Dimensions of expatriates adjustment in distant subsidiaries: A field study of a sub‐Saharan African institutional distance

The aim of this study is to investigate the determinants of expatriates’ adjustments in distant and complex multinational subsidiaries. Using the institutional theory as a basis for expatriates’ assignments in complex subsidiaries, the work employed a sequential mixed methodology of data collection. An in‐depth face‐to‐face interview with 21 senior expatriate executives and a quantitative survey of 204 expatriates working in various multinational subsidiaries in Ghana served as data for the work. Consequently, a structural equation modeling (SEM) and a content analysis were the basis of the data analysis. Findings showed host country culture plays a significant role in determining expatriate adjustment in distant subsidiaries. Findings also showed expatriates’ competence in cross‐cultural communication significantly determines expatriates’ adjustment in distant subsidiaries. The work recommends an intensive training of expatriates in cross‐cultural communication and host cultural values and behaviors for international assignees.     

The role of cross‐cultural absorptive capacity in the effectiveness of in‐country cross‐cultural training

Based on the theory of absorptive capacity, this study examines the following question. In the context of cross‐cultural training, can the amount of previously accumulated cultural knowledge affect the ability of a trainee to absorb further learning about a new culture, thus enhancing total knowledge and presumably cross‐cultural adjustment? In‐country cross‐cultural training was hypothesized to be more effective when the training components are divided and the sessions are distributed over time – resulting in increased cultural knowledge and greater cross‐cultural adjustment. Results from an experimental design suggested that in‐country cross‐cultural training can increase cultural knowledge, when distributed over time. The results also suggested that the training group had greater differences between pre‐training and post‐training scores on cross‐cultural adjustment, but the differences were not statistically different. The results, methodology and conclusions can be generalized to a variety of populations (e.g. international managers and expatriates) and organizations (e.g. multinationals). For international managers and expatriates, the results showed that in‐country cross‐cultural training, like predeparture cross‐cultural training, is also a viable intervention for knowledge acquisition.     

Expatriate personality and cultural fit: The moderating role of host country context on job satisfaction

This study draws on the cultural fit hypothesis to examine interactive effects of host country context and four (Multicultural Personality Questionnaire) expatriate personality traits – Cultural Empathy, Social Initiative, Emotional Stability, and Open Mindedness – on job satisfaction. The cultural fit hypothesis maintains that it is not only the expatriate personality traits per se, but the cultural fit between expatriate personality traits and host country cultural values, norms, and prototypical personality traits that predict expatriate adjustment in host countries (Searle & Ward, 1990). Providing partial support for the cultural fit hypothesis, data derived from 191 expatriates in Brazil and Japan shows that the importance of two personality traits varies in these countries. Specifically, expatriates with high Cultural Empathy were more satisfied with their jobs in Japan than in Brazil, whereas Social Initiative was more important for expatriates in Brazil.     

From dilemmatic struggle to legitimized indifference: Expatriates’ host country language learning and its impact on the expatriate-HCE relationship

We address the lack of knowledge concerning the role of host country languages in multinational corporations based on an inductive qualitative study involving 70 interviews with Nordic expatriates and host country employees (HCE) in China. Building on the strongly discrepant views of expatriates and HCEs, we demonstrate how expatriates’ willingness to learn and use the host country language lead to different types of expatriate-HCE relationships, ranging from harmonious to distant or segregated. In doing so, we emphasize the subtle and fragile connection between expatriates’ attitude towards HCEs’ mother tongue and trust formation in addition to the construction of superiority-inferiority relationships.     

