The JGM BitBlog: Expatriate Interpersonal Capital Accumulation and Expatriate Effectiveness.
Chun-Hsiao Wang, National Central University, Taoyuan City, Taiwan
Yu-Ping Chen, Concordia University, Montreal, Canada
Expatriates are important human capital for multinational corporations (MNCs) and are associated with higher firm performance due to their roles of boundary spanners between the headquarter and subsidiaries. Expatriates carry out important tasks like setting up new operations, training the local workforce, developing international management skills, and facilitating knowledge creation across global units. All of these important tasks require a great deal of interactions and relationship building with various stakeholders in overseas units.
So, what is the process during which expatriates accumulate their interpersonal capital during expatriation and how does their interpersonal effectiveness influence their effectiveness, in both the behavioral (i.e., knowledge transfer) and the affective (expatriate adjustment) domains? This study also highlights the three different sources of social capital for expatriates and the processes through which social capital transmits (via expatriates' access to role information and social support) and then enhances expatriate effectiveness. These three different sources of social capitals are structural social capital (i.e., expatriates' and accompanying spouse/family members' social relationships), relational social capital (i.e., trust from other expatriates and HNCs), and cognitive social capital (i.e., common goals and cooperation shared with other expatriates and HCNs).
How can our proposed process inform organizations so they can leverage expatriates as an important human capital resource? We urge MNCs to have the required structure and design to allow high levels of social capital to be developed for expatriates in overseas units. For example, a collaborative-based HR configuration can be used. In addition, MNCs should increase the chances that expatriates engage in social interactions with other expatriates and HCNs through various job designs, projects, and work-related events that facilitate social interactions. For example, an international potluck can be held on a regular basis. Last, but not least, MNCs should leverage the social networks of expatriates' accompanying spouse and family members. MNCs can organize events for accompanying spouse and family members to share their experiences on joining various social groups (e.g., photography/camera clubs) in the host country. In addition, MNCs should encourage expatriates to widen the after-school social activities and hobby-based clubs of their children.
To read the full article, please see the Journal of Global Mobility publication:
Wang, C, - H. & Chen, Y. -P. (2024). A process perspective on the expatriate social capital – knowledge transfer and expatriate adjustment relationships. Journal of Global Mobility. 12(2), 333-354. https://doi.org/10.1108/JGM-03-2023-0026" target="_blank" rel="noopener">https://doi.org/10.1108/JGM-03-2023-0026
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Professor Jan Selmer, Ph.D.
Founding Editor-in-Chief
Journal of Global Mobility (JGM)
Department of Management, Aarhus University
E-mail:
selmer@mgmt.au.dkTwitter: @JanSelmer_JGM
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