Journal of International Business Studies (2007) 38, 819–835 & 2007 Academy of International Business All rights reserved 0047-2506 $30.00 www.jibs.net Expatriate assignments and intra-organizational career success: implications for individuals and organizations Mark C Bolino Division of Management, University of Oklahoma, Price College of Business, Norman, OK, USA Correspondence: Mark C Bolino, Division of Management, Price College of Business, University of Oklahoma, Norman, OK 73019, USA. Tel: þ 1 405 325 3982; Fax: þ 1 405 325 7688; E-mail: [email protected] Abstract Anecdotal accounts and reports in the popular press often suggest that international assignments are critical for employees who seek to move up the career ladder more quickly. Nevertheless, previous research on repatriation indicates that many former expatriates feel that their overseas assignments have harmed, rather than helped, their careers. Relatively little research, though, has sought to understand how expatriate assignments might be related to career success. This paper, then, presents a conceptual model describing the relationship between expatriate assignments and intra-organizational career success. Specifically, theories of career mobility are used to develop a framework for outlining the factors likely to determine whether expatriate assignments help or hinder the advancement of employees who have worked as international assignees. The model also indicates that repatriate career success influences an organization’s ability to retain its current repatriates and recruit future expatriates. Some implications of this research and directions for future research are discussed as well. Journal of International Business Studies (2007) 38, 819–835. doi:10.1057/palgrave.jibs.8400290 Keywords: expatriation; repatriation; career success Received: 1 August 2005 Revised: 19 October 2006 Accepted: 25 November 2006 Online publication date: 31 May 2007 Introduction As businesses continue to globalize, it has become increasingly common for organizations to assign their employees to extended work assignments overseas (Stahl et al., 2002). Expatriate assignments not only enable multinational firms to carry out their current global initiatives, but also serve as an important tool for developing the global managers who will lead these organizations in the future (Kobrin, 1988; Shay and Baack, 2004; Takeuchi et al., 2005). In other words, globalization has created an increased demand for business leaders with a high level of global awareness and well-honed international skills, and expatriate assignments play an important role in the development of such global managers (Gregersen et al., 1998; Stroh et al., 2005). Indeed, Stroh et al. (2005: 3) have argued that, for many executives, international assignments are the ‘single most influential force in their development as managers.’ Moreover, several studies suggest that CEOs with international assignment experience tend to be more effective at managing multinational corporations (MNCs) than CEOs who lack such Expatriate assignments and intra-organizational career success Mark C Bolino 820 experience (Roth, 1995; Daily et al., 2000; Carpenter et al., 2001). Previous work, though, indicates that employees usually find expatriate assignments very challenging and sometimes overwhelming (McEvoy and Parker, 1995; Black et al., 1999; Bhaskar-Shrinivas et al., 2005). Indeed, a great deal of research has sought to understand how organizations can minimize the high failure rates and other difficulties that often characterize extended overseas assignments (Stroh et al., 2005). However, in spite of the challenges associated with expatriate assignments, many employees are still willing to accept an overseas posting because they believe it will help them get ahead in their companies (Mendenhall et al., 2002). In fact, Stahl et al. (2002) found that 59% of expatriates believed that an expatriate assignment would help them advance within their organizations. Such beliefs may stem from popular press accounts, which often extol the career-enhancing effects of international assignments by claiming that working as an expatriate will ‘supercharge your career’ (Fisher, 1997), ‘boost your career’ (Fisher, 2005), or be a ‘ticket to the top’ (Lublin, 1996). Indeed, the findings of a recent survey by Chief Executive magazine and Spencer Stuart (an executive search firm) – which was widely reported in the Wall Street Journal and other business publications – suggest that extended overseas work experience is critical for those who want to make it to the very top of an organization (Martin, 2004). By and large, then, most popular-press accounts tend to indicate that employees who have worked as expatriates will tend to get ahead more quickly in their organizations. Some researchers have also implied that there is a link between international experience and career success. For example, with regard to employees who are apprehensive about working overseas, Daily et al. (2000: 520) offered these words of caution: ‘for those who would aspire to the executive suite, such a view toward international assignments may be shortsighted.’ Nevertheless, such recommendations often have little real data to back them up. Moreover, although empirical studies of managerial careers have sometimes found that international experience is helpful to one’s career (e.g., Judge et al., 1995; Ng et al., 2005), such research typically treats expatriate assignments as a dichotomous variable (i.e., respondents either had an expatriate assignment or did not have one). In reality, though, it is unlikely that all expatriate assignments are equivalent with regard to their Journal of International Business Studies potential effects on career advancement. For example, an expatriate assignment is likely to harm one’s career if the individual performs poorly in his or her overseas job, especially if the expatriate has to be recalled early. On the other hand, an employee who excels in an international assignment, learns about critical overseas markets, and develops strong crosscultural leadership skills is likely to have his or her career prospects improved by his/her expatriate experience (Suutari, 2003). In short, the relationship between international experience and career success is likely to be rather complex. Generally speaking, Stahl et al. (2002: 216) argue that ‘relatively little is known about the long-term impact of international assignments on managers’ careers.’ Indeed, surveys of human resource (HR) professionals regarding this relationship often yield conflicting results. For example, Stroh et al. (2005) indicate that, while most HR executives believe that expatriate assignments have a positive career impact, the majority of those who have had international assignments actually believe that it has adversely affected their careers. However, in a more recent survey, only 34% of HR professionals believed that international experience was helpful to one’s career (GMAC Global Relocation Services, 2004). Moreover, Carpenter et al. (2001: 507) found that, while many firms often ‘intend’ to hire CEOs with international assignment experience, relatively few US multinationals are actually led by CEOs with such qualifications. In their research, even fewer members of the top management team had an international background. In light of the shortage of global leaders, Sambharya (1996: 44) recommends that global firms must ‘do a better job of selling the notion of international assignments to their managers as a stepping stone to entry into the upper echelon and not into obscurity.’ Although the link between expatriate assignments and career success is unclear, research on repatriation clearly indicates that former expatriates are often extremely disappointed and frustrated when they come back home, and many perceive that their employers do not value their international experience (Baughn, 1995; Selmer, 1999; Bossard and Peterson, 2005). In fact, some expatriates believe that they would have been better off in terms of their careers if they had never gone overseas at all. For example, one former expatriate quoted in a study by Gregersen (1992) advised potential international assignees in his company not to go; in that same study, the spouse of another repatriate described her husband’s Expatriate assignments and intra-organizational career success Mark C Bolino 821 experience in this way: ‘It was almost as if 12 years of experience overseas was a disadvantage for continued employment with the company’ (Gregersen, 1992: 48). Moreover, whereas most expatriates believe that a global assignment will lead to a promotion (Stahl et al., 2002), research indicates that, in fact, only very few employees are promoted when they come home (Black et al., 1992). Indeed, most companies do not give their expatriates any post-assignment employment guarantees whatsoever (Tung, 1998; GMAC Global Relocation Services, 2004), and 20–50% of repatriates are no longer employed by their companies within 2 years of coming back home (Stroh et al., 1998; Bossard and Peterson, 2005). For this reason, Peltonen (1997: 106) argues that ‘among the most problematic aspects of repatriation are the unfulfilled expectations regarding expatriates’ career advancement once they have returned to their home organization.’ Similarly, Welch (2003: 155) concludes that there is ‘a paucity of evidence of the actual positive benefits of an expatriate assignment’ in terms of employees’ career prospects. Given the continued globalization of business, and the fact that managers with international assignment experience are more effective at leading global organizations (Daily et al., 2000; Carpenter et al., 2001), it is important to gain a better understanding of the relationship between expatriate assignments and career success. Indeed, organizations that have a better grasp of the career implications of international assignments should be better able to reduce repatriate turnover and increase the willingness of other employees to accept an overseas posting (Stroh et al., 2000). Moreover, this issue is critical for the increasing number of employees who will face the decision to accept or decline an overseas posting. As Peltonen (1997: 107) points out, though, ‘a striking feature of repatriation research is that only few, if any, attempts have been made to understand the underlying mechanisms of puzzling career outcomes.’ The purpose of this paper, then, is to explore how working as an expatriate may facilitate or hinder managers’ career progress. In examining this issue, the paper seeks to advance previous research on expatriation and career progress in three ways. First, this paper draws upon previous theories to develop a conceptual framework linking expatriation, intra-organizational career success, and organizational and employee outcomes. Second, this model is used to formulate some specific propositions about the factors that determine whether expatriate assignments facilitate intraorganizational career success, and about how repatriate career success, in turn, affects an organization’s ability to hold on to their current repatriates and recruit new expatriates. Third, and finally, the paper describes avenues for future research on the relationship between expatriation and career success. Some practical implications of this work are offered here as well. Developing a conceptual framework of repatriate career success There are two important boundary conditions established for the model described in this section. The first is a boundary condition regarding the conceptualization of career success. In previous work, some researchers view career success somewhat broadly (London and Stumpf, 1982; Judge and Bretz, 1994; Judge et al., 1995). For instance, Judge et al. (1995: 486) define career success as ‘the positive psychological or work related outcomes or achievements one has accumulated as a result of one’s work experiences.’ Accordingly, their notion of career success is concerned with both objective aspects of career success (e.g., promotions) and subjective elements as well (e.g., satisfaction with one’s career). However, in this paper, I shall be principally concerned with the degree to which expatriate assignments facilitate the career advancement of expatriates. I chose this focus because previous research already indicates that, by and large, expatriates find that their overseas assignments have enhanced and enriched their personal lives (Stahl et al., 2002). What is unclear, though, is whether such assignments positively affect their subsequent career progression. Thus career success is defined here in terms of upward mobility. The second boundary condition is that I focus on the relationship between expatriate assignment experience and intra-organizational career success. In other words, this model does not directly address the link between international assignments and career success that repatriates may have later at companies other than the ones that sent them overseas. Thus I leave the relationship between international assignment experience and extraorganizational career success as a direction for future research. My principal reason for doing so is that previous research on repatriation indicates that many, if not most, employees believe that accepting an international assignment is going to Journal of International Business Studies Expatriate assignments and intra-organizational career success Mark C Bolino 822 facilitate their advancement within the organization that offered the assignment (Stahl et al., 2002; Stroh et al., 2005). Indeed, one of the key reasons why many former expatriates are so dissatisfied with their repatriation is that they believe they have made a real sacrifice for their companies, and they expected that their companies would show some appreciation for those efforts by promoting them. Put simply, expatriates frequently agree to work overseas for their companies because they believe it will help them get ahead in those same companies. Therefore, in this paper, I shall focus on the link between expatriate assignment experience and intra-organizational career success. The framework developed in this paper is based largely on models of career mobility that have examined career success in a domestic context. In particular, there are three theories of career mobility that should be very relevant in outlining a framework for understanding career success among former expatriates. First, human capital theory suggests that individuals tend to get ahead more quickly when they invest in themselves, are experienced, and have noteworthy accomplishments and achievements (Becker, 1964; Judge et al., 1995; Wayne et al., 1999). For this reason, human-capital variables have been widely recognized as important determinants of career success (Ng et al., 2005). Based on this perspective, then, expatriates should advance in their organizations when they have done well overseas and have acquired and developed valuable skills and abilities. Second, Schein’s (1971) career-cone model proposes that employees who move toward the ‘core’ of an organization (where important organizational activities take place) will ultimately advance more rapidly than those who work in areas that are more peripheral to, or further removed from, the central strategy or mission of an organization (Schein, 1978; O’Hara et al., 1994; Orpen, 1998). Consistent with this theory, O’Hara et al. (1994) found that centrality was positively associated with intraorganizational career success. This idea is also consistent with other theoretical models of career movement. For example, network theories of career success suggest that employees who work in areas that are more visible or central have greater upward mobility (Seibert et al., 2001); likewise, many researchers have observed that working in the critical functional areas of an organization usually leads to more rapid promotions (Gunz and Jalland, 1996). Accordingly, international assignments should facilitate intra-organizational career success Journal of International Business Studies when such experience puts expatriates into the core of what the organization does. Third, and finally, career development practices, such as mentoring and other support, have been linked with career success as well (Wayne et al., 1999). Consistent with this notion, researchers have also proposed that certain organizational practices facilitate the career progression of expatriates (Feldman and Thomas, 1992; Stroh, 1995; Selmer, 1999). In particular, Feldman and Thomas (1992) argued that career development programs play an important role in fostering expatriate effectiveness, and other research indicates that such practices facilitate the adjustment of repatriates as well (Bossard and Peterson, 2005). More generally, it has been found that both mentoring and career development assistance facilitate career success (Wayne et al., 1999; Ng et al., 2005). The degree to which employees have been supported by their organizations, then, is likely to affect their chances for career success. In terms of the organizational implications of repatriate career success, there is clear evidence indicating that repatriates are more likely to quit when their organizations have mishandled their repatriation (Gregersen, 1992; Baughn, 1995; Peltonen, 1997; Bossard and Peterson, 2005). Repatriate