Developing effective global relationships through staffing with inpatriate managers: The role of interpersonal trust

Abstract

International human resource managers are progressively encountering new challenges pertinent to the manageability of multiculturalism when staffing global positions. The literature indicates that trust in the global organization context increases subsidiary acquiescence to and cooperation with the headquarters, making this concept an important component in developing inpatriates' relationships with the headquarters organization. The purpose of this article is to examine a range of antecedents to trust building, distinguish between two different types of trust, affective vs. competence-based, and examine key outcomes of inpatriates' trust building in global organizations. Reference point theory is used as the foundation for an analysis of the deliberate choice of the inpatriate manager and parent organization alike to adjust to new organizational conditions. In addition, it provides guidance in examining the effects of assignment longevity. The authors propose that through the development of competencies such as trust building, an organization is better able to implement global learning and talent management and in turn develop more effective and ongoing global relationships based on trust. © 2010 Elsevier B.V.