58657946

International Journal of Management
Vol. 28 No. 1 Part 2 Mar 2011 249
The Effects of Individual, Organizational and Societal

Variables on the Job Performance of Expatriate Managers
Lisbeth Claus
University of Willamette
Adelaida Patrasc Lungu
Sutapa Bhattacharjee
A major focus of expatriate performance management research has been to look at
predictors of expatriate job performance and the link between employee adjustment and
performance. The purpose of this paper is to contribute to knowledge and practice by
identifying predictors of expatriate job performance. Integrating three distinct streams
of empirical research on performance of international assignees (at the individual,
organizational and societal levels) and six streams of theoretical explanation (personality
theory, cultural adjustment theory, person-environment fit theory, social capital-network
theory, cultural theory, and institutional theory), we develop a conceptual framework
that looks at multiple predictors of expatriate adjustment and job performance,
from which a number of hypotheses are derived for future research. We conclude by
discussing implications for future research in this expanding area of human resource
management.
Introduction
Global performance management has been receiving increased academic attention in
recent years as evidenced by the publication of a book on the topic (Varma et al., 2008),
a special issue of the European Journal of International Management (Claus & Briscoe,
2008), a state of the field review in the International Journal of Management Review
(Claus & Briscoe, 2009a) and a special symposium at the International HR conference
(Claus & Briscoe, 2009b). Academic research on international performance management
has maintained a dual focus: (1) the management of performance of employees of a
multinational enterprise operating around the world (referred to as global performance
management); and (2) the performance management of international assignees (referred
to as expatriate performance management). While there is a well established body of
knowledge in the U.S. literature on performance management, how these findings extend
to the evaluation of the performance of international assignees is much less robust. It
has been pointed out that the context in which the international assignees fulfill their job
expectations and perform is far more complex in an international environment than a
domestic one (Gregersen & Hite, 1996; Suutari & Tahvanainen, 2002). This is mainly due
to the unfamiliar environment in which that job must be done. Hence, a particular focus
of expatriate performance management research is looking at predictors of expatriate
job performance and the link between employee adjustment and performance (Black
& Gregersen, 1991a; 1991b; Caligiuri, 2000; Caligiuri & Lazarova, 2002.). In previous
empirical research on expatriate performance management, we can discern three distinct
250 International Journal of Management Vol. 28 No. 1 Part 2 Mar 2011
streams of research, each focusing on a different level of analysis. The first stream is at
the individual (macro) level and focuses on personality and personal characteristics of
international assignees. The second stream is at the organizational level and focuses on
organizational contextual characteristics and HR processes. The third stream focuses
on the societal (macro level) and the much broader cultural and institutional context
of expatriate performance management. All three levels of analysis have informed our
evidence-based understanding and global HR practice.
The purpose of this paper is to contribute to the international HR body of knowledge
and practice by identifying predictors of expatriate job performance. Several theoretical
perspectives have been used in previous research on expatriate performance management.
Building on this research, we have developed an eclectic conceptual framework that looks
at multiple predictors of expatriate adjustment and job performance at the various micro,
meso and macro levels of analysis. From this conceptual framework, we developed a
multiple hypotheses.
We make a number of important contributions to the body of knowledge by integrating
three different levels of analysis into a coherent framework and systematically proposing
a number of hypotheses at each level as well as at the interplay level. We also lay the
groundwork to increase the explanatory power of antecedents in terms of expatriate job
performance. Finally, we indicate which areas need future research focus because gaps
in our understanding of the complexity of expatriate job performance.
This conceptual paper is organized as follows: First, we review the existing theoretical
perspectives that have been used in previous research and we tease out the variables that
make explanatory contributions at the different levels of analysis. Second, we develop
our own conceptual framework and justify our hypotheses focusing on the interplay
between the different levels. Third, we discuss implications for future research in this
important area of global HR.
Theoretical Perspectives on Expatriate Job Performance
We reviewed the major theoretical explanations that have been advanced in the literature
that help explain the performance of international assignees. Although a wide range of
theoretical perspectives have been used to explain and predict expatriate performance,
the explanations are not meant to cover all possible theories but to identify the major
variables that predict the performance of international assignees. Existing theoretical
perspectives around expatriate performance range from a micro individual perspective
to macro cultural explanations perspective.