turnover is likely to be especially high when organizations have not met the expectations of expatriates who have come back home (Stroh et al., 2000). Moreover, this line of research suggests that high turnover rates among repatriates typically have a negative impact on the willingness of other workers to relocate internationally (Stroh, 1995). An integration of these perspectives on career advancement and repatriation can be summarized in this way: Individuals need certain skills, abilities, and achievements to get ahead in organizations, and certain types of international assignments are more likely to facilitate or highlight such accomplishments. Individuals tend to get ahead when they have worked in areas that are seen as central to the success of the organization, so organizations will place more value on expatriate experiences that are consistent with their principal strategy or mission. Individuals tend to get ahead when they have had career development assistance, and expatriates who have received such support are likely to have greater career success in the firm that expatriated them. Expatriate assignments and intra-organizational career success Mark C Bolino 823 The extent to which former expatriates tend to get ahead will influence an organization’s ability to retain its current repatriates and to recruit new expatriates. The framework consists of three categories of antecedents of repatriate career success. The first category is expatriate experience: these variables describe the nature of the repatriate’s experience overseas and the extent to which he or she has demonstrated success and developed important skills. The second category is the parent-organization context: these variables are ones likely to determine the degree to which organizations value international experience. The third category is career development practices: these variables address the degree to which the careers of expatriates have been supported by their organizations through the use of specific actions. It is proposed that, together, these factors will influence the intra-organizational career success of former expatriates, and it is expected that intra-organizational career success, in turn, will affect organizational and employee outcomes. In particular, it is proposed that intraorganizational career success will impact the willingness of other employees to accept an expatriate assignment, and will influence repatriate turnover as well (although this effect will also be moderated by repatriate expectations and motives). The key elements of the framework are depicted in Figure 1. Expatriate experience The first aspect of the model suggests that certain assignment experiences are more likely to be associated with intra-organizational career success among former expatriates. In particular, it is proposed that repatriates will tend to get ahead when they: (1) excelled in their overseas assignments; (2) were sent overseas for managerial development; (3) had significant levels of international experience and (4) were assigned to subsidiaries with greater strategic importance. Expatriate success While multiple aspects of expatriate adjustment have been thoroughly investigated, several scholars have recently argued that expatriate performance and success should receive greater attention among researchers (e.g., Shay and Baack, 2004; Shaffer et al., 2006). Harrison and Shaffer (2005) indicate that successful expatriates are those who (a) do not quit their assignments prematurely, and (b) perform effectively by completing their tasks and Antecedents of Repatriate Career Success Expatriate Experience • • • • Successful posting (P1a/b) Developmental assignments (P2) Significant international experience (P3) Strategic importance of assignment unit (P4) Organizational & Employee Outcomes Willingness of other employees to accept an expatriate assignment (P10) Parent-Organization Context • • Global strategic posture (P5) CEO & TMT international experience (P6) Intra-organizational career success Repatriate turnover (P11) Career Development Practices • • • Figure 1 Connectivity mechanisms (P7) Repatriation adjustment assistance (P8) Career development plans (P9) Repatriate Expectations and Motives (P12a/b) Basic framework of repatriate career success. Journal of International Business Studies Expatriate assignments and intra-organizational career success Mark C Bolino 824 developing/maintaining interpersonal ties with host-country employees. Previous studies have often noted the high failure rates associated with expatriate assignments (McEvoy and Parker, 1995; Shaffer and Harrison, 1998; Stroh et al., 2005). Although some scholars have challenged the idea that expatriate failure rates are as high as previously suggested (Harzing, 1995; Forster, 1997), it seems likely that expatriates who return from their overseas assignments prematurely will find that their career paths have been altered. Researchers, though, have yet to examine the career implications of expatriate failure. Although it is possible that some failed expatriates could return home without facing any real career consequences, it seems very unlikely that expatriates who come home early would actually be promoted. In other words, career success should be greater among those who completed their international assignments than among those who failed to see their assignments through to completion. While previous research has often focused on premature returns (i.e., expatriate failure), research indicates that employees who complete their expatriate assignments are frequently ineffective in their overseas jobs (Black et al., 1991). That is, performing well on the job is often a challenge for those employees who do not return home early (Caligiuri, 2000; Kraimer and Wayne, 2004; Shay and Baack, 2004). Moreover, respondents in a qualitative study by Suutari (2003) indicated that, if employees do not perform well overseas, their international experience is likely to be more of a liability than an asset. Likewise, Yan et al. (2002: 385) suggest that employees need to ‘demonstrate superior performance’ in order for international assignment experience to enhance their career prospects. Consistent with this notion, human capital theory suggests that individuals who have done well in previous jobs and have more accomplishments are more likely to be promoted (Judge et al., 1995; Lyness and Thompson, 2000). Accordingly, expatriates who succeed in their assignments – by seeing them through to completion and performing effectively while overseas – are more likely to get ahead when they repatriate. Proposition 1a: Intra-organizational career success will be greater among former expatriates who completed their overseas assignments than among those who failed to see their assignments through to completion. Journal of International Business Studies Proposition 1b: Intra-organizational career success will be greater among former expatriates who performed effectively in their overseas jobs than among those who performed ineffectively in their overseas jobs. Developmental assignments Previous research indicates that expatriates are typically sent overseas for managerial development, to serve as a source of control, or to fill in an overseas vacancy until a permanent employee can be found (Edstrom and Galbraith, 1977; Bolino and Feldman, 2000; Shay and Baack, 2004). In general, research on career success indicates that developmental job assignments facilitate advancement (Lyness and Thompson, 2000). Furthermore, Shay and Baack (2004: 218) argue that overseas assignments for managerial development ‘allow individuals to initially or further develop the requisite international skills and thereby become a more valuable resource to their MNC.’ However, owing to the very nature of the assignment, expatriates who are sent abroad to control subsidiary operations are less concerned with developing international skills and abilities. Instead, these international assignees seek to ensure that subunits are acting in ways that serve the overall interests of the organization rather than local interests (Kobrin, 1988). At the same time, Bolino and Feldman (2000) suggest that fill-in assignments are usually less challenging and offer fewer opportunities for skill utilization and development. Thus expatriates sent overseas for the purpose of managerial development should be more likely to advance than those assigned for other purposes. However, while developmental assignments should have career-enhancing effects, such assignments may be developmental only to the extent that employees allow them to be. That is, an employee’s attitude regarding his or her own development could be as important as the true nature of the assignment. Put simply, then, employees sent overseas for managerial development will benefit from such assignments only to the extent that they allow themselves to truly develop. For example, few benefits are likely to accrue to expatriates who are sent overseas for managerial development but nevertheless maintain a ‘fill-in’ mindset. Proposition 2: Intra-organizational career success will be greater among former expatriates who were sent overseas for managerial development than among those sent for other purposes. Expatriate assignments and intra-organizational career success Mark C Bolino 825 Significant international experience The relationship between the degree of international assignment experience and post-assignment success is somewhat unclear. Based on human capital theory, longer assignments should afford expatriates more opportunities to develop skills and abilities. Consistent with this idea, Bolino and Feldman (2000) found that assignment length was positively related to expatriates’ ability to utilize their existing skills and to develop new ones. Similarly, employees who have been on multiple expatriate assignments should have additional opportunities to develop their cross-cultural skills and abilities. Accordingly, international assignees who have had longer assignments or have had multiple overseas postings should be more marketable within their organizations when they return home. However, it should also be noted that some have argued that the longer expatriates remain overseas, the more likely it is that they may experience an ‘out of sight, out of mind problem’, which could adversely affect their careers (Stroh et al., 1998; Mendenhall et al., 2002). Such expatriates may also risk being labeled permanent expatriates (Feldman and Thomas, 1992). Furthermore, it has been argued that the longer expatriates have been away overseas, the more difficult it is for them to successfully adjust and perform when they finally come back home (Black et al., 1992). Thus it is possible that having too many expatriate assignments or being assigned overseas for very long periods could actually do more harm than good in terms of one’s career. In particular, overseas assignments that last less than 1 year are typically considered short-term assignments (Selmer, 2004; Konopaske and Werner, 2005). Konopaske and Werner (2005), however, define long-term assignments as ones that for last between 1 year and 4 years. Based on these definitions, then, it seems that international experience may begin to become more of a liability when expatriates have been away from home for more than 4 years, and assignments that last much longer than that may be especially problematic. Indeed, in a study by Feldman and Thomas (1992: 283), respondents who had worked overseas for 8–10 years indicated that their careers had suffered because they had stayed abroad ‘too long.’ Therefore the relationship between international assignment experience and intraorganizational career success is expected to be curvilinear. Proposition 3: Intra-organizational career success will be greater among former expatriates who have had significant international experience (in terms of assignment length and the number of assignments) than among those with relatively little international experience; however, being overseas too long will be negatively related to intra-organizational career success. Strategic importance of the overseas subunit Among the many subsidiaries of the MNC, certain subunits are likely to be especially important. In other words, some subsidiaries will make more important contributions to the overall strategic mission of the organization than others (Nohria and Ghoshal, 1994; Bolino and Feldman, 2000). Likewise, some subunits will be located in countries or markets that are considered especially important for the organization. Expatriates who have been assigned to units that are seen as critically important to the organization’s future success will tend to move closer to the core of the organization’s overall mission. Accordingly, when these international assignees return home, they should be promoted more rapidly than those who were assigned to units that have less strategic relevance to the parent company. Here I focus on two aspects of strategic importance: (1) the role of the subsidiary in terms of knowledge inflows and outflows; and (2) the strategic importance of the market in which the subsidiary is located. Gupta and Govindarajan (1991) suggest that subunits typically play one of four strategic roles, based on the degree to which they utilize knowledge created outside their own unit and the extent to which knowledge developed by the subunit is shared with other organizational units. According to their framework, subsidiaries that are implementers create very little knowledge, and rely heavily on knowledge from the parent company or other subsidiaries to carry out their activities. Local innovators are subsidiaries that are highly autonomous and create knowledge that is tailored to suit the local market, and thus is not widely shared with the parent organization or with other subsidiaries. Integrated players are subunits that develop knowledge that can be used by subsidiaries; however, these subsidiaries are also dependent on external knowledge from the parent company or other subunits in order to operate. Finally, subsidiaries that are global innovators are those that serve as the principal source of knowledge for the other units of the MNC. Thus these subunits are Journal of International Business Studies Expatriate assignments and intra-organizational career success Mark C Bolino 826 characterized by high levels of knowledge outflows and low levels of knowledge inflows from the rest of the MNC (Gupta and Govindarajan, 1991). Gupta and Govindarajan (1991) argue that subsidiaries that are integrated players or global innovators tend to have greater strategic importance because they develop knowledge that is used throughout the larger organization. Furthermore, they indicate that managers who work in these types of subsidiary usually have greater levels of global responsibility and authority. Accordingly, former expatriates who were assigned to subsidiaries that have global innovator or integrated player roles should advance more rapidly than those who were assigned to subsidiaries with implementer or local innovator roles. Expatriates should also be better positioned for advancement when they have worked in critical overseas markets. Gupta and Govindarajan (2000) suggest that strategic markets are ones that have great potential owing to their size or rate of growth, or ones that have great learning potential because of their rapidly developing technologies or sophisticated and demanding customers. In recent years, for example, there has been considerable discussion about how many companies in the US and elsewhere consider China to be a long-term strategic market that is considered vital to their future performance (Yan, 1998). Again, the idea of the career cone suggests that the experience of employees who have been assigned to markets that are viewed as largely peripheral or insignificant is likely to be less valued by the organization. In contrast, international assignees who have worked in subsidiaries located in critical overseas markets should move closer to the organization’s core, and therefore should be able to climb the career ladder more quickly. Proposition 4: Intra-organizational career success will be greater among former expatriates who were assigned to subsidiaries with greater strategic importance than among those assigned to less important subsidiaries. Overall, then, the model suggests that repatriates will get ahead more quickly when they performed well in their international jobs, were sent overseas for managerial development, have significant (but not excessive) international experience, and were assigned to units that are strategically important. Journal of International Business Studies Parent-organization context According to the model, former expatriates are more likely to advance when they possess knowledge, skills, and abilities that are thought to be critical to the success of their organization. Specifically, it is proposed that intra-organizational career success will be greater among repatriates who: (1) work in organizations that have a global strategic posture; and (2) work in firms where the CEO and top management team also have extensive international experience. Global strategic posture Carpenter and Fredrickson (2001: 534) define a firm’s global strategic posture as ‘the degree to which a firm depends on foreign markets for customers and factors of production and the geographical dispersion of these markets and factors.’ Based on this definition, an international company that focuses principally on exporting would have a rather narrow global strategic posture. In contrast, a company with a broad global strategic posture is one that seeks to achieve competitive advantage by leveraging its worldwide capabilities through the effective coordination of its overseas subunits (Sanders and Carpenter, 1998); companies with such an orientation also tend to use their geographically dispersed resources to make strategic moves and countermoves in order to launch attacks or mount defenses against their competitors (Bartlett and Ghoshal, 1989; Gupta and Govindarajan, 2000; Kostova and Roth, 2003). As an organization’s global strategic posture broadens, the level of international interdependence and integration increases within the firm (Roth, 1995; Kostova and Roth, 2003). In other words, the subunits of the firm must all operate and respond to global challenges collectively rather than autonomously (Roth, 1995; Sanders and Carpenter, 1998). Roth (1995) found that managers with greater overseas experience were better able to manage international interdependence because they had a better grasp of the complexities of the multinational context. Thus firms that have a broad global strategic posture are likely to have a relatively greater need for managers and employees who understand international business and are familiar with the overseas operations of the organization. Indeed, previous research suggests that CEOs with international assignment experience are able to manage companies that have a broad Expatriate assignments and intra-organizational career success Mark C Bolino 827 strategic posture more effectively than CEOs who lack such experience (Carpenter et al., 2001). According to the model, former expatriates should be more likely to advance when their companies consider international activities to be activities that are critical to their overall mission or strategy. That is, upward mobility should be enhanced because firms with a global strategic posture are reliant upon the skills that former expatriates possess (Anderson et al., 1981). Thus career advancement should be greater among repatriates employed by companies where the global strategic posture is broad rather than narrow. Proposition 5: Intra-organizational career success will be greater among former expatriates working in firms with a broad global strategic posture than among those working in firms with a more narrow global strategic posture. CEO and top management team international experience Previous research has linked the international experience of an organization’s CEO and top management team (TMT) with its emphasis on international business. For example, Sambharya’s (1996) findings indicate that firms whose TMT members have greater levels of overseas experience tend to have greater international involvement. Similarly, in a study of small and medium-sized enterprises, Reuber and Fischer (1997) found that internationally experienced TMTs tended to form more global partnerships and pursue foreign sales more quickly after start-up. Likewise, Carpenter et al. (2001) and Carpenter and Fredrickson (2001) suggest that companies are more likely to have a broader global strategic posture when their CEO and top team members have had international assignment experience. Overall, then, when an organization is led by individuals with global experience, it is likely that employees who have international assignment experience will also be seen as critical players, and thus advance more rapidly when they return home from their expatriate assignments. Proposition 6: Intra-organizational career success will be greater among former expatriates working in companies where the CEO and TMT have international experience than among those in companies where the CEO and TMT lack international experience. In summary, these propositions suggest that expatriate assignments will be associated with career success in firms with a broad global strategic posture, and in companies managed by CEOs and TMTs who have had significant international assignment experience themselves. Career development practices The final set of antecedents is comprised of career development practices. Feldman and Thomas (1992) proposed that organizational career development programs play an important role in fostering expatriate effectiveness. Other research indicates that such practices facilitate the adjustment of repatriates as well (Bossard and Peterson, 2005). In domestic settings, it has also been found that mentoring and career development assistance are related to career success (Wayne et al., 1999; Ng et al., 2005). With regard to career advancement following an international assignment, I argue that three practices are especially important: (1) the use of connectivity mechanisms; (2) repatriation assistance and (3) career development plans. Connectivity mechanisms As described earlier, a common problem among expatriates is that they often lose touch with people and events back at the home office (Harris, 1989; Mendenhall et al., 2002). In previous research, scholars have advocated that organizations should implement career development practices that keep expatriates connected with the home office while they are working overseas (e.g., Mendenhall et al., 2002). These practices have sometimes been referred to as connectivity mechanisms (Hsieh et al., 1999). Connectivity mechanisms often involve assigning expatriates back-home mentors and sponsors, or allowing expatriates to visit the home office on a regular basis (Hauser, 1998). Moreover, previous research suggests that individuals’ ability to cultivate and maintain important connections and networks is significantly related to their career success (Seibert et al., 2001). For example, Feldman and Thomas (1992) argue that back-home mentors can help an expatriate stay abreast of important career opportunities that might benefit him or her. Likewise, many companies allow expatriates to make regular visits back home in order to maintain relationships with colleagues and supervisors there (Guzzo et al., 1994; GMAC Global Relocation Services, 2004). Staying connected to colleagues and supervisors is important, because there are frequently significant Journal of International Business Studies Expatriate assignments and intra-organizational career success Mark C Bolino 828 changes back at the home office while international assignees are out of the country (Black, 1992). For example, reorganizations or restructurings may occur during the expatriate’s absence. Accordingly, supervisors who had reassured expatriates that there would be a place for them when they completed their assignments may have been reassigned, or may no longer work for the organization when the expatriate actually returns years later. Moreover, expatriates who have lost touch with key decision-makers or who have little knowledge of new job openings back at the home office are likely to be at a disadvantage relative to expatriates who have maintained close ties with people back home and have an awareness of internal career opportunities there (Feldman and Thomas, 1992). Thus it is likely that expatriates who have maintained ties through the use of connectivity mechanisms will experience greater intra-organizational career success following their repatriation. Proposition 7: Intra-organizational career success will be greater among former expatriates who were provided with connectivity mechanisms than among those who were not provided with connectivity mechanisms. Repatriation adjustment assistance A number of studies have documented the difficulties that many expatriates experience in terms of readjusting to life and work back home (e.g., Black, 1992; Black et al., 1992; Gregersen and Stroh, 1997; Stroh et al., 1998). Furthermore, this work indicates that, when expatriates have a difficult time adjusting, it often adversely affects their job performance (Adler, 1981; Black et al., 1992). For this reason, researchers have argued that organizations need to provide assistance and support to facilitate the adjustment of repatriates. For example, it has been suggested that employers can ease the ‘reverse culture shock’ faced by many expatriates by offering repatriate training, realistic re-entry previews, re-orientation programs, financial and tax assistance, and so on (Harvey, 1989; Black, 1992; Baughn, 1995; Mendenhall et al., 2002). Unfortunately, when repatriates have not received such support, they are likely to have greater difficulty reintegrating, and will be more likely to struggle at work (Adler, 1981). Moreover, when