A strategic contingency approach to expatriate assignment management

This exploratory study examines how expatriate management practices differ with respect to three international management strategies (local, centralised or global) in 27 mature multinational corporations. In particular, this study examines the categories of expatriate assignments, the strategic integration of expatriate assignments into leadership development and the types of human resource practices that firms utilise to manage expatriates. Results indicate that organisations differentially assign expatriates based on the firm's respective international management strategy. Firms with a global management strategy made greater use of developmental expatriates, had a greater number of senior managers with expatriate experience and had a stronger focus on leadership development through expatriation. Firms did not differ with respect to their use of expatriate management practices based on their international management strategy.     

Pacific Basin Managers: A Gaijin,Not a Woman

Pacific Rim business is the fastest growing in the world. To remain competitive, no major North American firm dare ignore Asia. Traditionally, very few women have held managerial and executive positions in Asia, Can North American firms successfully send female expatriate managers to Asia or must they limit international management positions to men? To answer this question, fifty-two women were interviewed, each of whom had held at least one management position in Asia. They were overwhelmingly successful. The study describes who the women are, how they were chosen, and their professional experience as female expatriate managers in Asia.     

Women abroad: getting the best results from women managers

Abstract This study explores the work environment of expatriate women managers in American corporations and investigates the determinants of their job satisfaction. The strategic importance of global assignments has increased over the years. The real cost of unsuccessful expatriates extends beyond the monetary expenses. As the number of women managers working overseas increases, so does the importance of this topic. Additionally, because women in expatriate positions are relatively new, their needs for job satisfaction and career aspirations are not known to most organizations. This research intends to fill this gap. The study concentrates on four major areas that are considered important for obtaining job satisfaction: (1) the way in which organizations design their overseas jobs, (2) women's skills and characteristics, (3) international human resource policies of companies and (4) the cultural environment of host countries. The applied research covers two phases: a study of expatriate managers during their assignments overseas and the evaluation of overseas experience upon their return. The results indicate that women in overseas assignments are satisfied overall with their jobs. However, organizational variables are more strongly related to job satisfaction. The nature of job design in overseas postings has the greatest impact on women's job satisfaction. When the jobs are enriched, women gain intrinsic rewards and have high job satisfaction. Organizational support also contributes to the satisfaction of women expatriates. Training, mentoring and repatriation preparations have high impact on women's success and satisfaction. Women expatriates are more concerned with their repatriation and future advancement than their present assignments. The findings are important for theoretical and practical reasons. Theoretically, the achievement and satisfaction of women managers overseas cannot be simplified without taking into account organizational, personal and cultural factors. Practically, companies need to respond to the individual needs of expatriate women managers and then decide on their assignments and their repatriation accordingly.     

Is expatriation good for my career? The impact of expatriate assignments on perceived and actual career outcomes

This study examines the impact of expatriate assignments on career growth and the external marketability of US employees of a large professional services firm. We use survey and archival data to compare expatriates currently overseas, repatriates, and domestic US employees on compensation, recent promotions, and external recruiting contacts. We then examine how actual pay, promotions, and external recruiting influences anticipated salary growth within the firm and external employment opportunities. We find that despite little or no impact on their current careers, employees with overseas work experience perceived greater internal and external opportunities than domestic US employees. Implications for managers and researchers are discussed.     

The forgotten employees? The experiences of expatriate staff returning to the UK

This article reports on the experiences of a group of expatriate UK managers and professionals who have recently returned to the UK from foreign assignments. A brief review of the literature in this field is presented and the findings of a questionnaire survey of 124 ‘returnees’. The data show that many expatriates face difficulties upon their return in terms of their career prospects, psychological well-being and general adaptation to life back home. The paper goes on to suggest ways in which these transitions can be managed more effectively by organizations and individual employees. It concludes by proposing directions for future research.     

Understanding expatriate manager performance: Effects of governance environments on work relationships in relation-based economies

Evidence shows that the majority of Western expatriate managers fail in their job assignments in developing countries. To go beyond attributions of expatriate failure to “cultural differences” this article responds to calls for a theoretical basis for understanding expatriate performance by using a recently developed framework of rule-based and relation-based governance environments to examine how the macro-environment of a country's governance system affects the creation of effective working relationships between executive level expatriate managers and Host Country Nationals (HCNs) on the executive's management team. Based on cross-cultural psychological contract research [Rousseau, D.M., Schalk, R. (2000). Psychological contracts in employment: Cross-national perspectives. Thousand Oaks, CA: Sage.] and the premise that expatriate performance is largely a function of the ability to manage discrepancies between the rule-based expectations of the Western MNC culture and the relation-based expectations of local employees, we develop research propositions to promote future HR research designed to examine the effect of the governance environment on the working relationships between American managers and Chinese HCNs. Implications for future HR efforts to improve the performance of expatriate managers in relation-based societies are also discussed.     

