Australian expatriates in Thailand: some insights for expatriate management policies

Expatriates are critical to the navigation of an increasingly complex international business world and, as such, the demand for their skills, knowledge and experience, as well as their supply, needs to be better understood. Furthermore, the role of human resource policies is of key concern in ensuring the right people are chosen to represent companies in overseas locations, as is the provision of pertinent support policies, such as preparation for overseas assignments and cross-cultural training. The purpose of this research is to examine these issues with the focus on Australian expatriates in Thailand. A questionnaire survey was conducted of members of the Australian-Thai Business Council in Thailand, an association representing Australian expatriates, in 1999. The findings provide some insights for expatriate management policy, including the notable conclusions that the market for expatriates is changing and becoming more demanding and that the imperatives of the emerging global market for human capital require a much more structured approach to expatriate management development.     

The psychological impact of expatriate relocation on partners

Abstract This paper reports upon a study of the psychological impact of relocation on partners of fifty-eight expatriate and repatriate managers. The study examined associations for several factors, namely company assistance, culture shock experienced, perceived cultural distance between home and host countries and personal factors, with partners' psychological adjustment to relocation. The most important positive predictor of psychological adjustment was found to be company assistance. Also, general support for a process of phases in psychological adjustment to relocation was found, although not following the postulated curve. Increased recognition of the importance of the factors examined here and their role in the process of psychological adjustment to relocation is recommended for expatriates and their organizations alike.     

Strangers in a strangle land: expatriate paranoia and the dynamics of exclusion

Expatriates do not all adapt equally well to new conditions and this may be costly to their mental and physical health and expensive for the organizations for which they work. In this phenomenological investigation of expatriate adjustment, identity confusion is seen as central to intercultural discomfort. Many expatriates experience anxieties and mild to serious paranoia and believe that their hosts are plotting against them and making life difficult for them. These beliefs are seen in part as rational responses to the perceived threats, which the host culture may pose to the identity of expatriates     

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.     

Personality in context: effective traits for expatriate managers at different levels

The purpose of this article is to assess how management level as a contextual factor interacts with personal characteristics in predicting expatriate performance. In particular, we focused on proactive personality (the individual’s disposition to change the organizational environment) and self-control (the individual’s disposition to change oneself to fit the organizational environment). Surveying 307 business expatriate managers in China, we hypothesized that in relation to work outcomes, the effect of proactive personality would be stronger for CEOs while the effect of self-control would be stronger for non-CEOs. We found both proactive personality and self-control to have favorable effects on our performance indicators: job performance, effectiveness, and time to proficiency. In line with our prediction, we also found the effect of proactive personality on job performance to be stronger for CEO expatriates while the effect of self-control on performance was stronger for non-CEO expatriate managers.     

Work experiences,work adjustment and psychological well-being of expatriate employees in Hong Kong

This study replicated and extended research on expatriate work adjustment by examining the antecedents of work adjustment and its outcomes in terms of psychological well-being. Data were obtained from a nationally heterogeneous sample (N = 184) of expatriate employees in Hong Kong using a structured questionnaire. Results of regression analysis revealed role conflict to be significantly negatively related to work adjustment, while role discretion, co-worker support and work-method ambiguity (clarity) were significantly positively related to work adjustment. Of the three hypothesized outcomes, work adjustment was significantly positively related only to job satisfaction but not to quality of life and marital adjustment. Though not the focus of this study, interaction adjustment was found to be significantly positively related to quality of life. Limitations of the study and implications of the findings are discussed.     

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.     

Comparing the success of male and female expatriates from a US-based multinational company

This paper examines the differences between male and female expatriate employees along three criteria of global assignments: (1) cross-cultural adjustment, (2) desire to terminate the assignment and (3) supervisor-rated performance. Participants were ninety-eight expatriate employees from a US-based multinational organization. The countries to which these expatriates were assigned varied along the four work values proposed by Hofstede (1980). These dimensions were used first to determine which of the underlying cultural work values are associated with the number of women in managerial positions. The results suggest that all of the dimensions, except masculinity, were related to the participation of women in managerial roles. Second, these dimensions were used to examine whether these work values differentially affect male and female expatriates' success. Two work-values (power distance and masculinity) negatively affect the cross-cultural adjustment of expatriate women (compared to their male counterparts). These results suggest there are no significant differences between men and women in either supervisor-rated performance or desire to terminate the assignment, regardless of cultural values. The implications for why certain work values may negatively affect women's cross-cultural adjustment are discussed.     

