American and European expatriate managers: An empirical investigation

This article compares American and European expatriate managers' backgrounds, job satisfaction, and perception of local work and cultural environment in Turkey in reference to their adaptation to the host country and their job performance. It reports that the sample managers demonstrate differences in all these dimensions. Therefore multinational companies are recommended to develop human resources policies in choosing expatriate managers most likely to adapt to work and host country environments by paying attention to managerial qualifications and local conditions. They should also train and prepare both expatriate and local managers to ensure smooth relationships between two groups. © 1993 John Wiley & Sons, Inc.     

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.     

Beauty is in the eye of the beholder

This study investigates the internal ideational foundation underlying the host country public relations of multinational corporations by explicating the thinking of various public relations actors about what counts as good public relations work. It uses an abductive approach that combines theoretical deduction and qualitative induction. Data were collected through ethnographic fieldwork conducted in the subsidiary of an American multinational in China. Interpretation of the data reveals a global localism-informed orientation reflected in the views of expatriate managers, and a local pragmatism-rooted orientation in the perceptions of other public relations actors hired from the host country.     

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.     

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.     

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.     

Host Country National Employees’ Prosocial Behavior toward Expatriates in Foreign Subsidiaries: A Common Ingroup Identity Model Perspective

Social categorization is predominately assumed to have negative effects on the prosocial behavior of host country national (HCN) employees toward expatriates in foreign subsidiaries. Challenging this assumption, I draw on the common ingroup identity model to propose that dual identity – simultaneous identification with membership in a subgroup and in a superordinate group – reduces HCNs’ intergroup biases and facilitates prosocial behavior. More specifically, I hypothesize that HCNs’ organizational identity has a moderating effect on the positive relationship between HCNs’ expatriate outgroup categorization and dual identity, such that this relationship is weaker when organizational identity is low. Furthermore, I hypothesize that dual identity mediates the relationship between expatriate outgroup categorization and two prosocial behaviors: information sharing and affiliative citizenship behavior. Results from the data collected from 1,290 HCN employees in Japan provide support for these hypotheses and the moderated mediation model.     

Research on host-country nationals in multinational enterprises: The last five decades and ways forward

We systematically review theoretical and empirical research published in 38 journals over the last 52 years dealing with host-country nationals (HCNs) in multinational enterprises. We find that HCNs are treated in a relatively homogeneous manner, despite their important differences. Three themes dominate: HCN–expatriate relationships, human resources policies and practices influencing HCNs, and the impact of expatriate interactions on different HCNs. Social psychology theories are commonly applied, and most studies are empirical and cross-sectional. We suggest a more refined treatment of HCNs, promising theoretical and methodological approaches, and thematic directions to enrich the HCN literature further.     

Foreign Direct Investment and Training in the Host Country: The Tariff-Jumping Argument Revisited

We analyze the direct investment versus export decision of a multinational firm in competition with a potential entrant in a host country. We consider a workers' skills asymmetry between the host and the multinational home countries. We also give the multinational the possibility to train all (or a part of) the hired workers when investing. We show that an improvement in the workers' skills in the host country does not systematically increase the multinational incentive to invest. We also demonstrate that the tariff-jumping investment can improve the welfare of the host country even if it excludes the local firm from the market.     

Is the country manager an endangered species?

The role of the country manager in the multinational corporation has changed substantially in recent years in both North America and Europe. Where the country manager previously held full responsibility for the national operations, frequently the role is now reduced to that of spokesperson and figurehead. This article describes four generic country management functions that were identified in a recent study of 15 multinationals, and describes the structural and environmental contingencies associated with each. The future role of the country manager is also assessed. © 1995 John Wiley & Sons, Inc.     

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.     

Organizational cynicism in multinational corporations in China

Organizational cynicism is a pejorative attitude toward the employing organization induced by mistrust, disillusion, and various negative experiences. Based on cognitive dissonance theory we develop and test a theoretical model of how perceived cultural differences lead to organizational cynicism which in turn results in greater turnover intentions among host country nationals (HCN) employed in foreign subsidiaries of multinational corporations. Furthermore, we argue that the negative effect of perceived cultural differences can be mitigated by localization, i.e. replacement of expatriates by local staff. Survey results from HCN employees in foreign subsidiaries in China confirm the expected relationships.     

Multinational decision-making: Reconciling international norms

How should highly-placed multinational managers, typically schooled in home country moral traditions, reconcile conflicts between those traditions and ones of the host country? When host country standards for pollution, discrimination, and salary schedules appear substandard from the perspective of the home country, should the manager take the high road and implement home country standards? Or does the high road imply a failure to respect cultural diversity and national integrity? In this paper, I construct and defend an ethical algorithm for multinational managers to use in reconciling such international normative conflicts.     