How host organizations prepare for and learn from expatriate assignments

This article reveals what goes on inside host organizations prior to and during expatriate assignments. On the basis of analyzing organizational documents and conducting 43 interviews with host country nationals (HCNs) and expatriates in 30 Vietnamese organizations that host external foreign assignments, we provide a detailed account of HCNs' experiences and unearth sophisticated preparation and management activities designed to maximize these organizations' learning. We depict what we call “a host organization lifecycle” and extract five lessons: (a) host organizations prepare carefully in advance to learn as much as possible from expatriates; (b) HCNs experience quite dramatic adjustments and burdens during expatriates' placements; (c) mutual trust between expatriates and HCNs is a prerequisite for HCNs' learning; (d) most of HCNs' learning occurs informally via interactions with expatriates or observing how they work; (e) host organization managers actively manage HCN–expatriate relationships. Our findings outline a “wish list” of practices that expatriate‐using organizations could consider deploying for expatriate assignments that focus on the benefit of the host organization' development.     

International Training and Management Development Policies and Practices of South Korean MNEs in China

International training and management development has to date received little research attention. This study aims to contribute to the international human resource management literature by empirically exploring international training and management development policies and practices for both expatriates and host‐country nationals (HCNs) of South Korean multinational enterprises (MNEs) operating in China. The data for this study were collected through in‐depth interviews with both HCN managers and expatriate managers of 10 Korean MNEs. The results show that in our sample, South Korean MNEs provide expatriates with inadequate and low‐rigor predeparture cross‐cultural training and leadership training. However, the sample MNEs provide extensive predeparture and postarrival language training and regular postarrival technical and professional training. On‐the‐job training is provided mainly to HCN production workers in order to improve productivity and work safety. Selected high‐performance HCN middle managers and employees are sent back to headquarters for training. This, however, is not regarded for career development but for rewarding good performance. The sample South Korean MNEs pay little attention to management development for both expatriates and HCNs. Consequently, this has a negative effect on employees’ organizational commitment and retention. © 2015 Wiley Periodicals, Inc.     

Cultural agility and international assignees’ effectiveness in cross‐cultural interactions

While many mutable competencies and immutable personality traits have been shown to have a direct positive relationship with international assignee success, this study examines whether a set of situation‐specific cross‐cultural competencies comprising cultural agility are also related to international assignee success. This study examines whether the combination of three situation‐specific responses to cultural differences (cultural adaptation, cultural minimization and cultural integration) explain any additional variance in supervisor's ratings of international assignee success above and beyond personality and cross‐cultural competencies. To test this hypothesis, supervisor‐rated of assignees’ effectiveness in working with host nationals was regressed on the number of international assignees’ cultural orientations. Controlling for personality and dynamic competencies, the overall model was significant explaining 17 per cent of the total variance. This study provides some preliminary evidence on the importance of expatriates’ possessing the ability to possess concurrent cultural orientations. The HR practices to foster cultural agility are discussed.     

Exploring expatriate adjustment through identity perspective

This study reveals multifaceted identities experienced by corporate expatriates and how these identities are related to expatriate host country work and non-work adjustment. Specifically, we take a symbolic interactionism-based identity theory perspective and examine qualitative data from 73 corporate expatriates in China and Japan, revealing an expatriate identity (i.e., identification with being a manager and a foreigner), and a cultural identity (i.e., identification with home and host country cultures) which through identity stability/change are related to the mode and degree of expatriate work and non-work adjustment. Our findings suggest that these identities explain how corporate expatriates shape their new environment to their preferences, instead of adjusting to it.     

Impact of a local host on the success of an international assignment

This longitudinal study examined whether contact with a local host in the Netherlands positively impacts on the adjustment and performance of “Western” expatriates with English or French as their first language. Thirty‐one expatriates were put in contact with a Dutch host with whom they would have regular contact over nine months; another 30 similar expatriates would have no contact with a host. After a five‐month period of contact with a host, there was a positive impact on interaction adjustment. The results also indicated that expatriates who valued the contact highly derived more benefit from it. Contact with a host seems to be especially worthwhile for expatriates who have to deal with host nationals on a daily basis. ©2011 Wiley Periodicals, Inc.     

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.     

Social support abroad: How do self-initiated expatriates gain support through their social networks?

