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.     

Changes in psychological contracts during the global financial crisis: the manager's perspective

The employee–organisation relationship is dynamic and arguably affected by contextual factors, such as a change in the economic environment. This study uses data collected from managers in Australia before and after the beginning of the global financial crisis (GFC) to examine the changes in psychological contract (PC) terms from the manager's perspective. In particular, as industries can be affected differently by economic crisis and gender discrimination can increase in tough economic conditions, we examined if any changes in PC terms were contingent on industry and employee gender. The study's results show that the terms of the employment relationship deteriorated in Australia only for employees working in industries affected by the GFC. Further, we found that some gender differences in the terms of the PC exist independent of the state of the economy. In addition, a three-way interaction indicates that managers working in industries not affected by the GFC are allocating a greater proportion of their resources to their female employees than to their male employees. Ongoing labour shortages and gender inequities in Australia might have prompted managers in non-affected industries to use their relative ‘resource-rich’ advantage to positively influence the employee–organisation relationship for female employees, a traditionally disadvantaged group.     

A preliminary model of spouse influence on managerial global assignment willingness

Using family systems theory as a conceptual framework, this research study proposes and tests a preliminary model that explains spouse willingness to relocate internationally and manager willingness to assume a global assignment. Previous research from the global assignments, international job relocation and dual-career couples' literatures has found that spouse attitudes often influence the attitudes of expatriates. However, few research studies have been conducted to determine the factors that influence spouse attitudes toward both short- and long-term global relocation opportunities. The present study attempts to build understanding in this under-researched area of international human resource management. By understanding more about this important phenomenon, top decision-makers and international human resource professionals can better identify and select those candidates who have family situations that will predispose them to accept global assignments. Data from questionnaires completed by 427 global managers and 167 spouses were used to test hypotheses that examined the relationships between individual, family and organizational, factors and spouse criterion variables. An additional hypothesis was tested to measure spouse influence on manager global assignment willingness. The data in the study were analysed by conducting structural equation modelling. Theoretical, methodological and practical contributions from the present study are provided.     

Human resource management practices and psychological contracts in Swiss firms: an employer perspective

This article investigates the relationship between HRM practices and organisational performance, considering the fulfilment of the psychological contract as an intermediate variable. Apart from testing the influences of a high-investment HRM system index on the psychological contract, the influence of individual HRM practices and their interaction was examined. The sample consisted of HR managers of 92 firms in Switzerland and the data were collected for the Cranfield Network project. The results showed that the high-investment HRM system index predicted the fulfilment of the psychological contract, and some of the individual HRM practices were correlated with the fulfilment of the psychological contract. The interaction effect of performance appraisal and performance-based pay on the fulfilment of the psychological contract showed that performance appraisal is only effective in combination with a tangible consequence in the form of performance-based pay. We neither found a mediation effect for the psychological contract nor an association with organisational performance. This might be due to the fact that the questionnaire was filled in during the financial crisis in 2008 and that the organisational performance was assessed in an economic crisis. Our study sheds light on the relationship between HRM practices and the psychological contract and contributes to the body of research on psychological contracts from a macro level perspective.     

Emerging issues and challenges in global staffing: a North American perspective

Multinational enterprises (MNEs) recognize that human resources play an important role in gaining a competitive advantage in today's highly competitive global business environment. While all aspects of managing human resources are important, staffing, continues to be an essential IHRM activity that helps MNEs in their need for coordination and control across widely dispersed units. As such, researchers and practitioners alike are interested in addressing the key issues and challenges in staffing the several types of employees that comprise the global or multinational workforce. We focus on three issues that have emerged in recent years regarding how MNEs staff their multinational workforce including: 1) managing different types of employee groups; 2) selection and management of employees posted to international assignments; and, 3) receptivity to international careers among early career individuals. We review these and then describe an empirical study conducted on the third issue.     

Assessing cross-cultural skills: validation of a new measure of cross-cultural psychological capital

In light of increasing workplace diversification, today's organizations are in need of employees who can work effectively within cross-cultural settings. To assess and develop generalizable skills enabling employees to successfully interact with members of many different cultures, a new measure of cross-cultural psychological capital (PsyCap) was validated in two studies. This measure captures a state-like higher-order construct consisting of four components: self-efficacy, hope, optimism and resilience with regard to cross-cultural interactions. In study 1, a diverse sample of 361 participants responded to a survey and results confirmed the hypothesized higher-order factor structure of the newly developed cross-cultural PsyCap scale. In study 2, an additional 134 participants completed multiple surveys to assess the convergent, discriminant and predictive validity of cross-cultural PsyCap as it relates to cultural intelligence, openness to experience, ethnocentrism and cross-cultural adjustment. The majority of the study hypotheses were supported, which provides evidence for the measure's construct validity in assessing cross-cultural skills and also demonstrates its unique value in predicting cross-cultural effectiveness. This measure of cross-cultural PsyCap has important implications for assessment of employees who work internationally or within a diverse workplace.     

