Opportunity and opportunism: The expatriation practices of Indian information technology multinational corporations

Although effective International Human Resource Management during an international assignment constitutes a significant factor in ensuring success of an expatriate assignment, there has not been much research that studies the expatriation practices associated with the global delivery model that has come to be identified with global outsourcing. The purpose of this paper is to understand the expatriation practices of Emerging Market Multinational Corporations (EMNCs) in the Indian IT sector, by examining the experiences of Indian IT workers sent to work on international client projects in a western country. We have used qualitative semi-structured interviews with 47 Indian IT expatriates from Indian IT MNCs working at client sites in Australia. We find that there is inadequate attention paid to expatriation both prior to emigration and while workers are overseas and employed at client sites. Such human resource shortcomings may be inherent in the global delivery model that is an important feature of Indian IT business. The implications of these findings are discussed in the paper.     

Managing Yopatriates: A Longitudinal Study of Generation Y Expatriates in an Indian Multi-national Corporation

This paper provides a study of HRM practices for a new category of expatriates - “Yopatriates” - who we note as young, highly qualified and mobile, Generation Y (Gen Y) knowledge workers. In contrast to traditional expatriates, Yopatriates typify non-traditional forms of expatriation wherein they seek short-term international assignments to suit their individual (internal, rather than organisational or external) career orientations of learning and travel. We study this group using a case study analysis of a large Indian Multi National Corporation (MNC) delivering global information technology (IT) and business process offshoring (BPO) services. Our study presents the HRM practices adopted to manage both expatriates as well as Yopatriates at the case organisation being studied within an India setting. We further evaluate the extent to which internal HR practices of Yopatriates were characterised, by a desire to emulate or adopt what were regarded as global ‘HR best practices’. Our distinctive contribution lies in extending the literature by developing a distinctive theoretical category of non-traditional expatriates that (1) highlights a need for a different set of HRM practices; and (2) extends the theory of cultural adjustment in the context of Yopatriates. Evidence suggests that these practices were complementary and at the same time contradictory to ‘indigenous’ localised practices during the period of research and complied with two of the four arguments we make in our model.     

Cross-cultural training and its impact on expatriate performance in Australian MNEs

This study examines cross-cultural training (CCT) policies and practices in terms of provision, mode of delivery and level of rigor, and the relative effects of different CCT programmes on expatriates in Australian multinational enterprises (MNEs). The empirical evidence suggests that the case study Australian MNEs tended to provide highly rigorous CCT, mainly in the form of short-term international assignments, which, however, are yet to be perceived as CCT in the CCT literature. Short-term assignments had a stronger impact on expatriates in terms of cross-cultural adjustment and reducing expatriate failure rate than did in-country CCT. The findings of this study contribute to the debate whether MNEs normally provide expatriates with adequate CCT, and have significant implications for practitioners and further research.     

Transfer from expatriate to local contracts: a multiple case study of an unexpected career transition

The transfer of company-assigned expatriate employees from balance sheet expatriate contracts to local contracts is an alternative international assignment compensation strategy increasingly adopted by global corporations. Despite its growing popularity, there is a significant lack of research on the impact (both professional and personal) of transferring employees from expatriate to local contracts. The purpose of this qualitative case study was to investigate this emerging international HR trend, with specific focus on exploring the experiences of career transition of company-assigned long-term expatriates (delayed localization) to local contracts at multinational organizations located in Sweden and America. Eight individual cases were analyzed. Findings revealed that localization was an unexpected career transition, a negative type of career shock, characterized by limited support from employers, mentors, and local colleagues. The findings further indicated that localization was a type of career transition rather different from other previous career transitions experienced by participants; it represented a major career and life transition. Based on the findings, we proposed HRD interventions to assist expatriates during the transition from expatriate to local contracts. Areas for future research are also suggested.     

Intra- and inter-regional diversification,subsidiary value chain activities and expatriate utilization

Although it is well established in the current staffing literature that why and how multinational enterprises (MNEs) allocate more or fewer expatriates in some subsidiaries than others, little is known about why and how some MNEs utilize more or fewer expatriates than other MNEs. This paper builds on regionalization theory to argue that intra- and inter-regional diversification has to do with the overall use of expatriates in MNEs. An empirical investigation of Korean MNEs demonstrates that the degree of intra- and inter-regional diversification has significant impacts on the level of expatriate utilization by MNEs. The results also reveal an interesting moderating influence of subsidiary value chain activities. MNEs tend to vigorously adjust their use of expatriates in downstream subsidiaries depending on the degree of intra- and inter-regional diversification. However, they do not adjust their use of expatriates in manufacturing subsidiaries upon the degree of international diversification. Overall, this study extends our understanding of how MNEs manage a geographically dispersed organization in a semi-globalized world.     

