussion and provide further implications for practice.     

Mapping the criterion space for expatriate success: task- and relationship-based performance,effort and adaptation

The paper presents an explicit consideration of the criterion space for expatriate success. Expatriate performance is conceptualized in terms of task completion, relationship building and overall performance. These three dimensions are determined by various features of effort regulation: the amount and pattern of personal resources the expatriate spends on behaviours that constitute his or her position. Drawing upon work motivation and withdrawal literatures, we assess effort in terms of withdrawal cognitions, passive task neglect, active task avoidance, time to proficiency and leader-team exchanges. Effort regulation, in turn, is proposed to be a function of three forms of adjustment (cultural, interaction and work) – which have been the default criterion in past expatriate research. Our model is tested using multi-source data from expatriates, their spouses and their work colleagues. Support for the proposed mapping of successive linkages between adjustment, effort (including the often-studied assignment withdrawal) and performance dimensions provides a more comprehensive perspective of the expatriate criterion space.     

Fostering expatriate success: A meta-analysis of the differential benefits of social support

While social support is recognized as an important factor for successful international assignment, there is, to date, no overview of the supportive agents during the expatriation process and their influence on different criteria of expatriate success. We culminate findings of 84 independent studies that examined the social support provided by community-, work-, and family-domain agents in relation to four criteria of expatriate success: adjustment, commitment, performance, and retention. We explore the role of social support proximity: the physical, cultural, or hierarchical distance between a supporting agent and the expatriate. Our meta-analysis demonstrates that the strength of the support-success relationship (ρ = .24 overall) depends on this supporting agent and the success criterion under study. We visualized the meta-analytical estimates of the different relationships between social support and success criteria using a force-directed graph, demonstrating that adjustment and performance criteria have similar relationships to social support, distinct from those of commitment or retention criteria. Implications for future research and practices that do or do not foster the success of expatriate assignments are discussed.     

Exploring the role of the spouse in expatriate failure: a grounded theory-based investigation of expatriate' spouse adjustment issues from India

This paper applied the grounded theory method in a study of the expatriates' spouses' relocation adjustment process and the impact of such adjustment problems in expatriate failure. A qualitative enquiry approach using open-ended questions in the form of personal interviews was adopted. Iteratively, the questions were changed to reach theoretical saturation and we allowed the respondents to lead us through the data collection process during our eventual theory development process. An action diagram technique was used to help structure and process the data. The study was conducted with 26 Indian origin spouses who had to encounter relocation issues one time or the other. We found the spouses' perceived gender role ideology to play a critical part in their adjustment process. Other factors that influenced the adjustment process in expatriate assignments were personality factors such as extraversion, organizational and family support, country demographics and pre-departure training.     

Determinants of Expatriate Success: An Empirical Study of Singaporean Expatriates in The Peoples Republic of China

ABSTRACT

Globalization of business operations has assumed an increased significance in contemporary business strategy across the developed and developing world. Assignment of staff overseas is one of the most critical areas of the global business operations. While there have been numerous studies on various aspects of expatriate performance, such as selection, training, and compensation of expatriates, these studies have been mostly “americentric” in their scope and approach. Keeping in view the growing importance of China as a favored recipient of Foreign Direct Investment not only from the United States and Europe, but also from other Asian countries such as Japan and Singapore this study has examined factors that determine the success of Singapore expatriates in China. One of the significant findings of the study is that there is a discrepancy between perception of success factors between the expatriates themselves and the human resource directors (HRDs) of the multinational corporations who have an important role in the assignment of those expatriates. Thus this study argues that in addition to the knowledge of what constitutes success in overseas ventures it is important to achieve a common agreement on the factors determining such success.     

Dual-career couples during international relocation: The trailing spouse

Expatriate relocation is a complex process which is influenced by a variety of issues. One issue, the dual-career couple, increases the likelihood of dissatisfaction and failure of the foreign assignment. The trailing spouse plays a critical role in the amount of stress/conflict experienced by the expatriate and she/he is key to increasing the success rate of expatriate managers. This research reports on a survey of 258 dual-career couples and their concerns with: (1) willingness to relocate; (2) unique adjustment issues; (3) stress/conflict generating situations; and (4) the type/level of support provided by the expatriate managers' MNCs.     