returning expatriates fail to hit the ground running, and demonstrate low levels of job performance, their chances of being promoted are likely to diminish. Thus repatriates who received repatriation assistance Journal of International Business Studies upon their return should have greater intra-organizational career success. Proposition 8: Intra-organizational career success will be greater among former expatriates who were given repatriation adjustment support when they returned home than among those who did not receive such support. Career development plan There are often few guarantees when employees accept an expatriate assignment. Indeed, less than 10% of expatriates are assured of a promotion when they return home, and many are not guaranteed a position of any kind within the company (Tung, 1998; GMAC Global Relocation Services, 2004). Moreover, a common complaint among repatriates is that they are often put in temporary positions or in ‘holding patterns’ rather than permanent jobs when they return home to their organizations (Harvey, 1989; Black and Gregersen, 1991). In order to address the concerns of expatriates, Feldman and Thomas (1992) recommended that international assignees be given a career development plan ensuring that the overseas assignment makes sense in terms of the employee’s overall career with the company. Equally important, employers must actually enact such plans with regard to the employee’s expatriation and repatriation. In other words, career development plans are unlikely to be helpful if they are not followed. Although such plans would not guarantee that the expatriate will be promoted when he or she returns, it should increase the likelihood that the expatriate will advance more rapidly when he or she gets back. Indeed, former expatriates who have been placed in temporary jobs or in positions that make little use of their international experience are likely to be at a disadvantage relative to those who have been given new job assignments that clearly draw upon the knowledge, skills, and abilities that they acquired while working abroad. Proposition 9: Intra-organizational career success will be greater among former expatriates who were given career development plans that were implemented during their expatriation/repatriation than among those whose career development plans were not implemented, or those who were never given such plans. In summary, then, intra-organizational career success is more likely to occur when comp- Expatriate assignments and intra-organizational career success Mark C Bolino 829 anies provide connectivity mechanisms; offer repatriation assistance; and establish and enact career development plans for their international assignees. Organizational and employee outcomes associated with intra-organizational career success Thus far in this paper I have sought to describe when expatriate assignments will facilitate career success. In this section I now seek to clarify the outcomes associated with career success (or failure) among expatriates. From employees’ point of view, there is great value in understanding when overseas assignments are likely to help them get ahead in their organizations. Indeed, equipped with such knowledge, employees can actually make informed decisions about the costs and benefits of accepting an international posting. At the same time, this issue has real implications for organizations, too – especially in terms of recruiting future expatriates and retaining former ones. Here, then, I address these important organizational and employee outcomes. Willingness to work overseas As discussed earlier, managers with global skills and abilities are in high demand, and there is a shortage of managers who possess such skills (e.g., Gregersen et al., 1998; Konopaske et al., 2005). Nevertheless, several studies indicate that some employees are unwilling to accept an overseas work assignment (Aryee et al., 1996; Borstorff et al., 1997; Konopaske et al., 2005; van der Velde et al., 2005). One critical reason for their reluctance is that many prospective international assignees have seen what has happened to their colleagues when they returned home, and these potential expatriates often come to believe that their colleagues would have been better off if they had just stayed home (Borstorff et al., 1997; Stroh et al., 2005; van der Velde et al., 2005). Konopaske and Werner (2005) argue that the potential career implications of working overseas are an especially important factor to contemplate among employees considering whether to accept or decline international assignments that will last longer than a year. For this reason, Stroh et al. (1998) argue that organizations that seek to send qualified employees overseas in the future must be able to demonstrate that international assignments have enhanced the careers of those who have accepted such assignments in the past. Indeed, to the extent that employees observe that returning expatriates tend to get ahead in their organizations, it is likely to increase their own willingness to work overseas. Thus prospective expatriates should be more willing to accept global assignments when their repatriated colleagues have experienced career success. Proposition 10: The intra-organizational career success of former expatriates is positively related to the willingness of other employees to accept expatriate assignments. Repatriate turnover Researchers have often lamented high turnover rates among repatriates (Black et al., 1992; Allen and Alvarez, 1998). In particular, research indicates that, within 2 years of their return, roughly 20–50% of repatriates no longer work for the organization that sent them overseas (Stroh et al., 1998; Bossard and Peterson, 2005). High turnover among repatriates is costly for organizations in at least two ways. First, given the considerable expense associated with sending employees overseas for several years, repatriate turnover means that organizations are losing resources in which they have already invested heavily. Second, when former expatriates leave their organizations, they take along with them the skills, abilities, and connections that are critical to the future success of global firms (Stroh et al., 2005). For example, Kostova and Roth (2003) suggest that the networks created by expatriates are an important aspect of the social capital that enables multinationals to more successfully manage interdependence. Moreover, other studies indicate that CEOs with overseas experience are more effective at running global corporations (Daily et al., 2000; Carpenter et al., 2001). Put simply, then, high repatriate turnover represents a real loss for firms that do business internationally. By and large, research regarding repatriate turnover indicates that former expatriates leave their companies because their returns have been mismanaged, and because they feel unappreciated (Allen and Alvarez, 1998; Bossard and Peterson, 2005). Consistent with these findings, Tung (1998) found that a majority of international assignees were satisfied with expatriation, but that most were dissatisfied with repatriation. Furthermore, she suggests that ‘inadequate advancement opportunities upon return’ is one of the principal reasons for high levels of dissatisfaction among former expatriates (Tung, 1998: 138). Previous research Journal of International Business Studies Expatriate assignments and intra-organizational career success Mark C Bolino 830 indicates that employees who see limited advancement opportunities are often more likely to leave their organizations (Johnston et al., 1993). Accordingly, former expatriates should be most likely to quit when they have had limited career success within their organizations following an overseas assignment. In contrast, those who have been able to get ahead following an expatriate assignment should be less interested in leaving their companies. link between expatriate experience and intraorganizational career success. Specifically, turnover will be higher among employees who believe their organizations promised them that working overseas would facilitate intra-organizational career success and failed to keep such promises than among those who felt such promises were kept, or did not perceive that such promises were made. Proposition 11: The intra-organizational career success of former expatriates is negatively related to repatriate turnover. An employee’s primary motive for having accepted a global assignment is also likely to moderate the relationship between intra-organizational career success and turnover. In particular, while repatriates who fail to advance in their careers are likely to leave their companies, turnover is likely to