Expatriate Managers Research Articles

Rethinking Expat Management - A Systematic Literature Review of Sustainability in Global Mobility

Against the backdrop of VUCA and BANI environments, climate change, and the pandemic, academic coverage of the topic of sustainable development as a potential new economic paradigm has been introduced to various fields, including international human resource management. This article aims to explore sustainable development-related topics in global mobility (GM) or expatriate management. In a comprehensive systematic literature review, relevant articles published in top IB, management, and CSR journals within the last 20 years were screened according to sustainable GM facets and matched to the Sustainable Development Goals (SDGs). Although some social aspects were somewhat overrepresented in comparison (e.g., SDG 3 Good Health and Well-being and SDG 5 Gender Equality), we find that other elements, primarily environmental, have not been addressed adequately and thus deserve more attention. Lastly, we draw up a model of how GM departments may impact how to make a change towards a more sustainable GM program.

An Integrative Model of Sustainable Expatriation Management

Sustainable expatriation management is an important topic in cross-cultural research as it is pertaining to finding a ‘win-win’ managerial approach for improving multinational enterprises’ (MNEs) performance and expatriates’ satisfaction. Drawing upon the ability-motivation-opportunity framework, this study proposes ability-, motivation- and opportunity-attributes as a tripod of expatriate competence-enhancing practices (EC-Ps). Via a matched survey dataset from both 150 expatriates and their headquarters (HQs) managers, we examine the influences of adopting expatriate competence-enhancing practices on MNEs’ subsidiary performance and expatriate satisfaction. We also identify a sequential mediation mechanism of cross-cultural competence and subsidiary autonomy in-between the relationships. Important contributions for theory and practice are discussed.

The Effects of Expatriate’s Personality and Cross-cultural Competence on Social Capital, Cross-cultural Adjustment, and Performance: The Context of Foreign-Owned Multinational Firms

Expatriation is still a challenging task, although the determinants of expatriate adjustment and performance have been evaluated extensively. This study aimed to empirically investigate the influence of the expatriates’ personality and cross-cultural competence on social capital, cross-cultural adjustment, and performance with expatriates from foreign-owned multination firms in Taiwan. This study integrated three perspectives to explain expatriate success and failure. The first perspective involves expatriate-related factors, including the Big Five personality traits, and the emotional intelligence (otherwise known as emotional quotient or EQ) of expatriates. The second perspective is cross-cultural competence factors, including cultural intelligence, cultural adaptability, and cultural empathy. The third perspective is the social capital of expatriates, which includes leader-member exchange (LMX), perceived organizational support (POS). Furthermore, this study incorporated these perspectives into antecedents and identified their individual and combined effects on expatriates’ cross-cultural adjustment and performance. The findings of this study may be helpful for human resource managers in managing their expatriates. The findings may also help academicians in exploring expatriate management.

Influence of ethnocentrism on the work behaviour of expatriates

With the surge in internationalisation of corporations, the number of expatriates in the workforce of organisations across the globe has dramatically increased. Presence of expatriates in the workforce has given rise to unique set of challenges. One of such is the effective management of expatriates’ work behaviour in the workplace. Whereas earlier studies have indicated that ethnocentrism is a fundamental determinant of expatriates’ work behaviour. Accordingly, this study aims at identifying the extent to which expatriates are ethnocentric in their work behaviour by analysing the variables intercultural communication apprehension (ICA), patriotism, and xenophobia. This is because it has been identified that these three constructs are related to ethnocentrism. A quantitative methodology was utilised for this study where data were collected from expatriates using an online self-administered questionnaire. Multivariate data analysis techniques were used in data analysis. The study’s results revealed that ICA, patriotism, and xenophobia are related with expatriates’ ethnocentric work behaviour. Thereby, the current study has offered a mechanism to measure the extent to which expatriates are ethnocentric in their work behaviour. A major outcome of this study would be providing insights into ethnocentrism and its influence on the work behaviour of expatriates.