The relationships of organizational justice,social exchange,psychological contract,and expatriate adjustment: an example of Taiwanese business expatriates

In the field of international human resource management, studies have seldom examined organizational justice, social exchange, and psychological contract together as important factors in influencing the expatriate adjustment process. The purpose of this research is to fill the research gap by examining these factors and their relationships with expatriate adjustment. The researcher conducted a survey of Taiwanese business expatriates during the first quarter of 2007, collecting 219 valid samples for analysis. A hierarchical regression model was used to test the research framework hypotheses, which showed that expatriates' perception of organizational justice has a positive influence both on their perceptions of social exchange and on their psychological contract fulfillment. Expatriates' perceived that social exchange has a positive influence on their perceptions of psychological contract fulfillment and foreign adjustment. Finally, research implications are discussed and future study suggestions are recommended.     

An empirical test of a correspondence model of expatriate managers' work adjustment

We develop and empirically test a model of expatriate managers' work adjustment. In this model we relate the fit between work-related abilities and needs of expatriate managers as well as the fit between the job requirements of, and incentives associated with, an international assignment to the level of expatriate managers' work adjustment. We test this model with data gathered by means of an electronic survey among 118 German expatriate managers. The empirical findings largely support our theoretical model. The paper enhances our understanding of expatriate managers' work adjustment and its antecedents and contributes to the theoretical and empirical basis of research into expatriate management.     

Acquired demographics and reasons to relocate among self-initiated expatriates

Organizational expatriates, who have been assigned by their parent companies to the foreign location have been thoroughly investigated as compared to self-initiated expatriates, who themselves have decided to expatriate to work abroad. Consequently, much less is known about the latter type of expatriates. To help alleviate this dearth of research findings, data was collected from 428 self-initiated expatriate academics from 60 countries employed in 35 universities in five northern European countries. Four acquired demographic characteristics were investigated: marital status, nationality, previous expatriate experience and seniority, as well as five individual reasons to expatriate: adventure/travel, career, family, financial incentives and life change/escape. The results indicated support for the research propositions, suggesting that self-initiated expatriates' (SIEs) reasons to expatriate differ in terms of acquired personal characteristics. Implications of these findings are discussed in detail.     

Personal attributes of expatriate managers,subordinate ethnocentrism,and expatriate success: a host-country perspective

This study had two objectives. First, to establish the relative importance of expatriate managers' job knowledge, relational leadership skills, and cultural openness and adaptability for expatriate success from the perspective of host-country national subordinates, and to test whether these personal attributes are related to expatriate success criteria (expatriate work adjustment, subordinate commitment, subordinate job satisfaction, and unit performance). Second, to test whether host-country national subordinate ethnocentrism is related to expatriate work adjustment. Respondents were 129 host-country national subordinates of expatriate managers. Results showed that subordinates perceived all personal attributes as important and that all personal attributes were positively related to most of the success criteria. However, relational leadership skills was the most important personal attribute, and it was the crucial success factor for expatriate managers' unit performance. Subordinate ethnocentrism was negatively related to expatriate work adjustment. Practical implications and directions for future research are discussed.     

Factors influencing Chinese female expatriates' performance in international assignments

The current literature is mixed regarding what factors determine expatriate performance. In this study, we developed and tested a model to examine the relationship among family problems, expatriate–efficacy, host-country nationals' (HCNs') prejudice against women, perceived organizational support (POS) and Chinese female expatriate performance in international assignments. Our results indicated that HCNs' prejudice against women had a significant negative relationship and expatriate–efficacy had a significant positive relationship with female expatriate performance. POS and family problems moderated the relationship between HCNs' prejudice against women and female expatriate performance. However, family problems were not significantly related to female expatriate performance. Implications for research and practice are discussed.