Factors Contributing to Expatriate Success and Failure in International Management

This report discusses the factors that contribute to the success and failure of expatriates in international management. It explores cultural differentiation, communication barriers, and other factors that can impact expatriate performance. The report also examines the factors that contribute to the notion of a globalized economy, including technological advancements, ethical culture, and economic factors.

International
Management
(Part 2)

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically discusses with evidence about expatriate failure....................................................3
Discuss factors that can maximise expatriate success............................................................5
Discuss the factors that contribute to the notion of a globalised economy............................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International management is a process of managing business activities and aspects
developed in foreign markets. Globalisation have reduced barriers between borders of different
countries around the globe which have given rise to international business (Cohen, 2018).
Therefore, international business is known as a process involved in taking business into new
places around the globe and developing company's presence in new location by effective
management of processes, governance and related other features for carrying out the practices of
business. The concept of culture is a key factor which affects international business transactions
in both positive and negative manner. In terms of business culture refers to the work culture of
the place in which the individual is being moving for company's work and other related
elements.
Work culture flexibility and suitability can hinder or foster the actions taken by the
individual working in a new culture on company's behalf influencing directly on firms overall
performance. The report will be covering a thorough analysis and evaluation of the term
expatriate, the factors which can bring in potential contribution to expatriate and some examples
which caused expatriate business failures because of lack of understanding of such factors.
Moving along those features which can maximise expatriate success are evaluated as well.
Alongside, number of factors which contributes to the notion of globalised economy are
examined for highlighting over the awareness of ethical and accountable international policies.
MAIN BODY
Critically discusses with evidence about expatriate failure
Expatriate is an individual who is living in a new location and moved due to work
purposes. The professional who are expatriates moves to new place of work is most often is for
temporary basis and their movement took place due to their expertise and aim which the firm
needs to attain.
Expatriate Process involves movement of employee form their domestic locations to
new international market either on project basis which is temporary or for longer period by
offering them a transfer for higher position and a potential career development option.
Factors contributing to expatriate failure:

 Cultural Differentiation and Adjustment- The expatriate employees and the mission
behind expatriating them will be failed with the major reason of unknown and
differentiated culture. The new place of work needs huge adjustment and understanding
which needs to be pre known to the employee and can cause failure due to lack of
flexibility. Communication Barriers- Another place of work can include either learning of foreign
language which in initial stage is very difficult and majorly difficult when culture is
unknown. Thus, unknown language and difficulties in understanding the passed
information will lead to failure of expatriate mission and objectives behind their
placement in new work region.
 Unequal behaviours and Uncertain environment- Sometimes in new cultural
environment the people behave in an uncertain ways and bring inequality in their
behaviours and also in workplace environment. This leads to demotivation of employee
and moves towards lack of performances and failure.
Factors contributing to expatriate success:
Expatriate success involves varied factors which adds value to the concept and process
of expatriate. Company plays an active role in expatriate success this resulted in development of
a process which are considers as factors or feature of expatriate success. The Human Resource
Management aspects can add value to the process of expatriation and is divided into phases.
 Selecting assignee or expatriate- This is the first key factor and the phase of expatriate
success, that is to select the suitable assignee. This is not only a technical and strategic
decision to make but it is also a very strict and ethical decision too. At this phase the
major concern will be in favour for knowing the job related expertise of the professional,
motivation, employability skills, adaptability and many more (Kourula, Pisani and Kolk,
2017).
 Preparing and Orienting expatriates- A larger number of expatriate failures are caused
due to poor preparation and planning for entry and re-entry. The expatriate employee will
be having number of difficulties while moving to new place of work and in new culture.
Preparation and training the employee will enable them to be more adaptable to the
change and more flexibly adjust and work with old efficiencies and even better
efficiencies.

