Developing the local competence of expatriate managers for emerging markets: A knowledge-based approach

This paper proposes a theoretical framework for developing expatriate managers’ local competence in emerging markets from a knowledge-based perspective. We argue that local knowledge in emerging markets differs significantly from corporate knowledge transferred to those markets, and that its very nature determines its critical importance to expatriate managers’ business performance. We explore the processes and mechanisms through which local knowledge can be acquired and integrated into expatriate managers’ knowledge base supporting local talent development and their effective strategic decision-making. We suggest that conventional local competence development strategies may not be effective methods for developing global managers for emerging markets.     

Book Reviews

While globalization has led to a well-documented increase in expatriation among managers and corporate executives, increased internationalization and expatriation have not been confined to business organizations alone. Educational institutions are becoming increasingly international with academics also experiencing growing levels of expatriation. However, despite their increasing international mobility, expatriate academics remain a group about which very little is known. Drawing on exploratory research carried out in Singapore and New Zealand, this essay presents several propositions about the experiences of expatriate academics as a hitherto under-researched group. In addition the essay moves towards adding another dimension to the existing expatriate management literature by considering the extent to which it can be used as a framework for understanding expatriate academics. In doing so the essay proposes some of the differences between expatriate academics and expatriate managers. The areas of focus are cross-culture training, expatriate adjustment and the expatriate family.     

Expatriate management: Comparison of MNCs across four parent countries

This article reports the results of a study of expatriate management and headquarters‐subsidiary relations in 29 American, British, German, and Japanese multinationals and a sample of 46 of their foreign subsidiaries based on face‐to‐face and telephone interviews with key international HR, subsidiary HR, and subsidiary managing directors. We found that earlier studies, heavily weighted with U.S. multinationals, cannot necessarily be applied to expatriate management experiences of other national industrial countries. Also, expatriate management is more similar for American and British MNCs, while both German and Japanese multinationals in our sample had fairly distinct systems of using expatriates in their foreign subsidiaries. Thus, we can discuss at least three fairly distinct models of expatriate management and corporate‐foreign‐subsidiary control. © 2000 John Wiley & Sons, Inc.     

U.s. Multinational staffing practices and implications for subsidiary performance in the u.k. And thailand

This study addresses two questions about the U.K. and Thai subsidiaries of U.S. multinationals: (1) What is the relationship between a company's staffing policy and subsidiary performance? and (2) When are companies more likely to use an expatriate rather than a local manager? The study concludes that local managers are most effective in subsidiaries located in a developing country, subsidiaries that rely on a local customer base, and subsidiaries with marketing themes similar to the themes used at their U.S. headquarters. Expatriates are more likely to be in charge of larger subsidiaries and those with a marketing theme similar to that of the headquarters. ? 2001 John Wiley & Sons, Inc.     

Career management of business expatriates from China

Chinese mainland business managers assigned to Hong Kong responded to a mail survey exploring issues on career management. The group of mainland managers was compared with a sample of Western expatriates, mostly from the US, France, and Britain. It was found that the Chinese expatriates had a significantly lower score than their Western counterparts on all the studied individual level career management variables: expatriate career preferences, meeting career goals within the corporation, career development fit, and right career move. Of the corporate level policy variables, corporate expatriate pool and separate expatriate careers also had lower scores for the Chinese than the Western managers. These findings support the behavioral process model of internationalization claiming that internationalization is a matter of learning. Implications of these results for internationalizing Chinese corporations are discussed.     

The hypercompetitive global marketplace: the importance of intuition and creativity in expatriate managers

The value of expatriate managers has always been predicated to a degree on the nature of complexity of the overseas assignment and the external environment. There are two emerging and interrelated processes of environmental change occurring that could have a direct impact on the selection of expatriate managers, those being, the globalization of businesses and the resulting hypercompetitive nature of global markets. Due to the rapid rate of globalization, organizations have recognized that the global managers need different skills than their predecessors who manned multinational corporations. In addition, the hypercompetitiveness of the marketplace has placed managers under a new time perspective that tends to overshadow other managerial constraints. Therefore, two additional dimensions (i.e., intuition and creativity) are examined as being useful in the selection of expatriate managers in global organizations. This paper assesses the value of examining potential expatriate candidates on the creative and intuitional intelligences, in that it is anticipated that these two abilities will become of inordinate importance in the global hypercompetitive marketplace.     

Research for Practice: The Management of Expatriates

The objective of this article is to identify expatriate management research questions of interest to international human resource (IHR) managers. We conducted an in‐depth literature review, interviewed a small sample of IHR managers, and reviewed commercially available large sample surveys of IHR managers. Results suggest that IHR managers are concerned about determinants of the decision to accept an offer of expatriation, why expatriates show so little interest in training, perceived equity in rewards, and other areas not well studied to date. The article discusses implications for academics wishing to make their research more relevant to IHR managers and global organizations. © 2013 Wiley Periodicals, Inc.     

