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.     

Pay disparity in multinational and domestic firms in China: the role of pro-disparity norm

A survey of Chinese employees was conducted in China to examine the antecedents and consequences of a pro-disparity norm concerning the pay disparity associated with expatriate managers and with Chinese managers recruited from distant geographical areas (outside managers). These two groups, especially expatriate managers, tend to receive high salaries. Interactional justice received from outside managers was positively related to pro-disparity norm and task interdependence with them was negatively related to pro-disparity norm, but no significant relationship was found for expatriate managers. When innovative climate was high, interactional justice and task interdependence showed a positive relationship with pro-disparity norm. With regard to consequences of pro-disparity norm, when innovative climate was high, it was positively related to compliance with the requests of expatriate and outside managers and positively related to knowledge sharing with them.     

Expatriate pay satisfaction: the role of organizational inequities,assignment stressors and perceived assignment value

Using equity, stress and buffer theories, we investigate the role played by organizational inequities (organizational justice and provision of benefits) and assignment stressors (work adjustment and role novelty) in predicting expatriate pay satisfaction. We also assess the role of perceived assignment value as an important buffer that moderates the above relationships. With a sample of 78 expatriates from nine nationalities working in Hong Kong, we find that organizational justice and work adjustment are both positively related to expatriate pay satisfaction. We also find that perceived assignment value strengthens the provision of benefits–pay satisfaction and work adjustment–pay satisfaction relationships. Limitations and managerial implications are discussed.     

Modes of cross-cultural leadership adjustment: adapting leadership to meet local conditions and/or changing followers to match personal requirements?

In this article, we present a study that explores modes of cross-cultural leadership adjustment (CLA) and investigates the forces influencing them. Nigel Nicholson’s theory of work role transitions was used as the theoretical foundation to explore work role requirements (consisting of role discretion and novelty of job demands) as potential predictors of modes of CLA. Our data were collected from expatriate senior managers working in Thailand. The results show that the majority of our expatriate executives make adjustments to their leadership approach and try to change Thai employees – thus demonstrating the adoption of an exploration mode of adjustment – and that role requirements, Thai employee characteristics, the local hierarchy system and the expatriate leaders’ perceptions all influence the latter’s modes of adjustment. Based on our findings, we develop a theoretical framework and a number of research propositions. Finally, we discuss the implications of our findings.     

The effects of family-friendly practices and gender discrimination on job attitudes: the moderating role of supervisor support

This study examined the effects of family-friendly practices and gender discrimination on female employees' job attitudes and the moderating role of supervisor support. The results of our analysis, based on a sample of 1556 female employees in Korea, indicate that family-friendly practices and workplace environments reflecting gender discrimination are significantly related to their job satisfaction and workplace benefits stress. In addition, supervisor support moderated the effects of family-friendly practices and workplace environments reflecting gender discrimination on Korean female employees' job satisfaction and work stress. These results suggest that perceived organizational support has considerable influence on the job attitudes of Korean female employees through its interactions with supervisor support. Therefore, firms should consider the ‘fit’ between organizational support and supervisory roles to enhance Korean female employees' job satisfaction and to reduce their work stress.     

High involvement work system,work–family conflict,and expatriate performance – examining Taiwanese expatriates in China

This study explores the effects of multinational companies (MNC) implementation of a high involvement work system (HIWS) for their expatriates on both expatriate work–family conflict (WFC) and their performance. We surveyed 174 Taiwanese expatriates stationed in China. Data were collected on: (1) perceived human resource management (HRM) practices concerning ‘high involvement work system’; (2) perceived work–family conflict; (3) job satisfaction; and (4) supervisor ratings of expatriate job performance. Structural modeling techniques helped us examine in one model the interdependent relationships among high involvement work system, work–family conflict, and expatriate performance in their host country. Our results show that a high involvement work system is positively related to expatriate satisfaction and performance. However, a high involvement work system is also positively related to expatriate work-family conflict, which in turn is negatively related to expatriate satisfaction and performance. Our findings remind managers that a high involvement work system may produce multiple effects on various dimensions of employee work life, and not all of these effects may be positive.     

