How does perceived underemployment influence expatriate job-related outcomes? A moderated mediation study

Abstract

Although research has investigated the consequences of underemployment in domestic settings, research on the effects of underemployment among expatriates remains limited and has yielded inconsistent results. From a theoretical perspective, there is a need for a better understanding of the mechanisms through which underemployment affects various work-related outcomes and to account for potential contingencies. Drawing on the person-job fit literature and research on organizational identification, we theorise and empirically examine how and under what conditions underemployment influences expatriate performance. Using an original primary data-set of 103 Japanese expatriate managers in the UK, we find that underemployment affects expatriate work outcomes by increasing expatriates’ maladjustment and that this effect is moderated by the level to which expatriates identify with their organization.     

A risk management model for research on expatriates in hostile work environments

Abstract

Although much has been written about the causes of expatriate adjustment, more research is needed on managing the fear and anxiety experienced when expatriates work in hostile environments. The perceived risks of terrorism, kidnapping, crime, and civil unrest can have negative effects on the performance of expatriates and the organizations that employ them. While research has begun to examine expatriates’ stress in hostile environments, there is comparatively little research on the effectiveness of management practices that can reduce such stress. We integrate the expatriate adjustment, psychological contract, and risk management literature to develop a model that can guide efforts to reduce environmental stress and its negative effect on expatriate adjustment. Specifically, we build on recent work by Bader and colleagues to develop propositions to guide future research with the aim of improving the conditions of expatriates working in hostile environments.     

The effects of expatriate demographic characteristics on adjustment: A social identity approach

As demand increases for expatriates to manage far‐flung operations in a global economy, scholars and practitioners are focusing their attention on the factors that contribute to expatriate success. One such factor is the support that expatriates receive from host country nationals (HCNs) with whom they work. Researchers interested in understanding expatriate success have not closely examined the phenomenon from an HCN perspective, however. At the same time, although we have gained a significant understanding of the roles of psychological, organizational, and contextual variables in the international assignment, there is still much to be understood about how expatriates' demographic characteristics affect their experiences in international assignments. Current findings regarding the effects of demographic characteristics often are inconsistent, highlighting the need for more complex theorizing. This article reviews recent research on the effects of expatriate demographic characteristics and proposes a social identity approach to understanding how these characteristics affect HCN support for the expatriate. It also seeks to develop a theory that addresses discrepancies in extant empirical findings, provides propositions to guide future research in the study of expatriates, and discusses implications for both researchers and practitioners. © 2009 Wiley Periodicals, Inc.     

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.     

Career success for international professional women in the land of the equal? Evidence from Norway

This study investigates the career success of international expatriate women in Norway. Norwegian and international women were compared on both objective and subjective career success. Participants were 125 Norwegian women and 168 international expatriate women who answered a 58 item questionnaire. Although Norwegian women achieved higher career success than the expatriate group, these effects disappeared for objective career success when expatriate women had a high level of education, high English language competency and motivation. Motivation, self focused conflict resolution and language competency were positively associated with subjective career success. Results suggest that although being foreign can be a disadvantage in Norway, expatriate women can overcome this liability through investment in education, language and motivation. Implications for international expatriate women are discussed.     

Factors influencing Chinese female expatriates' performance in international assignments

The current literature is mixed regarding what factors determine expatriate performance. In this study, we developed and tested a model to examine the relationship among family problems, expatriate–efficacy, host-country nationals' (HCNs') prejudice against women, perceived organizational support (POS) and Chinese female expatriate performance in international assignments. Our results indicated that HCNs' prejudice against women had a significant negative relationship and expatriate–efficacy had a significant positive relationship with female expatriate performance. POS and family problems moderated the relationship between HCNs' prejudice against women and female expatriate performance. However, family problems were not significantly related to female expatriate performance. Implications for research and practice are discussed.     

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.     

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.     

Developing leaders rather than managers for the global marketplace

The key to successfully competing in the global marketplace may be staffing key expatriate positions with accomplished /skilled leaders. Past research has focused on preparing managers to successfully expatriate to foreign assignment and repatriate back to the United States. The high failure rate and general lack of effectiveness of many expatriate managers may be attributed to not having a cultural match between the assignment and the leadership style of the expatriate. This article explains the complex issues associated with multicultural leadership and proposes a diagnostic leadership matrix based upon internal and external cultural constraints.     

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.     

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.     

The impact of on-site mentoring on expatriate socialization: a structural equation modelling approach

While the literature on expatriate adjustment has focused on the importance of back-home mentors and their instrumentality for future career advancement, this research explores the importance of on-site mentors for the effective socialization of expatriates into their current overseas assignments. Using a sample of 179 expatriates located in nineteen countries, this paper presents a structural equation model illustrating the relationships among mentoring received, expatriate socialization and socialization outcomes. Amount of mentoring received positively impacts on expatriate socialization, which in turn positively influences job attitudes, intention to finish the expatriate assignment and expatriate understanding of global business issues. Using Hofstede's typology of national cultures, this research also suggests that the international context of the overseas assignment affects how much on-site mentoring expatriates receive. Specifically, expatriates are more likely to receive mentoring in small power distance, weak uncertainty avoidance and individualistic cultures.     

