Cross-cultural adjustment and expatriation motives among Indian expatriates

Abstract

Purpose Globalization has led to individuals working and living outside their native country. The purpose of this paper is to examine relationship between motives for expatriation and cross-cultural adjustment in Indian expatriates working in the US information technology (IT) industry. Additionally, the moderating effects of self-initiated expatriates (SIE) and organizational expatriates (OE) on the relationship between motives for expatriation and cross-cultural adjustment were studied. Also, existing measures in this area of research were analyzed to improve validity and utility for future studies. Participants responded to questions via an internet survey. Design/methodology/approach Data were gathered from 336 Indian IT professionals working in America. The authors evaluated the psychometric quality of reasons for expatriation and cross-cultural adjustment measures by considering various fit statistics, modification indices and rational judgment based on item content. The authors used a maximum likelihood extraction method with an oblique rotation (Geomin) for these factor analyses, given the theoretically and empirically supported relationship between the subdimensions of both measures. Using these purified measures, a hierarchical regression analyses procedure was used to test the hypothesized relationships. A computational tool called PROCESS was used to test the hypothesized moderating effect of expatriate type on the relationship between motives for expatriation and cross-cultural adjustment. Findings Preliminary factor analytic work suggested modifications to the reasons for expatriation measure used to quantify participants’ motives for expatriation. Using this revised measure, those with stronger financial (mercenary) motives for expatriation also reported less positive cultural adjustment, while those with stronger exploratory motives for expatriation reported more positive cultural adjustment. Some evidence was also observed for a weak, but notable moderating effect of expatriate type (SIE vs OE) on the relationship between expatriation motives and cultural adjustment. Originality/value This study presents a revised measure of expatriation motives, as well as expanded theoretical and empirical evidence base to help future researchers working with expatriates. The findings may be also helpful to organizations and consultants who work to prepare expatriates for their assignments, especially when these expatriates are Indian professionals preparing to work in the USA.