 Financial Support / Expatriate compensation- The company needs to take care of
employee and their needs thus, on the financial front the company should offer improved
packages with varied extra benefits and compensations. Better compensations will play a
major role in coping with all the material difficulties the employee may face in
international place of work. Also, higher packages will motivate professionals moral to
stay and work more efficiently offering higher performance standards and better working
for attaining organisational goals and objectives for which they actually moved to
international location (Adekola and Sergi, 2016).
 Organisational support- In professional work environment and industries an important
aspect for the firm is to keep the expatriate in corporate loop with the help of a potential
curated network. This practice will assist them in avoiding any hindering results which
can be caused. Methods like regular feedbacks form and to the expatriate about their
work and expectations form them can help in higher performance and make expatriate
employee feel more in close contact with the home environment and work conditions.
Discuss factors that can maximise expatriate success
Expatriate success is important for an organisation because a successful expatriate will
establish the operations of the business in other country in most effective manner. It also will
help in establishing the goodwill of the company in global market and will contribute more to the
success of the organisation. Expatriate will gain local knowledge about the market and transfer it
to home country company so that the local control is achieved shortly. There are many
difficulties faced by the expatriates which become hurdle in entering the global market like
cultural shocks, language and health issues, relationship problem, etc. There are many factors
which contribute in expatriate success, some of them are discussed below-
 Training to expatriates- Pre departure and post departure training is essential for the
expatriate to quickly adjust in the new environment so that the efficiency of expatriate
reflects quickly. Training may include cultural and language training. Cultural training
will help in dealing with unpredictable situations (Selmer, Andresen and Cerdin, 2017).
To make the employee aware of the new culture, factual information like history, climate,
policy, local customs, value system, etc. are given so that s/he becomes familiar with the
environment. Some cross culture training should also be given so that culture empathy is
developed in expatriate. Language training is provided so that there is no roadblock in

communicating with any person. Language may become a biggest hurdle in ensuring the
survival of expatriate so it is important to provide requisite training.
 Pre assignment trip- It works as job preview for the expatriate as it helps in giving
accurate information regarding job. To ensure that employee can adjust in new
environment and can get satisfaction in new setting, it is best for the employee. It is
usually a 5 day business trip for employee and its spouse which help in making quick
adjustments as both gets familiar with the culture of host country after visiting it. This
will be done by an agenda which includes briefing on local customs and policies,
availability of schools, hospitals in near by locations, etc (Lauring, Bjerregaard and
Klitmøller, 2018).
 Rewards- As overseas assignments can be lonely sometimes for expatriate, so it is
important to motivate the employee timely for ensuring there is no feeling of
homesickness. It will not only result in bringing the job performance graph down but also
increase the chances of quitting the assignment quickly. So rewards like home leaves,
rest and recuperation leaves will help expatriate to work with dedication and efficiency.
 Realistic briefing and orientation- The information regarding the assignment and job
profile helps the expatriate in making realistic expectation from the job. This will help in
handling the work stress more easily. The orientation will help in reviewing and
identifying the issues which are associated with assignment. It shall include brief
regarding finance, cost of living, psychological considerations, education, housing, work
demands and many more. Family issues are the major concerns for the expatriate so
realistic orientation will help in understanding the factors which might play an important
role in taking the decision regarding the family as to whether to take them to host country
or not.
Discuss the factors that contribute to the notion of a globalised economy
Globalisation term is elaborated as global economic integration, it is an old phenomena
which has became part of modern work practices in present era of 21st century (Dahms,2019).
Globalisation is defined as increasing interdependencies of world economies. This is an ongoing
process which keeps on growing and developing with varied pace according to the environment
and the surrounded resources. The process of globalisation is where organisations moves to
international markets for exploring more opportunities and with reduced trade barriers and other

hindrances it has became a modern business practice. Increasing interdependences of
international firms on each other is leading to inducement of world economies to become more
reliant on one another.
Expatriation and migration of professionals form their domestic environment to a fresh
and unknown place with new culture and varied type of change being introduced in the market is
through Globalisation and economic integration efforts. More opportunities are being explores,
resources are being utilised in the most efficient and effective manner as well as countries are
undergoing development and upliftment offering varied advantages to several parts of society
and world economies (Choi and Ha, 2018).
In general a description is provided of the globalisation concept and the idea behind its
increment. But there are certain factors that are contributing to the notion of globalised economy
and increment in globalisation. Few of the factors are elaborated below by taking in concern of
the notion and which spread awareness for ethical, sound and accountable international policies
of work and development which provides infinite support to the globalisation aspects and the
idea of interlinking and dependable economies around the globe. The rise of information and communications technology- Most beneficial notion which
induces the increment of global economy and integration of foreign businesses is
technological developments and rise of information technologies. Information flow in
increasing, telephonic communications are supporting businesses in becoming more
transparent with one another and work rapidly in all different kinds of situations. Thus,
the thought of integration of economies and business organisation is motivated and
developed with revolutionary changed and development taking place for societal and
economic advantages. Thus, the need for more corrosive international trade polices will
enable a regulation over use of available information for a productive purpose and fro
developing constructive outcomes for welfare of organisation, its workforce, the
economies involved in operations and society (Albrecht and et. al., 2018). The expatriate
processes are also supported through better technologies as people working in
international locations can be kept in corporate loop which keep them in close contact
with their home company and work environment. Differentiation in ethical culture and legislations- The notion of globalisation and
globalised economy develops another concern for ethical culture and legislations in