Cultural distance and expatriate failure rates: the moderating role of expatriate management practices

Abstract

This study examines moderators of the relationship between cultural distance and the two critical indicators of expatriate failure – maladjustment and premature return rates. Results based on a sample of 126 Taiwanese multinational corporations indicate that expatriate selection and performance management practices moderate the cultural distance–expatriate maladjustment relationship, and expatriate performance management practices moderate the cultural distance–premature return relationship. Additionally, these relationships were stronger when the use of practices was low. We discuss theoretical and practical implications, and offer suggestions for future research.     

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.     

Acquired demographics and reasons to relocate among self-initiated expatriates

Organizational expatriates, who have been assigned by their parent companies to the foreign location have been thoroughly investigated as compared to self-initiated expatriates, who themselves have decided to expatriate to work abroad. Consequently, much less is known about the latter type of expatriates. To help alleviate this dearth of research findings, data was collected from 428 self-initiated expatriate academics from 60 countries employed in 35 universities in five northern European countries. Four acquired demographic characteristics were investigated: marital status, nationality, previous expatriate experience and seniority, as well as five individual reasons to expatriate: adventure/travel, career, family, financial incentives and life change/escape. The results indicated support for the research propositions, suggesting that self-initiated expatriates' (SIEs) reasons to expatriate differ in terms of acquired personal characteristics. Implications of these findings are discussed in detail.     

Does it really work? Re-assessing the impact of pre-departure cross-cultural training on expatriate adjustment

Cultural adjustment is considered to be a prerequisite for expatriate success abroad. One way to enhance adjustment is to provide employees with knowledge and awareness of appropriate norms and behaviours of the host country through cross-cultural training (CCT). This article analyses the impact of pre-departure CCT on expatriate adjustment and focuses on variations in participation, length and the comprehensiveness of training. Unlike previous research, the study focuses on the effectiveness of pre-departure CCT for non-US employees expatriated to a broad range of host country settings. Employing data from 339 expatriates from 20 German Multinational Corporations (MNCs) the study finds CCT has little if any effect on general, interactional or work-setting expatriate adjustment. However, a significant impact of foreign language competence was found for all three dimensions of expatriate adjustment. We used interviews with 20 expatriates to supplement our discussion and provide further implications for practice.     

Personal attributes of expatriate managers,subordinate ethnocentrism,and expatriate success: a host-country perspective

This study had two objectives. First, to establish the relative importance of expatriate managers' job knowledge, relational leadership skills, and cultural openness and adaptability for expatriate success from the perspective of host-country national subordinates, and to test whether these personal attributes are related to expatriate success criteria (expatriate work adjustment, subordinate commitment, subordinate job satisfaction, and unit performance). Second, to test whether host-country national subordinate ethnocentrism is related to expatriate work adjustment. Respondents were 129 host-country national subordinates of expatriate managers. Results showed that subordinates perceived all personal attributes as important and that all personal attributes were positively related to most of the success criteria. However, relational leadership skills was the most important personal attribute, and it was the crucial success factor for expatriate managers' unit performance. Subordinate ethnocentrism was negatively related to expatriate work adjustment. Practical implications and directions for future research are discussed.     

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.     

Expatriate knowledge utilization and MNE performance: A multilevel framework

We present a multilevel conceptual framework of expatriate knowledge utilization. Drawing from the resource-based view and multilevel approaches to expatriate utilization, we describe how individual expatriate characteristics (task-related and intercultural competencies, and motivation to transfer knowledge) and international adjustment, as well as subsidiary characteristics (absorptive capacity and knowledge sustainability) influence knowledge transfer effectiveness. We also draw from outward knowledge transfer and expatriate learning perspectives to address the cyclical nature of the process. As such, we include the effect of expatriate learning not only in continued knowledge flows to the subsidiary, but also in knowledge flows to the home division. We offer several implications for research on practice, including the notion that knowledge transfer to the subsidiary should continue upon repatriation, and that outward knowledge transfer can begin before repatriation. The framework reiterates that expatriates are valuable human capital and a source of sustained competitive advantage to the MNE.     

The Dimensions of Expatriate Adjustment

A narrow and partial theoretical base has limited current concepts of expatriate adjustment and the research based upon them. This conceptual article explores one of the less theorized aspects of expatriate adjustment: the fact that it has multiple dimensions. We conceive of adjustment as a person‐environment relationship that takes place in the three dimensions of cognitions, feelings, and behaviors. Combining these elements takes us one step closer to a comprehensive and more realistic understanding of the nature of expatriate adjustment. We include suggestions for future research that follow from our reconceptualization.