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Expatriates analyzed with the Critical
Incidents Technique
JOHANNES KEPLER UNIVERSITY LINZ Altenberger Str. 69 4040 Linz, Austria www.jku.at DVR 0093696
Diploma Thesis to obtain the academic degree of
Magister der Sozial- und Wirtschaftswissenschaften in the Diploma Program
Wirtschaftswissenschaften
STATUTORY DECLARATION
I hereby declare that the thesis submitted is my own unaided work, that I have not used other
than the sources indicated, and that all direct and indirect sources are acknowledged as
references.
This printed thesis is identical with the electronic version submitted.
Place, Date
2.2 Reasons for More Frequent Assignments 8
2.3 Types of International Assignments 10
2.3.1 Classical Types of Assignments 10
2.3.2 New and Flexible Int. Assignments 11
2.4 Expats in Terrorism-Endangered Countries 17
2.5 The Expatriate´s Global Career Cycle 18
2.6 Reasons for Failure of Expatriation 20
2.6.1 Culture Shock 22
2.6.2 Coping Strategies 24
3.2 Problems in Repatriation 27
3.3 Pre–Repatriation and Support 29
3.4 Successful Repatriation 34
3.6 W- Curve 38
3.8 Factors Associated with Repatriation 40
3.8.1 Social and Cultural Aspects 40
3.8.2 Spouse and Family Issues 41
3.8.3 Career-Related/ Job-Related Issues 42
3.9 Debriefing of Repats 43
3.10 Numbers on Repatriation (KMPG) 47
4 Research Questions 57
5.2.2 Semi-structured Interviews 61
5.6 Limitations 72
6.2.1 Socio-Cultural 74
6.2.1.2 Re-Adjustment 75
6.2.4 Company/ Career 85
6.2.4.2 The Career Ladder 87
6.2.4.3 Work Satisfaction 91
Appendices 114
Figure 3 “U-Curve” ..............................................................................................................................................24
Figure 6 “Types of Assignments” .........................................................................................................................49
Figure 7 “5-year Forecast” ...................................................................................................................................49
Figure 12 “Prerepatriation” ....................................................................................................................................53
Figure 14 “Top three Reasons to leave” ................................................................................................................55
Figure 15 “Repatriation Success” ..........................................................................................................................55
LIST OF TABLES
Table 2 “New Forms of Assignments” ................................................................................................................16
Table 3 “Sample Description Chart” ...................................................................................................................65
Table 4 “Phases of Thematic Analysis” ..............................................................................................................71
Table 5 “Final Template with Themes and Sub Themes” ...................................................................................74
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ABSTRACT
1 Introduction
According to Fischlmayr/ Kopecek (2015, 200) repatriation has to be considered as the most
important phase of the expat cycle, as the outcome of the phase decides whether the
repatriates stays within the organization or not.
The business environment during the 21st century has been rapidly changing. The changes
have been highly innovative as well as becoming more global hence the increase of diverse
demand in several aspects. All of these facts combined have led to an increase in global
assignments. Some of the reasons for these international assignments are the transfer of
knowledge and state of the art technologies, the transmission of corporate cultures, the
penetration of new markets and target groups, as well as the development of global skills and
mind-sets within the organizations workforce. Considering the extensive costs of failure of an
international assignment, companies have to take all necessary actions to promote expatriate
success and avoid failure. One critical source for failure of expatriation is the repatriation
process of former expatriates. Repatriation is the very last step taken by expats; coming back
home from an international assignment. Several authors have tried to research potential
reasons for the failure of the repatriation process, which will be reviewed later on in this written
piece of work.
Having mentioned the fact, that repatriation is still an issue of utmost importance within the
International Human Resource Management (IHRM) and according to Bonache et al. (2001,
13) „repatriation, remains one of the more underresearched dimensions of expatriation”, it was
clear to me to write my Diploma-Thesis to this topic. As I have already written my Bachelor-
Thesis about the role of training in expatriation; this Diploma-Thesis is exploring the field of
IHRM in more depth. Especially the socio-cultural aspects of repatriation, which can lead to
great trouble of the process, are of my interest. In this connection, it should be mentioned that
the whole process of repatriation will be considered by using CIT (Critical Incident Technique),
which allows to show potential sources of failure. Some of these sources for failure have
already been covered by the existing literature (e.g. Tung, 1981; Tung, 1998; Selmer, 1999;
Adler, 2002; Gaw, 2000; Porter/ Tansky, 1999; Harvey/ Kiessling, 2004; Riusala/ Suutari,
2000) others not. This study should help to find out more about the issues faced by repatriates
within their repatriation processes, in order to manage the process better and to avoid harmful
encounters in future processes.
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„A company must purse global knowledge and maintain a global perspective in order to remain
competitive in today´s dynamic business environment. The opportunities available to
companies in a global market are tremendous” (Paik et al., 2002, 635). Several statements
about globalization exist in the literature and as highlighted by Brewster/ Suutari (2003, 1132):
“The concept of increasing internalization of business is not uncontroversial.”
According to Harvey/ Moeller (2009, 275) there will be an increasing number of expatriate
managers in leading positions, within the near future. These managers’ performances will have
an impact on the success of numerous multinational companies (MNC) worldwide.
Vidal et al. (2007a, 1396) point out the existence of a globalized economy as well as the
internationalized business, which has led to an international Human Resource Management
(IHRM), over the last decades. Putting together these factors, there is a great demand for
doing research in the field of international assignments. Paik et al. (2002, 635) mentioned that
despite of considering the outcome of expatriate management, repatriation is still a potential
threat for expatriates as well as HRM. Accordingly, Paik et al. (2002, 636) highlight the
importance of managing the repatriation process of expatriates successfully, in order to make
the best out of the skills and knowledge gained by the repatriates in their overseas
assignments. Still many HR managers are concerned about the high attrition rates of
repatriates, the sunk costs of failed repatriation and the improvement of the final stage of the
expatriation process. According to studies of Black/ Gregersen (1998, 112) 25% of repats
leave the company within one year of returning back to the home country, which is the double
rate of manager’s attrition rate of non-expatriate employees. Fischlmayr/ Kopecek (2015, 204)
even mention that around 50% of repats leave the organization within one year after returning.
Vance/ Paik (2011, 250) mention that an expatriate assignment can be considered as a very
expensive investment, as annual costs range between $300.000 to $1 Million. „Many people
are skeptical of the notion of reentry shock; that sojourners returning home are likely to
experience adjustment difficulties similar to, or more severe than the original culture shock.
This skepticism is understandable in that repatriates expect to be returning to a familiar
environment; one that will reunite him or her with loved ones. In actuality, individuals are
confronted with changes having occurred in themselves, at home and in the world” (Mathews,
1994, 91).
2.1 Definition: What is it?
“Expatriation is sending parent company nationals to another country, or the host country to
perform management duties. This staffing alternative has been one of the most frequently used
means for staffing oversea assignments for Western multinational corporations” (Harvey/
Kiessling, 2004, 552). Inkson et al. (1997, 351) point out that a main characteristic of an
expatriate assignment is that when the initial impulse comes from the company itself, asking
the manager to fill a position in a subsidiary outside the home country. “The job requires both
knowledge of the company´s strategy, procedures, etc., and the ability to work and live in
successfully in a foreign environment. A suitable individual is assigned on a temporary basis,
and subsequently returns to another position in the same company in the original country”
(Inkson et al., 1997, 351). In contrast to the above described expatriate assignments there are
overseas experiences, which are self-intended by the individual – the so-called self-initiated
expatriates. Another possible terminus for expatriate is the term “sojourner” which will be used
occasionally in this piece of written work (Brislin et al., 2008, 397).
Alongside the reasons for sending an expatriate abroad, there have been changes in the
expatriate themselves, as well in what organizations expect from them. “The traditional,
middle-class, crusty, career expat can still be found, but much more rarely. Expatriates now
will more often do one assignment and then return home, occasionally undertaking a second
assignment later in their career. More of them have degrees or MBAs. One consequence is
that they are more likely to see a foreign assignment as a part of their career, expecting to
come back to headquarters in an improved position and ready to negotiate and argue about
their contract” (Brewster/ Scullion, 1997, 36). Moreover, the before mentioned authors highlight
the increasing number of female expatriates.
