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.     

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.     

Effect of outgroup social categorization by host-country nationals on expatriate premature return intention and buffering effect of mentoring

Outgroup social categorization by host-country nationals (HCNs) is a common challenge for expatriates and it has received inadequate scholarly attention in expatriate research. This study explores how outgroup social categorization affects expatriate intention to terminate international assignments prematurely and how this adversity can be lessened through organizational mentoring interventions. We theorize that outgroup social categorization by HCNs results in social isolation for expatriates, which triggers expatriates' early return intentions, and mentoring mitigates this indirect effect. The hypotheses were supported by the analyses of multisource data collected from expatriates and their local co-workers in multinational enterprises operating in China. Theoretical and practical implications of the research findings are discussed.     

The cross-cultural adjustment process of expatriate families in a multinational organization: a family system theory perspective

This case study examined the relationship between the family flexibility of expatriates in a multinational corporation and their cross-cultural adjustment, as well as the stressors experienced by the expatriate, spouse, and children during the international transition. Family flexibility was negatively correlated with cross-cultural adjustment as perceived by the participating expatriates. All five cross-cultural adjustment dimensions (cultural, psychological, organizational, personal and relational) had a statistically significant relationship with family flexibility. Expatriate families identified cultural, relational, and psychological stressors as having the greatest impact on their cross-cultural adjustment. The components of family flexibility (roles, rules, assertiveness and leadership) played a key role in the cross-cultural adjustment of the expatriate, spouse and children. These findings provide insights to organizations and their human resource development professionals as well as to expatriates and their families on how family flexibility impacts cross-cultural adjustment – insights that could lead to the development of appropriate support and development mechanisms.     

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 Determinants of the Boundary-spanning Functions of Japanese Self-initiated Expatriates in Japanese Subsidiaries in China: Individual Skills and Human Resource Management

Self-initiated expatriates (SIEs) who work for a subsidiary of a multinational enterprise from their country of origin and hence are familiar with both countries' language and culture can be expected to act as boundary-spanners between the assigned expatriates sent from the parent country and host country nationals, and between the headquarters and the subsidiary. We develop a new model of boundary-spanning that encompasses both individual and organizational antecedents and validate the model using survey data from Japanese-affiliated companies in China. We find that familiarity with Chinese language and culture and the potential dual allegiance of SIEs contribute to enhancing their boundary-spanning behavior. We also find that relationships of trust among the parties concerned (social capital) and global career opportunities for such self-initiated expatriates (geocentric staffing) have positive influences on their dual allegiance. Finally, normative and systems integration of human resource management are associated with increasing levels of social capital and geocentric staffing.     

MNC Considerations in Identifying and Managing LGB Expatriate Stigmatization

Lesbian, gay and bisexual (LGB) expatriates are rightfully sceptical, and at times fearful, of international assignment experiences, owing to the sometimes hostile reception at assignment locations as a result of their sexual orientation. The authors argue that this hostility arises from a perceived incompatibility in values between the host country and LGB expatriates. Dissonance between the two value systems leaves LGB expatriates seemingly powerless to self‐manage imposed stigmas inside and outside the workplace at international assignment locations. The authors suggest that it is essential for the multinational corporation (MNC) to help manage these stigmas by implementing human resource management (HRM) practices and policies that recognize the needs of traditional and non‐traditional expatriates as substantially different. Using organizational legitimacy theory, the authors assert that MNCs’ strategic actions should entail a set of distinct practices and policies for LGB expatriates as a way to strive for acceptance within the LGB expatriate community and beyond. Managing value congruence in this manner ensures greater willingness of the LGB talent pool to undertake international career opportunities and is likely to result in better assignment experiences and outcomes. Outcomes of LGB stigmatization are discussed and suggestions are put forward on the MNC's role in supporting LGB expatriates and their families. Propositions relative to support are offered.     