Revisiting the influence of cultural novelty and emotional stability on general adjustment of expatriates hosted in emerging economies

PurposeThe relationship between cultural novelty and cross-cultural adjustment of expatriates is often assumed to be negative and linear, while the empirical results for the relationship has been demonstrated by researchers as either negative, positive or absent.Design/methodology/approachThe current research challenges the negative and linear assumption conceptually and empirically and tests a curvilinear relation between cultural novelty and general adjustment. The authors specifically propose and test a theoretical model whereby emotional stability moderates the curvilinear cultural novelty–general adjustment relationship such that the negative effect of cultural novelty on general adjustment is mitigated by emotional stability. Survey data are collected from expatriates recruited from two different host countries, India (N = 151) and China (N = 157).FindingsThe findings provide support for the curvilinear relationship between cultural novelty and general adjustment and the moderating effect of expatriates' emotional stability on this relationship.Originality/valueThis present study makes unique contributions to the expatriate management literature in at least two major ways: first, this study consolidates the otherwise contradictory findings and furthers the understanding on the nature of the effect of cultural novelty on expatriate adjustment. In addition, this research tests a cultural novelty–expatriate adjustment model using expatriate samples drawn from China and India, the two largest emerging markets that capture the demographic-profile changes pertaining to the newly emerging expatriation trends.

Productivity gap and expatriate utilization

PurposeThis paper aims to investigate how the gap between a multinational enterprise’s (MNE) productivity and that of its competitor determines the utilization of expatriate managers in its foreign subsidiaries.Design/methodology/approachThe authors first develop a formal analytical model where expatriate managers are relatively more reliable and expensive while local managers are prone to job-hopping. The authors then test the predictions of the analytical model using subsidiary-level data of Korean MNEs.FindingsThe findings show a positive relationship between the productivity gap and the share of expatriate managers in a foreign subsidiary. The empirical findings also show that the job position (middle versus top managers) is another key determinant of the utilization of expatriate managers.Originality/valueThe results of this paper are consistent with the literature that finds that MNEs choose a governance structure that minimizes the hazard of opportunism in their subsidiaries, yet the paper reveals a novel aspect of the determinants of expatriate utilization.

Managing expatriates to achieve mutual benefits: An integrative model and analysis

Embracing a mutual-benefit perspective of expatriation management, this study argues that multinational enterprises (MNEs) seeking to build a sustainable expatriation management system should address the goals of both expatriates and organisations simultaneously. To realize such a system, we propose ability-, motivation- and opportunity-attributes as a tripod of expatriate competence-enhancing practices (EC-Ps). Via a matched survey dataset from 150 expatriates and their headquarters (HQs) managers, this study (1) investigates the effects of implementing EC-Ps on both subsidiary and employee outcomes, and (2) explores a sequential mediation mechanism of cross-cultural competence and subsidiary autonomy between the relationships. The implications of the findings for theory and practice are discussed.

A Blessing and a Curse: Institutional Embeddedness of Longstanding MNE Subsidiaries in Emerging Markets

AbstractThis article examines the institutional strategies of multinational enterprises (MNEs) operating in an emerging market, drawing attention to how longstanding foreign subsidiaries proactively negotiate their involvement with socio‐political actors. We build on institutional logics to explain how MNE subsidiaries develop sustained political, cultural, and cognitive embeddedness. Using an inductive, interpretive study of four century‐old Dutch MNE subsidiaries with a colonial legacy in Indonesia, we examine these three dimensions of the institutional environment, finding that local employees embedded in both the MNE and the host country sets of logics ‒ rather than expatriate managers ‒ most effectively facilitated sustained institutional embeddedness. Our findings also suggest that embedding practices in host institutional contexts and developing structures that align with host institutional expectations provided a platform for the unfolding of institutional strategies by local employees. However, MNE subsidiaries face contrasting logics between home and host country institutions, placing significant strains on MNEs’ ability to enact change.

Bridging ‘Home’ Political and Economic Rationalities with ‘Host’ Demands and Constraints: The Case of Regional Chinese State‐owned Multinational Corporations

AbstractRegional state‐owned multinational corporations (SOMNCs) are a major constituent of the ‘going out’ strategy of the Chinese state. Although SOMNCs are nominally infused with political rationalities, they also have explicit contractual economic targets. We therefore explore the underlying rationalities of regional SOMNCs and the roles of expatriate managers in relation to their international expansion strategies. We mobilize Foucault's conception of ‘governmentality’ in providing a holistic understanding of the case of a regional SOMNC (and its subsidiary in Ghana), notably how its managers rationalize their decisions in terms of reconciling political vision with local contexts, tackling domestic competition via foreign market exploration, mobilizing local engagement, improving expatriate managers’ morale, and reinterpreting an interdependent government–business relationship. Our study suggests that coexisting economic and political considerations between the regional government and SOMNCs are instrumentalized with a view to ‘governmentalizing’ overseas operations via business strategies and localization management practices in the Ghanaian subsidiary. In such an interdependent relationship, political appeals and market imperatives are mutually beneficial and complementary, with expatriate managers skilfully using their affiliation with their government. Our theoretical contribution lies in adapting a governmentality driven framework to forge an alliance between liberal forms of management and non‐liberal forms of governing and control.

