Interaction effects of dual organizational commitment on retention in international assignments: the case of Western expatriates in Vietnam

Abstract

The purpose of this study is to examine the interaction effects of two commitment foci (parent company and local operation commitment) on a focal work behavior (retention in an international assignment). Accordingly, this study formulated and tested four hypotheses by using hierarchical regression, moderated regression analyses and plots of two-way interactions. The data were gathered from 471 Western expatriates working for the subsidiaries of multinational companies in Vietnam. The results confirmed that all components (affective, normative and continuance) of parent company commitment and local operation commitment positively predicted retention in international assignments; however, the retention was more driven by the parent company commitment. Besides, the relationships between two components (affective and continuance) of local operation commitment and retention were moderated by the corresponding components of parent company commitment. The findings improve the understanding of dual commitment's links to work behaviors in international business contexts. Moreover, as to the practical implication, multinational companies were recommended to be aware of the level of expatriate commitments to two foci in order to reduce the rate of premature return.