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International Review
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mir
IndnoQdmont
International Review
Jan Selmer
Key Results
Authors
Jan Selmer, Professor of Management, School of Business, Hong Kong Baptist University, H
Kong, China.
Manuscript received September 1999, revised November 1999, January 2000, February 2000.
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Jan Selmer
Introduction
of life than in their own country. They do not only have to respond to the problem
have much greater responsibilities than in their previous domestic job. This c
amount to a very stressful experience and not everyone is successful at their n
tasks. Research has revealed that premature return rates are significantly high
that each failure gives rise to substantial direct and indirect costs. Additionally
sizeable share of expatriate managers who "stick it out" are regarded as ineffec
by their parent organizations and those underperforming managers also incur la
direct and indirect costs (Black/Gregersen/Mendenhall 1992). Although the oft
quoted high premature return rate to the parent country has been challenged recen
as a myth, it can easily be argued that expatriates who cannot adjust but remain
their assignments and fail to perform adequately, could be even more damaging
their firms than those who return prematurely (Harzing 1995).
The purpose of this paper is to examine the relationship between expatriates' pre
portant for international business firms to find out whether such experience can fa
finding in the literature on expatriate adjustment is that individuals who do not ad-
just properly to their international assignment will not perform as well, will be psy
chologically withdrawn, and will likely return early {cf. Shaffer/Harrison 1998).
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Psychological Adjustment
Sociocultural Adjustment
In contrast, sociocultural adjustment deals with the ability to "fit in" or to negotiate interactive aspects of the host culture as measured by the amount of difficulty experienced in managing everyday situations in the host culture (Ward/Ken-
nedy 1996). Black, Mendenhall, and Oddou (1991) proposed three distinct dimensions of expatriate in-country sociocultural adjustment: (1) adjustment to
work; (2) adjustment to interactions with host nationals; and (3) adjustment to the
general non-work environment. Interaction adjustment may be the most fundamental of the three dimensions as both work adjustment and general adjustment
are based on interpersonal interactions (Bell/Harrison 1996). At the same time,
Black, Gregersen, and Mendenhall (1992, p. 119) also argue that adjustment to
interacting with host-country nationals (HCNs) generally is the most difficult of
the three adjustment dimensions. The interaction component involves warm and
cordial relationships with HCNs, participation in their activities, and development
of respect for those activities. Interactions with HCNs in social settings is one way
for expatriate newcomers to become aware of appropriate behaviours in the host
country since HCNs may act as sources of information and help in understanding
(Bochner 1981). Expatriates with such frequent interactions, exhibit appropriate
behaviours. Feldman and Thomas (1992) observed that effective expatriates frequently interacted with HCNs.
McEvoy and Parker (1995) also found support for the three dimensions of
expatriate sociocultural adjustment. Other empirical research of US expatriates
and their spouses has provided support for this three-dimensional theoretical
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Jan Selmer
titudinal acculturation proposed by Jun, Lee, and Gentry (1997). They suggest
that the behavioral changes of sociocultural adjustment are required by certain
environmental circumstances while the attitudinal changes of psychological adjustment are usually more voluntary and not determined by surrounding conditions. Thus, expatriates need only to learn new practical social and cultural skills
to "fit in" rather than undergo any major change in deeply held values to adjust
abroad. These new skills can be discarded upon repatriation or when meeting fellow-nationals (Furnham/Bochner 1986).
Anticipatory Adjustment
In the theoretical framework of Black, Mendenhall, and Oddou (1991), the notion of anticipatory adjustment is used to understand international adjustment. It
is convincingly argued that if appropriate anticipatory adjustments can be made,
the actual in-country adjustment in the new international setting will be easier and
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Hypotheses
It seems reasonable to assume that previous international experience may be an
important source of information from which expatriates can establish accurate expectations (Church 1982). Based on the concept of uncertainty reduction, it can
be surmised that more international adjustment experiences can provide information from which uncertainty could be reduced and accurate expectations for-
national experiences were in similar cultures to the one the expatriate will be assigned, they would be a better source from which accurate expectations could be
made than previous experiences in dissimilar cultures (ibid.). In that connection,
Black and Gregersen (1991c) called for future research to include also location of
previous international experience, not only the total amount of that experience.
