Abstract

AbstractDue to the high costs and strategic importance of expatriate assignments, expatriate performance management (EPM) plays an increasingly important role for multinational enterprises (MNEs). However, research on EPM is still in its infancy. Drawing from the convergence/divergence debate in international human resource management, this study investigates and compares EPM strategies and practices across MNEs from three different country clusters to better understand whether EPM practices tend to converge, diverge, or crossverge (i.e., show aspects of both). Results from surveying 132 Anglo‐Saxon, Germanic, and Japanese MNEs reveal prominent differences (divergence) at the EPM strategic level such that Japanese MNEs tend to pursue more ethnocentric staffing strategies and design EPM systems specifically tailored to expatriates. On the practice level, we found both commonalities and differences between Japanese and Anglo‐Saxon and Germanic MNEs, pointing toward crossvergence. Theoretical and practical implications of our results are discussed.

Highlights

  • Research suggests that effective performance management of employees will lead to increased employee and organizational performance

  • At the strategic and practice levels of expatriate performance management (EPM), there is divergence across countries

  • Japanese multinational enterprises (MNEs) are different from Anglo-Saxon and Germanic MNEs

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Summary

| INTRODUCTION

Research suggests that effective performance management of employees will lead to increased employee and organizational performance (see DeNisi & Murphy, 2017; DeNisi & Smith, 2014 for reviews). To develop a more holistic picture, building on the relevance of the indigenous HRM systems of German, Japanese, and US firms, we collected data from MNCs originated in different countries in the respective three types of market economies in our study: the Anglo-Saxon, liberal market economy cluster (US and United Kingdom [UK]) Germanic, coordinated market economy cluster (Germany, Austria, and Switzerland) and Confucian Asian, highly coordinated economy cluster (Japan) (House et al, 2004; Witt et al, 2018) Comparing these allows us to draw novel insights in under-researched contexts regarding EPM in MNEs

| LITERATURE REVIEW
| METHODOLOGY
| RESULTS
13 Importance of performance-based pay
| DISCUSSION
| Limitations and avenues for future research
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