On arrival, expatriates need to establish new social ties in order to succeed in the host country. In this study, we are investigating the social networks of self-initiated expatriates, focusing on the process of how they source social support. Building on information seeking theory, we have created a model connecting specific characteristics of network members (host country knowledge, employment status and host country origin) with the frequency of contact and support they provide. The model was tested through multilevel mediation analysis on 165 expatriates and their 575 network members. We contribute to the existing knowledge on expatriate networks by a theoretically driven categorization of network members and a detailed empirical analysis on the level of a relationship/tie. Our results show that expatriates rely on different network members for different types of support. Practical implications include the use of mentors to facilitate expatriate access to higher status individuals who can offer important support.     

Facilitating expatriate adjustment: The role of advice-seeking from host country nationals

The expatriation literature consistently suggests that expatriates on assignment require a great deal of support to adjust to their new environment. This study examines the potential of host country national (HCN) coworkers as an important yet often overlooked source of support for expatriates. Analysis of survey data collected from 350 expatriates working in the U.S. indicated that expatriates who sought advice from HCN coworkers reported higher levels of work and interaction adjustment. This study also found that expatriates were more likely to seek advice from HCN coworkers they perceived as being credible and likable. Implications for research and managerial relevance are offered.     

Perceptions of task cohesiveness and organizational support increase trust and information sharing between host country nationals and expatriate coworkers in Oman

Information sharing between expatriate and host country national (HCN) employees is strategically significant. In a sample of Omani HCNs, we hypothesize and find that perceiving task cohesiveness is positively associated with HCNs’ willingness to share information with expatriates and that trust mediates this association. In addition, perceiving organizational support strengthens the relationship between expatriates’ task cohesiveness and HCNs’ trust, whereas interpersonal similarity has no influence. This research highlights important ways in which trust and information sharing may be encouraged, and that HCN–expatriate interpersonal similarity is less important to building trust when more diagnostic cues are available.     

Jumping from Springboard? The Role of Marginal Cultural Distance in Cross‐Border M&A Deal Completion

This article extends understanding of the cultural experience of a firm in a host culture as a mechanism to reduce cultural distances. Integrating organizational learning theory with cultural friction perspective, this study proposes that cultural experience of a focal firm is a unique, firm‐specific advantage. Time spent in a particular culture causes cultural friction that diminishes the cultural differences for the focal firm at the margin, which we term marginal cultural distance (MCD). Emphasizing the importance of learning from cross‐border acquisitions for firms from emerging markets, we propose that compared to country‐level cultural distance scores, MCD is a better predictor of the likelihood of cross‐border deal completion. © 2015 Wiley Periodicals, Inc.     

Do as the large enterprises do?: Expatriate selection and overseas performance in emerging markets: The case of Taiwan SMEs

This study investigated the less explored expatriation practices of small- and medium-sized enterprises (SMEs) in emerging markets. Data for 133 Taiwan SMEs operating in Malaysia and Vietnam revealed that four personality traits of expatriates, i.e., control ability, independence, openness and social ability exert significant influences on overseas performance given that different types of performance require different of expatriate competency. Analytical results also indicated that the widely perceived influence of the favorable evaluation of the expatriate by top managers does not impact the overseas performance of expatriates. Further, the expatriate practices of Taiwan SMEs vary depending on cultural differences between the home country and host countries. Taken together, the findings of this study have valuable implications for both academicians and practitioners in international management.     

Why solidarity matters (and sociability doesn't): The effects of perceived organizational culture on expatriation adjustment

This study examines the relationship between perceived organizational culture and cross‐cultural adjustment. Using the organizational culture framework of Goffee and Jones (1996, 1998) that describes organizational culture as the intersection of sociability (e.g., the level of friendliness and socialization between organization members) and solidarity (e.g., the commonality of interests and goals among organization members), this research examines home and host organizational culture as they affect expatriation adjustment regardless of culture novelty (e.g., national cultural differences). The data were obtained through a self‐administered questionnaire filled in by 166 expatriates from 29 nationalities and assigned to 39 countries. The analyses showed that perceived home and host solidarity predicts expatriates' work and general adjustment, though not interactional adjustment. These results confirm that perceived organizational culture is a predictor of expatriation cross‐cultural adjustment. ©2011 Wiley Periodicals, Inc.     