The Impact of Career Competence on Career Sustainability Among Chinese Expatriate Managers Amid Digital Transformation in Vietnam: The Role of Lifelong Learning.

Digitalization and advanced technologies are replacing human jobs. Around the world, many people have lost their jobs due to increasing digitalization. Similarly, Chinese expatriates associated with the manufacturing sector in emerging countries such as Vietnam face similar challenges. Therefore, Chinese expatriates need to bring competitiveness in their competencies. This competitiveness brings sustainability to their career. The aim of this study is to investigate the impact of career competencies on career sustainability. Moreover, we test the mediating effect of lifelong learning in the relationship between career competencies and career sustainability. A questionnaire survey approach was used in this study. The target population was the Chinese expatriate managers working at China-invested manufacturing multinational organizations in Vietnam. To estimate the proposed relationships, we use structural equation modeling. The results are confirmed that in the direct relationship career competence has a positive impact on career sustainability. The findings of this study also indicate that career competencies have a positive impact on lifelong learning. Furthermore, outcomes confirmed that lifelong learning has a positive impact on career sustainability. Similarly, results are also confirmed that lifelong learning is positively mediating between career competencies and career sustainability. Therefore, the empirical results of this article identify that lifelong learning has a critical impact on sustainable careers. Specifically, this study is useful for mid-level managers who are associated with multinational organizations. At the end of this article, we also explained the practical implications, limitations, and future research directions.

“It’s hard for them to even understand what we are saying”(.) Language and power in the multinational workplace

PurposeThe purpose of this paper is to discuss the role of language ideologies in negotiating organisational relationships in a Korean multinational company (MNC). By adopting an interactional sociolinguistics (IS) approach, this paper illustrates how language becomes part of a mechanism of negotiating group membership and of perpetuating or challenging power asymmetries through social and ideological processes.Design/methodology/approachThis paper draws on interview data from an ethnographic case study of a Korean MNC to understand language ideologies in one working team. The interview data are analysed through an IS framework to connect the situated interaction to the broader social context.FindingsThis paper shows that participants’ discourse of linguistic differentiation becomes an interactional resource in challenging the organisational status quo. Linguistic superiority/inferiority is constructed through particular sequencing and the systematic production of a dichotomy between two groups – expatriate managers and local employees – at various levels of their company structure. Group membership is enacted temporarily in positioning the self and the others.Originality/valueThis paper offers a methodological contribution to international business language-sensitive research on language and power by conducting interactional analysis of interview talk. Through the lens of IS, it provides insights into how discourse becomes a primary site of negotiating power and status and a multi-level approach to the study of organisational power dynamics and the complex linguistic landscape of any workplace.

Toward a general theory of expatriates’ cross-cultural adjustment

This study employs a dynamic rather than a static and contextual rather than cultural conceptual framework for expatriate managers’ cross-cultural adjustment. It applies theories of learning-unlearning and of role behavior to explain what expatriates’ values, attitudes and behavior are being adjusted, how they are being adjusted and why they are being adjusted. A dynamic and contextual conceptualization of the process of cross-cultural adjustment refines theory by presenting adjustment as a continuous rather than as sporadic process; by providing a framework for identifying and prioritizing sources of the “push” and “pull” to adjust; and by generalizing theory of cross-cultural adjustment to include sojourners other than expatriates. Data were collected using an intensive literature search of publications in the English language. The study’s conceptual framework has the potential to enhance the development of a general theory of cross-cultural adjustment and to provide organizations with knowledge of how to define, measure and manage expatriate-managers’ adjustment, and, therefore, the ability to develop and employ tools to assist in the selection, training, performance management and evaluation and compensation of expatriates.

Can You Take Your Corporate culture With You? Multinational Companies and the Gender Wage Gap in Germany

Multinational companies (MNCs) are an important part of the economy and thus for the labor market. However, their impact on various dimensions of inequality remains unclear. The author analyzes whether MNCs influence gender wage inequalities in their host countries. MNCs might transfer their home countries’ cultures by taking their beliefs, practices, and resulting gender inequalities with them into subsidiaries abroad. Company fixed-effects regressions using unique German linked company employee data show that lower gender inequalities in MNCs’ home countries are associated with a lower gender wage gap in Germany. This association is especially strong for MNCs with expatriate managers from the same home country and accounts for 10 percent of the unexplained gender wage gap. These results strongly support the transfer-of-culture hypothesis and shed light on expatriate managers as an underlying mechanism for this transfer of culture.

