The management of New Zealand expatriates in China

Abstract

The rapid rise of the Chinese economy in the past two decades has led many multinational enterprises (MNEs) to enter China or integrate Chinese operations into their global strategies. However, China's cultural complexities and distinct living conditions create challenges for cross-cultural adaptation and the management of expatriates and their families. Yet, for many MNEs success within their Chinese operations depends heavily on the performance of expatriate managers. This study, based on primary research designed to assess the management of expatriates, was conducted on 40 New Zealand expatriate managers in China. Analysis of responses to an electronic mail questionnaire reveals that cultural factors are influential in all aspects of life in China, including business practice and management. In addition to cross-cultural competencies, it is very important for expatriates in China to possess cross-functional abilities, cross-cultural communication competencies, and training skills. Therefore, the selection of expatriates should focus on the possession of these critical skills and abilities as well as relevant functional or technical experiences and skills. Expatriate responses indicate that training, support, care, and provision for expatriates and their families' needs to be improved. Pre-departure training and incumbent support offered are seen as inadequate. The personal needs of expatriates are not well supported by the parent organization, with much of the limited support provided targeting relevant business functions in China. Despites its obvious importance, parent organizations do not appear to place much value on the de-brief process and continuous communication with their expatriate managers. Yet, many parent organizations have a poor understanding of the Chinese business system and culture. Expatriates' Chinese cultural and business experience, skills, and knowledge have not been recognized as a premium asset by the organization. As a result many expatriates, and their valuable Chinese business and cultural experience, will remain overseas.