Exploring the Career Capital Impact of International Assignments within Distinct Organizational Contexts

The existing expatriation literature concentrates on what individuals need to perform in an international assignment (IA) but neglects what they gain from their foreign work experience. Using a dual‐dependency perspective this study presents results from 26 in‐depth interviews with international secondees within two UK‐based organizational contexts. The paper explores the perceived impact of an IA on the career capital of individuals, showing that the outcomes of IAs can be equivocal for expatriates. Each firm concentrated their human resource mechanisms on developing different types of career capital and this focused individual behaviour on diverse career capital activities. In one of the organizations there was an internal misalignment between organizational and individual assignee focus. Based on the research a number of propositions were developed. This study provided an exploratory insight into points of departure rather than complementarity in individuals' international careers in organizations, which has been at the core of much recent research and writing. A more complex, contextualized picture of the effects of IAs on the careers of individuals emerged.     

Similarity,Isomorphism or Duality? Recent Survey Evidence on the Human Resource Management Policies of Multinational Corporations

There is considerable debate as to the determinants of the human resource policies of human resource management: do they reflect national institutional or cultural realities, emerging common global practices, parent country effects or the dual effects of transnational and national realities? We use an extensive international database to explore these differences, assessing variations in a range of human resource practices. We find new evidence of national differences in the manner in which indigenous firms manage their people, but also evidence of a similarity in practice amongst multinational corporations. In other words, multinational corporations tend to manage their human resources in ways that are distinct from those of their host country; at the same time, country of origin effects seem relatively weak. Whilst there is some evidence of common global practices, sufficient diversity in practice persists to suggest that duality theories may provide the most appropriate explanation.     

International adjustment of Brazilian expatriates in the United States of America

The adjustment of expatriates to host countries has been identified as a determinant of their success in international assignments. The literature on expatriates is largely based on cases of expatriates from developed economies; however, given the current global market scenario, companies from developing countries are also assigning expatriates to international assignments. The purpose of this study was to understand the international adjustment of Brazilian expatriates working for Brazilian multinational subsidiaries in the United States of America (USA). The study used an exploratory approach of in-depth interviews with open-ended questions conducted with 11 Brazilian expatriates working for 11 different Brazilian multinationals in the USA. The contributions of this study are twofold: (1) exploration of the adjustment perspectives of expatriates of Brazilian multinational companies, and (2) exploration of the effects of variables from the USA context, as host country, on the international adjustment of expatriates. Findings show that Brazilian expatriates perceived that rules and laws of the USA had a great effect on their international adjustment, while cross-cultural differences influenced leadership styles and interpersonal relationship.     

Expatriate contact with a local host: an intervention to increase social support

Social capital is a crucial factor for expatriates to employ as they cope with the demands of an international assignment. This longitudinal study used a mixed method approach to examine the social support benefits of expatriate contact with a local host. Western expatriates in the Netherlands were randomly divided into two groups: an experimental group (n = 33), that had contact with a Dutch host during 9 months, and a control group (n = 32) with no host. Qualitative methods such as interviews and diaries were included to shed light on the various types of social support that occurred. Results show that local hosts offered all four types of social support: social companionship, informational support, emotional support, and instrumental support. Furthermore, expatriates with a host increased their social capital; they received significantly more social support from host nationals than did those without a host. This study shows that HRD professionals may develop the social capital of expatriates by bringing them into contact with a local host, which can produce more social support from host nationals. Increased social capital may lead to a higher performance at both the individual and organisational levels.     

International Diversity Management: Global Ideals and Local Responses

While the concern with demographic diversity in organizations has increased during recent years, international diversity management still remains an understudied area. This is unfortunate since the transfer of diversity management practices within multinational corporations faces particular challenges in balancing between global integration and local responsiveness. The aim of this paper is to illustrate some of the central problems that multinational corporations need to deal with when transferring diversity management practices from headquarters to local subsidiaries. This is illustrated by the results of an ethnographic field study on Danish expatriates in a Saudi subsidiary. Implications of the findings are discussed in detail.     

