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.     

The relationship between expatriates' personality traits and their adjustment to international assignments

This study investigates the relationship between personality traits of expatriates and their adjustment to international assignments. We focused in particular on the Big Five personality traits: extroversion, agreeableness, conscientiousness, neuroticism and openness to experience. We sampled eighty-three US expatriates in Taiwan and found statistically significant relationships between expatriate adjustment and three personality traits in theoretically reasonable directions. Specifically, our results showed that a US expatriate's general living adjustment in Taiwan is positively related to his or her degree of extroversion and openness to experience. We found that extroversion and agreeableness are both positively related to interaction adjustment (i.e. relationships with local people). Furthermore, a US expatriate's work adjustment is positively related to his or her openness to experience. Unlike prior research on expatriate adjustment, we have examined multiple traits rooted in personality theory, and we have derived hypotheses that are specific to a Chinese context.     

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.     

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.     

The role of HR managers in international mergers and acquisitions: a multiple case study

The article departs from the existing research treatment of expatriation as an individual-level phenomenon, and looks at the expatriation of work teams. We examine the performance management of expatriate teams brought in from 17 independent organizations to work on a new-product development project. We find that the teams faced diverse stakeholder expectations and that these stakeholders' expectations were a source of tension for the teams. The teams responded by adopting performance management strategies that tended to prioritize their respective home organizations' expectations. We discuss the vulnerability of contextual performance and the relative insignificance of national cultural differences in this expatriation context. We propose practical considerations and an agenda for further international human resource management (IHRM) research on expatriate teams.     

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.     

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.     

Expatriates' families: A systematic literature review and research agenda

The influence of family on expatriates and their families' international assignments experience have been long discussed in various disciplines. We undertake a systematic review of 151 articles on expatriates' families published between 2006 and 2020 in peer-reviewed academic journals in Business and Management, Medicine, Psychology, and Decision Sciences. Adopting a step-wise approach to conduct the review and using Leximancer, we analyze the literature and categorize it into five major themes: family's influence on expatriates; expatriation's influence on expatriate families; family and individual adjustment in the expatriation process; organizational practices concerning family issues in expatriation; and expatriate families' social interaction. This mapping, thematizing and systematic organizing of the literature allows us to identify research areas that have been overpopulated and others that have not received sufficient scholarly attention. By doing so, this study contributes to the literature by providing a multidisciplinary perspective on the issue of expatriates' families. We also present a research agenda to advance knowledge in the field and make recommendations for practice.     

Convergence in human resource systems: A comparison of locally owned and MNC subsidiaries in Taiwan

This article investigates issues of convergence in human resource systems in Taiwan, with reference to the similarities and differences between locally owned companies and subsidiaries of multinational corporations (MNCs). Traditionally, management in Taiwanese companies has been largely influenced by Confucian values and is quite distinct from approaches common to MNCs. However, globalization has engendered significant competitive pressures, coupled with cultural and institutional change within Taiwan. This article provides a theoretical framework for understanding such changes and provides empirical evidence indicating that Taiwanese companies are acting very much like MNCs with regard to the adoption of flexible, highperformance work systems. © 2005 Wiley Periodicals, Inc.     

Expatriate adjustment from the inside out: an autoethnographic account

This paper identifies some of the dynamics of expatriate adjustment using an autoethnographic account of situations experienced by the first author during her first year of work at a financial services company in Hong Kong. Success in this cross-cultural assignment is dependent on the expatriate's ability to adjust to and master the new culture. Our theoretical analysis of the autoethnographic account suggests that culture shock may be a discontinuous process. Further, the analysis suggests that cultural acceptance can play a critical role in expatriate adjustment.     

An Eastern and SME version of expatriate management: an empirical study of small and medium enterprises in Taiwan

This study, different from previous ‘individual level’ research, explored ‘company-level’ expatriate training, expatriation policies and the perceived willingness on the part of expatriates to take on an enhanced role in organizational performance. Based on data from 254 Taiwanese SMEs with foreign investments, an Eastern and SME version of expatriate management is presented. The most significant predictors of expatriate premature return and company sales are the ‘number of expatriates’ and ‘ratio of expatriates with managerial positions’. Companies that have a greater percentage of expatriates with spousal accompaniment experience more premature return while insufficient training explains lower company sales. Insights regarding regional expatriate differences and methodological implications are also elaborated.     

East meets West: the case of Polish expatriates in the UK

This paper attempts to redress the balance in research on expatriation by exploring the experiences of an under-researched group of expatriates in an under-researched destination. Although there has been an increase in research on the adjustment of expatriates, the focus of IHRM research has, to date, tended to view the expatriation process through a narrow lens, emphasising the role of managers from affluent ‘Western’ countries working in less affluent countries. The growing numbers of multinationals and therefore expatriates from other countries means that the research agenda must be broadened, in this case to the experience of Poles in the UK. By focusing on expatriates from a former socialist economy we highlight the differing motives and experience of adjustment that they face. We show how the economic and social benefits of this East–West transfer can be a powerful motivating factor and may override adjustment difficulties. Furthermore, the analysis of East to West European expatriate transfers, from less to more developed nations, contributes to and widens the range of parent and host countries studied within the realm of expatriate adjustment.     