2.2 Reasons for More Frequent Assignments
According to Adler (2002, 259), companies send staff to live and work abroad for various
reasons, depending on the stage of globalization they focus on, the industry and the strategic
path they want to go. Additionally, the number of global staff depends on the company type:
domestic, multi-domestic, multinational (MNC) or global enterprise.
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Adler (2002, 273ff) mentions in her book that multi-domestic firms send trusted home-country
nationals abroad as expats to get a certain job done. As headquarters often see their
international operations as a replication of what has already been done back home – hereby
mostly average performing managers are used instead of top performers, which are needed
in HQ. MNC send high performers abroad, who can responsibly take global lines of business
and later benefit from their international experience.
„MNCs continue to use expatriates to assist in their global operations as extensions of their
headquarters’ governance and control as these individuals will typically hold similar goals and
values as those in headquarters. The expatriates also are used to transfer headquarters’
corporate culture and operating systems, functional technical expertise and to give home
country personnel international experience” (Harvey/ Kiessling, 2004, 570).
People are sent abroad to transfer technologies, to maintain control over autonomous
operations, to get a certain job done within a subsidiary, and to replicate what has already
been achieved in the home country. According to Tallman/ Fladmoe-Lindquist (1994), in
Bonache et al. (2001, 7), it has shown that globalization makes innovation and learning
possible, as companies get in contact with new cultures, ideas and experiences, which then
can be combined with existing knowledge. Not only do headquarters send staff abroad, but
also the other way around is a possible source for knowledge transfer (one-way): managers
from local cultures are sent to the HQ, in order to learn how business is done within the HQ
and to adjust to the organizational culture – so called inpatriates.
Another list of reasons for sending expatriates abroad as stated by Torbiörn (1985) and
Brewster (1991) in Brewster/ Scullion (1997, 33), include the lack of management and
technical know-how in some destinations, as well as the control over local operations.
Bennett et al. (2000, 239) point out that there is more demand for sending people abroad
(short- and long-term assignments), as the transfer of technologies, the management of
oversea start-ups, the management of Joint Venture Companies (JVC), to enter new markets,
the development of global skills, as well as knowledge within the workforce play crucial roles
in doing business today.
The support of the organization’s business objectives, controlling of costs as well as being
adaptable to the changing business requirements worldwide are said to be the most important
goals for their assignments, according to the surveyed enterprises (KPMG, 2019, 13). In
Chapter 3.9 more information about the debriefing or returned expats will be provided, as well
as some information on the organizational use of knowledge gained by expats while on
assignment.
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2.3 Types of International Assignments
In this section of this thesis information about the classic form of expatriation – so called long-
term assignments, as well as new forms of international assignments will be provided.
Tahvanainen et al. (2005, 663) point out that several authors have already covered common
expatriation extensively; whereby newer forms of expatriation haven’t been researched a lot.
More and more authors try to fill the need for new and up-to-date data. “Despite global
developments of many kinds, our understanding of the international assignment and
international assignee remains largely locked into the idea of the traditional long-term
expatriate sent overseas for a 3-5 year period. The consequence of this focus on the traditional
long-term expatriate is that research is lagging practice rather than informing it, thus new
research agendas need to be developed with respect to the international assignment and
assignee“ (McKenna/ Ricardson, 2007, 307). Cerdin (2008, 211) points out that international
assignments become more and more diverse and now differ not only in length and location but
also in the career stage they appear. Expats consider their international experiences as special
periods of their careers – which can happen to be short-term (up to one year), mid-term (2-3
years) and long-term (more than 3 years). According to Collings et al. (2007, 205) most of
these new forms of assignments emerged out of the given problems and drawbacks of long-
term assignments which will be mentioned later on in Chapter 2.3.2.
2.3.1 Classical Types of Assignments
According to Collings et al. (2007, 204) traditional expatriation lasts three to five years, and
includes physical relocation of the expat as well as the spouse and family of the expat. The
Global Assignment Policies and Practices (GAPP) Survey (KPMG, 2019, 21) defines long-
term or standard assignment formats as one to five year lasting assignments, which are used
by 86% of the participating organizations, compared to the same report done in 2018, a drop
of 10% can be seen. Cerdin (2008, 211) highlights that an assignment can be considered as
traditional expatriation as soon as the individuals´ family relocates with the expat. This classical
form of expatriation, is according to Bonache et al. (2001, 8) and Tahvanainen et al. (2005,
663) the most researched one and tends to follow Adler’s (2002) expatriate cycle. Issues
hereby are recruitment, selection, and training, followed by a focus in later studies on
adaptation, compensation, and performance management, leading through to more recent
attention to repatriation and further careers. According to Tahvanainen et al. (2005, 669) a
classical assignment lasts between one year and three years, with the purpose of filling open
positions and skill gaps, development of international mangers, and development of the
organization. The relocation of the expat and the family is essential in this type of assignment,
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and cross-cultural trainings are mostly provided for both of them. Compensation includes
salary plus various allowances and benefits which should cover the relocation as well as the
changes given in the expats private life.
2.3.2 New and Flexible Int. Assignments
“Both in research and practice, classical expatriation remains an important element of
international work. Yet, in recent years alternative forms of international work have gained
considerable importance” (Mayrhofer et al., 2012, 300). Yet a drastic decline traditional expat
assignments couldn’t be proved, but the rising of several new forms of assignments (Mayrhofer
et al. 2004; Tahvanainen et al., 2005).
According to Petrovic (2000, 1) there are three new forms of assignments next to the classical
form of long-term expatriation, these new forms of international assignments include short-
term assignments, frequent flying and commuting. Short-term assignments are time limited
assignments, which last mostly less than one year – in some cases the expats family is
relocated as well in some no relocation of the family is given. For frequent flyer assignments,
the main characteristic is that business people travel frequently to avoid relocation – in
Mayrhofer et al. (2004, 1387) frequents flyers are called “flexpatriates” – this term is used to
avoid confusion with existing frequent flying programs used by several airlines. International
commuters travel from A to B on a weekly or even bi-weekly basis in order to do business
without the need of permanent relocation, same applies for the family of the expat, which stays
within the home country.
„[W]e define a short-term international assignment as a temporary internal transfer to a foreign
subsidiary of between one and twelve months duration. We argue that the relocation of family
and remuneration issues are of secondary importance in terms of definition although they may
have significant operational implications for the MNC and personal implications for the
assignee” (Collings et al., 2007, 205).
Also, Collings et al. (2007, 206) stated new forms of assignments, which are similar to
Petrovics´ (2000) work. Another new form of expatriates are frequent business travelers, or
international business travelers (IBT), for these expats travelling frequently is a main
component of their work. Advantages are avoiding the need for relocation of the expat itself as
well as the relocation of the expats family. Especially in Europe as well as South East Asia,
where short-haul flights are common, this form of expatriation is increasing. “IBTs are most
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appropriate for conducting irregular specialized tasks, such as annual budgeting meetings or
production scheduling in MNCs but more crucially they can develop important networks with
key contacts in foreign markets. Further, they are useful in maintaining a personal touch in
managing subsidiary operations without the need for relocation” (Collings et al., 2007, 206).
Mayrhofer et al. (2004, 1387) highlight the upcoming importance of new forms of expatriation:
“An increasing number of global staffing movements are not expatriates but flexpatriates –
those who undertake global assignments frequently, and with flexibility” (Mayrhofer et al.,
2004, 1387).
Collings et al. (2007, 206) state several advantages of IBTs such as face-to-face contact at
the point of interest, building of social capital and knowledge without relocation, reduction of
costs for MNCs as well as minimization of interruption of the expats career. Mayrhofer et al.
(2004, 1386) mention that as flexpatriate assignments are rather short, adjusting to partners,
locals, cultures and customs must be done more effectively than in long-term assignments.
New forms of technology as well as their worldwide access help to keep up communication
with families, friends, the company and other global contacts, which can be useful to gain
important information in time. Moreover, it is mentioned that flexpatriates do not interrupt their
careers and so do not miss promotions as easy as expats, which must leave HQ for longer
periods of time. Assignments at short notice are mentioned as a potential stressor for
flexpatriates, which are compensated with additional days off by the company.
