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.     

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.     

促使跨国公司在东道国从事腐败行为的因素分析——基于新兴市场国家的数据

以国际商务的视角研究跨国公司在东道国的腐败行为首先就要确定哪些因素会促使跨国公司在东道国从事腐败,本研究确定了子公司自身三类因素:制度结构因素、市场导向因素与组织能力因素会对子公司腐败行为产生影响;还考察了腐败程度与组织绩效间的关系。选取新兴市场国家178家跨国公司子公司作为样本,运用结构方程分析方法,本研究结论表明子公司制度结构因素中的外资持股比例与东道国市场经验、组织能力因素中的产品质量与组织层面腐败程度存在负相关关系,市场导向因素中的产品出口比例与组织层面腐败程度存在正相关关系;还表明组织层面腐败的确会降低子公司绩效。     

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.     

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.     

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.     

Are multinational enterprises from the emerging economies global or regional?

While there is ample statistical evidence that the top 500 multinational enterprises (MNEs) are predominantly home-region-bound or bi-regional, the operations of MNEs from the emerging economies have not been comprehensively analyzed. This constitutes a vital gap since firms from emerging economies have been making prominent acquisitions in recent years, and these economies are expected to post impressive growth despite the global economic slowdown. MNE managers cannot ignore such opportunities and threats. This study analyzes the operations of MNEs from four leading emerging economies – Brazil, Russia, India and China (BRIC). Since aggregated FDI data often lack transparency due to off-shore tax havens, we supplement that analysis by examining 1430 mergers and acquisitions undertaken by MNEs from BRIC economies during 2000–2007. We also develop insights into their dispersion pattern across five industry sectors in six geographical regions.     

How dimensions of internationalization shape the MNE's renewal capability: Multidimensional and multilevel considerations

We investigate the theoretical and empirical implications of internationalization as a multidimensional and multilevel construct and its relationship to the renewal capability of the firm. Theoretically, internationalization describes a diverse range of cross-border activities by the multinational enterprise (MNE), and thus carries with it multiple dimensions of depth, breadth, and speed. Empirically, internationalization contains both within- and between-MNE variance, each with potentially different effects on the MNE's renewal capability. Using a unique, longitudinal dataset of 94 MNEs, we find support that each dimension and level of internationalization relates differently to the renewal capability of the MNE. At the within-level, the MNE internationalization breadth is negatively related to the its renewal capability, yet internationalization speed is positively related to renewal. At the between-level, the depth of internationalization is positively related to the MNE's renewal capability. In concert, our results suggest that the effects of internationalization on important outcomes cannot be simplified into general relationships. Rather, attention to the nuances of internationalization, especially as related to the MNE's capabilities, is needed.     

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.     

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.     

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.     

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.     

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.     

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.     

Reducing expatriate failure

The failure rate of American executives placed in overseas assignments is unacceptably high. Better selection techniques and training methodologies could help improve the chance of success of expatriates.     

Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives

Corporate entrepreneurship has long been acknowledged as critical to multinational enterprises (MNEs), with dispersed entrepreneurial efforts involving subsidiary initiatives becoming increasingly relied upon. Yet despite the global context in which MNEs operate, the conversation has not fully embraced the extent to which many of its entrepreneurial activities overlap with internationalization. In this paper, we identify a set of opportunity phenotypes for subsidiary initiatives based on their market focus as well as the knowledge and capabilities leveraged to identify and exploit the opportunity. The recursive relationship between opportunities and dynamic capabilities is then discussed, with an emphasis on building a research agenda for corporate international entrepreneurship.     

The multinationalization of developing country MNEs: The case of multilatinas

I study the multinationalization — the decision to establish foreign direct investment (FDI) — of developing country firms, in particular Latin American ones or “Multilatinas”. Despite a long exporting tradition, many firms in Latin America have only recently become multinational enterprises (MNEs). The analysis of case studies reveals three insights. First, Multilatinas take a long time to become MNEs, reflecting the additional challenges and need for sophisticated advantages for establishing FDI. Second, Multilatinas are induced to become MNEs after changes in the home country that follow structural reform induce them to upgrade their competitiveness to international levels. As a result, they can overcome the difficulties of establishing FDI and become MNEs. Third, Multilatinas follow four strategies in their selection of the country where to establish FDI first depending on the interplay between difficulties and advantages of operating abroad. These three arguments build on and link the notion of advantages of internationalization put forward by the eclectic paradigm of international production and the idea of difficulties in internationalization presented by the incremental internationalization model. The strategies are explained by the balancing of the ease of overcoming difficulties and the advantages derived from foreign operations.     

Regional strategy and the demise of globalization

The controversy over globalization and its implications for strategies of multinational enterprises (MNEs) would disappear if authors would look at the evidence. Both aggregate data and firm-level data indicate that globalization is a myth however defined. Instead, the world's business is mainly conducted within the triad economic blocks of the European Union (EU), North America, and Asia. MNEs perform internationally, but the vast majority has an average of 80% of their sales within their home region of the triad. Professors of international business need to refocus from global strategy towards new thinking about triad strategy.     

Does innovation lead to global orientation? Empirical evidence from a sample of Italian firms

This paper analyses the relationship between innovation at firm and industry level, and the global vs regional strategy of multinational enterprises (MNEs). Based on data from a sample of large Italian manufacturing firms, the analysis shows that technological assets affect a firm’s ability to overcome the liability of (regional) foreignness: the extent to which MNEs can exploit their firm-specific technological advantages is greater within their home region, but they also exploit them outside it. Furthermore, the results show that a firm’s foreign (outside the home country) and global sales (outside the home region) are higher, the greater the technology intensity of the industry in which they operate. These findings suggest that, although MNEs tend to operate regionally rather than globally, their strategic orientation is contingent upon firm- and industry-specific factors. Managers need to take the potential for globally exploiting R&D investments into account, even if it may not be equally successful within and outside the home region, and may be constrained by a number of inter-regional barriers.