Temporal boundaries and expatriate staffing: Effects of parent–subsidiary work-time overlap

By integrating the boundary-spanning perspective with the expatriate staffing literature, we explore why and how temporal boundaries between multinational enterprise (MNE) parent and subsidiary locations affect MNEs’ deployment of expatriates in foreign subsidiaries. Temporal boundaries, defined as local work-time schedule differences, delimit the degree of work-time overlap between two locations. A lack of work-time overlap between MNE parent and subsidiary locations creates significant barriers in day-to-day, remote real-time communication, resulting in increased deployment of expatriates as intermediaries by parents to overcome these barriers. Conversely, greater parent–subsidiary work-time overlap enables more remote real-time communication via digital technologies, altering the cost–benefit analysis of deploying expatriates over local nationals, consequently reducing parents’ reliance on expatriates as intermediaries. Therefore, we posit a negative relationship between parent–subsidiary work-time overlap and the expatriate ratio in a subsidiary. Further, we posit that the negative relationship is weakened by home – host country distance in terms of information and communication technology development and linguistics because technological and semantic boundaries can reduce the effectiveness of parent–subsidiary real-time communication. Empirical analyses of 22,556 subsidiaries established by 5,912 Japanese MNEs operating in 31 host countries between 1990 and 2018 support our theorizing.     

Executive migration and international mergers and acquisitions

This study applies the microfoundations approach to examine the impact of migrating executives on firms’ selection of host country in their international acquisition decisions. Viewing executive migration as a conduit for inter-organizational learning, this study offers the first empirical findings that a migrating executive’s inter-organizational learning associated with two specific types of international acquisition experience, i.e., general and country-specific, accumulated at a prior affiliated firm positively impacts host country selection in the executive’s current affiliated firm’s acquisition decisions. The findings further suggest that the migrating executive’s prior country-specific international acquisition experience has a greater influence compared with the migrating executive’s prior general international acquisition experience. Last, the findings show that industry similarity between a migrating executive’s prior and current affiliated firms enhances the effect of the migrating executive’s specific host country acquisition experience. In sum, this study contributes by introducing migrating executives as a new learning conduit in international acquisitions.     

The entry‐mode decision of Chinese outward FDI: Firm resources,industry conditions,and institutional forces

How do Chinese firms make their entry‐mode decision for their outward investments? Based on the three theoretical perspectives that balance the “strategy tripod,” our study conducted empirical tests using survey data collected from outward‐investing Chinese firms. We found that the cost advantage of the investing firm and learning opportunities in the host industry have positive effects on the likelihood of a Chinese firm opting for wholly owned subsidiary against joint‐venture entry mode, while the market attractiveness of the host industry, host‐country restrictions, cultural barriers, and cognitive pressures have negative effects. © 2011 Wiley Periodicals, Inc.     

Chinese host country nationals' willingness to help expatriates: The role of social categorization

In this study, we examine Chinese host country nationals' (HCNs') willingness to offer role information and social support to expatriates from the United States. Using data from 132 Chinese managers, we find that ethnocentrism, interpersonal affect, and guanxi significantly impact HCNs' willingness to offer help to expatriates. Furthermore, we find that the job level of the expatriate has a significant impact on HCNs' willingness to offer role information but not on willingness to offer social support. The results suggest that paying attention to the perceptions and reactions of HCNs toward expatriates is imperative for multinational companies if expatriates are to succeed on their assignments. ©2011 Wiley Periodicals, Inc.