Advantages of short-term assignments are mentioned: „The three most commonly mentioned
were: (1) flexibility, (2) simplicity and (3) cost effectiveness. The flexibility and simplicity
associated with short-term assignments work for both parties, the employee and the employer.
If the employee’s personal situation does not favour a long-term foreign assignment, a short-
term assignment might be acceptable. Typically, the employee’s family does not relocate
abroad, thus making the arrangement in many ways easier from a family perspective. There
is no need to interrupt the children’s schooling, and the partner can continue with his or her
own career“ (Tahvanainen et al, 2005, 667ff). Having given the data of several authors
consistency is given among their results, even though the categorization and definition of the
terms slightly differs from author to author.
Problems according to Collings et al. (2007, 206) as well as Tahvanainen et al. (2005, 669)
hereby can be the frequency of travelling, especially for dual career couples. Moreover, health
and stress issues are more concerning than in longer and less frequent assignments.
Furthermore, alcoholism, higher divorce rates, taxation issues as well as visa and work permit
issues are mentioned.
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Not only pros and cons are mentioned in the existing literature, but also some critics and
statements which make one think about the new forms of assignments and their strategic fit.
“Organizations may see that alternative types of international assignment offer opportunities
for cost savings, yet this is hardly strategic reasoning. Decisions concerning the nature and
type of international assignment should be driven by the objectives and purpose(s) of the
assignment, not by cost alone. The effective and efficient management of assignments and
assignees, therefore, will depend greatly on their definition, objectives, and purpose.
Furthermore, clarity of definition, objectives, and purpose will enable an effective determination
of the nature and type of assignment required, or whether an international assignment is
necessary at all” (McKenna/ Richardson, 2007, 308). Moreover, the authors McKenna/
Richardson (2007, 308) mention the urge to replace long-term assignments with short-term
assignments is a very complex process, especially as new and important issues arise, not only
for the IHRM but for the organization as a whole. Existing standards, procedures and
processes must be implemented, considering all stages of the expatriate cycle in relation to
the new forms of expatriate assignments.
Petrovic (2000, 2) lists problems stated by companies considering each new form of
international assignments (compare Table 1).
Table 1. “Most cited Problems with International Assignments”, Source: Petrovic, 2000, 2
Alongside, Shaffer et al. (2012, 1286) provide an important initial step in establishing a
theoretical framework for the differentiation of new forms of international assignments. After
reviewing 114 articles about expatriation they came up with the following Table 2, which
compares as well as it summarizes all aspects of “ordinary” corporate expats. Providing this
chart, which summarizes definition, purpose, duration, relocation, as well as advantages and
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disadvantages of all kind of forms of assignments it makes understanding and using new terms
easier, more logical and can be used to rethink each form in detail.
Due to the uprising interest in sustainability and ecological topics within the global economics,
a different point of view should be given here. On the one hand, several authors (Collings et
al., 2007; Tahvanainen et al., 2005) mentioned that new forms of expatriation are more often
favored over traditional forms of expatriation, as several advantages such as cost cutting for
organizations and reduced stress for the expat are reached. On the other hand, Kantenbacher
et al. (2018) highlight that “The current trend of increasing demand for air travel runs contrary
to climate-related sustainability goals” (2018, 46). Shaw/ Thomas (2006, 213) highlight in their
findings on hyper mobility that it will be hard for airline consumers, as well as organizations to
accept that their actions directly interfere with ecosystems and the climate. Also, they point out
in their findings that most frequent airline users still ignore the impact of aviation on the climate
as well as they favor their own personal advantages of low-cost travelling over the interests of
the society or the environment. The dilemma of organizational goals and environmental goals
is not the only one arising with more frequent airline use, according to Cohen et al. (2017),
also, “…the personal and social consequences of frequent travel…” (Cohen et al., 2017, 406)
need to be considered. Cohen/ Gössling (2015) came up with three areas of consequences,
which are negatively affected by hyper mobility and harmful to travelers according to their
studies. “1) physiological consequences; 2) psychological and emotional consequences; and
3) social consequences” (Cohen/ Gössling, 2015, 1996). They point out that those three areas
are not to be viewed as single categories only but they are interlinked and blend into each
other. The authors mention common physiological consequences such as jet-lag, thrombosis,
dehydration and the exposure of the human body to high levels of radiation. Some class two
consequences of hypermobility mentioned by the authors are the feeling of isolation and being
lonely, as well as they mention that hypermobility can, in extreme cases, favor mental illnesses
and psychological dis-orders. “Many of the above aspects concerning the darker physiological,
emotional and psychological sides of hypermobility have already illustrated connections to
social consequences. But the costs at kinship, friendship and community levels entail at least
several further dimensions” (Cohen/ Gössling, 2015, 1672). The authors conclude their paper
with the following statement, which shows that frequent travelers face new and underrated
consequences by favoring frequent travelling over traditional assignments. “Overall, our critical
review of the physiological, psychological, emotional and social consequences of
hypermobility has rendered some key insights on the impacts of excessive travel. Whilst there
is evidence of the impact of chronic jetlag and frequent radiation exposure on airline cabin
crew, the implications of these physiological effects on business and leisure travellers has
largely been ignored” (Cohen/ Gössling, 2015, 1673). Given those result; pros and cons of
15
new expatriate assignments as well as their implications for the global environment as well as
the person in question have to be still researched and thought on.
16
Table 2. “New Forms of Assignments”, Source: Shaffer et al., 2012, 1286
17
“Terrorism threatens IB [International Business] through its direct and indirect effects”
(Czinkota et al., 2010, 839).
This digression should provide brief ideas and information about terrorism in context with
international assignments, as terrorism and political unrest are upcoming issues in our present
times. Moreover, those different realities in which expatriates need to adapt, could be potential
challenges for repartition as well and therefore could be considered. This unrest creates jobs
which often must be done by foreigners, as well as some assignments must be fulfilled even
though terrorism or other threats have occurred within the destination in question. Often lesser
developed countries offer high economic potential for MNCs. According to Bader et al. (2015,
849) more and more expats are being sent not only to industrialized and stable surroundings,
whereas also to countries in which political and even terrorist risk are in the forefront. Being
sent to such countries is of course even more stressful for the expat as well as his/her trailing
partner and family, as well as integrating and succeeding is more challenging.
Terrorism is according to the Wernick (2006) “…premeditated, systematic threat or use of
violence by subnational groups to attain a political, religious, or ideological objective through
intimidation of a large audience. It involves communicating a political, religious, or ideological
message via fear, coercion, or intimidation of non-combatant persons or the general public”
(Wernick, 2006, in Czinkota, 2010, 828). Hereby it can be distinguished between national and
international terrorism, whereby international terrorism doesn’t know any geographical limits
and can occur across borders. Terror acts can be planned in one country and executed in
another. New terrorism can be seen as a trend among terrorists which is marked by new, even
more cruel and violent forms of attacks. These attacks are often targeted aimlessly, whilst
aiming a high number of destruction.
Czinkota et al. (2010, 827) highlight that direct effects of terrorism can lead to loss of civil life,
destruction of infrastructure, buildings and other personal belongings, which are not the main
concern for MNCs. More crucial concerns are the indirect effects of terrorism such as a
decrease in foreign direct investment, higher international business costs for transactions,
decrease in buying power, and issues within international supply chains and international
staffing decisions.
According to Czinkota et al. (2010, 839) researchers must focus on the relationship between
expatriates and MNCs as this is a topic of utmost importance in the 21st century as more and
more companies empower international activities and terrorism concerns arise. The main focus
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hereby should be set on how research can help IHRM to better prepare and take care of its
international workforce in times and areas of crisis.
“Ongoing alertness and environmental scanning to detect and monitor emergent threats are
critical, to prepare to meet evolving challenges” (Czinkota et al., 2010, 840). Interesting in this
connection is that following citation, as it says that these security measures favored by IHRM
impact expatriate success indirectly. “In some situations, expatriate managers and their
families are encapsulated in expatriate enclaves for safety and social reasons. This type of
living arrangement is frequently seen in the Middle East and other locations where safety for
family members are of a high level of concern. It is anticipated that as MNCs focus on transition
economies and emerging market countries, these enclaves and the adjustment of an
expatriate to not only the cultural disparities but to these established groups will have an impact
on expatriate success” (Harvey/ Kiessling, 2004, 551).