An Empirical Investigation of Terrorism-induced Stress on Expatriate Attitudes and Performance

Despite international terrorism's increasing relevance for international business, the effects of terrorism that confront employees during assignments abroad have hardly been investigated. Applying a stress perspective, this article analyzes the impact of terrorism-induced stress on attitudes and the performance of expatriates. Employing data from 143 expatriate managers in high-risk countries, the study shows that several terrorism-related stressors create a significant stress level for the individual, causing negative work attitudes and attitudes towards host country nationals (disaffection). This eventually leads to worse performance. We applied partial least squares (PLS) structural equation modeling (SEM) to analyze the entire impact path and found substantial support for our hypotheses. Of all the relevant stressors, intra-family conflicts due to terrorism have the greatest impact.     

Chinese expatriate management in emerging markets: A competitive advantage perspective

Recent research draws attention to the large number of expatriates sent abroad by Chinese multinational corporations (CMNCs), especially to emerging markets. It is generally assumed that their large number, and any competitive advantage this generates, relate predominantly to their low cost, compared to other MNCs' expatriates and/or locally available labour. Our research uses an integrative perspective drawing on the resource-based view (RBV), international human resource management (IHRM) and “country of origin” literature and extensive case-study research on 27 CMNCs in 12 emerging markets. This reveals that the competitive advantage created by Chinese expatriates is closely related to the use of expatriates at both managerial and operational levels. It is achieved through human resource management that exploits their relatively lower cost, higher productivity and hardship tolerance (compared to host or third country counterparts) and their knowledge/resource reconfiguration capability, through a centralised and collective expatriation management system. These together enhance CMNCs' competitive advantage through not only offering cost effective and differentiated products but also transferring the reconfiguration knowledge. This study enhances understanding of the competitiveness of emerging market multinationals (EMNCs) by showing how the competencies, combination and management of their expatriates create a distinct source of competitive advantage. It also advances IHRM research on expatriates by investigating their use from a competitive advantage perspective.     

The Adjustment of Japanese Expatriates to Living and Working in Britain

Ninety-one Japanese managers and professionals on international assignments in the London offices of trading houses and insurance companies responded to a wide-ranging survey on work and non-work adjustment. Dependent variables included standardized measures of adjustment, well-being, mental health and modes of adjustment (personal change and role innovation). In comparisons with samples from other studies, the expatriates experienced lower work well-being and mental health, and, compared with a sample of United Kingdom domestic job changers, engaged in less role innovation but recorded higher personal change, especially in their values. Predictor variables, including predeparture experience, family factors, self-rated job performance, self-efficacy, work-non-work spillover, social interaction and perceived company purpose in the assignment, were found to be differentially related to outcome measures. A new method of retrospectively recording changes in feelings over time in the work and non-work domains was also applied, supplying tentative evidence for a negative shift in affect on arrival, especially in the non-work domain, and a further fall after arrival, especially in the work domain. In most cases, this latter dip was followed by a recovery, providing some evidence in favour of the U-curve hypothesis. Implications for theory and practice are reviewed.     

Mentoring,skill development,and career success of foreign expatriates

Previous literature on foreign assignments shows a high relevance of mentors for expatriates’ success. In this study we analyse the impact of different mentor-related factors on skill and career development. Drawing on social exchange theory, we develop five research hypotheses and test them using a sample of 59 US expatriates on assignments in Germany. Linear regression modelling reveals that organizational distance between the mentee and the mentor as well as the mentor’s involvement in career planning are positively related to skill development. Furthermore, there is a positive relationship between skill development and career development. We derive important implications for the implementation of mentoring in multinational corporations. The study is of value for researchers and practitioners in the areas of human resource management and organization.     

How and when is social networking important? Comparing European expatriate adjustment in China and Turkey

Social interaction has been demonstrated to be a main predictor of expatriate adjustment. However, the impact of social interaction on expatriate adjustment may vary for those in different cultures. Contextual factors, such as geographic proximity and cultural differences between the home country and the host country, may have a significant impact on the expatriate adjustment process. The current paper singles out the above contextual factors by comparing European expatriates in China and in Turkey. European expatriates in China (n = 61) and Turkey (n = 69) were surveyed to explore the different patterns of social interactions (personal network and support), and the impact of these on the psychological well-being of the two groups. The empirical evidence gathered by the current study will delineate these differences and similarities and their impacts on the expatriates' psychological well-being in these two 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.     