be especially high among employees whose principal motivation for working as an international assignee was because it would enhance their intra-organizational career success. However, Stahl et al. (2002) point out that employees often accept international assignments because working overseas can broaden one’s horizons, reduce narrow-mindedness, and enrich one’s personal life. Repatriates who accepted their assignments for these reasons, then, should view their overseas experiences positively, even if there has been little benefit to them in terms of their careers (Stahl et al., 2002). Thus, among expatriates who accepted an overseas assignment for their own personal development (rather than because they expected it to help them get ahead), intra-organizational career success is likely to have a weaker effect on their decision to leave (or remain with) their company. While turnover is likely to be high among repatriates who are frustrated with their post-assignment career prospects, there are likely to be some important moderators of this relationship. In particular, Stroh et al. (2000) argue that employee expectations play a critical role in determining how repatriates are likely to react to career aspirations that go unfulfilled. Although most companies make few explicit promises with regard to promotions or advancement following an international assignment (Tung, 1998; GMAC Global Relocation Services, 2004), many organizations do imply that such experience is valuable to the company, and will in fact be rewarded (Carpenter et al., 2001; Welch, 2003). Accordingly, expatriates usually come home expecting to be welcomed and appreciated. Moreover, they often expect that their newly acquired skills and abilities will enable them to get ahead more quickly. If employees expected that an overseas assignment would facilitate their career success, they are likely to be especially dissatisfied if these expectations are undermet (Stroh et al., 2000). To the extent that organizations have met or overmet employees’ expectations about career advancement, however, turnover should be less likely to occur. Accordingly, turnover should be highest among those who accepted an expatriate assignment because they thought it was a ticket to the top (but it turned out not to be). In contrast, employees who felt their organizations lived up to their promises, or never offered any guarantees, will be less likely to quit when they find that their overseas experience has not helped their ascendancy back at home. Proposition 12a: The relationship between intraorganizational career success and turnover is moderated by repatriate expectations about the Journal of International Business Studies Proposition 12b: The relationship between intraorganizational career success and turnover is moderated by employees’ primary motive for having accepted an overseas assignment. Specifically, turnover will be higher among employees who accepted an overseas assignment because it would help their careers than among those who accepted an overseas assignment for their own personal development. Discussion There have often been stories in the popular press claiming that expatriate assignments facilitate career success (e.g., Lublin, 1996; Fisher, 1997, 2005). However, there is in fact a paucity of research addressing this link. Moreover, most studies of repatriation indicate that repatriates often believe that their overseas experience has Expatriate assignments and intra-organizational career success Mark C Bolino 831 been more of a liability than an asset in terms of their careers (Gregersen, 1992; Baughn, 1995; Bossard and Peterson, 2005). In this paper, I have developed a framework delineating the linkages between expatriate assignments and intra-organizational career success. Moreover, whereas previous work has sometimes suggested that international assignment experience might have career-enhancing effects (e.g., Judge et al., 1995; Ng et al., 2005), this framework suggests that the relationship between expatriation and career success is not so straightforward. In other words, there are multiple factors that will influence the degree to which overseas experiences help or hinder the advancement of employees who have worked as international assignees. This model also posits that intra-organizational career success has important implications for organizations and individuals with regard to the retention of former expatriates and the recruitment of future expatriates. Directions for future research Testing the model With regard to empirical tests of this model, a few points should be made. First, there are already existing measures for most of the core constructs described here. For example, Carpenter et al. (2001) developed a measure of global strategic posture that is calculated using a firm’s foreign sales, foreign production, and geographic dispersion; likewise, researchers have developed measures of career development plans, mentoring, and other career development practices (e.g., Feldman and Thomas, 1992; Selmer, 1999). The measurement of other variables, though, is less clear. For example, scholars have different views on the ways in which expatriate success should be measured (Forster, 1997). In order to find empirical support for this model, then, it will be necessary to have measures that accurately assess these constructs. In addition, there are a number of control variables that should probably be included in any empirical tests of this model. In particular, while it is suggested here that repatriates will fare better in their careers when they were sent overseas for managerial development, this variable alone may not fully capture the real nature of the tasks or roles that expatriates fulfill overseas. For example, Harvey and Novicevic (2001) indicate that expatriates may be given tasks that are coordinative, computational, or creative. It is possible that the degree to which expatriates worked on these different tasks while overseas could influence their career success back home. In testing the model, then, researchers may need to consider the specific tasks that expatriates completed in their assignments. Furthermore, personality variables can also be an important determinant of individual career success. Indeed, previous work indicates that individuals who are conscientious, are high self-monitors, possess an internal locus of control, and have a proactive personality tend to have greater career success (Kilduff and Day, 1994; Seibert et al., 1999; Ng et al., 2005). Other individual differences – such as gender, race, marital status, education – are likely to be especially relevant, too (Judge et al., 1995; Ng et al., 2005). Likewise, the relationship between expatriate experience and intra-organizational career success could depend upon the career stage of the expatriate. For instance, Tung (1998) argues that younger employees often benefit more from working overseas because they are typically given more significant duties and responsibilities than they would have had back home. On the other hand, more seasoned executives might be better equipped to parlay a stint overseas into a higher-level position back home. In testing this model, then, it will be important that researchers collect data on these variables in order to control for their potential influence. In addition to these variables, researchers may also want to take into account other contextual factors that could influence career success. In particular, industry and functional area could clearly have important influences on the relationships in this model. Likewise, Anderson et al. (1981) point out that intra-organizational mobility is often a function of vacancies. Thus repatriates who have returned home along with a large cohort of other repatriates may find it more difficult to get ahead. It would be advisable, therefore, to control for the repatriate cohort size when testing key elements of this model. Allen and Alvarez (1998) indicate that expatriates sometimes get caught in the middle of disputes between headquarters and subsidiaries that could hurt their careers somewhere down the road. Thus the politics of doing one’s job overseas might jeopardize an expatriate’s future prospects back home. Similarly, expatriates may be perceived more favorably when they have assignments that require them to work extensively with managers back home and thereby allow them to develop valuable connections. Political climate, then, is another variable that could influence these relationships, and thus should also be considered as a potential control variable. Journal of International Business Studies Expatriate assignments and intra-organizational career success Mark C Bolino 