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Article
Publication date: 9 June 2022

Sooyoung Lee, Unjung Whang, Sihoon Nahm and Chang Hoon Oh

This 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…

Abstract

Purpose

This 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/approach

The 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.

Findings

The 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/value

The 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.

Details

Multinational Business Review, vol. 31 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Book part
Publication date: 16 December 2003

Danchi Tan and Joseph T Mahoney

This paper develops an integrative framework explaining multinational firms’ managerial staffing decisions in initial foreign-entry situations from resource-based theory, agency…

Abstract

This paper develops an integrative framework explaining multinational firms’ managerial staffing decisions in initial foreign-entry situations from resource-based theory, agency theory, and transaction-costs theory, and it offers a set of theoretically grounded, testable propositions concerning these staffing decisions. In particular, we maintain that managerial staffing decisions are influenced by: (1) the value that managerial expatriates and local hires could potentially add to the firm; and (2) the relative contractual risks associated with the use of managerial expatriates and local managers.

This paper indicates that the use of managerial expatriates can improve contractual efficiencies in at least four ways. First, the use of expatriates helps align the economic incentives between the headquarters and the foreign subsidiaries. Second, the headquarters knows better the characteristics of expatriates relative to local hires. The use of expatriates reduces the uncertainty of the headquarters in recruiting managers and mitigates the incomplete contracting problem. Third, expatriates are better equipped with firm-specific capabilities than local hires, reducing contractual (small-numbers) problems. Fourth, expatriates have committed greater sunk cost investments in the multinational firm than local hires. These investments support their cooperative relationships with the firm and mitigate potential bargaining problems in employment contracting. However, although managerial expatriates can potentially improve contractual efficiency and may relieve a firm’s concern over its limited control on managers, expatriates may not have adequate abilities in managing local idiosyncrasy.

Details

Managing Multinationals in a Knowledge Economy: Economics, Culture
Type: Book
ISBN: 978-0-76231-050-0

Article
Publication date: 29 September 2023

Antonios Georgopoulos, Eleftherios Aggelopoulos, Elen Paraskevi Paraschi and Maria Kalogera

In an environment of intensive global mobility, this study aims to investigate the performance role of staffing choices within diverse MNE subsidiary strategies. Incorporating the…

Abstract

Purpose

In an environment of intensive global mobility, this study aims to investigate the performance role of staffing choices within diverse MNE subsidiary strategies. Incorporating the integration-responsiveness (IR) framework with a contingency perspective, this study proposes that the performance success of distinct MNE subsidiary strategies depends on staffing choices. This study argues that performance differences of staffing choices such as assigned expatriates, self-initiated expatriates, former inpatriates and host-country nationals derive from their different knowledge/experience advantages regarding the intra-firm environment and local market conditions.

Design/methodology/approach

The study utilizes a unique sample of 169 foreign subsidiaries located in Greece that faced the outbreak of the COVID-19 pandemic (in 2020). For robustness reasons, this study also captures the imposition of capital controls (in June 2015).

Findings

This study finds important mediating performance effects of a diversified human resource portfolio across distinct subsidiary strategies in difficult times. Integration strategy tends to use more assigned expatriates, locally responsive strategy tends to utilize more host-country nationals, whereas multi-focal strategy favors self-initiated expatriates and former inpatriates, with positive subsidiary performance effects accordingly. So, staffing policies that are suitable to balance the needs of Human Resource Management (HRM) portfolio differ from strategy to strategy. Moreover, this study finds that managing HRM diversity is crucial in turbulent times.

Originality/value

While the empirical evidence has been predominantly accumulated from large economies, largely neglecting performance effects of MNE subsidiary staffing in crisis contexts, the analysis sheds light on a small open economy (i.e. the Greek context) emphasizing rapidly environmental deterioration. The findings extend existing theorizing on international performance and HRM management by providing an integrative conceptual framework linking integration-responsiveness motivated strategies with distinct groups of high-quality human resources under contingency considerations, so creatively synthesizing largely fragmented IB and HRM research streams. The study provides valuable insights into the performance role of non-conventional staffing choices such as self-initiated expatriates and former inpatriates, given that relevant studies examine either exclusively expatriates or compare expatriates with host country nationals, reaching inconclusive results.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 12 no. 1
Type: Research Article
ISSN: 2049-8799

Keywords

Article
Publication date: 14 July 2022

Reimara Valk

The purpose of this paper is to investigate Global Talent Management (GTM) approaches and praxis with a specific focus on global deployment goal congruence and alignment between…

Abstract

Purpose

The purpose of this paper is to investigate Global Talent Management (GTM) approaches and praxis with a specific focus on global deployment goal congruence and alignment between expatriates and the organization, talent recognition, valuation and utilization of repatriates.