Forgotten travelers: Adjustment and career implications of international business travel for expatriates

In this study, we demonstrate the importance of assessing international business travel in the context of expatriation. Based on the Job Demands-Resources theory, we suggest that engaging in international business travel is beneficial for expatriates when certain conditions are in place and detrimental when they are not. We propose that expatriates who have adequate job resources will reap the benefits of international business travel and achieve better adjustment to living and working in the host country and have greater career satisfaction. Survey results based on a sample of 161 expatriates provide support that engaging in international business travel is positively and indirectly related to expatriates' career satisfaction through expatriate adjustment when job resources are abundant, and it has a negative indirect association when resources are low. We further find that job resources play a role in the relationship between international business travel and career satisfaction primarily when the host-country culture is similar to that of the home country.     

The Management of Workplace Conflict: Contrasting Pathways in the HRM Literature

This paper reviews the human resource management literature on the management of workplace conflict. It suggests that workplace conflict is commonly viewed in the literature as a symptom of management failure: the notion that conflict may be intrinsic to the nature of work because employees and managers have hard‐to‐reconcile competing interests is given short‐shrift. At the same time, the paper identifies important differences in the literature, which the authors call ‘pathways’, about the best methods to manage problems at the workplace. It is argued that four contrasting pathways can be detected in the literature with regard to how organizations approach workplace conflict management practices. Each pathway is examined fully and their respective strengths and weaknesses are assessed.     

The international training of expatriates in Western subsidiaries of emerging multinational enterprises: A knowledge-based perspective

There is a considerable gap in academic theoretical literature about the international training of expatriates in multinational enterprises (MNEs). While the majority of research has focused on developed (Western) multinationals operating in developing countries, very limited research has been conducted on emerging multinational enterprises (EMNEs) operating in developed countries and the expatriates who work in them. In this study, we explore the international training of expatriates in Indian MNEs from the information technology industry operating in Australia to examine how they provide training to their expatriate staff who are sent on international assignments. We collected qualitative data in the form of multiple case studies via interviews with senior executives based in the Australian subsidiaries. Our findings reveal that Indian IT MNEs provide a variety of centralised training programmes for their managerial and technical expatriates and use training as a key instrument to leverage and transfer home country knowledge to their Australian subsidiaries. We also found that each stakeholder involved in the training process plays a distinct role in the knowledge transfer process, which allows Indian EMNEs to integrate the training with their people-centred business model to deliver IT services in host countries.     

Psychophysiological reactions during the first year of a foreign assignment: Results of a controlled longitudinal study

Previous studies reveal that employees are exposed to several potential stressors during foreign assignments. This prospective multidisciplinary study followed managers (expatriate group) before and during their first year of an international work assignment. Concurrently, a matched reference group that did not relocate was observed. The secretion of the stress-sensitive hormone prolactin increased in the expatriate group during the first year abroad, compared to the reference group. Selfesteem, family relations, language skills, decreased internal locus of control and job promotion explained 32% of the variance in serum prolactin levels. Lower self-esteem and sense of coherence was related to increased serum prolactin. Increased working hours were associated with decreased work satisfaction. Job promotion was not related to work satisfaction. Mental well-being decreased in the expatriate group, compared to the reference group. Individual factors such as a strong sense of coherence and social provision attenuated decreases in mental well-being. A significant increase in cigarette and alcohol consumption was found in the expatriate group during the first year abroad. This study indicates that there are important psychosocial determinants influencing psychophysiological response patterns in expatriates. The present results put into question the generalizability of the 'culture shock' syndrome. The results have practical implications for guiding expatriates on time-limited assignments.     

The Changing Influence of Societal Culture on Job Satisfaction across Europe

This paper contributes to the growing multidisciplinary body of literature on subjective well‐being by investigating the longitudinal stability and impact of societal cultural values (SCVs) – as opposed to the more common organizational values – on job satisfaction. It is assumed that SCVs evolve slowly; hence, their impact on job satisfaction is likely to remain stable over time. False adherence to this assumption could cause misalignment between organizational policies/practices and expectations formed by societal culture, decreasing job satisfaction and adversely affecting productivity, competiveness and prosperity. Four waves of the European Values Study are used to examine whether SCVs have evolved and their impacts on job satisfaction over a relatively short time: 1981–2008. SCVs are parameterized through reference to traditional vs secular‐rational, and survival vs self‐expression value continuums. Results indicate that the strength of many SCVs has declined, the impacts of traditional societal values on job satisfaction have remained fairly constant, and the impacts of survival societal values on job satisfaction have declined substantially over this sample period. These reductions in SCVs amplify the importance of accounting for such changes when designing new or adjusting existing policies/practices to enhance job satisfaction and stimulate improvements in productivity, competitiveness and prosperity.     