Expatriate managers: Reasons for failure and implications for training

The high incidence of expatriate U.S. managers' being unable or unwilling to complete their overseas assignments suggests that more needs to be done to prepare those managers and their families.     

U.S. corporations are from Mars,Chinese corporations are from Venus

Relations between U.S. and Chinese corporations are increasingly strained. In this article, we examine how differences in the key domains of corporate governance, underlying corporate philosophy, innovation, and dispute resolution contribute to this strained relationship. We illustrate these differences by examining the relations between Skyworks Solutions (U.S.) and ZTE (China). We discuss the three broad strategies available to U.S. managers in engaging with Chinese corporations, depending on the extent of their involvement and comfort with discord: (1) playing ball, (2) straddling the middle ground, and (3) decoupling.     

The Expatriate Glass Ceiling: The Second Layer of Glass

The corporate glass ceiling continues to be a challenge for many organizations. However, women executives may be facing a second pane of obstruction – an expatriate glass ceiling – that prevents them from receiving the foreign management assignments and experience that is becoming increasing critical for promotion to upper management. The responsibility to break the expatriate glass ceiling lies with both female managers and the multinational corporations that utilize expatriates. In this paper, we propose pre-assignment, on-assignment, and post-assignment strategies for breaking the expatriate glass ceiling.     

EXPLORING THE SUCCESS OF EXPATRIATES OF U.S. MULTINATIONAL FIRMS IN MEXICO

To examine U.S. multinational corporations, this research utilizes a multivariate model to differentiate among IHRM practices and their impact on U.S. expatriate performance. Questionnaires sent to 481 corporations combined with an analysis of the six independent variables, including selection criteria, cross-cultural training, and inability of spouses to adjust help us to understand U.S. expatriate rates of success and failure in Mexico. While, to a considerable degree, an IHRM model based on mainstream literature can predict U.S. expatriate success and failure rates, this research demonstrates the significant discrepancies that exist when comparing the results of the relationship of each variable individually.     

Cultural intelligence as a predictor of expatriate adjustment and performance in Malaysia

This research tests the linkage between cultural intelligence, expatriate adjustment to the host country's environment and expatriate performance while on international assignments. The investigation is carried out with data from 134 expatriates based in multinational corporations in Malaysia. The results highlight a direct influence of expatriates’ cultural intelligence on general, interaction and work adjustments. The improved adjustments consequently have positive effects on both the expatriates’ task and contextual performance. The research findings have implications for both international human resource management (IHRM) researchers and managers.     

Ethical Decision-Making Differences Between American and Moroccan Managers

Our research’s aim is to assess the effect of cultural factors on business ethical decision-making process in a Western cultural context and in a non-Western cultural context. Specifically, this study investigates ethical perceptions, religiosity, personal moral philosophies, corporate ethical values, gender, and ethical intentions of U.S. and Moroccan business managers. The findings demonstrate that significant differences do exist between the two countries in idealism and relativism. Moroccan managers tend to be more idealistic than the U.S. managers. There is a strong positive relationship between religiosity and idealism. There were mixed findings in examining the correlates of religiosity and various components of ethical intentions. Moroccan managers were more homogenous in their corporate ethical values than were the U.S. managers. The results demonstrate that (in general) idealism is a good predictor of ethical intentions and behaviors. Additionally, managers from the two countries differed in the degree of relationship between perceptions and intentions in three of the four scenarios. This study’s results confirm other research findings that, in general, female business managers have higher ethical sensitivity in terms of their ethical judgment than their male counterparts. Managerial implications are also discussed.     

International Production Sharing Opportunities in Mexico and the Caribbean

Abstract

In an effort to take advantage of access to valuable resources and increased market presence, many U.S. manufacturers have pursued production sharing relationships in a variety of overseas locations. These efforts are seen as methods of combating several threats to firm performance: increased domestic production costs, escalating international manufacturing competition, and ever changing barriers to entry regulations. From the perspective of an integrated North American competitive strategy, two geographic areas-Mexico and the Caribbean Basin-have received much attention as potential operating locations. Using a survey of corporate managers responsible for strategic business unit operations, this study investigates and compares the manufacturing and logistics performance of U.S. manufacturers operating in Mexico and the Caribbean. Relationships between logistics performance, manufacturing performance, and firm performance are examined and managerial implications are discussed.     