A first stream of theoretical frameworks focuses on personality characteristics of the
international assignee. In reviewing the work of a number of researchers (Arthur &
Bennett, 1995; Mendenhall & Oddou, 1985; Hammer et al., 1978; Dinges, 1983; and
Church, 1982) that have made the connection between personality characteristics and
expatriate success compared to the Big Five, Caligiuri (2000a) points to two reasons why
the theory of evolutionary psychology can be applied to expatriate success. First, because
variations along the Big Five personality dimensions allow for individuals successfully
International Journal of Management Vol. 28 No. 1 Part 2 Mar 2011 251
filling different niches or position, and second, because the big five are universal adaptive
mechanisms that can be applied regardless of the individual’s nationality or assignment
country (Caligiuri, 2000a). Mol et al. (2005a) argue that since the five personality
factors model has shown to be invariant (cf. Ones & Anderson, 2002; Salgado et al,
2003), personality psychology is making a comeback in the context of the selection of
expatriates. Shaffer et al. (2006) take the personality dimensions a step further and build
a model of expatriate effectiveness based on individual differences (including the big
five as stable dispositions and cultural flexibility, task orientation, people orientation
and ethnocentrism as dynamic competencies and using them together as predictors of
adjustment, withdrawal cognitions, and performance.
A second stream of theoretical frameworks looks at culture shock and cultural adjustment
(or the lack thereof) of the international assignee and his/her family. According to Black
and Gregersen (1991a), the theoretical framework for cross-cultural adjustment lies
primarily in the concept of culture shock which is linked to the creation of uncertainty.
Cross cultural adjustment is the reduction of uncertainty by learning which behaviors
are appropriate in the new culture and which ones are not. This holds for the spouse as
well (Black and Gregersen, 1991b). Pre-departure training and previous international
experience reduce the uncertainty and allow for greater cultural adjustment. While we
intuitively agree with Cui and Awa’s (1992) seemingly logical argument that employees
who do not adjust to the host culture will not be effective in their performance. Yet,
according to Tucker et al. (2004), the widely held assumption that cultural adjustment
and expatriate job performance are linked is not obvious in terms of empirical research
results.
A third stream of theoretical frameworks looks at person-environment fit, role transition,
and whether expectations of international assignees are met. The person-environment fit
looks at the compatibility between a person and his/her environment (Kristof-Brown,
et al., 2005). The fit (or lack thereof) can be with the job, culture, people, supervisors,
and organizations. With international assignees, we can see how the degree of fit with
the organization, people and culture may affect their performance. Therefore, the
more closely the person fits the cultural norms of the host society, the more positive
the interactions will be with host nationals as well as the host culture (Jun & Gentry,
2005). Role transition theory explains how individuals change in order to meet the
role requirements of the new environment (Shay & Baack, 2006; Caligiuri et al. 2001)
propose that the more congruent an individual’s expectations are with his/her reality
once on the job, the greater the individual’s satisfaction and adjustment will be.
A fourth stream of theoretical frameworks emphasizes the importance of social capital
and social network in adjustment and performance of international assignees. Osman-
Gani and Rockstuhl (2008) summarize existing empirical expatriate studies that used
a social network approach to explain a number of factors such as psychological well-
being, adjustment, socio-cultural adjustment, knowledge transfer and job performance.
The assumption with regard to social networks is that they provide social support to
expatriates who use the size and quality of their networks while on assignment to help
them with adjustment and improved performance (Harrison et al, 2004; Wang & Nayir,
2006; Liu & Shaffer, 2005).
A fifth stream of theoretical framework, and the most voluminous one, focuses on
culture. It is widely-accepted that culture matters in HR practices. Cultural differences
and the need for cultural fit have been proposed as the major reasons for customizing
PM systems in companies operating across borders. The concepts of cultural distance has
been studied extensively and proposed as an explanation for differences in management
practice (Gomez-Mejia & Palich, 1997; Rosenzweig & Nohria, 1994; Tung, 1998). A
lack of geographic and cultural contiguity (or closeness) creates a distance between
two locations that impacts the acceptability and familiarity of management practices.
As cultural distance increases, the difficulties increase. While cultural value dimensions
are prominent, the overall cultural distance between home (where the international
assignee leaves from) and host (where the international assignee works) receives no
specific attention in the literature with the exception of Cascio (2007) who proposes
a hypothesis relating cultural distance to the use of multiple raters for expatriate
performance appraisal.
A sixth and final stream of theoretical frameworks is based on institutional theory. The
institutional perspective emphasizes isomorphism and looks at the dual pressures from
at least two institutional environments, namely the home and host countries (Xu et al,