Multi‐Echelon Inventory Management under Short‐Term Take‐or‐Pay Contracts

We extend the Clark–Scarf serial multi‐echelon inventory model to include procuring production inputs under short‐term take‐or‐pay contracts at one or more stages. In each period, each such stage has the option to order/process at two different cost rates; the cheaper rate applies to units up to the contract quantity selected in the previous period. We prove that in each period and at each such stage, there are three base‐stock levels that characterize an optimal policy, two for the inventory policy and one for the contract quantity selection policy. The optimal cost function is additively separable in its state variables, leading to conquering the curse of dimensionality and the opportunity to manage the supply chain using independently acting managers. We develop conditions under which myopic policies are optimal and illustrate the results using numerical examples. We establish and use a generic one‐period result, which generalizes an important such result in the literature. Extensions to cover variants of take‐or‐pay contracts are included. Limitations are discussed.     

Managing knowledge in the healthcare sector. A review

Over the past decade, knowledge management (KM), as a concept and a set of practices, has penetrated into the fabric of organizational and managerial processes in the healthcare sector, which has been the site of numerous innovative KM practices. As a result scholars from a range of academic (and non‐academic) fields have begun to document how KM is conceived and practised in health care, what the recurrent issues are and how they can be addressed. The purpose of this paper is to review the current literature on KM concepts, policies and practices in the healthcare sector. Based on the analysis of the most relevant contributions in the last six years, three overarching themes that have occupied the interests of authors are identified and discussed: the nature of knowing in the healthcare sector, the type of KM tools and initiatives that are suitable for the healthcare sector, and the barriers and enablers to the take up of KM practices. The paper concludes with some considerations on what the literature tells us about the state of the art and the future of KM in this important sector of Western economies.     

Psychophysiological reactions during the first year of a foreign assignment: Results of a controlled longitudinal study

Abstract

Previous studies reveal that employees are exposed to several potential stressors during foreign assignments. This prospective multidisciplinary study followed managers (expatriate group) before and during their first year of an international work assignment. Concurrently, a matched reference group that did not relocate was observed. The secretion of the stress-sensitive hormone prolactin increased in the expatriate group during the first year abroad, compared to the reference group. Selfesteem, family relations, language skills, decreased internal locus of control and job promotion explained 32% of the variance in serum prolactin levels. Lower self-esteem and sense of coherence was related to increased serum prolactin. Increased working hours were associated with decreased work satisfaction. Job promotion was not related to work satisfaction. Mental well-being decreased in the expatriate group, compared to the reference group. Individual factors such as a strong sense of coherence and social provision attenuated decreases in mental well-being. A significant increase in cigarette and alcohol consumption was found in the expatriate group during the first year abroad. This study indicates that there are important psychosocial determinants influencing psychophysiological response patterns in expatriates. The present results put into question the generalizability of the ‘culture shock’ syndrome. The results have practical implications for guiding expatriates on time-limited assignments.     

Flexible Servers in Understaffed Tandem Lines

We study the dynamic assignment of cross‐trained servers to stations in understaffed lines with finite buffers. Our objective is to maximize the production rate. We identify optimal server assignment policies for systems with three stations, two servers, different flexibility structures, and either deterministic service times and arbitrary buffers or exponential service times and small buffers. We use these policies to develop server assignment heuristics for Markovian systems with larger buffer sizes that appear to yield near‐optimal throughput. In the deterministic setting, we prove that the best possible production rate with full server flexibility and infinite buffers can be attained with partial flexibility and zero buffers, and we identify the critical skills required to achieve this goal. We then present numerical results showing that these critical skills, employed with an effective server assignment policy, also yield near‐optimal throughput in the Markovian setting, even for small buffer sizes. Thus, our results suggest that partial flexibility is sufficient for near‐optimal performance, and that flexibility structures that are effective for deterministic and infinite‐buffered systems are also likely to perform well for finite‐buffered stochastic systems.