832 Considering multiple factors and mediated models The model presented here represents an important starting point for considering the ways in which expatriate experience affects one’s career; nevertheless, researchers will also need to build upon this work and develop models that consider multiple factors simultaneously. For example, is it better (in terms of one’s career) to turn down an expatriate assignment or to accept one and fail overseas or return prematurely? Likewise, it is difficult to determine what the career implications of an overseas assignment might be if the company has a rather narrow global strategic posture (which should decrease an expatriate’s chances of career success), but the expatriate is assigned to a strategically important subunit, performs well overseas, and is well supported (which should all increase his or her chances of career success). In short, future studies need to determine which factors are more or less important in predicting the intra-organizational career success of former expatriates. Likewise, future work should consider how the various factors presented here may interrelate or interact. In particular, it is likely that many of the predictors are linked in specific ways. For example, expatriates may tend to be sent overseas for developmental purposes when they work in companies with a global strategic posture or in which the TMT and/or CEO have had international experience. Some of the factors in the model could also moderate the effects of other factors. It is possible, for instance, that being successful in an assignment might be more strongly related to intraorganizational career success when the expatriate was assigned to an important subunit. Clearly, then, the framework presented in this paper is merely a starting point for developing more sophisticated models. Indeed, additional moderating variables may also be relevant to the model described here. For example, it is possible that international experience could be especially useful when individuals have also had other important experiences, or have a particular background. In other words, expatriate assignments might sometimes be necessary, but not sufficient, in helping employees make it to the top of an organization. Relatedly, it would also be worthwhile to examine the direct and indirect effects that expatriate experience has on career success. In other words, do former expatriates tend to get ahead because they went overseas, or did they develop certain skills or qualities while Journal of International Business Studies working abroad that, in turn, helped them advance more quickly? Thus more work is needed to understand the potential mediating processes that could explain the relationship between overseas experience and career success. Evaluating career success While this research has outlined some of the principal instances in which expatriation will facilitate intra-organizational career success, a number of other issues must also be explored in order to truly understand the career implications of working as an expatriate. In particular, future research must seek to assess the career trajectories of former expatriates relative to those of individuals who were offered an expatriate assignment and declined it, or relative to those who were never really considered for an overseas assignment. Accordingly, rather than just comparing the career progress of repatriates based on the factors outlined in this paper, future studies should also determine whether employees would have been better off if they had turned down an overseas posting, or if they had never been offered an assignment in the first place. Another issue with regard to evaluating the relationship between expatriate assignment experience and career success is that one must take into account the number of promotions since the expatriate completed the assignment, or the number of promotions someone has received vs the number of years they have been back home. Indeed, there may be a real lag between completing an expatriate assignment and that overseas experience actually paying off with one’s employer. For example, some former expatriates might initially be placed in holding patterns, or into their old jobs. Down the road, though, their experiences may finally yield dividends in terms of more rapid advancement. Thus former expatriates may only benefit from their international experiences years later. Clearly, then, those who seek to investigate this question rigorously will need to include a longitudinal aspect to their overall research design. It would also be interesting to look more closely at what happens to employees who refuse to be sent overseas. There is certainly anecdotal evidence that some employees feel pressured to accept international postings because declining them would hurt their careers (Feldman and Thomas, 1992). Again, though, there are really no hard data on this point. Put simply, then, does turning down an assignment really hurt one’s career? This is likely to be a Expatriate assignments and intra-organizational career success Mark C Bolino 833 complex issue. For example, the career implications of turning down an assignment may vary depending on the nature of the assignment or its location. Thus it may be permissible to refuse to be sent to an unusual or culturally tough location, but it may be frowned upon when employees decline postings at a more familiar overseas site. It is possible, too, that men who are unwilling to accept an overseas assignment could be penalized to a greater extent than women who decline an international posting, or that it is seen as more acceptable for employees with families to state their preference to stay home. Individuals at different career stages might also have more or less discretion in accepting or declining an expatriate assignment. Likewise, it may be acceptable to refuse one assignment, but refusing multiple assignments may do great harm to one’s intra-organizational career prospects. Overall, then, more work is needed in order to better understand the career implications of declining an expatriate assignment as well. A related question here is the way in which premature returns (i.e., failure in an expatriate assignment) might affect an employee’s career path. In a study by Riusala and Suutari (2000), some respondents had considered returning home early (i.e., not seeing their assignment through to its completion). However, most of these expatriates were wary of doing so because they believed that failure to complete the overseas assignment would adversely influence their career prospects back home. Indeed, 31% of the respondents who contemplated an early return believed such a move would ‘very negatively’ affect their career, and 45% thought it would ‘negatively’ affect their career. Nevertheless, we still have little understanding of the ways in which premature returns might be related to the career prospects of expatriates, and whether the concerns of these individuals were truly warranted. Potential practical implications Finally, if the propositions offered here receive some empirical support, there will be some important practical implications of this work. In particular, employees making the decision to accept or decline an expatriate posting need to look carefully at their organizations and the nature of the proposed assignment in order to make an informed decision about whether becoming an expatriate will ultimately help or hinder their standing within the organization. As argued here, in terms of intra-organizational career success, it may not always make sense to agree to be sent overseas. At the same time, organizations need to be honest about the link between expatriate assignments and career success within their own organizations. 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Yan, A., Zhu, G. and Hall, D.T. (2002) ‘International assignments for career building: a model of agency relationships and psychological contracts’, Academy of Management Review 27(3): 373–391. Yan, R. (1998) ‘Short-term results: the litmus test for success in China’, Harvard Business Review 76(5): 61–75. About the author Mark C Bolino is an Associate Professor in the Price College of Business at the University of Oklahoma. He received his PhD in organizational behavior from the University of South Carolina. His research interests include organizational citizenship behavior, impression management, international assignments, and psychological contracts. Accepted by Mary Ann Von Glinow, Departmental Editor, 25 November 2006. This paper has been with the author for two revisions. Journal of International Business Studies
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