2004). This approach emphasizes differences in governance structures and the notion of
institutional distance. Mauer and Li (2006) propose that the working relations between
expatriates and host nationals is impacted by different governance environments (i.e.,
rule-based versus relationship-based) of the home and host countries. The institutional
distance (regulative, normative and cognitive) between the home country of the
international assignee and the host country where the expatriate must perform (Xu and
Shenkar, 2002) may impact job performance.
Conceptual Framework and Hypotheses
Based on previous research that has looked at expatriate job performance from a number
of different perspectives and levels of analysis, and the different streams of theoretical
frameworks that have been used, we propose a comprehensive model for predicting
expatriate job performance. While previous research on this topic has reached a certain
level of maturity at each specific level, none has looked at expatriate job performance at
the aggregate level combining individual, organization and societal variables and their
interplay as predictors. In our conceptual framework, we posit that the antecedents of
expatriate job performance lie at the interplay of individual, organization and societal
levels, each predicting an expatriate’s ability to adjust and perform in the international
context of their assignment.
Building on previous research, we derived a number of hypotheses from our conceptual
framework. The hypotheses are at the individual level (dimensions related to personality,
and self-efficacy dimensions, cultural sensitivity, language ability, job competency,
international experience, social networks, and demographics), at the organizational
level (dimensions related to selection, cultural training and preparation, performance
management process, and organizational context), and the societal (dimensions of cultural
and institutional distance, host-home combinations) level of analysis.
Individual Level Hypotheses
At the individual level of the international assignee, previous research indicates the
importance of a number of dimensions related to personality characteristics, cultural
sensitivity, language ability, job competency, international experience, and social
networks.
Personality characteristics
A number of studies have looked at the relationship between the big five personality
dimensions (extraversion, emotional stability, agreeableness, conscientiousness, and
openness) and job performance. This has been thoroughly studied in the domestic context
but only more recently in the expatriate context. One of the factors that contributed to
the development of this gap between domestic and expatriate research is the decline of
personality theories in 1960s (cf. Mol et al., 2005a). However, there are a few studies that
have addressed the topic of personality and culture (e.g. Church, 2000), or the topic of
big five dimensions and expatriate job performance (Arthur & Bennett, 1995; Caligiuri,
2000a; Ones and Viswesvaran, 1997; Jordan & Cartwright, 1998; Mol et al., 2005a;
2005b). While Church (2000) concluded that personality traits can be valid predictors
of societally relevant criteria across cultures, Caligiuri (2000a) looked at the correlations
between the Big Five dimensions and supervisor-rated job performance of expatriates
and their results indicated positive correlations for four of the five dimensions. This
line of research was further continued by Mol et al. (2005a), who also concluded that
extraversion, emotional stability, agreeableness and conscientiousness relate positively
to expatriate job performance. Their results also did not support the correlation between
the fifth dimension (openness) and expatriate job performance, thus contradicting the
suggestions made by Caligiuri et al. (1998), and Jordan & Cartwright (1998). However,
since their findings were tested in a domestic context, the exception further contributed
to the advancement of the key conclusion that the domestic and expatriate findings
concerning the relationship between all the big five personality dimensions do not differ.
Ones & Anderson (2002) as well as Salgado et al. (2003) have studied the variance of
the Big Five model across cultures and concluded that it is invariant. This invariance
becomes critical when considering the strength of the relationship between personality
and performance management. According to the literature review done by Cheng & Lin
(2008), at the individual level, expatriate research emphasizes personality, along with
motivation, job adjustment, cultural adaptation, and family support. All these studies
provided support for the formulation of our first hypothesis:
Hypothesis 1: The higher the scores on the Big Five personality dimensions, the higher
the expatriate’s job performance.
A second personality dimension focuses on self-esteem and self efficacy as they relate
to performance. A number of studies support the idea that there is a positive correlation
between self-esteem and performance. People with low self-esteem scores had lower
performance, absenteeism, and job search intentions than those with high self-esteem
Figure 1: Expatriate Adjustment and Job Performance Model
INDIVIDUAL LEVEL
Personality
Personal Characteristics
ORGANIZATIONAL LEVEL
HR Processes
Organizational Adjustment Expatriate Organizational
Characteristics Job Performance
Performance
SOCIETAL LEVEL
Contextual Factors
Figure 2: Expatriate Performance Hypotheses
H1a,b H5
INDIVIDUAL Personality dimensions Job-speciﬁc competencies
LEVEL
cs
H6a,b
H2a,b Previous int’l experience
i
Self-efﬁcacy
ph
Personality
ra
Personal
og
Local language ability H4a,b

