Moderating effect of perceived organizational support on the relationship between leader–member exchange and expatriate voice in multinational banks
| Pages | 898-913 |
| Published date | 02 August 2019 |
| DOI | https://doi.org/10.1108/ER-08-2018-0211 |
| Date | 02 August 2019 |
| Author | Peter Jih-Hsin Sher,Wen-Long Zhuang,Ming-Chieh Wang,Chun-Jung Peng,Chun-Han Lee |
| Subject Matter | Hr & organizational behaviour,Industrial/labour relations,Employment law |
Moderating effect of perceived
organizational support on
the relationship between
leader–member exchange
and expatriate voice in
multinational banks
Peter Jih-Hsin Sher
Department of Business Administration, Feng Chia University, Taichung, Taiwan
Wen-Long Zhuang
Department of Culinary Arts and Hotel Management,
Hungkuang University, Taichung, Taiwan
Ming-Chieh Wang and Chun-Jung Peng
Department of International Business Studies,
National Chi Nan University, Puli, Taiwan, and
Chun-Han Lee
Program in Strategy and Development of Emerging Industries,
National Chi Nan University, Puli, Taiwan
Abstract
Purpose –The purpose of this paper is to examine the effects of home and host country leader–member
exchange (LMX) on expatriate voice and determine whether perceived organizational support (POS)
moderates the relationship between home or host country LMX and expatriate voice.
Design/methodology/approach –This study surveyed 300 expatriates (expatriation of at least six
months) working for Taiwanese banks. The participants had expatriated to Cambodia, Indonesia, Japan,
Malaysia, Myanmar, the Philippines, Singapore, the USA and Vietnam. Convenience sampling was adopted.
Findings –Based on an analysis of 132 expatriates working for Taiwanese banks, home and host country
LMX were positively related to expatriate voice. Moreover, host country LMX accounted for more variance in
expatriate voice than home country LMX did. Financial POS moderated the relationship between home
country LMX and expatriate voice. Career POS and adjustment POS moderated the relationships between
home and host country LMX and expatriate voice.
Originality/value –In the field of expatriate management, whether expatriate voice is influenced by home
and host country LMX requires further exploration. To the best of the authors’knowledge, this is the first
study to examine the effects of home and host country LMX on expatriate voice in host countries, as well as
the moderating effect of POS on the aforementioned relationships.
Keywords Perceived organizational support, Leader–member exchange, Expatriate voice
Paper type Research paper
Introduction
Because organizations are facing additional competition, they are increasingly seeking ways to
differentiate themselves and their employees from others in theirsector ( Baileyet al., 2016). In the
currently highly competitive market environment, astute bank managers realize that delivering
superior services to customers plays a crucial role in differentiating their brand from its
competition (Karatepe and Aga, 2016). Employees play a vital role in delivering high-quality
service. Due to their boundary-spanning roles, frontline bank employees who have frequent face-
Employee Relations: The
International Journal
Vol. 41 No. 5, 2019
pp. 898-913
© Emerald PublishingLimited
0142-5455
DOI 10.1108/ER-08-2018-0211
Received 6 August 2018
Revised 5 March 2019
Accepted 1 April 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0142-5455.htm
898
ER
41,5
to-face or voice-to-voice interactions with customers are the most crucial link in service delivery
and complaint handling processes (Karatepe and Aga, 2016). If employees are unsatisfied with
the working culture of their bank, the business will not generate any profit (Kaur, 2015).
The literature suggests that organizations and employees mutually benefit from
employee voice (Donovan et al., 2016). International assignments have become an integral
part of any internationally minded organization hoping to compete effectively in a
globalized environment (Brown, 2008). International assignments have also become of
primary interest to corporate executives aspiring to a global career (Altman and Baruch,
2012). Kaur (2015) pointed out an employee perception is one of the most important issues
for each and every banking organization. For multinational banks, expatriate voice may
enhance mutual gains for headquarters, overseas subsidiaries and all employees.
Because expatriate voice benefits multinational banks, investigating the factors that are
related to expatriate voice is critical. Relevant studies have identified that the dyadic
relationship between employees andsupervisors and leader–memberexchange (LMX) play a
key role in establishingthe attitude and behavior of valuable followers (Dulebohn et al., 2012;
Ilies et al., 2007). Pattie et al. (2013) statedthat LMX can aid in understanding the supervisor–
expatriate relationship. If expatriates can maintain good relationships with their supervisors
(the supervisors of home country or the supervisors of host country) could the possibility of
their advice being accepted be increased? Notably, Benson and Pattie (2009) called for more
studies on investigating the impact of home and host supervisors on expatriate outcomes in
different types of firms with non-US employees. Whether host country LMX better enables
expatriate voice than home country LMX because of the host country supervisors’local
identity is unanswered. In the field of expatriate management, whether expatriate voice is
influenced by home country LMX and host country LMX requires further exploration.
If home and host country LMX affect expatriate voice in the host country, this effect may
differ depending on situational factors. Liu (2009) argued that perceived organizational support
(POS), regardless of whether it is related to a parent company or a local subsidiary, impacts
expatriate attitudes and behaviors and is directly connected to expatriate psychological
feelings ofattachment to their organizations.Furthermore, a study indicated that level of POS
likely plays a critical role in an employee’s decision-making process as well as their potential
success on an expatriate assignment (Varma and Russell, 2016). Accordingly, the present study
assertedthat POS may be an essentialsituationalvariable influencingthe relationshipbetween
home and host country LMX and expatriate voice in the host country.
Accordingly, this study investigated whether POS serves as a moderator in the
relationship between home and host country LMX and expatriate voice in the host country.
To the best of our knowledge, this was the first study to examine the effects of home and
host country LMX on expatriate voice in host countries, as well as the moderating effect of
POS on the aforementioned relationships.
Literature review
Expatriate voice
Employee voice refers to promotive behavior that emphasizes expression of constructive
challenges intended to suggest organizational improvements rather than simply criticize (LePine
and Van Dyne, 1998, 2001). Voice behavior can also be defined as discretionary communication of
ideas, suggestions, concerns or opinions regarding work-related issues with the intent of
improving organizational or unit functioning (Dedahanov et al., 2016; Morrison, 2011). The present
study defined expatriate voice as expatriates’behavior in expressing opinions with constructive
suggestions and ideas that aim to improve the subsidiary functions of an organization.
Through global staffing, multinational corporations control and coordinate their
international operations (Stroh and Caligiuri, 199 8; Tahir, 2018). Unlike domestic
corporations, headquarters of multinational corporations do not always have access to
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Perceived
organizational
support
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