Melton (2005) published a list of safety and security tips in his book “The New American Expat”,
which focuses on American expats being sent to high-risk destinations after the 9/11 attacks.
Following the top five of his list will be presented to conclude this chapter on high risk expats.
§ “Keep up to date with the U.S. government Travel Warnings and Public
Announcements.
§ Have a safety plan for you and your family.
§ Be aware of your surroundings and of current events in your area. Always act confident,
but don’t draw attention to yourself.
§ Inform family, work colleagues, and/or friends of your whereabouts.
§ Make sure your employer takes the security issues discussed in this chapter seriously
and provides a secure living and working environment that includes an evacuation plan
in the event of an emergency. If not, either come home or find a different employer”
(Melton, 2005, 193ff).
2.5 The Expatriate´s Global Career Cycle
Even though the reasons for transferring candidates differ in each case, all assignees,
especially those of long-term assignments, go through certain stages when leaving the home
country and going on an assignment, and then coming back; these stages can be seen in
Figure 1 “The Expatriate´s Global Career Cycle” (Adler/ Gundersen, 2008, 276). First of all,
the organization has to recruit candidates, which can be either done internally or externally.
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Moreover, the right candidate has to be chosen, as well as, s/he has to agree to go on an
international assignment. Hence, short orientation should be provided, as well as, training.
During an assignment training can be conducted, which is the so-called post arrival training
(differs from pre-arrival training, which is provided in advance of the assignment). Last but not
least, debriefing sessions, as well as preparation for the reentry of the candidate, so-called
repatriation training, in the home country should be provided. According to Adler (2002, 263),
only the most successful global enterprises are able to understand and handle all these phases
of the cycle. Moreover, the author points out that the expatriate global career cycle includes
two international transitions when completed, which are the cross-cultural entry when entering
a new culture, and the re-entry when repatriating.
Due to these two international transitions two potential culture shocks can occur, the culture
shock itself as well as the reverse culture shock, which can be drawn as a W-curve (Gullahorn/
Gullahorn, 1963), both phenomena will be described in detail later in this thesis in Chapters
3.6 and 3.7.
Figure 1. “The Expatriate´s Global Career Cycle”, Source: Adler/ Gundersen, 2008, 276
According to Harzing/ Christensen (2004, 619) in order to evaluate the effectiveness of an
assignment a closer look needs to be taken on the expatriate assignment cycle. In contrast to
Adler (2002), Harzing/ Christensen (2004) present two possible cycles, one which are very
similar to Adler’s´ cycle (2002) and represent the “ideal” cycle and one which deals with all
kind of negative scenarios. The ideal and circular process covers issues such as recruitment,
selection, hiring of a suitable candidate, the assignment itself and returning home at the end
20
of the circle. After returning home, the expat continues with the former job within the
organization, or the cycle repats itself with a new assignment. The second, disrupted cycle,
which can be seen in Figure 2, covers several potential drawbacks and negative scenarios an
expat can suffer from. This second cycle can show several reasons for expatriation failure,
which will be described in more detail in the upcoming Chapter 2.6.
Figure 2. “Possible outcomes from international assignments [IA]”, Source: Harzing/ Christensen, 2004,
620
2.6 Reasons for Failure of Expatriation
According to Harzing/ Christensen (2004, 621ff) it is of utmost importance to define failure and
success in the context of expatriation first in order to deal with this issue properly. “From an
organisational perspective it is of great interest that a specific job is done, that something is
produced and value added to the organisation. However, it is also of concern to the company
that the expatriate and his/her spouse and family are thriving under the new circumstances”
(Harzing/ Christensen, 2004, 621).
“However, we must realise that what might be regarded as an expatriate failure from an
organisational perspective, might not be an expatriate failure to the expatriate and vice versa.
In the expatriate management literature, it appears that in order to be called an expatriate
failure, the negative aspect needs to be damaging to the organisation and not necessarily the
21
expatriate” (Harzing/ Christensen, 2004, 621). Most of the authors do not define explicitly what
they consider as expatriate failure, and which point of view they take as granted. In order to
avoid confusion, the authors came up with a new definition of expatriate failure: “the inability
of the expatriate or repatriate to perform according to the expectations of the organization”
(Harzing/ Christensen, 2004, 621). This broader formulated definition does not allow to blame
the company or the expat directly for the failure of an assignment, and the concepts of turnover
and performance management are included into the definition. Caligiuri (1997, 117), mentions
the most commonly cited criteria for expatriate success, the opposite of failure: “(1) completing
the assignment, (2) cross-cultural adaptation during the assignment and (3) performance while
being abroad”.
„At the same time, there are several key issues that need to be addressed to help insure the
success of expatriate managers. These issues include individual manager characteristics,
organizational features, foreign environment context, as well as, the systemic planning and
support put into place for the expatriate manager and his/her family” (Harvey/ Kiessling, 2004,
552).
Collings/ Scullion (2008, 92) and Haslberger (2008, 130) point out that many expatriate
assignments end earlier than expected since expats fail to adjust to the new environment. Still
they highlight that turnover rates are not as high as originally assumed, which is mainly caused
by poor citations in the past according to Harzing (1995).
Moreover, Collings/ Scullion (2008) and Haslberger (2008) mention that the family of the expat
are often found to be at the top of the list when it comes to adjustment issues. Which can lead
to families struggling to adjust, hence there is a push for an early return. Additionally, families
are blamed for the assignment failure, which in return aids to save the expats reputation within
the company.These findings considering the adjustment of the family go well along with the
reasons for expatriate failure found by Tung (1981, 76) as well as Riusala/ Suutari (2000, 86).
Tung (1981) provides a list with seven reasons for failure, in descending order, and two out of
the top three reasons for failure deal with the adjustment of the expats family. Reasons
mentioned by Tung (1981, 76ff) were the problems of adjustment of the expats family and/ or
spouse, the inability of the expat itself to adapt, other family related issues, personal or
emotional issues of the expat, unbearable responsibilities abroad, lack of technical skills, and
lack of motivation towards the assignment.
Cooperation with local staff also plays a crucial role in adaptation and performing well on an
assignment. “[E]xpatriates who are not well integrated and accepted by their local staff
colleagues are less likely to perform the job well or be satisfied with work relations within the
team. In the case of expatriates sent to transfer knowledge and expertise to local staff and
22
train future local managers, these expatriates will not be successful if local staff are not
receptive to their presence in the host organization and are unwilling to learn from them” (Toh/
Denisi, 2005, 135).
Emotional support plays a crucial role in failure of assignments, this support is not only
demanded from the family and spouse of the expat, but according to Toh/ Denisi (2005, 135)
also from co-workers. Without doubt entering a new culture and environment is stressful, but
support from others helps to make this transition smoother for the expat. Another problem
could be the pay gap between host country nationals and expats. “These discrepancies can
lead to strained relationships between the two groups of employees, making it unlikely that the
local staff will go out of their way to help out an expatriate who may be having difficulties
adjusting to the new job and environment. Worse, the discrepancies can result in resentment,
leading the local staff to be unwilling to cooperate with the expatriate on any aspect of the
assignment, and potentially frustrating the expatriate´s efforts to be successful” (Toh/ Denisi,
2005, 137).
2.6.1 Culture Shock
„Change causes stress; expatriates face many changes in leaving their home country and
organization and transferring to a new country and a new job” (Adler, 2002, 279).
“A major objective of intercultural training is to help people cope with unexpected events in a
new culture. An individual overwhelmed by a new culture will be unable to perform required
work duties effectively. Further, an ill-prepared individual may inadvertently offend or alienate
a foreign host and perhaps jeopardize existing long-term relations with a host country. Thus,
an objective of training is to reduce conflict due to unexpected situations and actions” (Earley
1987, 686). These unexpected events, as well as new circumstances within a new cultural
environment, could cause the so-called culture shock.