The Effects of Corporate Ethical Values and Personal Moral Philosophies on Ethical Intentions in Selling Situations: Evidence from Turkish, Thai, and American Businesspeople

The goals of this study are to test a pattern of ethical decision making that predicts ethical intentions of individuals within corporations based primarily on the ethical values embedded in corporate culture, and to see whether that model is generally stable across countries. The survey instrument used scales to measure the effects of corporate ethical values, idealism, and relativism on ethical intentions of Turkish, Thai, and American businesspeople. The samples include practitioner members of the American Marketing Association in the U.S., and full-time businesspeople enrolled in executive MBA programs in Thailand and Turkey. The study is positioned within a fairly new stream that assesses patterns across countries, rather than differences between them, in a way that might be called “culture free.” The results show a generally positive influence between cultural ethical values and ethical intentions. The results also indicate that the positive effect of corporate ethical values on ethical intentions is greater for managers with low idealism and high relativism. We also discuss the implications of our results for managers of international businesses.     

International knowledge transfers through expatriates

International knowledge transfer processes and related internal stickiness factors have recently been targets of increasing research interest. However, the role of expatriate managers in these international knowledge transfers is not well understood. The objectives of the present study were (1) to analyze what kind of knowledge is transferred within MNCs and what is the role of expatriates in these transfer processes and (2) develop a theoretical framework on internal stickiness factors faced by the expatriates involved in the knowledge transfer processes on the basis of the literature, and test it empirically. The findings indicate that the role of expatriate managers was very central in the transfer processes. Furthermore, support was received for the theoretical framework of internal stickiness factors. © 2004 Wiley Periodicals, Inc.     

Of bears, bumble-bees, and spiders: the role of expatriates in controlling foreign subsidiaries

This article investigates the role of expatriate managers in multinational companies. We discuss three key organizational functions of expatriation: position filling, management development, and organization development. In the last function, organization development, international transfers are used as an informal coordination and control strategy through socialization and the building of informal communication networks. The article explores this role of international transfers in greater detail, but also discusses a more formal way in which expatriates can control subsidiaries. The following metaphors for these different control functions of expatriation are introduced: “bear” (formal direct control), “bumble-bee” (socialization), and “spider” (informal communication). A large-scale mail survey offers empirical evidence for the bear, bumble-bee and spider roles and shows under which circumstances they are most effective. Being aware of the different control functions of expatriation and the circumstances under which they are most effective can help managers to use expatriate assignments as a more strategic tool.     

Colombian consumers’ outshopping of apparel in the U.S.

Outshopping is defined as purchasing goods outside of consumers’ trading areas. Despite threatening local economies, outshopping generates opportunities for the new trading areas in which it occurs. Studies on outshopping have reported contradictory results and academics suggest further research, especially in relation to consumers’ micro-level characteristics. Moreover, few studies have focused on the U.S. as the trading area and apparel as the traded product. Based on the theory of reasoned action, this quantitative study explores how attitudes toward international outshopping and subjective norm influence purchase intention of apparel goods among international outshoppers in the U.S. by focusing on four characteristics of international outshoppers – self-control in terms of spending, the desire for unique products, age, and gender – as antecedents of attitudes toward outshopping. Colombian consumers (South America) were chosen as respondents because market reports indicate that the U.S. is their top favorite international tourist destination. Findings suggest that more positive attitudes toward outshopping apparel in the U.S. were found among female consumers with higher self-control over their expenditures. Respondents were also influenced by the opinion of others; while age and desire for unique products were found non-significant. By understanding international outshoppers, marketers can develop unique market strategies for attracting global consumers.     

Expatriate return on investment in the Asia Pacific: An empirical study of individual ROI versus corporate ROI

The return on investment (ROI) from international assignments is a crucial aspect of expatriate management. The literature has taken a mostly organizational perspective of this important phenomenon, with little attention to the ‘individual ROI’ expatriates gain when undertaking an assignment. Especially lacking is research on expatriate ROI in the Asia Pacific region. Based on interviews with 31 long-term expatriates in 10 Asian countries, we use psychological contract theory to examine (1) how ‘individual ROI’ acts as a key driver of ‘corporate ROI’ and (2) the challenges and opportunities that expatriation in the Asia Pacific presents to individuals and organizations.     

Organizational Learning in China: The Role of Returners

ABSTRACT

The Chinese authorities have launched a range of policies and incentives at the national and regional level to attract citizens who have studied and worked abroad to return in order to contribute to upgrading the competitiveness of the Chinese economy, particularly in light of China's entrance to the World Trade Organization. In other words, the returners are expected to stimulate organizational learning in existing organizations and in new companies. This article provides an overview of what has been done to date and points out that simply increasing the number of returners is not enough to achieve organizational learning. Drawing on research findings about the barriers to organizational learning from returned expatriate managers in international companies, the article develops recommendations for government policies, corporate strategies, and Chinese returners.