It's all in the past: how do colonial legacies between host and home countries affect the expatriate experience?

PurposeWithin the expatriation subset of the wider IB literature, the focus of research has been on contemporary contextual factors. The purpose of this paper is to link the present to the past by investigating how the individual expatriate experience may be affected by a colonial legacy between host and home countries.Design/methodology/approachGiven the exploratory nature of this study, a qualitative interview-based approach eliciting thick, detailed descriptions of the practical experiences of seven Japanese expatriate managers working in Malaysia was adopted. These were supplemented by additional interviews with three host-country nationals who work alongside some of the expatriates. The data were analysed through a two-stage coding process.FindingsThe expatriate respondents were largely unanimous in their view that the colonial past between the two countries had no negative impact on their experiences in Malaysia, and the Malaysian interviewees corroborated this. On the contrary, the majority of the expatriates actually spoke positively about their experiences. This was especially true for expatriates in both the tourism and education/research field whose work was linked in some way to the period of Japanese occupation.Research limitations/implicationsThe small, single-context nature of the investigation limits generalisation. There are also many particularities in this study (the nature of Japanese-Malaysian postcolonial relations, cultural values of the Malaysians and Japanese, and so on) that are perhaps not easily relatable to other contexts. Having said this, qualitative research is not always geared towards generalisability but rather towards contextual intricacies and nuances.Originality/valueWhile most of the extant literature on expatriation has examined largely contemporary factors, this paper explores the impact of more historical events on the expatriate experience. Although such events may seem distant from an expatriate's current activities, this study suggests that in certain circumstances, they may have a lingering effect.

THE ABILITY TO COMMUNICATE IN THE HOST COUNTRY’S LANGUAGE: A UNIVERSAL SKILL REQUIREMENT FOR ENHANCING CONFIDENCE AMONG EXPATRIATE ACADEMICS

This paper highlights the association of language use skills with self-confidence as a contributing factor to the determination of expatriate self-adaptability in a foreign cultural environment. The objective of this study was to examine whether the skills of using the local language of the host country are considered as a universal skill requirement for improvisation and self-skills among expatriate academics in Malaysian Public Universities. Utilisation of qualitative methods of semi-structured interviews on 35 lecturers with international staff status in four Malaysian Public Universities which were subsequently processed by inductive analysis for dominant and subdominant thematic classifications. The findings prove that the informants utilised language proficiency as a backup to recognise their ability to respond to external stimuli, thus producing positive value to themselves. The proactive process is done by trying to find answers to change and self-transformation while in a foreign country. Studies linking the elements of confidence and self-identity skills among expatriates are often highlighted, but the approach taken is to put the advantage to be utilised on the part of the organisation and not expatriates as the subject of the study. Therefore, the results of this study fulfil the search for answers regarding their identity as an expatriate, including exploring foreign cultures, releasing the culture of the country of origin, developing a network of contacts and assessing their potential and ability to deal with the challenges of life abroad. The direction of future research refers to the addition of value in the expatriate management literature by making basic concepts of interaction such as language proficiency as an element capable of increasing self-confidence and sketching the career development of self-initiated expatriates.

Conflicts, trust toward the acquirer from emerging economies and post-acquisition cooperation intention

PurposeThe purpose of this paper is to examine the impact of inter-group conflicts on the trust toward the acquirer and then further on cooperation intention after acquisitions in cross-border mergers and acquisitions (M&As), in the lens of the social classification theory. Two types of conflicts (realistic conflicts and symbolic conflicts) and a mediating mechanism (trust toward the acquirer) exhibit different effects on cooperation intention. The research further examines two moderating coping strategies (localizing management and assigning trustworthy expatriate managers) and tests their effectiveness in promoting trust toward the acquirer and increasing cooperation intention in cross-border M&As.Design/methodology/approachThe research hypotheses were empirically tested in the context of post-acquisition of Chinese companies' cross-border M&As. In total, 600 questionnaires were provided to the research participants of 37 acquired firms/units from advanced economies of 12 Chinese companies, and 209 valid questionnaires were collected (the response rate is 34.83%). Confirmatory factor analysis was conducted to verify data validity and hierarchical multiple regression analyses were employed to test relational and moderating effects.FindingsThis research demonstrates that both realistic and symbolic conflicts can reduce the intention to cooperate, but the latter does not have a significant influence. The results also uncover that whether employees from acquired firms trust in their acquirers mediates the relationship between realistic conflicts and cooperation intention. Moreover, management localization (a measurement of whether local/original managers are retained with a high degree of freedom and autonomy after M&As) and trustworthiness of expatriate managers (a measurement of whether the assigned expatriate managers is trustworthy) positively moderate the relation between realistic conflicts and trust toward the acquirer. In addition, trust toward the acquirer mediates the interaction of realistic conflicts and management localization on the cooperation intention of the acquirers' employees.Originality/valueThis study examines how inter-organizational conflicts influence trust toward the acquirer and then cooperation intentions in the context of Chinese companies' M&A behavior of targets from developed countries and gain supportive evidence, which enriches the literature on the management of international M&As. By introducing two management localization and trustworthiness of expatriate managers into the model, the research deepens our knowledge of how to build trust toward the acquirer in cross-border M&As.