According to Selmer (1999, 517), the culture shock is a negative side effect of travelling, which
was first researched by Oberg in 1960. As cited by Selmer (1999, 517 from Oberg, 1960),
there are six signs for culture shock, a symptom occurring in sojourners because of losing all
symbols of social interaction as well as familiar signs. These aspects are: “(1) Strain due to
the effort required to make necessary psychological adjustments. (2) A sense of loss and
feelings of deprivation in regard to friends, status, profession and possessions. (3) Being
rejected by and/or rejecting members of the new culture. (4) Confusion in role, role
23
indignation after becoming aware of cultural differences. (6) Feelings of impotence due to not
being able to cope with the new environment” (cited in Selmer, 1999, 517; from Oberg, 1960).
Several researchers have agreed that the culture shock is a common phenomenon which
occurs in the process of adjustment when abroad and is tightly linked to cultural stress.
Symptoms are anxiety, helplessness, anger, embarrassment, identity confusion, physical
responses and a negative attitude towards locals (Selmer, 1999, 518; Adler, 2002, 279).
In several cases some perceived high at the beginning of the assignment ends when the
everyday life of the expats starts. Hereby daily routines such as doing grocery shopping,
seeing a doctor, using native language, administrative issues and dealing with local norms and
beliefs play a crucial role. These daily routines often lead to frustration and insecurity as they
differ a lot from the same routines at home. In some cases, expats begin to damn local
customs, consider locals as less intelligent and develop a never before seen and strong sense
of patriotism for one’s own home country. This negative impact of the culture shock can lead
to severe feelings of unhappiness and a decline in work performance, which in some cases
leads to premature returns of expats and their families. After coping with the shock this low
ends and some new high starts, which leads to broader horizons and productivity among
expats.
According to Adler (2002, 263), the phenomenon culture shock takes the form of a “U-Curve”,
which can be seen in Figure 3. Meaning that in the beginning of an assignment, excitement
dominates and after some-time within the new environment and facing serious problems, the
actual culture shock could occur, which is the bottom of the U-curve. Followed by the frustration
and confusion phase, the phase of adjustment to the new culture comes, which helps
expatriates to live a more stress less life abroad. Even though the adjustment process could
be very hard for some expatriates there are different ways of responding. Individuals can either
react aggressively and hostile towards locals, return back home and quit the assignment, or
try to cope as well as possible with local customs and go native. All possible forms of adjusting
can be seen as useful, as the candidate needs to go through these stages in order to be able
to cope with the new environment (Selmer, 1999, 518).
24
Figure 3. “U-Curve”, Source: Adler, 2002, 263
Adler (2002, 278) points out that culture shock is not a disease but rather the body´s response
for being in touch with a new environment, and culturally similar countries can cause the same
culture shock as dissimilar ones. Moreover, the author points out that experiencing a culture
shock is a good sign for entering and becoming deeply involved in the new environment,
instead of being in expatriate compounds and ghettos. Important hereby is not how to avoid
the shock, but how to deal with it and how to reduce the stress caused by the shock. Further
details on the culture shock as well a more extended curve will be presented in Chapters 3.6
and 3.7 of this thesis.
2.6.2 Coping Strategies
“Expatriates resort to a variety of mechanisms to help them cope with the stress and strains
associated with the isolation of living and work abroad and the foreignness of the local
environment” (Tung, 1998, 132).
In order to be able to cope with the stress of the experienced culture shock, individuals form
some coping tactics, which according to Tung (1998, 132ff), can result in a preference for
socializing with home nationals rather than with locals, which points out the preference for the
same. Another mechanism is to conduct exercises and to visit a gym in order to release stress.
Moreover, expatriates try to stay in contact with their families at home via a variety of
communication channels. An interesting finding is that expatriates with much foreign
experience tend to have looser contacts with their families, which shows that these
experienced expatriates face less isolation in a new environment and therefore less culture
shock. Another possible way of coping with the new environment is to learn more about the
country and its culture and language or trying to keep busy at work all the time in order not to
face a culture shock. Adler (2002, 280) highlights the importance of stability zones, created by
expats in order to feel like being home for a short time. These stability zones can be anything
25
from listening to home country music, watching movies in one´s mother tongue, going to
international clubs or playing musical instruments. Haslberger (2008, 141) highlights that these
comfort zones, and expatriate ghettos, can help the expat to adjust in the short run, but
considering these ghettos in the long run, the expat will not learn how to deal with locals, the
culture and daily life struggles.
“Some expatriates sought to cope with the isolation of living and working abroad by engaging
in stress-relieving activities such as alcohol consumption. In general, respondents who were
single and those who did not have children at home were more likely to engage in these
activities. Furthermore, assignees to less developed countries were more prone to such
devices as compared to those posted to the industrialized countries” (Tung, 1998, 135). Wurtz
(2018) did a study on the use of substances, such as alcohol and drugs within the international
expat community and found out that “Living and working abroad brings many challenges, which
cause expatriates to have higher levels of stress and to consume more alcohol and tobacco
than domestic employees would” (Wurtz, 2018, 330). The author highlights the high numbers
of expats, especially experienced male expats, which use substances in order to cope with the
downsides of international assignments. “Improper coping mechanisms among individuals
facing increased levels of stress, such as expatriates, may eventually lead to actions that can
trigger a severe crisis” (McNulty et al., 2019, 163).
Wurtz (2018, 328) and McNulty et al. (2019, 171) appeal to HR managers to become aware of
this issue and provide potential solutions for the victims. Anonymous peer support groups as
well as information about substance use before signing an expat contract should be provided.
Having given this interesting result from Wurtz (2018) concerning the substance use trend
among male expats, it should be mentioned that according to the Internations Organisation
Reports (2015) the greatest part of expats used to be male, however more and more female
expats making careers overseas now. Koveshnikov et al. (2014, 368) found out that female
expats have higher levels of adjustment during international assignments than male ones, due
to their advanced social skills, as well as higher levels of emotional intelligence, which help
them to learn quicker and adapt better.
According to Fischlmayr/ Kopeck (2015, 182) contact with locals is especially important in more
relationship-orientated countries such as Peru, China and Africa, countries which are more
focused on output than relations such as the USA, Australia and Northern Europe are less
sensitive when it comes to building relationships.
Worth mentioning in this connection is the time that expats need to adjust to the new
environment. According to studies done by Tung (1998, 132) approximately 20% of the expats
26
adjusted after 1 to 3 months, another quarter needed 4 to 6 months to adjust, the majority of
expats adjusted after 6 to 12 months and only a very small percentage of expatriates never
really adjusted to the new environment. Also, Adler (2002, 280) mentions that after about six
months of adjustment time, expats need to escape the low of the culture shock and try to solve
given problems and start to appreciate cross-cultural differences.
3 Repatriation
3.1 Definition: What is it?
„Repatriation, or re-entry, is the transition from a foreign country back to one's own after living
overseas for a significant period of time” (Hurn, 1999, 224).
The last step in Adler/ Gundersen (2008, 276) “Expatriate´s Global Career Cycle”, which can
be seen in Figure 1, is repatriation, which is according to Bonache et al. (2001, 13) one of the
least researched dimensions of international assignments.
“Repatriation refers to the experiences surrounding the return of an expatriate to his or her
home environment following the completion of an overseas assignment” (Litrell/ Salas, 2005,
322). Moreover, again Vance/ Paik (2011, 258) and Bonache et al. (2001, 13) as well as
Mathews (1994, 91) mentioned that the phase of returning home is the most overlooked part
of the international assignment, even though it is the most crucial, dynamic and complex one
for the expat as well as the company itself. “The truth is, repatriation is a time of major
upheaval, professionally and personally, for two-thirds of expats. Companies that recognize
this fact help their returning people by providing them with career guidance and enabling them
to put their international experience to work” (Black/ Gregersen, 1999, 57).
“However, many companies assume that the move back to home territory will be relatively
simple because the language is the repatriate’s own, the culture is one with which the whole
family should be familiar, and the home conditions are perceived to be the same as those left
behind. From this perspective, it would appear that repatriates would slip smoothly into the old
environment and not require significant support. Unfortunately, this simplistic view of the
transition ignores many issues” (Chew/ Debowski, 2008, 4).