Design/methodology/approach

Qualitative research in this paper entails interviews with 78 expatriates and repatriates across the globe, investigating their experiences with, perspectives on and perceptions of GTM praxis and approaches.

Findings

Findings of this study revealed firstly, that there is incongruence and misalignment of goals in global deployment where organizational, financial goals prevailed over social and human-oriented goals. Secondly, a lack of global talent pools and pipelines where interviewees indicated that expatriate assignments (EAs) were typically reactionary without strategic forward thinking on talent management (TM), observable through organizations' focus on short-term return on investment (ROI) on EAs instead of long-term talent investments. Thirdly, there was little recognition and non-utilization of cross-cultural human capital and talents upon repatriation.

Research limitations/implications

This study relied on self-reports of expatriates' and repatriates' perceptions of and experiences with GTM approaches. Future research should gather multi-actor, multiple-source data from expatriates and repatriates, senior leaders, line managers, GTM strategic business partners to gain more insight into GTM approaches and praxis.

Practical implications

Organizations are recommended to conduct “Global Talent Management Open Strategy Formation” as the foundation of an evidence-based, integrative GTM architecture and praxis to ensure GTM effectiveness.

Originality/value

This paper contributes to the literature by advocating for sustainable, people-centric GTM to safeguard the longevity and sustainability of all members of the talent ecosystem.

Details

Employee Relations: The International Journal, vol. 44 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 17 August 2010

Marshall Pattie, Marion M. White and Judy Tansky

The purpose of this paper is to examine the prevalence of repatriate support practices in organizations within the context of the current literature in this field of study.

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Abstract

Purpose

The purpose of this paper is to examine the prevalence of repatriate support practices in organizations within the context of the current literature in this field of study.

Design/methodology/approach

A total of 42 firms employing 3,234 expatriates were surveyed regarding human resource practices that support repatriation. Analysis focused on support practices as predictors of voluntary and involuntary turnover.

Findings

Results indicate that the majority of firms surveyed used two or fewer repatriate support practices. While 60 percent of firms offered logistical assistance, such as relocation services, less than 70 percent offered career and training support for repatriates. The most common cause of involuntary turnover is the lack of job openings in the home organization upon reentry, while the most common cause of voluntary turnover is the organization's poor utilization of the expatriate's skills acquired on the overseas assignment. Organizations with more support practices reported a lower average repatriate turnover compared to organizations with fewer support practices.

Practical implications

While previous literature suggests that repatriate support practices are critical, this research finds that few organizations are providing sufficient support to mitigate turnover.

Originality/value

In contrast to much of the research on repatriation that relies on individual perceptions, this paper utilizes organization level survey data provided by 42 firms that document their repatriate support practices.

Details

Career Development International, vol. 15 no. 4
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 5 March 2018

Yu-Ping Chen and Margaret Shaffer

Drawing upon Folkman and Lazarus’ (1984) coping framework and interdependence theory (Thibaut and Kelley, 1959), the purpose of this paper is to investigate how expatriate

2066

Abstract

Purpose

Drawing upon Folkman and Lazarus’ (1984) coping framework and interdependence theory (Thibaut and Kelley, 1959), the purpose of this paper is to investigate how expatriate spouses’ coping strategies (problem-focused and emotion-focused) affect expatriate spouse adjustment and expatriate adjustment. In addition, the authors also examine the mediating effect of expatriate adjustment on the spouse coping strategies-spouse adjustment relationship.

Design/methodology/approach

To test these relationships, the authors collected multi-source data from 191 expatriate spouses and their expatriate partners living in 37 countries.

Findings

The results revealed that problem- and emotion-focused coping strategies positively and negatively, respectively, influenced all types of spouse adjustment: personal, interaction, and cultural. Both forms of spouse coping also influenced expatriate adjustment. The authors also found that expatriate adjustment mediated the relationship between expatriate spouses’ coping strategies and spouse adjustment.

Practical implications

The results suggest that multinational organizations should pay equal attention to the adjustment of both their expatriates and their spouses. Both expatriates and their spouses should be included in the initial selection process and in pre-departure training to get well equipped before the international assignment. Training spouses to adopt problem-focused coping strategies would help to facilitate the effective adjustment of both spouses and expatriates.

Originality/value

The research provides one of the first examinations that investigate expatriate spouses’ coping strategies and their impact on expatriate and expatriate spouse adjustment. This research also highlights the interdependency of expatriates and their spouses.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 6 no. 1
Type: Research Article
ISSN: 2049-8799

Keywords

Article
Publication date: 10 April 2007

Brian Connelly, Michael A. Hitt, Angelo S. DeNisi and R. Duane Ireland

This paper proposes a methodology for governing expatriate assignments in the context of corporate‐level objectives.