The ‘expat factor’: the influence of working time on women's decisions to undertake international assignments in the oil and gas industry

This article examines the effect of working time on women's willingness to go on expatriate assignments in the oil and gas exploration and production sector. The research draws upon an analysis of two case study firms' international assignment and working time policies, semi-structured interviews with 14 human resource staff responsible for policy design and implementation, and a survey of the views of 71 women expatriates, supported by in-depth interviews with 26 of the survey respondents. The research identifies an ‘expat factor’: assignees state that long hours are inherent in expatriation and necessary to further their careers. However, in practice, working time is not excessive and flexible working practices are utilised. Hours of work have little effect on women's decisions to undertake long-term assignments but alternatives such as short-term and commuter assignments are unpopular as their working patterns are disruptive to family life. This article contributes to theory development by linking two discrete frameworks that explain women's career choices when they strive to balance their career goals with their families and by identifying a career compromise threshold when expatriation is rejected in favour of family considerations. A model is proposed to link working time/patterns to women's international assignment participation.     

The power of support in high-risk countries: compensation and social support as antecedents of expatriate work attitudes

This study analyzes the antecedents of expatriate work attitudes in terrorism-endangered countries. Applying a social exchange perspective, the study empirically analyzes which measures are qualified to achieve and maintain positive work attitudes among expatriates. Hierarchical regression analysis is applied to investigate this relationship, using data from 143 expatriates in high-risk countries. Data show that social support from co-workers as well as from the organization itself is essential. Moreover, the study investigates the expatriate's sensitivity to terrorism as a moderator and finds that companies should incorporate the sensitivity in their considerations for corporate measures.     

A model for the influence of social interaction and social support on female expatriates' cross-cultural adjustment

This paper offers a model to describe the way in which female expatriates develop relationships and utilize those relationships to become cross-culturally adjusted. This model includes three predictive components affecting cross-cultural adjustment. The first includes the factors affecting whether a woman is able to form relationships on the expatriate assignment. These antecedents can include the female expatriate's personality, the cultural norms towards women, her language skills and the availability of possible opportunities for interaction. The second component includes the various sources of social interaction and social support (e.g. family members, and host national colleagues). The third component describes the nature of a female expatriate's social interaction and social support (e.g. emotional, informational and instrumental). Practical considerations for multinational organizations sending female expatriates are offered.     

A Psychological Contract Perspective of Expatriate Failure

The expatriate literature needs to move beyond maladjustment as a primary reason for expatriate failure. This article draws on the psychological contract as a valuable lens to observe changes in expatriate behavior that may determine expatriate success or failure on international assignments. Prior research on the expatriate psychological contract has focused solely on an expatriate's social exchange relationship with the assigning parent company. This article offers a dual‐foci perspective of the expatriate psychological contract and suggests that expatriates’ perceptions of psychological contract breach arise from two sources—the assigning parent company and the receiving host company. The conceptualization of breach with dual foci forms the basis for the proposed model of expatriate failure. The model proposes that differences in expatriates’ contexts will influence their likelihood of perceiving breach and that breach, once perceived, will affect expatriate behavior through its influence on sense‐making, affect, conation, and attitudes. The propositions developed in this article provide a foundation for future theorizing and empirical work on expatriate cognitions of psychological contract breach. © 2016 Wiley Periodicals, Inc.     

A test of the relationship between person–environment fit and cross-cultural adjustment among self-initiated expatriates

Understanding an expatriate's cross-cultural adjustment to the various aspects of their host environment and organization has been a focal point of research for several decades. Person–environment (PE) fit refers to the degree of fit an individual has with various dimensions of their host environment, and past research suggests that successful PE fit positively influences adjustment. However, the strength of these relationships remains under-researched. Drawing upon data gathered from 369 self-initiated expatriate doctors working in Ireland, we examine the strength of the relationship between PE fit and cross-cultural adjustment. Our results suggest that dimensions of PE fit influence cross-cultural adjustment to varying degrees. Thus, person–job needs-supplies fit was the only fit dimension to influence interaction adjustment, while person–job demands abilities influenced both work adjustment and, to a lesser extent, interaction adjustment. Person–organization fit influenced work adjustment, while person–supervisor fit had no relationship with adjustment. These findings have implications for organizations when recruiting and supporting self-initiated expatriates.     

The expatriate’s family as a stakeholder of the firm: a responsibility viewpoint

In this paper we argue for the recognition of the expatriate’s family as a stakeholder of the firm during the expatriation. We demonstrate why the expatriate’s family can be regarded as a stakeholder of the parent company and what kind of a stakeholder the family is. Additionally, we argue that the parent company needs to develop and apply a holistic well-being orientation to show stakeholder responsibility in the international assignment (IA) arena. We apply the theory of stakeholder salience to the IA relationship because it provides a theoretical framework for integrating the family into the expatriation process. Yet this theory does not necessarily provide a framework for assessing the social functioning of expatriates and their family members. Since expatriation often leads to a radical shift in family roles and living circumstances, family members (or indeed the expatriates themselves) cannot replicate all elements of their previous lives in the host country. Therefore, we use the capabilities approach to complete the theoretical framework, as this approach provides an evaluative mechanism which highlights how a socially responsible relationship between the company and the family can be advanced to foster well-being and quality of life for the family members as well as the expatriate, even if their functioning abroad differs from their functioning in their own country.     

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.     

Expatriate compensation and its link to the subsidiary strategic role: a theoretical analysis

This paper focuses on the strategic design of expatriates' salaries. Unlike standard expatriation literature that assumes a lack of connection between strategy and international managers' compensation, we use the theoretical concepts from the international strategic management research to discuss how different international strategies affect the way expatriates are compensated. In this respect, the paper proposes a series of hypotheses on how expatriate compensation systems take shape according to the role that the expatriates may play in the internationalization process. The hypotheses refer to the type of incentives offered to encourage acceptance of the assignment, the type of criteria used to evaluate their performance and the reference unit used to establish variable compensation.