Asian countries can be characterized by medium to high collectivism and power distance (Hof stede 1980, p. 336) and are usually clustered together in terms of
attitudinal and behavioral variables (Ronen/Shenkar 1985) giving Asian nations a
degree of cultural commonality. This presumption is examined in Hypothesis 1.
Hypothesis 1. Experience from Asia (other than Hong Kong) contributes more to
sociocultural adjustment in Hong Kong than experience from outside Asia.
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Jan Selmer
Hypothesis 2. Prior international experience will not affect the level of psychological adjustment.
boss and superiors expect to be shown respect and obedience from subordinates.
Both superiors and subordinates maintain a social distance from one another to
avoid any familiarity destroying the order (c/. Redding 1990, Whitley 1992).
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Although the Hong Kong SAR society has adopted a modern, deceptively Western outlook, Western values are merely superficially embraced, more as skin
deep cosmetics than a fundamental basis for thought and conduct (Kirkbride/Westwood 1993). It has been argued that the Hong Kong Chinese cognitively and emotionally separate modernization from Westernization. Remaining Sino-centric,
they are able to regard themselves as modern without losing their Chineseness
(Bond/King 1985).
Method
Sample
Data were extracted from a larger study involving a mail survey of Wester
business expatriates in Hong Kong. Of the 1,713 mailed questionnaires, 343 wer
returned for a response rate of 20.0%. These response rates are comparable or
Table 1. Sample Background
309
Female
Married
90
33
10
263
77
Nationality:
US
87
25
French
56
16
British
50
15
Swedish
46
13
Italian
20
Danish
16
Canadian
Other
15
Western
53
4
16
Position:
CEO
220
64
Manager 111
Non-managerial 1
33
1 3
Organization in
Hong Kong:
80
24
Representative Office 58 17
Joint Venture 18 5
Other
7
2
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Jan Selmer
better than other business expatriate studies (cf. Birdseye/Hill 1995, Gregersen/Black 1990, Naumann 1993). Also, a large-scale study comparing response
rates in international mail surveys in 22 countries reported that Hong Kong had
the lowest rate of 7.1 per cent (Harzing 1997).
On the average, the expatriates had spent 4.9 years in Hong Kong (SD = 6.2)
on the current assignment. They had lived abroad for 8.5 years (SD = 7.8), including Hong Kong. The average age of the respondents was 42 years (SD = 9.1),
and, as seen from Table 1, the overwhelming majority of the respondents were
male and married. This is compatible with other investigations of business expatriates, although the 10 percent share of femal expatriates in our sample is on the
high side compared to other studies (cf. Adler 1995). However, it may indicate a
rising trend in assigning women as expatriates (Brewster/Scullion 1997). The largest nationality group of expatriates was from the US. Expatriates from France,
Britain, Sweden, Italy, Denmark and Canada made up distinctive, but smaller
groups. The overwhelming majority of the respondents were CEOs or occupied
other managerial positions, whereas only a few respondents were non-managerial staff. Wholly owned subsidiaries were the most common place of work, whereas some expatriates were also assigned to branches, representative offices and
joint ventures.
Instrument
scales developed by Black (1988) and Black and Stephens (1989). Respondent
were asked to answer to 14 items regarding how well they were or were not adjusted to their life in Hong Kong (sample item: 'Speaking with host nationals').
The range of responses varied from (1) 'very unadjusted' to (7) 'completely adjusted'. Reliability of the three dimensions of expatriate sociocultural adjustmen
were: General Adjustment (alpha = 0.78), Interaction Adjustment (alpha = 0.88),
and Work Adjustment (alpha = 0.68). These reliability scores are acceptable (Nun-
nally 1978).
Expatriate psychological adjustment was measured using the General Health
Questionnaire (GHQ-12) developed by Goldberg (1972). Although this instrument is commonly used to measure minor psychiatric symptoms, it has been used
extensively to monitor levels of well-being in community and organizational samples (Forster 2000), as well as to measure expatriates' subjective well-being (cf.