When the going gets tough: the influence of expatriate resilience and perceived organizational inclusion climate on work adjustment and turnover intentions

Abstract

Despite the strong evidence for the beneficial influence of resilience for employee stress resistance in domestic settings, the construct has not received much attention in the expatriation literature, where stress is considered a major factor for expatriates’ poor cross-cultural adjustment and turnover. Drawing upon conservation of resources theory, the present study examines resilience as an antecedent of expatriate work adjustment and turnover intentions. Furthermore, this study investigates the moderating role of perceived organizational inclusion climate as a resource-protecting organizational factor. Results from a survey of 175 expatriates in South Korea indicate that resilience is positively related to expatriate work adjustment and that these positive effects are more pronounced when expatriates perceive their organizational climate to be highly inclusive. Furthermore, findings suggest that work adjustment mediates the effects of resilience on turnover intentions and that this mediation is moderated by a perceived organizational inclusion climate. Implications for theory and practice are discussed.     

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.     

Revisiting the concentration versus spreading debate as a successful export growth strategy: the case of UK SMEs exporting agricultural-related products

This paper investigates the behaviour of small and medium sized enterprises (SMEs) that export agricultural-related products from the UK. Although a body of knowledge exists on both the areas of export strategy and competitiveness, empirical data has tended to relate to manufacturing as opposed to agricultural products. Multivariate quantitative analysis of survey data and subsequent findings from interviews indicate that limited statistical differences exist between the competitiveness of agricultural firms that employ as a growth strategy an approach which concentrates on key export markets compared with those that spread their efforts over a number of markets. Firm size, experience and commitment are investigated as co-variates within the analysis. Implications for policy-makers are drawn from the findings.     

Revisiting the expatriate failure concept: A qualitative study of Scandinavian expatriates in Hong Kong

This article advances the understanding of expatriate failure, which remains a contested social phenomenon in international work life as well as scholarly research. The study challenges the definition of expatriate failure and its inherent biases, i.e., the epistemological primacy of the firm level and the failure/success binary. We argue that this qualitative study of 51 Scandinavian expatriates in Hong Kong can contribute to advancing theory on the expatriate failure concept by asking individual expatriates what constitutes failure to them. By applying social constructionist and social anthropological ideas to the expatriate failure concept debate, we develop the internationality thesis which demonstrates a discrepancy between the expatriates’ perceptions of successful international assignments and the actual nature of their lived lives; many expatriates desire to enrich their lives through experiencing an international/intercultural and adventurous lifestyle, but, in fact, living lives with limited intercultural exposure and interaction. We conclude by proposing a reconceptualisation of expatriate failure in terms of offering both a new definition and approach to researching expatriate failure in which time/duration, context, and geographical location need to be taken into account. We believe the new approach can overcome some of the empirical unsoundness of mainstream definitions.     

Exploring the role of the spouse in expatriate failure: a grounded theory-based investigation of expatriate' spouse adjustment issues from India

This paper applied the grounded theory method in a study of the expatriates' spouses' relocation adjustment process and the impact of such adjustment problems in expatriate failure. A qualitative enquiry approach using open-ended questions in the form of personal interviews was adopted. Iteratively, the questions were changed to reach theoretical saturation and we allowed the respondents to lead us through the data collection process during our eventual theory development process. An action diagram technique was used to help structure and process the data. The study was conducted with 26 Indian origin spouses who had to encounter relocation issues one time or the other. We found the spouses' perceived gender role ideology to play a critical part in their adjustment process. Other factors that influenced the adjustment process in expatriate assignments were personality factors such as extraversion, organizational and family support, country demographics and pre-departure training.     

The influence of terrorism on expatriate performance: a conceptual approach

This article presents a conceptual model of the influence of terrorism on expatriates' work attitudes and performance. After briefly discussing the challenges connected with terrorism and the expatriation of employees into high-risk countries, we develop a causal model based on the stress perspective. Several stressors related to a specific situation and to interaction with other people contribute to an expatriate's individual stress level, which is then reflected in his or her work attitudes and performance. Then, propositions on the postulated relationships are derived, and moderating influences are discussed. The article concludes with managerial implications and directions for future studies.     

