EXPATRIATE REMUNERATION

What Is Effectiveness of Expatriate Remuneration on Job Satisfaction



Abstract

This study is based on the premise that, as organizations gain experience in the international marketplace, the determinants of job satisfaction for expatriate managers will vary. It is hypothesized that significant learning, manifested in firm international experience, will moderate the effects of work/life experience, mentorship, training and environmental benevolence. Findings partially support this theoretical argument and confirm the expectation that the impact of mentoring on satisfaction will lessen over the course of firm internationalization. Further, the impact of training on expatriate satisfaction was more pronounced for highly internationalized firms than for those with limited exposure abroad. Results of the empirical tests are provided, and their implications are discussed.

Table of Contents

Abstract2

CHAPTER I4

Introduction4

Background of the Study5

Purpose of the Study6

The primary purpose of the study is to assess the determinants of expatriate satisfaction as companies gain experience overseas.7

Hypothesis7

CHAPTER II8

Theoretical background8

Firm international experience8

Moderating relationships12

CHAPTER III15

Proposed Methods15

Data collection and sample15

Measures16

Satisfaction16

Work/life experience16

Mentorship16

Expatriate training17

Environmental benevolence17

Degree of internationalization18

Proposed list of References21

CHAPTER I

Introduction

A significant challenge underlying geographic expansion is the greater need for coordination and control toward the achievement of an efficient, integrated organization (Bartlett and Ghoshal, 2009; Reich, 2009). One avenue for multinational corporations (MNCs) to obtain and maintain this integration is through expatriation, or the assignment of home-country managers to overseas subsidiary locations (Boyacigiller, 2009). A potential advantage of expatriation is the organizational learning that is facilitated by the expatriate's experiences overseas (Boyacigiller, 2009), and thus expatriation is a tool by which organizations can gather and maintain a resident base of information about the complexities of international management. However, some organizations remain too detached from the local influences to glean this knowledge (Perkins and Hendry, 2009). While organizations may perceive expatriation as an attractive method for accumulating foreign market knowledge and for facilitating organizational renewal (Mayrhofer, 2009), the enormous investment involved in this type of strategy challenges the organization to select, retain and successfully repatriate the appropriate individual through sound human resource management policy (Bonache and Brewster, 2009). Therefore, factors contributing to the successful expatriate experience are of significant interest to MNCs.

The growing body of literature recognizes the need to facilitate expatriate experiences, particularly through the enhanced cross-cultural adjustment of the expatriate and his or her family (Black, 1988; Black and Gregersen, 2009; Black and Stephens, 2009). While cross-cultural issues are unique to the international setting, Naumann (2007) points out that other attitudinal dimensions (e.g. job satisfaction and organizational commitment) have been more prevalent in the domestic organizational behavior literature, particularly as predictors of turnover and hence organizational effectiveness. Therefore, identifying factors which enhance satisfaction could potentially reduce the number of expatriate failures, or premature returns, from overseas assignments. Naumann further notes that “there appears to be no reason that satisfaction's relationship to turnover should be weaker in the international context”. A logical step, then, in extending our research in organizational behavior to the international arena would be to pay close attention to expatriate job satisfaction. And of particular interest are those factors which predict job satisfaction among ...