Concluding various research studies:1. Broadening the definition of expatriate failure beyond that of premature
return is warranted. Following up broad surveys with interviews with
responding firms may assist in this.
2. Regardless of the definition or precise amount of 'failure', its very exposure
as a problem has broadened the issue to demonstrate the complexity of
international assignments. In fact, one could argue that the so-called
persistent myth of high US expatriate failure rates has been a positive
element in terms of the attention that has subsequently been directed
towards expatriation practices. It has certainly provoked considerable
research attention into the causes of expatriate failure.
3. The evidence about expatriate failure rates is somewhat inconclusive.
Recent studies suggest that high failure rates reported in the 1980s have not
persisted for all nationalities. Although recent reports do not break results
down into nationality groups, US firms form the largest group in these
surveys. The European studies reported above were conducted at various
intervals since Tung's original study and do not include the same countries.
Further, non-US researchers have been reporting from regional or single
country perspectives.
FIVE SUCCESS
DIMENSIONS
JOB FACTORS
Job factors are similar to technical competence required by the
job in Tungs findings. It includes technical skills, managerial
skills, and administrative competence as listed in the table
above. These are basic conditions when MNCs select candidates
for international assignments. In practice, most MNCs rely
much on relevant job factors during the selection process.
RELATIONAL DIMENSIONS
This dimension follows the aspect of personal characteristics in
Tungs framework. Although defining the composition of
personal characteristics is difficult, Ronen brings forward
several components: tolerance for ambiguity, behavioural
flexibility, non-judgementalism, cultural empathy low
ethnocentrism, and interpersonal skills.
MOTIVATIONAL STATE
Motivational state means willingness to relocate, interest in
working abroad, curiousness about the culture of the host
country and so on. All of them are significant for a successful
international assignment. If expatriates are in a good
motivational state, they will perform the assignment with
pleasure, and can be inspired to work harder. A current survey
(1995) conducted by National Foreign Trade Council (NFTC)
shows that 96% of the chosen companies rank the candidates
willingness to relocate on the second place.
FAMILY SITUATION
In the same way, family situation is also inherited from Tungs
theory. Family requirements are highly interrelated to the
expatriates adjustment (Dowling et al., 1999). MNCs may
involve spouses into the selection process to find out if they are
willing to go abroad. One of the main reasons for expatriate
failure is the inability of spouses to adjust (Tung, 1982 cited by
Hill, 2005). So spouses adaptability is very important for the
success of the assignment. It means the extent to which
LANGUAGE SKILLS
Differences in language are considered as a main obstacle for
the communication of people from different countries or areas,
and also a reason for culture shock. Therefore, it is necessary
for MNCs to have enough emphasis on the expatriates
language ability. Dowling et al. (1999) mention that knowledge
of the host-countrys language is also very important for the
successful international assignment, no matter what positions
the expatriates take up. However, language ability is ranked
lower in the list of predictors of success.
COST OF FAILURE
Direct Costs - Direct costs include airfares and associated relocation
expenses and salary and training. The precise amount varies according
to the level of the position concerned, country of destination, exchange
rates and whether the 'failed' manager is replaced by another expatriate.
FACTORS MODERATING
PERFORMANCE
spouse/partner dissatisfaction
inability to adapt
difficulties with family adjustment in the new location
difficulties associated with different management styles
culture and language difficulties
issues associated with the accompanying partner's career
development
childrens education
LENGTH OF ASSIGNMENT
WILLINGNESS TO MOVE
WORK-ENVIRONMENT RELATED
FACTOR
Job Autonomy
Perceived level of organizational support
Negative cross-cultural experiences faced
by family
CAUSES OF EXPATRIATE
FAILURE
Poor Candidate Selection:
Many organizations still concentrate on a manager's
technical skills for such an assignment and do not pay
sufficient attention to cross-cultural knowledge and the
importance of the family of the expatriate.
Responsibility Overload:
Moving to another country for a new job and leaving
one's home behind causes stress to expatriates. The
amount of stress is increased by the separation from
parents, who might be ill or elderly, and family,
children and friends.
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