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.