Using social media and online collaboration technology in expatriate management: Benefits, challenges, and recommendations

AbstractThis article emphasizes the benefits of social media and online collaboration technology use in expatriate management, and the need to pay special attention to digitalization‐related issues in supporting expatriates and their family members before, during, and after international assignments. In particular, we argue that the traditional approaches to expatriate management need to be developed further to reflect current technological advancements, especially social media and online collaboration tools that are increasingly used by millions of individuals worldwide on a daily basis—a trend that has been reinforced by the outbreak of the COVID‐19 pandemic and related social contact and international mobility restrictions. For this purpose, we show the advantages of implementing the above digital technologies in a number of instances, ranging from the recruitment and selection of international assignees to the cultural adjustment of expatriates and their families in a foreign country. Given these benefits, and the need to account for potential challenges associated with the use of or a high reliance on digital technology during expatriate assignments to both culturally close and distant countries, we outline recommendations that will guide the management of these digital tools by assigning organizations.

Here today, gone tomorrow: A mixed-method study on headhunter-intermediated recruitment practices

While unsolicited job offers are the strongest pull factor driving turnover, little is known about headhunters’ candidate contacts and outcomes. Drawing on the unfolding model of voluntary turnover (Lee & Mitchell, 1994) and research on headhunters, this study examines what kind of employees are contacted by headhunters and why some of them leave. Using the case of Japan, where subsidiaries of foreign multinational corporations use extensively headhunters to recruit host country national employees (HCNs), we first conducted interviews with 131 expatriate managers (clients), contingency-based headhunters, and HCN employees (candidates). The findings suggest that headhunters’ contacts were guided by HCNs’ English proficiency, tenure, and previous placement by headhunters. The findings also suggest that headhunters’ contacts can drive up turnover. To further examine the antecedents and outcomes of headhunter contacts, we collected time-lagged survey data from 456 HCN employees in foreign subsidiaries. In addition to confirming our interview findings, the survey findings also suggest that headhunters’ contacts have a positive relationship with HCN employees’ voluntary turnover.

Corporate Social Responsibility and Emerging Market Multinationals

Integrating expatriate management and corporate social responsibility (CSR) literature, this study aims to explore the underlying microfoundations of the overseas CSR strategy of emerging market multinationals (EMNEs). We posit that EMNEs engaging in overseas CSR activities can yield abundant learning advantages and enhance the individuals’ learning skills (i.e., cross-cultural competence). Our empirical results confirm this argument and show that the CSR activities can improve the EMNE expatriates’ work performance and contributes back to the headquarters via reverse knowledge transfer. Compared with the extant literature suggesting that CSR is a compulsory investment for EMNEs to get rid of liability of foreignness, this study shows that the “beyond regulatory” investments can be viewed as learning expenses for these firms to get rid of liability of backwardness. Our findings framed in a knowledge-based view contributes to the microfoundations of CSR research, and provide an in-depth learning paths analysis of emerging market multinationals.

Becoming competent expatriate managers: Embracing paradoxes in international management

This conceptual paper bridges international management literature with paradox theory to contribute to a paradoxical perspective for understanding expatriate competence. Synthesizing the international management literature, we argue for a ‘both/and’ approach for expatriates to effectively engage with tensions in a dynamic and ever-changing international environment. Our discussions provide novel insights on salient paradoxical tensions across three areas, namely, expatriate learning, expatriate identity, and expatriate performance. We develop strategies to address those tensions and a theoretical model that delineates the interactions of these three areas for superior performance on international assignments. We contribute to the international management literature by drawing attention to the dynamic and enabling role of paradoxical tensions as facilitators of, rather than barriers to, the development of expatriate competence and superior performance on international assignments.