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.     

An ethical argument for host country workforce training and development in the expatriate management assignment

This paper seeks to establish the ethical foundation of MNCs' responsibility for providing host country workforce (HCW) preparation and training attendant to the new expatriate management assignment. It argues that such moral responsibility arises from a set of correlative duties which MNCs acquire as business institutions. They include duties involving the expatriate manager, the HCW, and the host nation to (1) assist all employees, including the expatriate manager, in the successful execution of their assignments; (2) avoid the semblance of discriminatory treatment; (3) encourage full status integration into a global economy; (4) foster personal enlightenment and self-enrichment; (5) help individuals develop useful, marketable skills; (6) contribute to the development of a greater and more functional national labor skill base; and (7) encourage a long-term focus on creating enduring value for a maximum number of stakeholders, rather than upon short-term and shortsighted profit for only a few. Some important cautions and considerations related to HCW training implementation are then discussed.Charles M. Vance, associate professor of management at Loyola Marymount University in Los Angeles, has both a domestic and international focus on human resource management and learning system design to enhance organizational performance. He has several publications, and his new book,Mastering Management Education (Sage Publications), is to be published in 1993.Eduardo S. Paderon is the Associate Dean of the Hagan School of Business of Iona College in New Rochelle, New York. He teaches graduate courses on Business Policy and Business and Society. His writings and other scholarly activities, including presentations at national and international conferences, focus on business ethics and cross-cultural value studies.     

Entrepreneurs and internationalization: A study of Western immigrants in an emerging market

Our interview-based study began as an investigation of Westerners residing in Vietnam. Our sample fell into three groups: local expatriates, expatriate entrepreneurs, and hybrids (those who worked for a multinational while owning a local company). Based on this finding, we re-examined the data to explore expatriates as employers. Two themes emerged. The first revealed expatriate entrepreneurs and hybrids as active market players who were competitors for local talent and/or potential local distributors or partners in Vietnam. The second theme indicated a parallel process: the internationalization of firms entering a foreign market and the internationalization of individuals entering that same market. Our contribution is the opening of the ‘homogeneous’ black box of Western immigrants and the expansion of the concept of the expatriate entrepreneur, thus reinserting the role of the individual in the process of firm internationalization.     

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.     

Global performance management systems: The role of trust as perceived by country managers

This study focuses on a critical mechanism of the international human resource management process: performance management. The study specifically explores how the process of global performance management is perceived by the country managers of multinational corporations' subsidiaries in Australia. The study reveals that a multinational corporation's systemic demand for short-term profit has the potential for inhibiting employee–supervisor relationships and perceived effectiveness of performance management appears to be dependent on the relationship and level of trust between the country manager and her/his supervisor. On the basis of the research findings, relational communication and psychosocial factors such as trust play an important role in the functioning of a country manager vis-à-vis their perceptions of the performance management process. The study suggests that, with the current approach to global performance management for country managers, despite the expense involved in the process, many of the potential benefits may not be realized. Social exchange theory is proposed as the foundation for developing more effective and fluent global relationships based on trust.     

MNEs and development: a review and reconceptualization

In this paper, we review and critique two prominent theories in the international business and international economics literatures regarding the role of multinational enterprises (MNEs) in host country development: the “spillovers” perspective on the impact of MNE investment in host countries and the liabilities of foreignness (LOF) view that specifies the constraints MNEs must overcome to succeed in local, developing country markets. We then propose an alternative conceptualization of MNE-host country relations in which MNEs and local nongovernmental organizations (NGOs) pursue collaborative relationships that make a positive, collective contribution to host country development and to MNE and NGO strategic goals in ways that neither sector is positioned to do alone.     

Multinational activity of European firms and heterogeneity

This paper offers an empirical assessment of the multinational activity of European firms. It takes the predictions of models of firm heterogeneity and FDI activity as a reference to explore the characteristics of multinational firms from 30 European countries. We use a data set, based on ORBIS, which links information of parent–affiliate pairs of firms. Our results show that more productive firms have greater multinational activity in terms of both scope, the number of foreign markets where they invest, and scale, the volume of local sales by subsidiaries active in foreign markets. The estimation of gravity equations shows that country characteristics that encourage multinational activity successively induce the entry of less productive parent firms. We confirm this asymmetry for the GDPs of the home and host countries, distance, contiguity and other standard gravity equation variables.