“Unfortunately, adjustment after an international assignment (repatriation adjustment) has
received relatively little systematic investigation. Perhaps this is because common sense might
27
suggest that there is little to study. After all, the individual is “coming home”, so how much
adjustment can there be” (Black, 1992, 177)?
Common sense is wrong at this point, as in this phase of coming back to the home country
various kinds of difficulties can occur, as the management of many MNCs is not able to
manage repatriates well enough.
3.2 Problems in Repatriation
As mentioned in Chapter 3.1, repatriation can cause several problems. One problem,
according to Porter/Tansky (1999, 55), is that not only the expatriate itself, but also the parent
company have changed. According to Tung (1998, 138), high turn-over rates are one problem,
which are enhanced by the high levels of dissatisfaction with the reparation process. Moreover,
Porter/ Tansky (1999, 56), Hurn (1999, 224ff) and Andreason/ Kinneer (2005, 109) point out
that potential stressors in the repatriation phase are the reverse culture shock, as repatriates
expect to return in some familiar surroundings, which is often not the case. Due to these
stressors in the repatriation phase, several companies have agreed on the fact that briefing
returnees about their home country and repatriation training are as important as pre-departure
training. Concerns of limited chances for a promotion, a job offered of lower status on return,
a feeling of alienation within peers, friends and family, as well as, a potential loss of status are
additional stressors of the reentry phase. Furthermore, many repatriates leave the company
after the reentry, which is very costly for the organization, as the organization loses top
managers, the money spent on CCT, as well as the expertise gained on the assignment (Litrell/
Salas, 2005, 322).
In studies done by Adler (1981, 342) she found out that expats found it harder to move back
into their home country and their home organizations than moving into a new environment at
the beginning of their assignments. Moreover, she was one of the first authors who discovered
that repats have suffered equally strong culture shocks, regardless of their overseas location,
type of international assignment and length of stay abroad.
Adler (1981, 342; 2002, 288) and Bolino (2007, 819) mention that most repats assume that
their international assignment helps them with their careers, but in most cases, it has only a
neutral effect. Moreover, Adler (2002) points out that in some cases the assignment has even
a negative impact on the manager’s career in the short run. Several authors (Brewster/
Scullion, 1997; Adler, 1981; Adler, 2002; Bonache et al., 2001, Bossard/ Peterson, 2005)
mention that their newly assigned position after returning home bores them as well as it is less
challenging and satisfying than the international assignment. Many repats mention that they
miss the greater responsibilities, the status, the autonomy as well as the variety of their jobs
28
when coming back home. Furthermore, repats are often found to be frustrated and
disappointed after realizing that their new positions are not as expected and their gained
knowledge is not properly used, needed or demanded within the home organization. Adler’s
findings in studies done in 2002 seem to be similar with the findings of her studies on cross
cultural transitions in 1981. Andreason/ Kinneer (2005, 109) and Bonache et al. (2001, 13)
mention that some international managers see their careers stuck in time or a “holding pattern”,
while other colleagues back home in the HQ have been promoted ahead of them. This pattern
has also shown to be true for other aspects of the repats life, such as housing conditions and
financial conditions.
Black/ Gregersen (1991, 674) suggest that repatriation is similar to expatriation a cross-cultural
adjustment process, as the repat is moving from one culture, in which s/he was imbedded for
a certain period of time, to a new one. Even though this new culture, is the former home culture
of the expat, this transition can cause troubles.
Repatriation can therefore be seen as a multifaceted process such as any other cross-cultural
adjustment processes, and not as it was done previously as unidimensional.
“Returning expatriates must adjust to the new job back in their home country, must adjust once
again to interacting with home nationals on a full-time and broad basis, and must adjust to the
general nonwork environment of their home country” (Black, 1992, 181).
When writing about repatriation it has to be mentioned that it can be differentiated between
personal and professional re-entry. Professional re-entry deals with the transition back into the
home organization and is often more difficult than personal re-entry, according to Adler (2002,
288). Fischlmayr/ Kopecek (2015, 202) also highlight that there is a socio-cultural reentry as
well as a professional reentry which both have to be taken into consideration.
According to Arman (2009, 1) repatriation adjustment consists of three main dimensions, which
are “work adjustment, socio-cultural adjustment and psychological adjustment”. Work
adjustment covers issues such as loss of authority, the new position, loss of responsibilities,
relationships with co-workers and changes within the organization. Socio-cultural adjustment
is considered as adjusting to the home culture, the lifestyle and the financial situation back
home, as well as social activities and relations with family and friends. Psychological
adjustment deals with expectations and experienced stress during the transition.
In this connection, the “out-of-sight, out-of-mind syndrome” plays a crucial role. According to
Arman (2009, 2) repats often feel lost after coming home; no one is really interested in their
stories, as no one can connect to their experiences. Moreover, repats recognize that their
29
assignments did not affect anyone but themselves and their closest family members as well
as they are often not well informed about what happens back home. Again, a “holding pattern”
can be seen.
According to several authors (Harvey, 1998, Arthur/ Bennett, 1995; Yate, 1994, Lee/ Liu, 2007)
another essential reason which speaks for a well-managed repatriation process is the fact that
more and more managers avoid international transfers, due to facts such as the “holding
pattern”, serious issues with repatriation and other common problems of transitions.
One concept of repatriation is presented by Dowling et al. (1994, 82) who divide the process
into four related phases:
1. “Preparation” involves developing plans for the future and gathering information about
the new position within the organization. This phase is often overlooked by companies
as they do not consider it as important as pre-departure training tools.
2. “Physical relocation” of the repat deals with issues such as removing personal effects,
breaking ties with colleagues and friends, and travelling to the next destination in
question, mostly the home country.
3. “Transition” phase is often marked by temporary accommodation, deciding for housing
and schooling, as well as other administrative tasks.
4. “Readjustment” involves dealing with reverse culture shock and career demands.
3.3 Pre–Repatriation and Support
“Repatriation adjustment does not begin from the day the expatriate returns. Expatriation and
repatriation are not two separate processes, but rather expatriation is the initiation, and
repatriation is the culmination of the same process. In reality, most activities that ensure high
retention after repatriation happen during the expatriate assignment” (Lee/ Liu, 2007, 131).
This citation highlights the importance of the pre-repatriation stage, as it clearly shows how the
ongoing contact and support of expats, impacts the outcome of every assignment. Only if all
stages of the expatriate life cycle are well managed, success will be given to the expat as well
as the whole organization. Before the actual re-entry of the expatriate the pre-repatriation stage
30
has to be well planned and executed, as returnees appreciate to know what the next step to
take is and to point out the expectations upon return. Moreover, it must be highlighted that the
whole assignment must be considered as a holistic process rather than separated processes.
Support systems are techniques helping to reduce the before mentioned “out-of-sight, out-of-
mind” dilemma, and should assist repats to prepare for the upcoming repatriation process, and
will be explained in this section of the thesis. Harvey/ Wiese (1998, 43) point out that to facilitate
a well-organized reentry process, the intensity, and frequency of communication between HQ
and expat need to increase six to nine months before the actual reentry.
“Yet, while it is widely accepted that the costs of expatriate turnover are considerable, few firms
have formal repatriation programmes to assist managers and their families with repatriation
difficulties” (Brewster/ Scullion, 1997, 35). Not only the lack of formal repatriation programs is
mentioned in the literature but also unrealistic expectations upon return are mentioned.
In addition to the career support, repatriates and their families need other kind of support
practices such as reentry counseling and employee debriefings, which help to integrate the
repatriates back into the society and the organization. Skimming through the existing literature
indicates that such practices are not widely used (Brewster/ Scullion, 1997; Riusala/ Suutari,
2000).
According to Stroh et al. (1998, 112) companies must enable repats to develop more realistic
expectations about their upcoming work and non-work lives prior to their return, thus to
minimize potential surprises upon the actual return. Furthermore, according to Stroh et al.
(1998, 121) as well as Harvey/ Wiese (1998, 45) the “spill-over-effect” from spouse to expat
(Black/ Gregersen, 1991) is crucial in repatriation as well. They found out that if the spouse is
especially happy or unhappy with the non-work-related conditions on repatriation, this mood
spills over to the repats mood. Also, Chen/ Schaffer (2018) suggest in their publication that the
focus of new studies should not be set on the expat itself only, but also on the spouse, as the
spouses use of coping techniques could have a direct influence of the expats readjustment.