An investigation into international assignment directions of R&D MNE employees: evidence from Greece

In this study, we explore the effects of the roles of research and development (R&D) laboratories, roles of subsidiaries and level of technological intensity of the sector in which multinational enterprise (MNE) subsidiaries operate on international assignment directions of R&D employees. International assignments are an underinvestigated issue in the international human resource management literature despite its significant research and managerial importance. In particular, to the best of our knowledge, no prior research on international assignments of R&D employees has been undertaken and so the current study aims at filling this void in the literature. Based on a large quantitative research on MNE subsidiaries operating in Greece, the findings suggest that variables of the aforementioned categories of factors influence different international assignment directions, with roles of the R&D subsidiary exerting the most crucial effect. Researchers may examine the unexplored issue of R&D employee international assignments to a larger extent, while MNE management can particularly take into account the micro (laboratory) context of R&D international assignees when developing effective international human resource management programmes.     

Career success across 11 countries: implications for international human resource management

This qualitative study examines perceived meanings of career success across 11 countries. The results show that people define career success in ways that enrich and illuminate the basic dichotomy of objective and subjective career success and establish their relative strengths across countries. Juxtaposing our data with human resource management (HRM) practices, we contribute to the universalist versus contextualist debate in HRM by adding the career management angle. We shed light on the relative importance of cultural and institutional factors for HRM in the area of careers and add a global perspective to the discussion about agentic careers. In our discussion we offer practical suggestions for multinational companies including how to individualize HRM to address diverse views of career success.     

Ideological currency in psychological contracts: the role of team relationships in a reciprocity perspective

This study focused on the role of ideology in psychological contracts, which has been a neglected theme in psychological contract research. A study among Dutch middle managers in education revealed that ideological psychological contract fulfillment explained additional variance in relation to employee obligations toward the organization. Moreover, it was found that team relationships moderated the relations between some aspects of employer contract fulfillment and employee obligations, but no significant interactions were found between employer ideological fulfillment and team relationships in relation to employee obligations.     

The shifting boundaries of global staffing: integrating global talent management,alternative forms of international assignments and non-employees into the discussion

Abstract

Global staffing has been a key theme in research in IHRM for a number of decades. Our review confirms that it continues to be an important contemporary area of research in IHRM. In the current paper, we review three key contemporary issues in global staffing research, namely, the emergence of global talent management and potentially a more strategic approach to global mobility, specifically changing patterns of global mobility, and the emergence of the non-employees as key alternatives in the global staffing literature. The paper also charts a future research agenda in each of these areas.     

Exploring the development and transfer of career capital in an international governmental organization

Abstract

This study investigates global career self-management behaviors of staff in an international governmental organization (IGO). The literature on global careers argues that individuals should maximize their career capital, operationalized in the intelligent careers (IC) concept as competencies, social networks, and motivations of persons related to their careers. The IC concept implies that career capital is transferable and argues that IC components are interrelated and self-reinforcing. We explored these assumptions through a case study in a United Nations (UN) organization. Using the IC framework we undertook 29 semi-structured interviews with international assignees, HR, and operational experts and conducted one focus group discussion with seven staffing coordinators. We found that the UN organization had high barriers to career capital transfer between head office and field stations. Therefore, the IGO staff experienced conflicting demands in terms of their career capital behaviors. Many staff did not focus on maximizing their career-relevant capabilities or social networks. Instead, they pursued international careers that intentionally sacrificed internal career progression in favor of their humanitarian aid duties. The research adds to the insights of the global careers literature and refines our understanding of the relationship of the organizational center to its foreign affiliates. The findings expose potentially contradictory behavioral implications of elements of the IC concept and call for a context-sensitive refinement. Managerial implications for resourcing, development, career management, and retention are discussed.     

Higher education in flight: a new direction for international assignments research

This paper draws attention to the significant internationalisation of the higher education sector and role of international assignments in supporting and driving this. The paper then proceeds to identify the similarities and unique features of the sector in the context of international assignments which we argue, primarily revolve around alternative forms, namely international frequent flyers and short-term assignments. Finally, a model is proposed that may facilitate higher education institutes in more effective international assignment utilisation.     

Balancing psychological contracts: Validation of a typology

In this study, a psychological contract typology based on both content and exchange balance was developed. Content was defined along the transactional-relational dimension. Balance was assessed by comparing employees' perceptions on the number of employees' obligations relative to employer's obligations. Furthermore, the typology was related to type of employment contract (temporary versus permanent) as perhaps the most important antecedent of psychological contracts, and to various psychological consequences (job satisfaction, life satisfaction, organizational commitment, and psychological contract violation). Results were based on Belgian and German data (N = 1267). Latent Class Analyses suggested four psychological contract types which are clearly distinct with regard to content terms and exchange balance: mutual high obligations, employee over-obligation, employee under-obligation and mutual low obligations. Temporary workers were more likely to hold psychological contracts with few employer obligations, such as the mutual low obligations and the employee over-obligation type. Finally, the mutual high obligations type was most beneficial in terms of psychological outcomes. Implications for future research are discussed.     