Arnetz/Anderzen 1992). Containing a number of questions concerning how people have been feeling recently, it includes sleeping difficulties, feelings of unhappiness, and respondents' ability to enjoy everyday experiences. Respondents were
asked to think about how they have been feeling over the past few weeks (sample item: 'Have you recently felt that you are playing a useful part in things?').
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Responses ranged from (1) ,not at all' to (4) ,much more than usual'. Reliability
Results
Descriptive statistics and correlations for all variables are provided in Tab
is interesting to note that the expatriates have a mean score for all three
cultural variables above what is depicted as "somewhat adjusted", well abo
mid-level point. This may indicate that they were quite comfortable with
ciocultural environment in Hong Kong. The mean score of psychological a
ment, as measured by subjective well-being, was also above the mid-level
of its scale.
Mean
SD
Adjustment
2. Interaction 5.17 1.22 0.53*** 1.00
Adjustment
3. Work 5.86 0.79 0.55*** 0.49*** 1.00
Adjustment
Well-Being
5. Time in 5.77 6.80 0.29*** 0.35*** 0.32*** 0.10 1.00
Hong Konga
6. Time in 4.26 3.56 0.21* 0.24* 0.16 0.17 0.19 1.00
Asia
7. Time 4.70 4.52 0.01 0.09 -0.01 0.17* -0.07 0.35* 1.00
Outside Asia
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Jan Selmer
teraction adjustment (beta = 0.35; p < 0.001), and 10 percent of work adjustment
(beta = 0.32; p < 0.001) of the expatriates in Hong Kong. All F values for the sociocultural variables were highly significant, implying a good data fit. However,
no significant effect was detected for psychological adjustment which also had a
non-significant F value. Adding the first predictor variable, time in Asia, did not
have a significant effect on any of the adjustment variables. However, some F values were statistically significant indicating a reasonable fit between the regression model and the data. The addition of the second independent variable, experience from outside Asia, did not produce any statistically significant effects either and the F values were not significant in this step. Neither were there any
Table 3. Total Sample3: Results of Hierarchical Regression Analysis for Effects of Previous International Experience on Sociocultural and Psychological Adjustment in Hong Kong
Dependent Variables
Variables
Step 1
(Control)
0.29
0.35
0.32
0.09
3.16*
6.46**
1.44
1.53
Step 3
Time Outside Asia -0.12 -0.00 0.06 -0.07
R
0.23
0.28
0.25
0.11
AR2 0.05 0.08 0.06 0.01
0.81
1.27
1.01
0.17
Step 4
Time in Asia X
0.85
1.51
1.03
0.13
a N = 343
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interaction effects of time in Asia and time outside Asia, and the F values were
all non-significant.
However, it is conceivable that newcomers will encounter more difficulties in
adjusting to their new foreign assignment than expatriates who have been in Hong
Kong for several years. The initial stages of the adjustment process, including a
possible culture shock, could be more traumatic than later phases {cf. Furnham
1993, Furnham/Bochner 1986). To explore the effect of international experience
on recently arriving expatriates, a part of the total sample was analyzed separately. This group of recent arrivals only included individuals with a period of stay
in Hong Kong of one year or less during their current assignment, as the cultural
Table 4. Recent Arrivals8: Results of Hierarchical Regression Analysis for Effects of Previous Inernational Experience on Sociocultural and Psychological Adjustment in Hong Kong
Dependent Variables
Variables
Step 1
(Control)
0.28
0.17
0.31
0.05
3.66
Step 2
Time
R
in
1.31
Asia
0.58
AR2
4.36*
0.04
0.27
0.41
0.34
0.49*
0.78
0.17
0.08
0.24
0.23
0.61
0.05
Step 3
2.78
Time
R
1.11
Outside
0.91
AR2
Asia
8.60**
-0.53
0.82
0.83
0.06
0.25
0.91
0.67
0.31
0.82
0.02
0.27
0.08
6.61
2.71
6.13
0.11
Step 4
Time in Asia X
AR2
0.83
0.76
0.82
0.23
3.76
Part
2.38
of
3.45
total
p<0.05;
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Jan Selmer
shock phase usually occurs within the first year of arrival {cf. Black/Mendenhall
1991, Torbirn 1982). There were 44 expatriates in this group with an average period of residency in Hong Kong of seven months (SD = 4.1). Table 4 displays the
results of the hierarchical regression for recent arrivals. A slightly different picture is revealed here than for the total sample. The control variable shows no significant effect on the dependent variables, probably because of the limited time
these individuals have spent in Hong Kong. Additionally, now time in Asia has a
statistically significant positive association with work adjustment {beta = 0.49;
p < 0.05). However, for the other three dependent variables; general, interaction
and psychological adjustment, there was still no significant effect. Again, there
were no statistically significant interaction effects. However, the fact that most of
the relationships do not achieve statistical significance could more be a function
of the small sample size than anything else. The explained variances {AR2) for the
sociocultural variables at step 2 to 4 are quite substantial ranging from 17 to 83
per cent. However, the magnitude of explained variances for psychological adjustment were much lower ranging from 5 to 23 per cent.