Job attitudes and organizational justice in joint venture hotels in China: the role of expatriate managers

In a survey of local employees in joint venture hotels in China, perceived interactional justice was found to be predictive of job attitudes, and perceived salary fairness in comparison with expatriate managers explained additional variance in job attitudes. Compared to previous results, local employees now perceived their pay as much more unfair when compared with that of expatriate managers. In addition to perceived justice, perceived managerial practices of expatriate managers and incentives received were also predictive of job attitudes of local employees. Consistent with previous results, employees working with overseas Chinese and Japanese managers reported less positive job attitudes than those working with Western and other Asian managers. These differences were related to neither perceived differences in managerial practices or managerial experiences of the expatriate managers nor perceived differences in incentives received. The justice framework provides the best explanation for these results.     

The Effect of International Work Experience on the Career Success of Expatriates: A Comparison of Assigned and Self‐Initiated Expatriates

This article is one of the first to examine the long‐term effect of expatriation on careers, comparing the impact of international work experience on the career success of assigned and self‐initiated expatriates. Our sample consists of employees who were working abroad in 2004, and we examine their subjective and objective career success eight years later. Despite the “dark side of international careers” arguments associated with the repatriation literature, we find that the long‐term impacts of international work experience on career success are generally positive and mainly unrelated to whether the work experience was acquired as an assigned or self‐initiated expatriate. Companies recruit employees with international experience externally but are much more likely to offer further internal jobs to assigned expatriates. This reinforces the need for further research and for companies to see all those with international experience as important elements of the workforce. © 2017 Wiley Periodicals, Inc.     

Managing Human Resources in East Asia

This article reports on the management of international assignments (IAs) in fifteen UK companies who have expanded their operations into the international arena over the last three to twelve years.¹The results show that very few of these companies currently follow examples of ‘good practice’ as espoused by most management theorists and other commentators on the management of expatriate assignments. However, at this moment in time, they do not have any significant problems with either high expatriate failure rates (HEFRs) or with staff performing under par on IAs. However, many are experiencing considerable problems with returning expatriate staff. The implications of these findings for expatriate management are discussed in detail.     

'The persistent myth of high expatriate failure rates': a reappraisal

While there is now a mature literature on many aspects of the management of employees on international assignments (IAs), there is still considerable controversy about the numbers of expatriates who actually fail in these. Traditionally, this has been defined as the number of staff who return home before the agreed end of an IA, because of poor work performance and/or personal problems. Employing this definition, the research described in this paper supports the view that expatriate failure rates (EFRs), among UK employees are, indeed, very low (on average, around 8 per cent). However, this article argues that this traditional definition has limitations and does not reveal the true extent of the problems which IAs can cause to some expatriates and their dependants both during their time abroad and after returning to the UK. The paper then goes onto argue that a broader definition of 'failure' is needed, which includes: an acknowledgement of the considerable stresses and strains experienced by a minority of staff who are under-performing on IAs; the 'poaching' of successful managers by other companies while they are abroad or at the end of their IAs; the often negative outcomes of repatriation experienced by many employees in recent years; the negative (and largely unreported) effects on some families and the career prospects of partners and negative views about the prospect of overseas postings in the future.     

Coping and adjustment of Western expatriate managers in Hong Kong

This article examines coping mechanisms of Western expatriate business managers in Hong Kong to determine how these strategies are associated with the expatriates’ sociocultural and psychological adjustment. This is important since the few previous studies that have touched upon expatriate coping strategies have focused on other topics which affected both their samples, methodology and findings. Furthermore, effective coping strategies can be taught in cultural training programs better preparing expatriate candidates for their foreign assignments. As predicted, the results indicated a clear positive association between problem focused coping and both sociocultural and psychological adjustment as well as a negative relation between symptom focused coping and both dimensions of adjustment. Implications for international business firms and future research of the findings are discussed in detail.     

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.     

Expatriate or local bosses? HCN subordinates' preferences in leadership behaviour

This article explores host-country national subordinates’ preferences in leadership behaviour comparing expatriate bosses and local bosses. From a sample of 240 middle managers in Hong Kong with experience with both local Chinese bosses and expatriate bosses from a broad spectrum of Western and Asian countries, it was found that the subordinate managers assessed the leadership behaviour of their expatriate bosses to be significantly closer to that of their perceived ideal boss. American leadership behaviour was the most preferred and Japanese leader style was the least preferred, with British leadership style comprising a middle group. Implications of these findings for international business firms and future academic research are discussed.     