Perceived organizational support and expatriate performance: understanding a mediated model

What are the mechanisms by which multinational corporations (MNCs) can facilitate the effective performance of their expatriate staff in foreign countries? There is a substantial literature on expatriation, yet few studies have addressed how perceived organizational support (POS) may impact upon expatriates' work adjustment and affective commitment, and then on their job performance. We use data on 118 expatriates working at the German subsidiaries of Japanese MNCs, and demonstrate that career POS has a direct positive influence on work adjustment and affective commitment. Our results indicate that work adjustment fully mediated the relationship between career POS and task performance. We further discovered that both work adjustment and affective commitment play a pivotal role in mediating the impact of career POS on contextual performance. We discuss the practical implications of these findings and provide suggestions for future research.     

Asymmetries between Rich and Poor Countries in Financial Crisis Responses: The Need for a Flow-of-Funds Approach

This paper focuses on the manner in which interest rates have been raised to, and sustained at, extremely high levels in developing and emerging market economies as a consequence of recent financial crises. By contrast rich market economies have typically lowered interest rates and injected liquidity in response to incipient financial crises. The paper first sketches the logic that lies behind extremely high interest rates (nominal and real) as an element of crisis resolution. It suggests that this reflects a money-phobic view of financial markets and also conflicts with some well-established economics. It then reviews the conventional wisdom about why richer economies have enjoyed sustained price stability in recent years and why this in turn has allowed their monetary authorities to be relaxed about injecting additional liquidity in response to LTCM (1998) and September 11 (2001)-type crises. It is pointed out that this conventional wisdom is also money-phobic in that it neglects the build up of corporate and government debt in bond and financial derivative form that has been associated with recent financial developments. This analysis helps to contest the common view that emerging market economies pay a higher price merely because their polices are "bad'. Finally, the paper reviews the manner in which the financial systems of developing and emerging market economies respond to the destabilization created by corrosively high real rates of interest. Even when bankruptcy arrangements are well established, certain new forms of financial flows and instruments are implicit in this response, but are invariably ignored in formal modelling.     

Personality traits and cross-cultural competence of Chinese expatriate managers: a socio-analytic and institutional perspective

Drawing from socio-analytic theory and institutional theory, this study investigates the influence of personality traits on cross-cultural competence (CCC) in Chinese expatriate managers' overseas managerial experiences. Given the growing importance of Chinese outward foreign direct investment to other economies, this study is timely as it expands our knowledge of expatriates from this large emerging ‘superpower’. In order to explore the impact of personality traits on CCC, multi-level in-depth interviews were conducted including interviews with 25 Chinese expatriate managers, 15 foreign colleagues and 10 cross-cultural experts or expatriate supervisors. The findings suggest that although conscientiousness and openness emerge as major traits that may contribute to CCC, their influences are considerably constrained by institutional differences between home and host countries. This study contributes to theory building by proposing a new conceptual model that incorporates institutional factors into socio-analytic theory to explain how personality traits contribute to CCC of expatriates. It also advances the field by examining the experiences of expatriates from an emerging economy and how their experiences differ from those previously researched.     

Correlates and consequences of high involvement work practices: the role of competitive strategy

Illustrative of world-wide trends, New Zealand has undergone drastic product and labour market reforms in an attempt to stimulate economic growth and national competitiveness. Towards this goal, firms have been urged to emphasize differentiation strategies in their approach to their markets and also to become more progressive in their management of human resources. This study finds that whereas more intensive use of high involvement work practices promotes firm effectiveness, this effect depends on the competitive strategy being pursued. The use of high involvement work practices is positively associated with performance in firms competing on the basis of differentiation and shows no relationship in firms pursuing a strategy of cost leadership.     

An empirically-derived multidimensional measure of expatriate success: reconciling the discord

This paper examines the discord surrounding how expatriate success, or effectiveness, is defined. We review the many ways that success has been conceptualized and then seek to reconcile these differences by presenting a multidimensional measure of success, based on data collected from 118 expatriate respondents worldwide. A series of factor analyses, along with reliability and item analyses yielded nine measurement scales which included cultural adjustment, work-related adjustment, career development, HQ-subsidiary coordination, assignment completion, professional/skill development, shaping and controlling the subsidiary, satisfaction and overall assignment effectiveness. The process by which these scales were developed is described in the paper and all items and scale reliabilities are presented.