Exploring alternative relationships between perceived investment in employee development,perceived supervisor support and employee outcomes

The purpose of this study was to explore alternative relationships between perceived investment in employee development (PIED), perceived supervisor support (PSS), and employee outcomes in the form of attitudes (affective commitment and turnover intention) and work performance (work effort, work quality and organisational citizenship behaviour). A cross-sectional survey among 331 employees from a Norwegian telecommunications organisation showed that the relationship between PSS and employee attitudes was partially mediated by PIED. In addition, PSS was found to moderate the relationship between PIED and three self-report measures of work performance. The form of the moderation revealed a positive relationship only for high levels of PSS. These findings suggest that line managers are of vital importance in implementing developmental HR practices, either because they influence how such practices are perceived by employees, which, in turn, affects employee attitudes, or because positive experiences with both line managers and HR practices seem to be needed in order for developmental HR practices to positively influence employee performance.     

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.     

Employee overqualification and manager job insecurity: Implications for employee career outcomes

In this study, we propose that manager job insecurity will moderate the nature of the relationship between perceived overqualification and employee career-related outcomes (career satisfaction, promotability ratings, and voluntary turnover). We tested our hypotheses using a sample of 124 employees and 54 managers working in a large holding company in Ankara, Turkey, collected across five time periods. The results suggested that average perceived overqualification was more strongly, and negatively, related to career satisfaction of employees when managers reported higher job insecurity. Furthermore, employee perceived overqualification was positively related to voluntary turnover when manager job insecurity was high. No direct or moderated effects were found for promotability ratings. Implications for overqualification and job insecurity literatures were discussed.     

The effect of human resource practices on perceived organizational support in the People’s Republic of China

Using a sample of workers and managers employed by a hotel located in Southeastern People’s Republic of China, we investigated the relationship between various human resource management practices and the perceived organizational support (POS) experienced by the employees. We then investigated the effects of POS on employee satisfaction. Our data suggest that hiring practices, training, and compensation practices predict POS. These results are consistent with previous research. We also found that POS influences worker satisfaction and acts as a mediator between select HR practices and satisfaction. This study contributes to the literature by replicating Western-based findings with a Chinese sample and illustrating that the attitudes of Chinese employees can be influenced through the use of HR practices.     

International work in domestic jobs: an individual explanation

Australian firms are attempting to internationalize and to become global companies. One way of staffing the forays into international business is by incorporating international work into domestic jobs. This study sought to understand the factors related to the amount of international work Australians perform in their domestic jobs. Alumni from an Australian university were surveyed, providing 1,046 full-time domestic employees working in a range of industries. Regression analysis showed that, beyond individual and organizational controls, employees performed more international work in domestic jobs when they worked in organizations at higher than at lower international levels with human resource support, worked in jobs at higher rather than at lower managerial levels and had international skills. However, there was no or little link with employees' international attitudes or family situation. As predicted, the managerial level of the job made a difference to the effects of the work environment. Working in MNCs and domestic organizations with operations abroad was related to the amount of international work in domestic jobs performed by senior managers and executives more than by lower and middle managers or subordinates and supervisors. Analysis of open-ended responses shows the major reasons Australians take up domestic international work are money, professional development and challenging content. The major reasons they would not are family commitments and disruption, in contrast to the quantitative results in which family factors are unimportant. The difference between the quantitative and qualitative results and the importance of family factors, international skills versus attitudes and human resource support are discussed.     

Antecedents and consequences of host-country nationals' attitudes and behaviors toward expatriates: What we do and do not know

Host-country nationals' (HCNs') attitudes and behaviors toward expatriates are critical for expatriate success. Thus, this study systematically reviews the existing literature on the antecedents and consequences of HCNs' attitudes and behaviors toward expatriates. It is revealed that HCN personality, the perceived compensation gap between expatriates and HCNs, social categorization, HCNs' previous contact with expatriates, expatriate justice, task cohesiveness, interpersonal affect, and interpersonal relationships (guanxi) directly or indirectly predict HCNs' attitudes and behaviors toward expatriates. The attitudes and behaviors of HCNs toward expatriates are significantly related to expatriate adjustment and performance. This review indicates that the extant research on HCNs' attitudes and behaviors toward expatriates is limited, and the findings of past studies are often contradictory. Theoretical and practical implications as well as future research directions are discussed.     