international markets. Therefore, increasing flexibility of ethical and legislative
environment of different countries boosts the idea of globalised and integrated economies
to be developed for increasing business with varied international brands and developing
more effectual relationship with other countries. Economic factors- The global economy is a post industrial and it resulted in better trade
policies, reduced trade barriers and much more flexible work environment is developed.
Basically economic factors do induce global trade and offers less complicated trade
practices and developments. This notion of flexible economic and trade practice are
supporting and in favour of integration of economies and development of globalisation.
Thus, protections is required against unfair trade practices and methods for which polices
are made for international trade which spread awareness for fair trade and a accountable
system of work (Posthuma and et. al., 2019). Movement of Labour and Human capital- Human resource, experts and professionals
are moved from their domestic locations to new international markets and countries for
work and establishing company's presence as well as completing its aims and agendas.
The professionals safety and safeguards is a key concern while integrating global
economies. The notion of movement of experts offers new perspectives to the companies
in the international market place which results in need for laws and policies for keeping
people safe in new place of work, in new culture and unknown surroundings. Polices like
health insurance, equality in society, equal pay system in business settings and many
other factors will support the notion of global integration of economies, businesses,
available resources and workforce (Yussuf, 2018).
 Increased Investments- Global economic integration has number of benefits involved
which leads to increment for the idea of globalisation and international trade by
supporting the notion. Companies gets new resources and huge investments form separate
segments which offers them more financial support which offers their business practices
with more. This notion incriminates the need and awareness for more thorough and strict
ethical, social and accountable polices of international trade in order to make the
investors feel secured from any risky situation and fraudulent in the name of
globalisation.

CONCLUSION
The above report concludes that the impacts of expatriate process and factor do have
potential significant influence over company' success and achievement of pre determined aims
and objectives. Expatriate failure will automatically leads to huge loss of cost and other resource
involved and invested in expatriation. Thus, there are certain expatriate successive factors which
will offer a better viewpoint and processing of the expatriate while moving into new work
environment and cultural surroundings.

REFERENCES
Books and Journals
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Albrecht and et. al., 2018. Success among self-initiated versus assigned expatriates. Managing
expatriates: Success factors in private and public domains. pp.183-194.
Choi, Y. and Ha, J., 2018. Job satisfaction and work productivity: The role of conflict-
management culture. Social Behavior and Personality: an international journal. 46(7).
pp.1101-1110.
Cohen, R.B., 2018. 12 The new international division of labor, multinational corporations and
urban hierarchy. Urbanization and urban planning in capitalist society. 7.
Dahms, S., 2019. Foreign-owned subsidiary knowledge sourcing: The role of location and
expatriates. Journal of Business Research. 105. pp.178-188.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive development:
highlights from international business and management research. Current opinion in
environmental sustainability. 24. pp.14-18.
Lauring, J., Bjerregaard, T. and Klitmøller, A., 2018. Understanding culture in international
management: Functionalism, constructivism, and the emerging practice
turn. International Studies of Management & Organization. 48(3). pp.264-276.
Posthuma and et. al., 2019. A risk management model for research on expatriates in hostile work
environments. The International Journal of Human Resource Management. 30(11).
pp.1822-1838.
Selmer, J., Andresen, M. and Cerdin, J.L., 2017. Self-initiated expatriates. In Research handbook
of expatriates. Edward Elgar Publishing.
Yussuf, O.A., 2018. Major factors affecting the expatriate success: The case of Malaysian
expatriates. International Journal of Management and Human Resources. 6(1). pp.111-
142.