em
Characteristics Social networks

D
H7a,b Global mindset/

H3a,b H8
cultural sensibility
H21 H9
Selection H10b
H10a
Training & preparation
ORGANIZATIONAL H11
Expatriate Organizational
LEVEL PM process Adjustment
HR Processes What? How? when? How often? H22 Performance H23 Performance
Standardized vs localized
Organizational
H21
Characteristics Organizational context
Control vs autonomous DM
H13
Size of compny/host unit
a,b
H16 Level of internationlizationH14 H12a H12b
H21 H15 Position of the expat
Centralization vs. decentralization
H17a H17b
Cultural distance
SOCIETAL H18a H18b
LEVEL Institutional distance
Contextual H19a H19b
Factors Rule vs relationship-based
H20a H20b
Level of development
scores. Those with high self-esteem scores reported greater job satisfaction than low
self-esteem scores in response to frequent task-derived performance feedback (Renn &
Prien, 1995). While there are few studies on the relationship between self-esteem and
job performance (at an individual and group level), none of them was found to address
the topic in the context of international assignments. The concept of self-efficacy was
used instead of self-esteem, since the latter one is more specific in the sense that it
represents a person’s perception of their ability to reach a goal, without being weighted
by the importance this person’s attributes to the achievement of that goal, as in the case
of the self-esteem (Bandura, 1997). The contribution that self-efficacy is making to
performance has already been documented in a meta analysis (Stajkovic & Luthans,
1997; 1998). Over 20 years of research revealed a strong positive relationship between
self-efficacy and performance. Specifically, studies have shown that the higher the
person’s self-efficacy, the more likely he or she will be to initiate tasks, sustain effort
toward task accomplishment, and persist when problems are encountered or even in the
face of failure (Bandura, 1986; 1997; Stajkovic and Luthans, 1997; 1998). The meta-
analysis by Stajkovic and Luthans (1998) found an average weighted correlation of 0.38
between self-efficacy and work-related performance which transforms into an impressive
28 percent increase in performance. Comparatively, self-efficacy has been shown to be
a better predictor of work-related performance than traditional workplace attitudes (e.g.,
job satisfaction and organizational commitment), personality traits, level of education,
training and skill, goal setting, and feedback interventions (cf. Stajkovic and Luthans,
1997; 1998). Further, the proposition that self-efficacy is positively related to the diversity
and sparseness of the expatriate’s social network (Osman-Gani & Rockstuhl, 2008) and
the expatriate’s self-efficacy being considered as an antecedent for expatriate’s social
network characteristics, which further impacted the expatriate’s job performance, led
us to the development of the second set of hypotheses:
H2a: The higher the self-efficacy of the expatriates, the lower the time of adjustment.
H2b: The higher the self-efficacy of the expatriates, the higher the expatriate’s job
performance.
Cultural Sensitivity
Cultural sensitivity is defined as “an individual’s ability to develop a positive emotion
towards understanding and appreciating cultural differences that promotes appropriate
and effective behavior in intercultural communication” (Chen & Starostam, 2000, p. 409).
The fact that expatriates need to adjust their behavior to new cultural environments in
order to reduce job uncertainty and stress was signalized by Shin et al. (2007) and also
by Adler (1997). The concept of cultural sensitivity is another personal characteristic
that was studied in the context of expatriate job performance (Mol et al., 2005a) and
the results of the meta-analytic and quantitative review of expatriate job performance
correlates indicated that of the expatriate context-specific predictors that were examined,
cultural sensitivity in particular showed a relatively strong and positive relationship
with job performance (r=24). The ability to thrive on cross-cultural complexity in an
international assignment is often equated with having a global mindset. According to
Javidan et al. (2010), the global mindset has three main components (intellectual capital
or knowledge of international business and the capacity to learn; psychological capital or
openness to different cultures and the capacity to change; and social capital or the ability
to form connections, to bring people together and influence stakeholders), each defined
by three specific attributes as measured by the Global Mind-Set Inventory (Javidan et
al., 2010). The hypotheses developed tried to add to these research results by focusing
on cultural sensitivity.
H3a: The greater the cultural sensitivity of the expatriate, the greater the cultural, role
and family adjustment.
H3b: The greater the cultural sensitivity of the expatriate, the greater the expatriate’s
job performance.
Language ability
Similarly to the case of cultural sensitivity, research studies have considered the local
language ability as a predictor of expatriate’s job performance (Guthrie & Zektick, 1967;
Schneider, 1997; Kraimer et al., 2001; Volmer & Staufenbiel, 2003; Tucker et al., 2004;
Mol et al., 2005a). Some of the above studies also took into consideration the ability to
speak English because of it being the most common language spoken in international
assignments. Yet, the results did not confirm a correlation between this English language
ability and expatriate job performance. As a result, we advance the following hypotheses
focused on local language knowledge:
H4a: The greater the local language ability of the expatriate, the greater the
adjustment.
H4b: The greater the local language ability of the expatriate, the greater the job
performance.
Competencies
Human capital or ‘the individual’s cumulative abilities, knowledge and skills developed
through formal and informal education and experience’ (Pil & Leana, 2009) plays a major
role in an individual’s performance. Therefore, it is not surprising that competencies and
job adjustment are two of the themes most frequently reflected in the literature review of
expatriate performance (Cheng & Lin, 2008, Aycan, 2000, Mendenhall & Oddou, 1985).
Research has not only focused on expatriate’s job competencies and their impact on
adjustment and performance, but also on the impact of the job competency of host country
nationals. From a social capital perspective, the host country nationals’ intercultural
competencies were seen as positive predictors of expatriate adjustment and performance
(Liu and Shaffer, 2005) However, the same study did not find support for the hypothesis
that the perception of host country nationals’ job performance is a positive predictor of
expatriate adjustment and performance. These different results illustrate the importance
of separating concepts like perceived job-specific competencies and job performance.
This may further imply a need for differentiation between before and after assignment
performance evaluation. International assignees that have high job-specific competencies
should adjust easier to the new job, which is reflected by the role adjustment. All these
considered, the following hypothesis is advanced:

H5: The greater the job-specific competencies of the expatriate, the greater the role
adjustment to the job novelty.
In addition to competencies, other individual level attributes related to adjustment
and international assignment success are relationships, motivational state, family, and
language skills (Black et al., 1992a; Mendenhall & Oddou, 1985)
Previous International Experience
Previous job experience is a key element in the domestic selection process. Work
experience helps builds tacit knowledge that is valuable for job performance. Numerous
studies have extended this at international level and provided support for advancing a
hypothesis regarding the positive correlation between previous international experience
and expatriate job performance (Aycan, 1997, Schneider, 1997, Sinangil & Ones, 1997,
Torbiörn, 1997, Wang, 2001, Bell & Harrison, 1996, Grösch, 2004, Tucker et al., 2004).
However, Mol et al. (2005a) tested this hypothesis empirically and it was not supported
by their results. Their suggestions for further research were that this result was caused
by implicated moderators. At the same time, since the literature review suggests that
expatriate job performance is moderated by adjustment, adjustment was included as a
moderator between previous international experience and expatriate performance. While
previous international experience is traditionally assigned to the context-specific variables
category, for the present study macro contextual factors were seen as factors acting at
societal level so previous international experience was included into the individual level
variables. However, the moderator was placed at the organizational level. In profiling
various types of international assignments (Claus et al., 2004) a more recent trend is that
organizations often have to rely on the same assignees to go on multiple assignments
and are redeploying them rather than repatriating them to the home country. This is
partially due the shortage of employees willing to accept an international assignment
and the desire of people who have been on assignment to be redeployed. The following
hypothesis is proposed:
H6a: The greater the previous international experience, the greater the adjustment.
H6b: The greater the previous international experience, the greater the expatriate job
performance.
Social Networks
Various research studies were conducted on the topic of the importance of social networks
(e.g., relational ties of the international assignee with family, other expatriates, co-workers,
locals, mentors and coaches) for expatriates (Au & Fukuda, 2002, Thomas, 1994, Wang,
2002). Still, until a few years ago, there were not many studies about the impact of social
networks on expatriate’s performance (Liu & Shaffer, 2005, Osman-Gani & Rockstuhl,
2008). The literature review indicated that social learning and social capital are the two
main theoretical approaches regarding the expatriates’ social networks, with adjustment
being the explanatory goal in the majority of the cases (Osman-Gani & Rockstuhl, 2008).
The role of social networks in supporting the expatriate’s intercultural adjustment and
performance lies mainly in providing a resource flow. According to Osman-Gani &
Rockstuhl (2008), social networks help the expatriate in terms of reducing role ambiguity,
increasing individual coping capabilities and ensuring sufficient social support. The same
authors observe that there are inconsistent results regarding the effects of expatriates’
social networks and believe that current research on expatriates’ social networks might
underutilize the potential of these approaches. Their conceptual framework included
neuroticism, extraversion, openness, meta-cognition, and self-efficacy as antecedents,
tie strength, number of high-performers, diversity, and sparseness as social network
characteristics, and job performance as one of the outcomes. Building on their typology
of research on the expatriate’s social network approach, the hypotheses developed for
the present study use either the adjustment or the performance variation as explanatory
goals, concentrate on the size and strength of the social network and look at outcomes
like job performance and adjustment:
H7a: The greater and more active the social network of the expatriate, the greater the
cultural, job role and family adjustment.
H7b: The greater and more active the social network of the expatriate, the greater the
job performance.
Demographics
Gender is by far the most studied demographic variable in terms of expatriation,
perceptions, adjustment and performance (Adler, 1987; 1993, 1997; Caligiuri and Tung,