Why Are Some Subsidiaries of Multinationals the Source of Novel Practices while Others Are Not? National,Corporate and Functional Influences

It has frequently been argued that multinational companies are moving towards network forms whereby subsidiaries share different practices with the rest of the company. This paper presents large‐scale empirical evidence concerning the extent to which subsidiaries input novel practices into the rest of the multinational. We investigate this in the field of human resources through analysis of a unique international data set in four host countries – Canada, Ireland, Spain and the UK – and address the question of how we can explain variation between subsidiaries in terms of whether they initiate the diffusion of practices to other subsidiaries. The data support the argument that multiple, rather than single, factor explanations are required to more effectively understand the factors promoting or retarding the diffusion of human resource practices within multinational companies. It emerges that national, corporate and functional contexts all matter. More specifically, actors at subsidiary level who seek to initiate diffusion appear to be differentially placed according to their national context, their place within corporate structures and the extent to which the human resource function is internationally networked.     

When Do Multinational Companies Consider Corporate Social Responsibility? A Multi‐country Study in Sub‐Saharan Africa

While African countries are becoming more and more relevant as host countries for suppliers of multinational companies little is known about corporate social responsibility (CSR) in this region. To fill this gap, the present article explores CSR considerations of foreign affiliates of multinational companies when choosing local African suppliers. The article suggests a model of three types of determinants, namely firm characteristics, exports, and intra‐trade. Analyses of a large‐scale and quite unique firm level data for more than 2,000 foreign owned firms in 19 sub‐Saharan African countries demonstrate that firms importing intermediates from their parent company abroad are more likely to implement CSR. Similarly, CSR plays a larger role for affiliates that export to developed countries. Different determinants affect environmental and social CSR activities.     

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.     

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.     

Host country culture and language identification,and their workplace manifestations: A study on corporate expatriates in China and Japan

Although multiculturalism has drawn increasing attention in international business research, relatively little is known about multiculturalism beyond individuals who have immigrated to a new host country. This study uses interviews with 79 assigned expatriates in two host countries – China and Japan – to develop a cultural and language identification-based typology of monocultural, cosmopolitan, integrated bicultural, and conflicting bicultural expatriates. We also use the interview findings to demonstrate the workplace manifestations of each expatriate type. This study contributes by deepening research on multicultural employees in situ, moving beyond the assumption of monocultural identification in expatriate research, and discussing workplace manifestations of both culture and language identification.     

Expatriate family adjustment: How organisational support on international assignments matters

This research examines how organisational support mechanisms extended to expatriate families influence the adjustment of the expatriate, the spouse, and accompanying children. We present data from 173 accompanying expatriate spouses in China and 135 expatriates employed in foreign and local multinationals in China. We report on expatriates' perceptions about the impact of organisational support on the adjustment of their spouse and children. We also report on their perception of how organisational support influences their own adjustment. Our study reveals that organisational support positively influences the adjustment of expatriates, their spouses and children, although the dynamics among family members differ. Noteworthy results include that children's adjustment impacts the expatriate spouse directly and the expatriate's adjustment indirectly, emphasizing the importance of direct organisational support for the family unit beyond the expatriate. The paper offers implications for international human resource management researchers and practitioners.     

Women,empowerment and development in Arab Gulf States: a critical appraisal of governance,culture and national human resource development (HRD) frameworks

This phenomenological study focuses on Western expatriates working in the Kingdom of Saudi Arabia and their experiences and perceptions of their cross-cultural adjustment. To this end, eight Western expatriates working and living in Saudi Arabia were interviewed face-to-face in an effort to explore and document their lived experiences of adjusting to life in Saudi Arabia, thus extending the current knowledge of this phenomenon. These in-depth face-to-face interviews and the subsequently employed rigorous methods of abstracting data led to the discovery of four critical themes that were viewed by all participants as having the greatest impact on their adjustment to working and living in Saudi Arabia. These themes were Adjustment of Spouses, Life on the Company Compounds, Lack of Activities Between Saudis and Westerners, and Relationship Between the Westerners and Saudis.