Gender,family and career in the era of boundarylessness: determinants and effects of intra- and inter-organizational mobility

Changes in patterns of long-term employment make understanding the determinants of different career forms increasingly important to careers research. At the same time, the rise of dual-earner families demands greater attention to the ways in which gender and family characteristics shape careers than has been paid by traditional research. This paper addresses these issues, examining the determinants and consequences of intra-organizational and inter-organizational mobility, using a sample of employees from dual-earner couples. We find significant gender differences in these different types of career mobility, and in the effect of family relations on different forms of mobility. Women experience more inter-organizational mobility, while men experience more intraorganizational mobility. Having more children positively influences men's intra-organizational mobility, but increases inter-organizational mobility for women. Marital instability increases intra-organizational mobility among women, but has no effect among men. Each form of mobility has distinctive effects on objective and subjective indicators of career success for both men and women. Moving between organizations tends to depress earnings, but has no effect on how successful people feel in their careers. Job changes within an organization increase earnings, but have a negative effect on perceived success.     

The career competencies of self-initiated and assigned expatriates: assessing the development of career capital over time

Abstract

Building on a modern careers approach, we assess the effects of working abroad on individuals’ career capital. Given the dearth of longitudinal studies, we return to a sample of economics graduates in Finland eight years later. We measure changes in three dimensions of career capital; ‘knowing how’, ‘knowing whom’, ‘knowing why’ and find that company assigned expatriates learn more than self-initiated expatriates. All three career capital areas benefit from international experience and all are increasingly valued over time. Based on our findings, we conclude that a dynamic notion of career capital acquisition and use is needed. Managerial implications include the need for a wider view of talent management for international businesses.     

Human resources and sustained competitive advantage: a resource-based perspective

This paper integrates the theories and findings of micro-level organizational behaviour/human resource management research with the macrolevel resource-based view of the firm, specifically presenting a firm's human resources as an important potential source of sustained competitive advantage. Unlike practice-oriented discussions that assume the role of human resources as a source of sustained competitive advantage, we use the theoretical concepts from the resource-based view of the firm (Wernerfelt, 1984; Barney, 1991) to discuss how human resources meet the criteria for sustained competitive advantage in that they are valuable, rare, inimitable and non-substitutable. The implications for developing human resources as a source of sustained competitive advantage are discussed, particularly examining the role of HR practices and managers in this process.     

Flexpatriate assignments: a neglected issue in global staffing

The demands of managing international assignments are major considerations within strategic IHRM theory and most frequently considered within long-term employment choices between parent-country expatriates or host-country nationals. Yet recent studies from the Centre for Research into the Management of Expatriation (CReME) (Harris, ; Petrovic, ) have highlighted the frequency of alternative types of international assignment, which they classify as ‘short-term’, ‘commuter’ and ‘frequent flyer’ assignments, which are now a regular part of global business life. This paper reports on a case study of one Austrian multinational organization and highlights management issues in terms of incidence, purpose, management and personal impact for assignments involving frequent travel without relocation (flexible expatriation) compared with traditional expatriate assignments. It begins by reviewing the emphasis on expatriate assignment before presenting evidence regarding the extent of alternative forms of international assignment. The research method and background to the study are then discussed before the findings are presented and discussed.     

High-involvement information sharing practices: an international perspective

The type of information shared within organizations is a key aspect of strategic human resources management. In this exploratory study, we expand our understanding of high-performance work systems (HPWSs) by examining the information sharing practices of firms operating in different countries to assess the extent that high-involvement-oriented information sharing in organizations is influenced by home-country economic structures and national cultural factors. We assess firm-level data from a 12-country sample to evaluate the use of formal information sharing practices for non-managerial employees. The results of our analysis support the contention that information sharing practices varies by country, and that cultural similarities based on geographical region exist within the three information content areas of business strategy, financial performance, and organization of work. Specifically, we found significant variance in information sharing practices of firms based in different countries but homogeneity of practices among geographical neighbors. There is a modest positive relationship between sharing business strategy information and perceived firm performance that is significantly stronger in North America compared to other regions. These results have important implications for the ongoing theoretical development of mechanisms underlying the use of HPWS practices in an international context.     

Fast-tracking expatriate development: the unique learning environments of international volunteer placements

International volunteering has traditionally been viewed as a pursuit that, while admirable, provided little benefit for the volunteer beyond altruistic satisfaction. Yet several recent studies suggest that an international volunteer placement can fast-track the development of valuable global skills and capabilities. To date, no research has offered a systematic explanation for this. This article presents a framework that outlines the unique mechanisms of international volunteer placements that contribute to them being fertile learning environments for expatriates. In doing so, it draws on evidence from a longitudinal study of the learning experiences of a sample of international volunteers from Australia and New Zealand.     

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.