1999). This is not surprising since women are underrepresented in expatriate assignments.
Our hypothesis with respect to demographics is more exploratory and aims at identify
other possible significant demographic differences related to age, marital status, presence
of spouse and children in addition to gender.
H8: There will be several significant differences in the relationship of demographics and
the other variables in our explanatory model.
Organizational Level Hypotheses
At the organizational level of the international assignee, previous research indicates the
importance of a number of dimensions related to selection, preparation, performance
management and other organizational characteristics.
Expatriate Selection
Many of the research studies conducted on the expatriate’s job performance aimed at
improving the criteria for selecting the international assignees (Caligiuri, 1997; Caligiuri,
2000b; Jun & Gentry, 2005; Mol et al., 2005a; Cheng & Lin, 2008). Cheng & Lin (2008)
summarized expatriate selection criteria in five broad categories (job factors, relational
dimensions, motivational state, family situation, and language skills). They placed
personal abilities (many dimensions which have been discussed above) as having a
dominant influence on overseas performance. Yet, selection criteria are primarily based
on technical/functional expertise combined with the willingness of the assignee (and
family) to accept the assignment (Mendenhall et al. 2002, Harvey & Novivevic, 2001)
with little concern for the assignees ability to perform the job in a very different context
while on assignment. Harrison & Shaffer (2005) and Semler (2001) suggested that
multinational corporations should focus more on comprehensive selection criteria. Since
selection criteria have a strong impact on expatriate performance, a need was identified
for assessing the impact of each individual characteristic included in the study on the
selection decisions. Also, considering the individual level variables used for this research,
the following hypothesis is advanced in order to test whether or not personal abilities
also have a significant impact on the selection of international assignees in MNCs:
H9: Expats with high scores on the assessed individual characteristics (Big-Five
personality dimensions, self-efficacy, job-specific competencies, language ability, cultural
sensitivity, and previous international experience) are more likely to be selected than
those with low individual characteristics.
Preparation
Comprehensive training efforts represent one of the key upstream considerations for
effective global performance management (Vance, 2006). Consequently, training and
preparation account for a big part of the international assignments expenses, which is
why assessing the effectiveness of those practices has gained increase interest in the
research literature of the past years (Tucker et al., 2004, Jun & Gentry, 2005, Cheng &
Lin, 2009). Considering the hypothesized correlation between cultural sensitivity and
expatriate job performance, cultural training and preparation is one of the antecedents
that can be used to increase cultural sensitivity (Mol et al., 2005a). Comparable lines
of research have also established directions for training and development interventions.
On one hand, suggestions included focusing on improving the match between the skills
and predispositions of the expatriate and the working relationship environment likely
to be encountered while on assignment (Maurer & Li, 2006). On the other hand, the
enhancement of those competencies that led to desired network characteristics was
seen as playing a very important role (Osman-Gani & Rockstuhl, 2008). No matter
which direction is taken, assessing the impact of cultural training and preparation on
the expatriate’s adjustment and job performance remains of critical importance. Based
on this, the following hypotheses are enunciated:
H10a: Expatriates who received cultural training and preparation will have greater
adjustment than those who did not receive training.
H10b: Expatriates who received cultural training and preparation will have greater job
performance than those who did not receive training.
Performance Management Processes
The process of performance appraisal itself has been illustrated in two empirical studios
(Gregersen et al, 1996; Suutari & Tahvanainen, 2002). Suutari & Tahvanainen (2002)
emphasize the importance of managing expatriate performance ‘well and efficiently’ and
focus on the importance of the performance management process.
Attention to the performance process itself relates to answering a number of questions