These findings give some qualified and partial support to Hypothesis 1 which
states that experience from Asia (other than Hong Kong) contributes more to sociocultural adjustment in Hong Kong than experience from outside Asia. Hypothesis 1 is only clearly supported for relatively recent arrivals and only in the case
of work adjustment, but not for general and interaction adjustment. This must be
regarded as a highly tentative finding due to the small sample size of recent arrivals. The results more clearly support Hypothesis 2, surmising that prior international experience will not affect the level of psychological adjustment. However,
the standard deviation of this variable is relatively small (Table 2) and there
may be a variance problem which may contribute to the lack of relationships
found.
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clear. One possibility is that the sociocultural environment of Hong Kong may be
unique to the extent that experience of the "real thing" is the best way to help expatriates to function and work in the Hong Kong SAR. Experience of other Asian
assignments have less effect and previous postings to non-Asian countries are not
at all helpful in that respect.
Extending this argument to a mere speculation, it may be surmised that each
expatriate assignment may be perceived as very much unique, not only the Hong
Kong posting. The sociocultural context may differ in different countries sufficiently enough for business expatriates to more or less have to start "all over"
again when transferring to a new assignment in another host country. This interpretation implies that lessons learned and sociocultural skills acquired by business expatriates and other sojourners are not very easily transferable across cultural boundaries. At least, the element of commonality, even among other Asian
locations, is not sufficient to have a strong impact on expatriates' sociocultural
adjustment. Before the potentially far-reaching implications of these preliminary
conclusions are discussed, some limitations of this investigation will be examined.
As with most surveys on international adjustment, the data was collected utilizing self-reports which may involve single-method variance. Although recent
bust results.
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Jan Selmer
denhall/Oddou 1991, Brewster 1995) may be a more serious problem than previously anticipated. The tentative results may be used as an argument not only to
have expatriate candidates go through cross-cultural training once in their career,
but for each and every new foreign assignment they embark on, at least for new
postings transcending a new and unfamiliar region. If sociocultural lessons learned have limited transferability, repeated cross-cultural training to acquire social
skills appropriate in an unfamiliar host environment may be worthwhile.
If this training is administered post-arrival, which has been advocated recently
as enhancing efficiency (Selmer 1997, Selmer/Torbirn/de Leon 1998), training
activities could try to facilitate the whole change process (Schein 1980) of unfreezing (creating the motivation to change), changing (developing new attitudes
and behaviours based on new information and cognitive redefinition), and refreezing (stabilizing the changes). Again, this is presumably easier to accomplish
in a post-arrival situation where many of the factors contributing to this change
process are in place in the new cultural context.
The second major implication of the preliminary conclusions concerns the selection of expatriates, since international experience may be a less good predictor of successful expatriate assignments than currently considered. The seemingly
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Acknowledgement
1 This study was supported by a grant from the Research Grants Council, Hong Kong. The author
is grateful for the valuable comments of two anonymous reviewers on an earlier version of this
paper.
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