Factors That Influence Expatriate Failure: An Interview Study

There are problems with assessing expatriate failure by the single measure of premature return. To achieve a wider focus on the issue, the present study conducted semi-structured interviews with four subjects with expatriate experience as well as a survey of 17 subjects, also with suitable experience, on the topic of expatriate success or failure. An inability on the part of the expatriate family to adjust to the foreign environment was the main determinant of expatriate failure. It is argued from the results that recognition on the part of those in charge that there are more appropriate measures of expatriate failure-than simply premature return-may change the way the reasons for expatriate failure are perceived. Given that the reasons for expatriate failure tended to be the same, the role of the home company has increased as a contributor toward expatriate failure. Organizations need to be aware of their role as well as the importance of the spouse and family in managing expatriate assignments effectively. Introduction Expatriation is a common practice among U.S.-based multinational corporations (MNCs). However, a number of investigators have demonstrated that there is a high failure rate among expatriates because neither they nor their families are prepared to deal with the level of uncertainty associated with the process. The volume of literature on expatriate management is not surprisingly large, considering the increasing importance of the topic. As the world continues to globalize, firms are required to manage an increasingly diverse workforce with expatriation being just a subset of this challenge (Deresky 2000). As a result, expatriation has been popularly used as means by which information sharing and knowledge transfers can be undertaken (Harzing and Van Ruysseveldt 2003). As this elite group is fundamental to the success of corporations by engaging key positions in offshore business dealings, this has compounded the need for more accurate and applicable information on expatriate management. However, it will be demonstrated that existing literature is failing to provide this. Past literature on expatriate failure in particular, lacks empirical evidence, focuses mainly on the U. S and was conducted some time ago. Arguably, the most significant research conducted on expatriate failure by Tung (1982), was carried out over two decades ago. Although the contribution of this research is important, questions of applicability arise as variables in the internal and external environment have changed since the 1980s. Despite this, some of the more recent literature on expatriate failure continues to use this study as the primary foundation for their arguments (Ashamalla 1998; Shilling 1993; Simeon and Fujiu 2000; Yavas and Bodur 1999). Consequently, this undermines the credibility of the more recent literature. This indicates the strong necessity for additional research to be undertaken in this area. Furthermore, the prevailing definition of expatriate failure is too constricting to allow for a true estimate on the extent of expatriate failure. Defining expatriate failure within the limits of premature return, as is done in most literature, is far too simplistic and misleading (Ashamalla 1998;FukudaandChu 1994;Naumann 1992; Simeon and Fujiu 2000). The use of this definition implies that as long as the expatriate remains until the expiration of the international assignment, then the expatriate is 'successful'. However, this is not justified, as it does not take into consideration other contingent factors that are equally important in shaping a successful consideration other contingent factors that are equally important in shaping a successful international posting. More precisely, aspects such as not achieving performance objectives, repatriation difficulties and more specifically, undervaluing the skills and knowledge of repatriates, are just as important in defining expatriate success and failure. These three measures of expatriate success and failure are also crucial and will be discussed individually. …