(what? who? how? when? how often?) in the performance appraisal process of the
international assignee (Briscoe et al., 2008).
• What types of performance goals/expectations are set and communicate by whom?
• What performance appraisal procedures should be used?
• Who does the performance appraisal?
• When should the appraisal be done in terms of giving the international assignee
sufficient time to adjust?
• How frequently should appraisals be done compared to domestic performance
appraisals?
The performance appraisal process of international assignees has been discussed in
terms of three phases, namely design, implementation and evaluation (Briscoe et al.
2008; Briscoe & Claus, 2008). It is our assertion that the processes that HR designs,
implements and evaluates for the performance of its international assignees matter in
terms of expatriate performance. Hence, the way in which HR manages these processes
should have an impact on how well performance is evaluated, feedback is provided, and
for performance improvement achieved.
H11: The performance management processes that HR designs, implements and
evaluates for the performance appraisal of its international assignees affect expatriate
performance.
Organizational Context Dimensions
The organizational context of expatriate performance management has been investigated
in a study by Suitari & Tahvanainen (2002). They focused on the importance of a
number of organizational context variables such as company and host unit size, level
of internationalization, position of the expatriate, host unit location and organizational
structure). Our hypotheses are directly derived from that study among Finnish
expatriates.
H12a: The greater the individual decision-making control of the expat the greater the
adjustment
H12b: The greater the individual decision-making control of the expat the greater the
job performance
H13a: The larger the size of the company the more likely the company will have formal
PM practices
H13b: The smaller the size of the host unit, the less likely formal procedures will be
used
H14: The greater the level of internationalization, the more likely the company will
have formal PM practices
H15: The higher the position of the expat, the most likely the assignee will have a
formal PA.
H16: The type if organizational structure (centralized vs. decentralized) will determine
whether the PM system is standardized or localized
Societal Level Hypotheses
At societal level, previous research indicates the overwhelming importance of cultural
factors in performance management and cultural theories have predominantly been used
to explain performance management practices. National culture, usually described in
terms of cultural value dimensions (Hofstede, 1980; Trompenaars and Hampden-Turner,
1992) is complex “since they frequently operate in concert with complex and surprising
forms of influence on workplace behavior” (Vance, 2006). The international assignees
usually perform his/her work in a country with a different cultural and institutional
context. Using social identity theory, Varma et al. (2009) propose that there are salient
and relevant differences between home country nationals and expatriates on a number of
visible dimensions that lead to home host categorization. With regard to culture, we focus
on the interplay of home and host country combinations regarding cultural distance, rule
vs. relationship orientation, institutional distance and level of development on expatriate
adjustment and performance.
Cultural Distance
Cultural distance or the difference between the ‘host’ and familiar ‘home’ cultures has
been used as an explanatory factor in global performance management (Claus and
Hand, 2009). Cultural distance is also the source of ‘culture shock’ experienced by the
international assignees in terms of adjustment to the host country and ‘reverse culture
shock’ upon repatriation (Black et al., 1992b). Both adjustment and readjustment issues
are likely to affect performance of the assignee. As a result, we formulate the following
hypotheses:
H17a: The greater the cultural distance between home and host the lower the
adjustment
H17b: The greater the cultural distance between home and host the lower the job
performance
Institutional Distance
While culture is obviously an important element in adjustment of the international
assignee and represents the basic assumptions, values and norms of a society, we learn
from sociology that values and norms are institutionalized in society. We therefore also
look at the different ways cultures have created institutions in society and the ability of
the international assignees to cope with how things get done in a different institutional
context. The notion of institutional distance, in addition to cultural distance, has received
attention in the management literature (Kostova, 1997; 1999; Kostova and Zaheer,
1999; Xu and Shenkar, 2002). The following hypotheses take into the difficulty that the
international assignee may have to make sense of the institutional context.
H18a: The greater the institutional distance between home and host the lower the
adjustment.
H18b: The greater the institutional distance between home and host the lower the job
performance.
Most studies using cultural and institutional distance (as used in hypotheses 17a, 17b and
18a, 18b) imply a non-directional distance between home and host countries. Limited
attention has been paid to the direction of that distance. In the following hypotheses,
we look at a particular element of culture (namely whether the culture is rule-based
vs. relationship-based; whether the market is emerging or developed) and relate the
movement from one type of cultural and institutional setting to another. As a result, we
take into account the direction of the distance.
Rule vs. Relationship Orientation
Mauer & Li (2006) explored expatriate role success in the context of different governance
environments. In the following hypotheses, we imply a direction to the cultural and
institutional distance by using the notion of rule-based versus relationship-based societies.
A rule-based society focuses on public ordering, or the rule of law to govern business
excluding the use of private relationships to circumvent public rule, while a relation-
based society focuses on private relations to govern business, circumventing public
rules (Mauer and Li, 2006). We assert that functioning in a different type of society and
the movement from one type of another will affect adjustment and performance of the
international assignee. The rationale we employ is that an international assignee who
is used to operate in one type of normed society (predominantly rule or relation-based)
will have more difficulty operating in another type. We use a two-dimensional low/high
quadrant to illustrate the direction.
H19a: Home-host combination 1(relationship-based/relation-based) and 3 (rule-based/
rule-based) will be more successful in terms of adjustment than Home-host combination
2 (rule-based relationship) and 4 (relation-based/rule based)
Figure 3. Home-Host Combinations
Host
Emerging/ Developed/
Relation-based Rule-based
Emerging/ 1 4
Relation-based
Home
Developed/
Rule-based 2 3
H19b: Home-host combination 1(relationship-based/relation-based) and 3 (rule-based/

