The Role Of Interaction And General Adjustment In Expatriate Attitudes: Evidence From A Field Study Of Global Executives On Assignment In South Korea, Japan And The Netherlands
| DOI | https://doi.org/10.1108/15587890880000490 |
| Date | 01 September 2008 |
| Published date | 01 September 2008 |
| Pages | 42-53 |
| Author | Jennifer Palthe |
| Subject Matter | Strategy |
Journal of Asia Business Studies FALL 2008
42
INTRODUCTION
The success of global corporations is increasingly dependent on
the effective management of expatriates. It has been estimated that
more than 250,000 employees of US firms work on overseas assign-
ments (Kraimer, Wayne, and Jaworski 2001). According to the lat-
est GMAC Global Relocation Trends (GRT) (2008), conducted by
GMAC Global Relocation Services, sixty-seven percent of companies
reported an increase in the size of their expatriate population, and
sixty-eight percent anticipated an increase in the number of employ-
ees they have on assignment. Inter national work experience is also
continuing to be widely recognized as a critical asset to sustaining the
competitiveness of global firms (Bhaskar-Shrinivas, Harrison, Shaffer
and Luk 2005) and (Spreitzer, McCall and Mahoney 1997).
Although the ongoing globalization of business markets has in-
creased the number of expatriates (GRT, 2008), the direct and in-
direct costs associated failed assignments remains a serious concern
(McCaughey and Bruning 2005) and (Shaffer, Harrison, Gregersen,
Black, and Ferzandi 2006). The GRT report concluded that retain-
ing expatriate talent remains problematic and that attrition rates for
expatriates are at least double those of non-expatriate employees
(2008). Failed assignment rates have been reported to range between
25 and 40 percent (McCaughey and Bruning 2005) and (Sanchez,
Spector, and Cooper 2000), and cost organizations approximately
one million dollars per expatriate (Shaffer and Harrison 1998) and
(Shaffer, Harrison, and Gilley 1999). While the high failure rates
measured as premature returns home have been challenged (Forster
1997), it can be disputed that expatriates who don’t adjust but re-
main abroad could have an even more detrimental effect on organiza-
tions (Selmer 1998). Organizational turnover may represent the most
costly effect of expatriate failure but intentions to quit, decreased
commitment, and dissatisfaction represent harder to measure costs
associated with reduced individual self-esteem, interrupted careers,
and damaged corporate relationships and reputations (Templer, Tay,
and Chandrasekar 2006).
Past research has been fairly extensive in generating and testing
factors that contribute to cross-cultural adjustment (Bhaskar-Shrini-
vas et al. 2005; Beehr and Christiansen 2003). The purpose of this
research was to explore certain attitudes and mediating effects associ-
ated with the expatriate adjustment process. Specifically, this study
aimed to examine the relationship between the three facets of cross-
cultural adjustment (work, interaction, and general) and expatriate
work related attitudes (job satisfaction and non-work satisfaction)
and to examine the role of cross-cultural adjustment in mediating
the relationship between family adjustment and expatriate attitudes.
Aycan and Kanungo (1997: 250), in their review of the expatriate
literature, argued that research has not paid sufficient attention to
the “expatriate process mediators.” Also, while research measuring
cross-cultural adjustment outcomes such as commitment and inten-
tions to quit has been fairly extensive (Bhaskar-Shrinivas et al. 2005)
numerous scholars have argued that empirical work demonstrating
the influence of cross-cultural adjustment on work-related attitudes is
negligible (Bonache 2005) and (Van Dyne and Ang 2000). Bonache
(2005:111) specifically suggested that studies focusing on expatriate
satisfaction remain a “relative rarity” compared to the exploration of
other outcome variables.
Moreover, where studies that have explored the relationship be-
tween cross-cultural adjustment and expatriate outcomes, most have
provided empirical evidence of the correlation between work and
general adjustment, and expatriate outcomes (Florkowski and Fogel
1999) and (Takeuchi, Yun and Russel 2002a) and (Takeuchi, Yun
and Tesluk 2002b), but the role of interaction adjustment in expa-
triate outcomes has received less attention. Merely focusing on the
consequences of work adjustment and general adjustment does not
capture the full expatriate experience nor the powerful effect that
successful interactions with locals has on the overall satisfaction of
The Role Of Interaction And General Adjustment In Expatriate
Attitudes: Evidence From A Field Study Of Global Executives On
Assignment In South Korea, Japan And The Netherlands
Jennifer Palthe
Western Michigan University
absTRaCT
Using an international field study of 196 U.S. executive expatriates from multiple industries on assignment in South Korea,
Japan and the Netherlands, this study aimed to explore the relationship between three facets of cross-cultural adjustment
(work, interaction, and general) and expatriate attitudes (job satisfaction and non-work satisfaction), and to examine the role of
cross-cultural adjustment in mediating the relationship between family adjustment and expatriate attitudes. The results demonstrate
the influence of each facet of adjustment on expatriate attitudes, and provide evidence that the relationship between family adjustment
and non-work satisfaction is mediated by general adjustment. Future research directions and implications for practice are offered.
Keywords: Global Executives, Expatriate Adjustment, Family Adjustment, Satisfaction
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