5450

Abstract

Purpose

This paper proposes a methodology for governing expatriate assignments in the context of corporate‐level objectives.

Design/methodology/approach

The approach taken is to envisage expatriate managerial assignments within the theoretical framework of agency theory and the knowledge‐based view of the firm. The paper begins with the view that knowledge acquisition and integration is a primary goal for most expatriate assignments. The relationship between expatriate managers and multinational corporation (MNC) headquarters from an agency perspective are considered and the notion of a “knowledge contract” as a means of governing that relationship is discussed. Four corporate‐level international strategies available to MNCs (global, international, transnational, and multidomestic) are then examined and the extent of agency problems under each strategy is discussed.

Findings

The paper makes specific predictions about the type of knowledge contract that is most likely to address agency problems for each corporate strategy.

Originality/value

This research extends agency theory by introducing the knowledge contract as a means of managing agency concerns. This offers a broader range of contract alternatives, moving researchers beyond traditional agency theoretic prescriptions. The research also contributes to the literature on expatriate management by integrating assignment success with research on corporate‐level international strategy. Few authors have recognized organizational strategy as an important unit of study in international human resource management. Doing so, however, has yielded a unique set of contingency relationships that would otherwise be obscured.

Details

Management Decision, vol. 45 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 18 January 2011

Peter Enderwick

This conceptual paper starts from the recognition that internationalisation of business is an information‐intensive process and aims to investigate two key modes for the…

1864

Abstract

Purpose

This conceptual paper starts from the recognition that internationalisation of business is an information‐intensive process and aims to investigate two key modes for the acquisition of knowledge: expatriates and immigrant employees.

Design/methodology/approach

The paper sets out a conceptual framework which examines nine popular modes of knowledge acquisition essential to the internationalisation process and their comparative strengths and weaknesses. This is coupled with a more intensive evaluation of the relative merits of the two strategies of expatriates and immigrant employees.

Findings

The analysis suggests that the modes of expatriates and immigrant employees can both be cost effective and yield high levels of relevant knowledge underpinning internationalisation. However, there are key differences between the two and it may be more useful to consider them as complements rather than simply substitutes. The strength of expatriates is their considerable knowledge of the home market, industry and firm. Their weakness is the need to gradually acquire overseas market knowledge. The strength of immigrant employees is their knowledge of overseas target markets. Their weaknesses are limited understanding of the home country business system, the firm and even the industry.

Research limitations/implications

The paper has several limitations. It is conceptual in nature and tentative in assessment. It does not consider all available knowledge gathering modes. To fully understand this process more research is required, particularly work that extends the narrow case approach typically used.

Practical implications

The analysis suggests that different information gathering modes offer different advantages with none clearly superior in all situations. A similar situation appears to also hold for the modes of expatriates and immigrant employees and the two modes may be more usefully considered as complements.

Originality/value

The key contribution of the paper is in evaluating these two modes from the perspective of market knowledge and diffusion.

Details

Journal of Asia Business Studies, vol. 5 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 31 May 2006

Avan R. Jassawalla, Nader Asgary and Hemant C. Sashittal

Sending key managers on foreign assignments is common practice for multinational and international firms. Although firms spend considerable resources to support expatriates, the…

1592

Abstract

Sending key managers on foreign assignments is common practice for multinational and international firms. Although firms spend considerable resources to support expatriates, the return they receive remains disappointing. Current research suggests that expatriates are very likely to cut short their visit, and/or return to dissatisfying careers. Effective mentoring promises to remedy some of these problems, yet few firms seem to implement the mentor concept in practice. Based on depth‐interviews of expatriates, we delineate the mentor’s role both in the home and host office. We also develop a checklist of activities for home‐office mentors.

Details

International Journal of Commerce and Management, vol. 16 no. 2
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 1 November 2000

Neill Barber and Luke Pittaway

This paper has analysed the impact of the South East Asian crisis on the recruitment strategies of multinational hotel companies. In the paper a brief review of expatriate

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Abstract

This paper has analysed the impact of the South East Asian crisis on the recruitment strategies of multinational hotel companies. In the paper a brief review of expatriate recruitment is conducted. From this review a number of strategies of recruitment are identified. The paper proceeds to use the method of environmental scanning to analyse how the South East Asian economic crisis may affect the usefulness of these strategies. In conclusion the paper introduces a process of expatriate recruitment and shows how the process could help address some of the difficulties that may arise as a result of the crisis.

Details

International Journal of Contemporary Hospitality Management, vol. 12 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

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