rule-based) will be more successful in terms of expat performance than Home-host
combination 2 (rule-based relationship) and 4 (relation-based/rule based)
Level of Development
We assert that the differences in level of development between home and host countries
(broadly classified as emerging vs. developd) influences expatriate adjustments and job
performance. Most research on expatriation implies that the direction of international
assignee movement is from ‘developed’ to ‘less developed’ country. Yet the current
movement of international assignees, not only includes inpatriates to the headquarters
but is, in a global environment, becoming more multidirectional, and can be from
‘anywhere/any country to anywhere/any country’ (Briscoe et al., 2008). Using a similar
two-dimensional low/high quadrant to illustrate the direction, we develop the following
hypotheses:
H20a: Home-host combination 1(emerging/emerging) and 3 (developed/developed) will
be more successful in terms of adjustment than home-host combination 2 (developed/
emerging) and 4 (emerging/developed)
H20b: Home-host combination 1(emerging/emerging) and 3 (developed/developed)
will be more successful in terms of expat performance than home-host combination 2
(developed/emerging) and 4 (emerging/developed)
Interplay Hypotheses
A last set of hypotheses looks at the interplay between the variables at the three different
levels of analysis (individual, organizational and societal) as well as the relationship
between expatriate adjustment and performance.
Levels of Analysis Interplay
Based on previous research and the logic presented above, each level of variables
contributes our understanding of expatriate job performance. Suggestions for a profile of
an ‘ideal overseas expat/ have been proposed as early as 1974 (Phatak, 1974). Although it
appears that, according to Mol et al, 2009) such an instrument should focus on expatriates’
extraversion, emotional stability, agreeableness, conscientiousness, local language ability,
cultural sensitivity, cultural flexibility, social adaptability, ego strength, interpersonal
interest, tolerance for ambiguity, ethnocentrism, task leadership, and people leadership,
it may be premature to propose an ideal profile of a successful international assignees. In
addition, demographics (especially gender) have also shown to play a role (Adler, 1997;
1993; Caligiuri and Tung, 1999). In order to develop such an expat profile, assessing
which types of predictors are more important is extremely important. On one side, the
role of personal level predictors is still unclear, with opinions ranging from being the
most important category of predictors (Cheng & Lin, 2008) to having only a moderate
correlation with overall job performance (Barrick & Mount, 1991). On the other hand,
the common practices employed when selecting international assignees include more
behavioral-oriented criteria and simply generalizing the domestic results to the expatriate
context might result in criterion deficiency (Mol et al., 2005b). Furthermore, according to
Sinangil and Ones (2001) what distinguishes expatriate jobs from other high complexity
and high responsibility jobs is an added element of complexity by the intercultural
environment in which the jobs are performed. This emphasizes the importance taking
into account variable at each level of analysis. In order to address these differences in
opinion regarding the significance of individual, organizational, and societal predictors,
the following hypothesis is proposed:
H21: Each level of predictors (individual, organizational, and societal) contributes to
explaining expatriate job performance.
Expatriate Adjustment and Performance Interplay
The literature review indicated that the majority of articles were considering job
performance in the expatriate context or adjustment and job performance, but the
expatriate’s adjustment was rarely considered by itself (Tucker et al., 2004, Liu &
Schaffer, 2005, Shay & Baack, 2006, Osman-Gani & Rockstuhl, 2008). Although previous
research favors using adjustment as an important predictor of expatriate success, the
empirical validation of this relationship has been the subject of intense debate over the
past decades (Benson, 1978; Cui and Awa, 1992; Arthur and Bennett, 1995; Hechanova,
et al., 2003; Tucker et al, 2004; Bhaskar-Shrinivas et al, 2005.) But, as Tucker et al (2004)
state, “the relationship between intercultural adjustment and job performance among
international assignees is complex and not very well understood.” There seems, however,
to be a logical assumption that one needs to adjust as an international assignee in order to
perform. Interestingly enough, when concentrating on expatriates’ social networks, the
research was largely focused on adjustment instead of job performance (Osman-Gani &
Rockstuhl, 2008). According to Tucker et al. (2004), the relationship between adjustment
and job performance in expatriate context is complex and not very well understood.
While it is generally agreed that the two concepts are logically linked, empirical research
still lacks proofs of the exact linkage between them. In order to address this gap a key
element in the research framework developed is the role of adjustment as a predictor of
job performance. Consequently, the following hypothesis is proposed:
H22: Adjustment is a predictor of expatriate’s job performance.
Organizational and Expatriate Performance Interplay
One of the key shortcomings of research focused on employee performance outcomes is
the failure to link employee performance to organizational performance. The same can
be said for organizational performance research that fails to link to the performance of
individual employees. We, therefore suggest a hypotheses that relates individual with
organizational performance.
H23: Expatriate’s job performance predicts organizational performance..
Conclusions and Implications
The majority of the hypotheses developed here are building on previous research
directions. Yet, some of the hypotheses were never brought into discussion in the
expatriate context. To our knowledge, there are no empirical studies that have studied
expatriate performance management either at one company (with a few exception such
as the study of expatriate performance management at Nokia by Tahvanainen (2000),
simultaneously at all there levels of analysis, or in the different sectors (for profit, not-
for-profit, and public). Ascertaining which predictors (individual, organizational or
societal) are more powerful in contributing to expat performance is valuable from the
point of view of academic research as well as global HR practice. From an academic
research perspective, it integrates separate explanations of expatriate performance into
a comprehensive framework and allows us to explain the relative contribution of each.
From a global HR practice perspective, it allows organizations to intervene on the
most important aspects of expatriate success in preparing and supporting international
assignees.
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International Journal of Management

Vol. 28 No. 1 Part 2 Mar 2011 249

The Effects of Individual, Organizational and Societal

Figure 1: Expatriate Adjustment and Job Performance Model

Figure 2: Expatriate Performance Hypotheses

Local language ability H4a,b

Characteristics Social networks

H7a,b Global mindset/

considered, the following hypothesis is advanced:

Attention to the performance process itself relates to answering a number of questions

Figure 3. Home-Host Combinations

H19b: Home-host combination 1(relationship-based/relation-based) and 3 (rule-based/

Human Resource Management Review, 19 (3): pp. 251-262.

Grösch, N. (2004). Validation of Biodata Inventory for Expatriate Selection: Assessing

Kristof-Brown, A.L., Zimmerman, R.D. and Johnson, A.C. (2005). “ Consequences of

Renn, R.W. & Prien, K.O. (1995). “Employee

Torbiörn, I. (1997). “Staffing for international operations.” Human Resource Management

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