The effects of flexible work practices on employee attitudes: evidence from a large-scale panel study in Germany

We explore the effects of flexible work practices (FWPs) on the work attitudes (job satisfaction and turnover intention) and non-work attitudes (leisure satisfaction and perceived health) of employees based on representative large-scale German panel data. Because unobserved individual characteristics can easily act as confounders, we estimate both pooled ordinary least squares models and individual fixed-effects models. Controlling for time-constant individual heterogeneity, we find that the three considered FWPs – flexitime, sabbaticals, and working from home – significantly increase job satisfaction and that sabbaticals and working from home (but not flexitime) significantly decrease turnover intention. In addition, sabbaticals but not flexitime or working from home significantly increase leisure satisfaction. The effects of FWPs on health are mostly weak and statistically insignificant. Models that do not control for such individual heterogeneity either underestimate the positive effects of FWPs or find detrimental effects. Our findings indicate that organizations in Germany can increase job satisfaction and decrease employee turnover intention by offering FWPs.     

An assessment of managerial competency needs: empirical evidence from a Sri Lankan telecommunication service provider

From the management development viewpoint, it is important to know whether managers possess the required competencies to achieve successful job performance. This could be identified by exploring the competency needs. The aim of the paper is to present and discuss results of an empirical investigation on managerial competency needs using quantitative methodology. The study is confined to a fully integrated telecommunication service provider; 198 managerial employees participated in the survey. The findings led to identification of: perceived levels of current competency expertise; current and future competency gaps; and competencies that managers wish to improve. Managerial implications, limitations and directions for future research are discussed.     

How does distributive justice affect work attitudes? The moderating effects of autonomy

Organizational justice has been a frequently used lens for understanding employee attitudes, particularly towards the fair distribution of rewards. This study of 184 New Zealand employees found distributive justice relating to pay, benefits, and rewards to be significantly linked to job satisfaction and turnover intentions. Further, job autonomy was found to significantly interact with these relationships. While employees with high job autonomy reported higher job satisfaction and lower turnover intentions when distributive justice was high, employees with little job autonomy registered significantly larger changes in work attitudes. The findings highlight the importance of felt independence and autonomy over work in the role that justice perceptions play in organizations.     

Security in a sea of insecurity: job security and intention to stay among service sector employees in Turkey

This article examines the association between job security and intention to stay for those who are employed in Turkey. There is a high level of unemployment in the country and many workers there are concerned about their job security. Job security refers to the objective dimensions of continuous contract, working full-time hours and paid and unpaid overtime. Job security also refers to the subjective dimension of perceived job security. We surveyed 407 employees in banking and related sectors' call centres, five-star hotel front-line staff and airline cabin crews. Results show that objective dimensions of job security are not associated with intention to stay. However, perceived job security is significantly and positively associated with intention to stay. We recommend that human resource managers focus on the perceived job security aspect of employment to keep valuable employees with the company.     

HRM Practices,Organizational Citizenship Behaviour,and Performance: A Multi‐Level Analysis

We examine the relationship between HRM practices, conceptualized at the workplace level, and individual employee attitudes and behaviour. We focus on two possible explanations for the relationship: social exchange and job influence/employee discretion. Findings from a study of employees in North‐East England suggest that there is a positive impact of HRM practices on organizational citizenship behaviour, through an effect on perceived job influence/discretion. There was no such effect for perceived organizational support. These findings provide support for a job influence and opportunity explanation of HRM effects on employee attitudes and behaviour.     

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.     

A taxonomy of expatriate leaders' cross-cultural uncertainty: insights into the leader–employee dyad

The authors develop a theory-based taxonomy of expatriate leaders' cross-cultural uncertainty toward local employees by drawing on uncertainty reduction theory. Two studies with expatriate leaders provide the empirical basis. The first, qualitative study uses in-depth interviews with 23 expatriate leaders to identify major facets and constructs for describing expatriate leaders in different uncertainty constellations. A quantitative survey-based study with dyadic data about 149 expatriate leaders and their local employees identifies five different expatriate types with regard to their cross-cultural uncertainty. The results reveal performance differences across the five expatriate types.     

Talent management and organisational justice: employee reactions to high potential identification

We examined how perceived distributive and procedural justice affected the relationship between an employee's identification as a high potential (drawn from archival data), job satisfaction and work effort. A questionnaire was distributed within one large company among employees who were and employees who were not identified as a high potential (n = 203). The results indicated that perceptions of distributive justice were significantly higher for employees identified as a high potential. Moreover, perceived distributive justice fully mediated the relationship between an employee's identification and his or her level of job satisfaction. The results also revealed that perceptions of procedural justice moderated the relationship between perceived distributive justice and work effort. Theoretical and practical consequences of these findings are discussed.