Thus, if the spouse’s expectations on the return are met or even over met it will smoothen the
whole repatriation process of the returnees.
In order to smoothen the repatriation process, sense-making, managing expectations and
surprises is mentioned to be helpful for repats according to Stroh et al. (1998, 121ff). Therefore,
the authors came up with some advice for managers:
Repats should be informed about the expectations and challenges of their new job after
returning, repats whose expectations concerning the new job are met or over met are more
31
committed to the company after coming home. Moreover, a realistic job preview considering
all aspects of the job is as important as it is for someone who enters the organization for the
first time. Furthermore, jobs in which former expats can use the skills and knowledge gained
abroad help to make international assignments more valuable and ensure that more and more
managers are willing to take assignments in the future. If the repats expectations of
interpersonal relationships with colleagues are met or over met its commitment towards the
company is significantly higher, therefore, colleagues need to be informed about the
importance of positive relationships with repats and the reintegration of repats. Last but not
least the authors mention that repats must be informed and kept up to date during the
assignment by the organization, therefore, newsletters, and other forms of information should
be provided. All in all, the final message of the authors is, that companies must “close the gap
between expectations and reality for returning expatriates” (Stroh et al., 1998, 123) in order to
make the returnees as committed as possible to the home organization.
Findings of other authors such as Riusala/ Suutari (2000) go along with the above-mentioned
recommendations and even deeper. “First, the expatriates stated that the specific job after
repatriation should be clearly defined at the departure or at least early enough before
repatriation (e.g. four- six months before). Second, the expatriates stressed that the
requirements of the new task should match their present skill level” (Riusala/ Suutari, 2000,
85). According to the KPMG Survey (2019, 79) 9% of repats leave the organization as the
newly acquired skills couldn’t be used after returning.
“The most common (61 per cent) repatriation agreement included the promise by the
organisation to arrange at least a similar level job as the one which the expatriate held before
the assignment. This is a better situation than has been reported in some other studies (Tung,
1998). Still, only a few expatriates (5 per cent) knew their exact future task. In 14 per cent of
the cases the organisation has promised to help the expatriate in the search for a new job. In
addition to the two task-related challenges, there were comments regarding the informing of
relevant persons about the repatriation of the expatriate, informative meetings about recent
developments in the home organisation and extra time for repatriation arrangements after
returning (for example, repatriation vacation)” (Riusala/ Suutari, 2000, 85).
According to Adler (1981, 354) her study done on cross-cultural transitions with Canadian
managers returning from countries all over the world came up with some recommendations for
managers in order to ease the reentry, these recommendations are again similar to the above
mentions ones, which shows that there is an existing pattern of needs for repats. “Predeparture
Training” should be provided to the expat and its family, as managers who adjust well to the
32
new environment tend to be more effective in the re-entry as well. “Selection” is crucial as only
employees who were satisfied prior the assignment are successful and satisfied after the re-
entry as well. Therefore, selecting effective employees over failed ones is highlighted.
“Overseas Contact” is mentioned as expats who are informed about all kinds of events
happening in the home country tend to be more effective on the re-entry than others. New
organizational strategies, plans and policies should be shared with the expats while being
abroad in order to smoothen the transition back to the HQ. “Job Assignment” should not only
include information about the assignment itself, but also about the career perspectives and
responsibilities when returning, also the level of job responsibility on return has a potential
influence on the re-entry satisfaction of the repat. “Cross-Cultural Skills” should be favored by
the HQ to be used within the home country as well. “Assistance to Home-Country Managers”
should be provided, as they often do not value the experiences gained by expats. “Re-Entry
Management” needs to be available for all repats, regardless of distance and similarity of the
overseas location as all transitions are equally stressful. Last but not least “External Validation”
is mentioned as managers whose experiences are valued and used by the organization can
reenter more smoothly.
According to Riusala/ Suutari (2000, 86) most of their interviewed repats were excluded from
their analysis as there were no pre-repatriation support practices available in their
organizations or they didn’t know anything about the existence of these practices. Career
support programs where rare, but some mentioned that the most commonly used practice was
a “pre- departure career development debriefings, [which] was offered to 39 percent of the
expatriates” (Riusala/ Suutari, 2000, 86). Moreover, they mention that other support
practices, such as family repatriation programs and career planning support were favored but
did not exist. “Pre-departure career development debriefings, re-entry counselling and
development rewards” (Riusala/ Suutari, 2000, 86) were mentioned as the most favored
support practices by their interviewees. Other useful forms of pre-repatriation support are a
mentor or person for ongoing contact, which was given in 27% of cases in this study. 41% of
the respondents mentioned that ongoing contact was given during their assignments. Hereby,
it must be mentioned that according to this study, repats who have had frequent contact with
the HQ can avoid the “out-of-mind and out-of-sight” phenomenon, which often causes severe
issues in repatriation.
According to Black/Gregersen (1991, 691ff) the longer the expat has been on an international
assignment, the longer it will take for him/ her to re adjust to his/ her home country. Moreover,
the authors mention that trips back home during the assignment can help to reduce
33
uncertainty, which later in the repatriation process can cause severe issues of readjustment
problems. Their study shows that providing trips back to the home country during the
assignment of sufficient length can ease repatriation. Data of the KPMG Survey (2018, 61;
2019, 73) show that 85/84% of companies do not provide any pre-repatriation visits to the
home country at all, 56%/59% do not offer any time off for settling back in, and 64%/65% do
not offer any repatriation counseling for any of their repats. Comparing the latest numbers
(2019) and the numbers given in 2018, it can be seen that companies tend to offer slightly less
time off to re-settle for expats than they did in the before. Also, cross-cultural training prior the
actual relocation back into the country of origin has impact on the repatriation process, such
as CCT provided before the assignment did. This CCT should address the repatriate as well
as its family, and should cover issues such as new emerging trends, changes within the
company as well as other common problems of the process. Another important issue
mentioned by Black/ Gregersen (1991, 692) is the housing condition of repats and their families
after repatriation as this item has significant impact on nearly all facets of the adjustment
process of the repatriate as well as its family. In order to avoid uncomfortable situations within
this field, companies are well advised to offer housing solutions, financing solutions for housing
as well as information about housing conditions prior return and also pre-departure house
hunting trips. Comparing the literature with the latest numbers of the KPMG Survey (2019, 73)
it can be seen that travel to the home country (86%), shipment of household goods (84%) and
tax consultation (71%) are the most common services provided by organizations; pre-visit trips,
and other demanded issues are not available. 25% (KPMG, 2019, 73) of surveyed companies
mentioned that they offer repat counseling to their repats.
All in all, it can be said that supporting expatriates while being abroad does not only satisfy the
individual´s need for information, but also causes fewer surprises and fewer unmet
expectations when reentering the home country. An enhanced flow of information between HQ
and host-country organization is reached and therefore it can be seen as an essential
instrument in repatriation (Tung, 1988; Adler, 1981). Moreover, Chew/ Debowski (2008, 8)
mention “Forward-planning reduces some of the anxieties associated with repatriation, and
provides expatriates with a sense of stability “.
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3.4 Successful Repatriation
According to Fischlmayr/ Kopecek (2015, 200) repatriation has to be considered as the most
important phase of the expat cycle, as the outcome of the phase decides whether the repats
stays within the organization or not. In order to manage this process properly repatriation has
to be looked after at the very beginning of the assignment and not just some months before
the actual return. Considering the high rates of expatriation failure, it seems important to define
success and failure of repatriation.
According to several authors (Tung, 1988; Solomon, 1995, Black, 1992) the difference
between success and failure of expatriate assignments depends on how well the expatriate
life cycle is managed, hereby especially the final step of the cycle needs to be considered.
“In the ongoing struggle to improve the repatriation process, a mutual agreement in the
definition of a successful repatriation should exist between the expatriate and the company.
However, the interviews for this study reveal that the expatriate defines a successful
repatriation differently than the human resources manager. Expatriates place greater value on
reintegration into the home country culture while human resources managers place greater
value on reintegration into the corporate culture” (Paik et al., 2002, 646). This statement shows
that there are two different perspectives and points of views of success in repatriation.