Expatriate success may depend on a “learning orientation”: Considerations for selection and training

To support globalization, managers increasingly are sent to live and work in other countries. An unsuccessful expatriate assignment is costly for the organization and damaging to the individual's career, yet few companies have adequate processes for selecting and training expatriate managers. The concept of “learning orientation” is proposed as a valuable dimension for assessment and training. Employees with weaker learning orientation tend to withdraw from situations that could result in low judgment of performance; those with stronger learning orientation adapt and continue. The described approach can benefit employees and their families and can increase the organization's chance for international success. © 1999 John Wiley & Sons, Inc.     

Expatriate reduction and strategic control in American multinational corporations

The significant reduction in the use of home country expatriates abroad by American multinationals is generally taken positively, reflecting internationalization, the environmental competence of host country nationals, equity, and the cost of maintaining Americans abroad. In this article I dissent, arguing that the phase-out of expatriates has gone too far, much further in fact than European or Japanese competition and that the dominant reason for the cutback is the difficulty Americans have in adapting to overseas assignments and the high failure rate they have experienced. I conclude that expatriate reduction has significant consequences for the strategic management of multinational corporations: reduced identification with the worldwide organization and its objectives, difficulty exercising control through personnel, and a lack of opportunities for Americans to gain international expertise through assignments abroad. Although I do not advocate returning to the ineffective and inequitable over-reliance on home country nationals, I argue that a corps of expatriates performs a function valuable to the MNC and that a means must be found to develop a group of managers who identify with the organization as a whole and provide overseas experience to home country managers.     

Thinking strategically about integrating repatriated managers in MNCs

Although multinational corporations (MNCs) invest considerable resources in sending managers on foreign assignments, too many managers report dissatisfaction with their postrepatriation careers, and a significant percentage leave the firm within a year. This failure to harness learning and develop a cadre of globally trained managers raises questions about the current objectives and strategies that drive the investment in expatriation. A study of managers who had recently completed their expatriate assignment points to underorganized home office operations, poorly defined mentor roles, and large gaps between managers' expectations and reality as key contributors to the problem. This paper calls for a strategic orientation toward managing the expatriate function and proposes a comprehensive configuration of processes, systems, and structures necessary for implementing new strategies for developing the next generation of globally trained managers. © 2009 Wiley Periodicals, Inc.     

Women and expatriate work opportunities in Austrian organizations

Previous research has indicated that female managers are still a minority among expatriate staff. As studies dealing with this topic from a European perspective are still more than rare, this study focuses on the situation of female expatriates in Austrian companies. After surveying the TOP 500 organizations and the largest banks, insurance and consulting companies in Austria, results showed that – although women are still under-represented in international management – among nearly one quarter of the respondents, women who have already succeeded in breaking through the glass ceiling of local management are also succeeding more frequently in getting postings abroad. Moreover, the limited representation of female expatriates was explained primarily by a general lack of female talent available for the functions which are relevant for international positions, second, by prejudices of host-country nationals towards female managers and, third, by a lack of interest shown by women in global assignments due to personal reasons. This paper reports on a questionnaire distributed to human resource managers and provides more insight into the subject of female expatriates. It begins by reviewing the literature dealing with women in international management before analysing the matter of under-representation of female expatriates from a different perspective and asking for the reasons why female managers are not sent abroad by Austrian companies. Then the research method is discussed before the findings are presented and their implications discussed in terms of future research.     

Expatriates of host-country origin: ‘coming home to test the waters’

Expatriates are an integral part of any multinational company's (MNC) staffing strategy. However, the high failure rate of expatriates has forced these firms to look at alternate or complementary staffing strategies. This paper focuses on one such strategy, i.e., transferring people of host-country ethnic origin from parent-country to manage host-country operations. The purpose of this exploratory study is to ascertain whether and how MNCs have used expatriates of host-country origin (EHCO) as a global staffing strategy, in the context of India, and the extent of its success both for the individuals and the organizations concerned.

Based on a survey and in-depth interviews of human resource managers of 15 MNCs with operations in India, the study concludes that EHCOs are more willing to accept expatriate assignments than parent-country nationals (PCNs); however, their success on the assignment depends on the breadth and depth of their experience both in the parent and host country. With regard to their work effectiveness vis-à-vis PCNs, no significant difference was found. Managerial implications of this staffing strategy are explored and future research directions identified.     

Becoming competent expatriate managers: Embracing paradoxes in international management

This conceptual paper bridges international management literature with paradox theory to contribute to a paradoxical perspective for understanding expatriate competence. Synthesizing the international management literature, we argue for a ‘both/and’ approach for expatriates to effectively engage with tensions in a dynamic and ever-changing international environment. Our discussions provide novel insights on salient paradoxical tensions across three areas, namely, expatriate learning, expatriate identity, and expatriate performance. We develop strategies to address those tensions and a theoretical model that delineates the interactions of these three areas for superior performance on international assignments. We contribute to the international management literature by drawing attention to the dynamic and enabling role of paradoxical tensions as facilitators of, rather than barriers to, the development of expatriate competence and superior performance on international assignments.