Abstract

International assignments remain a crucial aspect of multinational corporations’ global strategy, even with their high costs. While multinational corporations (MNCs) must consider the advantages and disadvantages of hiring local employees for specific roles, expatriates’ roles are still significant. Culturally adjusting to the local environment has always been a problem for most expatriates and their accompanying family members. Failing to adjust culturally will lead to mediocre performance and under-utilising the wealth of host country-related information that only locals possess. Therefore, this research highlights the influential role that accompanying expatriate spouses could play in ensuring the smooth communication and cooperation between expatriates and their local subordinates and the local community. Path analyses of 134 expatriate and spouse related matched datasets show that spouses are more positively accepted by the host country nationals (HCNs) as opposed to expatriates. New relationships emerged from the path analyses which indicated the influential roles that spouses play in establishing better rapport with the locals. As such it is suggested that spouses are the ‘missing link’ that could foster better social integration and cross cultural communication and adjustment between expatriates and the host country nationals. Theoretical and managerial implications are subsequently discussed and future research suggestions are then put forth.

Highlights

  • Background of StudyDespite the battle to minimize the costs involved in sending expatriates abroad, international assignments remain a crucial aspect of multinational corporations’ global strategy

  • Almost 60% were in manufacturing, while 15% were from the oil and gas sector and the remaining were in information technology, hospitality and services industry. 76.1% were male and nearly fifty percent (47.8%) were in their forties. 41.8% of the expatriates were from one of the European countries with 18.7% from the United Kingdom. 72.4% of the expatriates were non-Asians. 75.4% of the expatriates have been in the host country for less than 18 months

  • Through the suggestion of modification indices, new relationship can be seen from spouse host country support with expatriate contextual performance (ECP)

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Summary

Introduction

Background of StudyDespite the battle to minimize the costs involved in sending expatriates abroad, international assignments remain a crucial aspect of multinational corporations’ global strategy. Common reasons expatriates give for prematurely terminating their international assignment include poor cross-cultural adjustment or adaptation (Takeuchi, Yun & Tesluk, 2002), family-related problems, i.e. the inability of spouse and children to adapt to the host country’s culture (Flynn, 1995; Takeuchi et al, 2002; Tung, 1987) and lack of ability to adapt to the various aspects of the host country (Pomeroy, 2006). Previous studies (Black, Gregersen & Mendenhall, 1992; Takeuchi, 2010) have shown that the need to improve the ability to predict success of international assignments is vital because of the fact that many global assignments fail These failures ranged from monetary expenses, negative company image, stalled career progression and psychological barrier to take up future assignments (Black, Gregersen & Mendenhall, 1992; Hemmasi, Downes & Varner, 2010). A better support from the local staff and community would help to manage and minimize the feelings of anxiety and uncertainty that comes from being relocated to a new cultural environment and would further contribute to better facilitate intercultural communication and cross-cultural adjustment

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