In that regard, it is worth mentioning that on the one hand leaving the organization and finding
a new position can be seen as a success for the repat; but on the other hand, this scenario
would be considered as a failure and loss of past investments for the organization. “The
organizational perspective may be very different from the individual one, because departure
from the company may mean positive career advancement for the individual but is probably a
negative outcome for the company, given the investment in the individual and the widespread
objective of increasing international knowledge” (Bonache at al., 2001, 13).
According to Breitenmoser/ Bader (2016, 198) a differentiation of perspectives is important
hereby, as an expat staying within the company can be useful for the company as well as it
can be useful for him/herself, yet many expats are hired off by MNCs after returning home and
are offered a better position. In this case the new MNC as well as the expat him/herself profits,
but corporate return on investment in negatively affected.
According to Tung (1981, 76) success was defined as “…to function effectively in a foreign
environment”, which means failure must be seen as any situation in which the expat is unable
to function effectively in new surroundings and therefore has to be fired, sent home or must
leave the company. According to Shaffer et al. (2006, 5) expatriate adjustment was the only
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criterion considered at the beginning of researching expatriate success, later in the 1990s also
premature repatriation was taken into the equation and only recently also expatriate
performance was added as a criterion for expatriate success.
Caligiuri (1997, 117) defines expatriate success with three criteria, such as most other
researchers have done so far, which are: “ (1) completion of the foreign assignment, (2) cross-
cultural adjustment while on assignment, and (3) performance on the foreign assignment”.
Caligiuri (1997, 119) mentions that the completion of the international assignment can be seen
as the most basic criterion for a successful assignment, which means an expat is considered
as successful as long as s/he remains in the host country for the entire expected duration.
Moreover, the author mentions that well-adjusted expats can develop deeper interactions with
locals and are therefore considered as more successful than maladjusted expats, which often
feel more negative towards the host country culture.
“Cultural adjustment refers to psychological comfort with various aspects of the foreign culture,
such as food, housing, transportation, etc. Inter-action adjustment has to do with feeling
comfortable in interactions with HCNs. Work adjustment is psychological comfort with the job
itself” (Liu/ Shaffer, 2005, 237) .
Last but not least, beyond fulfilling criterion 1 and 2, the expat should do the assigned work
successfully in order to be considered as a successful expat. According to Caligiuri (1997, 121)
the main problem hereby is that expatriate performance has still not been well researched on.
According to the Global Relocation Trends Survey (Brookfield, 2016), MNCs variously define
assignment success in terms of accomplishment of assignment objectives, attrition rates or
increased revenues, but very few have systems in place to track these outcomes or valid data.
Paik et al. (2002, 636) mention that a repatriation process can be considered as successful,
as soon as it can be managed to fully exploit and use the skills and the knowledge gained
abroad by the repat. Also, Breitenmoser/ Bader (2016, 223) mention that the integration of
gained knowledge is a good outcome serving as an indicator for repatriation success and
effectiveness. Still many companies must face high attrition rates, as repats seek for new jobs
right after they return. The reasons for leaving the company have already been mentioned in
the section problems of repatriation and will not be covered here anymore.
According to Tung (1981, 77) companies with low failure rates, tend to take care in their
selection and training programs for expats, which shows that failure rates can be minimized
before the actual assignment starts. Considering selection of the right candidate for a certain
assignment, Tung suggests that for each assignment a careful analysis of the task, the
characteristics of the assignee and the country in question should be provided. Considering
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the level of CCT the same holds true, as different positions abroad ask for different levels of
cross-cultural know-how and no universal approach of training is given.
Studies done by Stroh (1995, 454) suggest that organizations should plan the repatriation
process well before expats return home. Possible ways to use the expats new skills should be
planned before their return, in order to reach lower turn-over rates and make the repats willing
to stay with the organization. Lazarova/ Caligiuri (2001, 390) conclude that repats who think
that they receive more support from their home organization than usual managers, have higher
commitment to and are more likely to stay with the organization after returning home. Hereby
they mention that the perception of given support is much more important for the repat than
the actual existence and usefulness of certain objective practices. Still the existence of some
“Well-regarded policies often include i.e. debriefing sessions; training opportunities to ease the
impact of reverse cultural shock among expatriates and their families; clear information about
job placement possibilities; career paths for repatriates; etc [are useful]. These policies need
also to take into consideration the local and cultural context of each corporation and of their
employees, and the specific needs of each repatriate. Repatriates who experienced different
types and duration of assignment might have different needs” (Nery-Kjerfve/ McLean, 2012,
624).
3.5 Unsuccessful Repatriation: Reasons and Consequences
“Poor repatriation may result in a loss of valuable employees, a reluctance of future expatriates
to accept overseas positions, and an underutilization of employees. But all of this can be
prevented if multinational organizations prepare their employees for returning home. Both
organizations and expatriates should be aware and prepare for coming home during the
overseas assignment. Returning home should not be the end of global assignments for
expatriates, but the beginning of their career” (Lee/ Liu, 2007, 131).
According to Harvey/ Moeller (2009, 279) the failure rate for overseas assignments is between
20% and 40%, this large variance in failure rates is given due to the different definitions of
failure (premature end of assignment vs. reduced effectiveness during the assignment).
Without considering a certain definition of failure, still it is for sure that any kind of failure leads
to direct and indirect costs for the company, which are estimated to be around $200k and
$500k per expat. MNCs which have assignees all around the world need to manage their
expats extra carefully as otherwise sums of millions of Dollars can be lost in a short period of
time. Not only direct costs, but also indirect costs such as damage of the company´s reputation
and relationships need to be considered. According to Bolino (2007, 824) many studies have
focused on premature returns, and saw these as expatriate failure; still many expats do not
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return earlier than expected but their work overseas can be classified as ineffective. When
taking the three aspects (“completion of the foreign assignment, cross-cultural adjustment
while on assignment, and performance on the foreign assignment”) mentioned by Caligiuri
(1997, 117) which should be indicators for a successful assignment, premature return can be
seen as a source of failure. Moreover, maladjustment of expats can be considered as a source
of failure as well. Taking premature returns into consideration again, it should be mentioned
that according to Fischlmayr/ Kopecek (2015, 196ff) there are several reasons for returning
earlier than expected. Reasons for premature returns are unsuccessfulness, fulfilling all given
tasks and duties faster than expected, the urgent need for returning to the HQ, a new job offer
within the HQ or any other subsidiary within the organization, factors associated with the host
country such as wars, crisis, terror threats, changes within the organization after mergers and
acquisitions, as well as personal issues such as death or sickness of close relatives. Brookfield
(2014, 51) Global Mobility Trends Survey points out that around 6% of expats return earlier
than planned. Premature returns should therefore not always be considered as failure, still for
this thesis any kind of premature return will be seen as an unsuccessful assignment. Moreover,
the authors Fischlmayr/ Kopecek (2015, 197) highlight that around 5% of expats fail in
international assignments, hereby it is even harder to mention and summarize the reasons for
failure. Some reasons mentioned are new assignments in another host country, lacking
achievement, family issues, selection issues – selecting the wrong candidate, lack of local
adjustment.
Again, expectations play a crucial role in this process of returning home, which is highlighted
by the following citation. “Thus, in general, one would hypothesize that level of repatriation
adjustment would be the highest for those with met expectations, moderate for those with
overmet expectations, and lowest for those with undermet expectations” (Black, 1992, 180).
According to Andreason/ Kinner (2005, 109) a study done by Harvey (1989) showed that firms
lack well-planned repatriation training programs due to lack of expertise in creating such tools,
the high costs for setting up programs, and top managers beliefs of uselessness of repatriation
training programs. “First, companies should provide evidence that they value foreign
assignments by making good use of the expatriates' international experience upon their return.
Asking repatriates to help inform and create policies related to the expatriate experience,
special needs and family concerns would not only allow repatriates to make use of their new
knowledge but would help organizations develop policy based on practical experience” (Stroh,
1995, 453). Also, Fischlmayr/ Kopecek (2015, 198) conclude that well planned job criteria,
selection criteria, a well-planned selection process, CCT for a certain host country, as well as