Factors influencing expatriates` success in international assignments : an empirical study of Malaysian expatriates

Abstract

The consequences of expatriate failure are losses, damaged corporate reputation, lost business opportunities and in extreme circumstances, expatriates may find themselves between life and death. Over the past decades, organizational operations have increased and expanded in wide range globally, and as a result, professionals are being sent abroad from their home countries by their companies on assignments. Studies have found that unfortunately, between 16 and 40% of American managers who are sent overseas for assignments return prematurely because of poor performance or inability to adjust to the foreign environment. Studies were also conducted in Japan, China, Thailand, Singapore, Australia, Germany, Saudi Arabia, South Africa, Mexico and many others to investigate expatriates undertaking a job assigned by companies from their home countries. Different studies emphasize specific expatriate success factors elsewhere except in Malaysia. To address this gap, this research therefore builds on theories of expatriation and expatriate success issues. The research was conducted using both preliminary qualitative interview and quantitative survey methods in the Malaysian context. The purpose was to investigate the selection criteria of Malaysian expatriates that influence their success in foreign assignments, investigate the influence of Malaysian expatriates’ preparedness on their success; and finally, to investigate if adjustment influences Malaysian expatriates’ success in international assignments. The outcome of the preliminary qualitative interview along with previous research observations of expatriates’ success in countries around the world has led to the proposal of a conceptual model to gain statistical valid quantitative results and evaluate existing research through hypothesis-testing with focus on the Malaysian context. The aim is to generalize the outcome to the general population. A model was developed containing factors such as expatriate selection, how expatriates are prepared, places where they are assigned, and adjustment in the new places of work. A sample of 419 former and current expatriate respondents who have traveled aboard for an assignment were gathered. Four main hypotheses were formulated and tested using multiple regression analysis with the Statistical Package for Social Science (SPSS Version 18.0). Data analysis provided support for all four hypotheses, and the findings indicate positive relationships between selection of expatriates, preparation of expatriates, and expatriates’ adjustment, with the success of expatriates in their assignments. This research reveals that expatriate success depends on their adjustment, and home country’s selection and preparation of expatriates, which are directly linked to expatriates’ success. It has been observed that most previous research findings agree with the current findings. It is recognized through this research that some variables can be applied, which were not in any way used in previous research but that are crucial and suitable to the Malaysian context. Several theoretical and practical implications are discussed in light of the research findings