Executive Summary:
The United States is the top destination spot for foreign managers. But most studies have focused on managers from the United States, Europe, or Japan assigned to less developed countries. A new published study* by John Slocum of SMU Cox and co-author Kwanghyun Kim of Texas A&M focuses on the Asian manager coming to the United States on assignment-and more specifically the Korean expatriate. The research sheds light on the growing occurrence of foreign managers coming to America, and how they can cope with cross-cultural adjustments for a more successful assignment.
The Mission
Expatriate (expat) assignments are important for multinational corporations, and may be a source of competitive advantage in international business operations. These assignments are seen as development opportunities for employees; but various factors, including the individual's ability to adjust, account for how effective these assignments are. The authors had the opportunity to study Korean managers on assignment in the U.S. Author Slocum mentions, "We don't think about other people as expats, but they have all of the adjustment and performance problems that Americans have when they take an overseas assignment."
So why is a US assignment coveted? Slocum indicates, "For foreign management, the U.S is a top destination because of our schools and the "freedoms" which we enjoy in business and personal lives, perhaps not enjoyed in some host countries. For a manager, it may be important that they take on a high visibility assignment at a good post for their careers." He continues, "Other good posts in an Asian context might be Australia or New Zealand, but the U.S. is viewed primarily as a top post."
Metropolitan areas such as Dallas, Houston, Chicago, or New York, with large numbers of indigenous people (Americans), offer expats the opportunity to hone English skills, find a sense of community given the sizable Korean populations (and other Asians as well), and make the needed adjustments that come from a typical three-year assignment." In Dallas, for example, there are clusters of Korean subsidiary firms such as Samsung and Daewoo, among others, offering a community appeal.
Many of the Korean expats wanted to be on US assignment for their children to attend U.S. schools. They were observed to have a strong passion for educating their children in the U.S. which grants the opportunity for their children to learn English and have other life experiences.
Individual Matters
In the study, the authors focused on three individual differences which can impact the effectiveness of the expat's assignment. Self-monitoring is a personality trait whereby one is sensitive to the demands of social institutions and situations and adjusts accordingly. Studies have shown that MBA graduates who adapt themselves to social cues, high self-monitors, tend to be promoted more rapidly. This capacity also influences an individual's leadership abilities. Expatriates displaying greater openness-learning about host country cultural mores-adjust better to overseas assignments (high self-monitors). In the Korean context, with a tendency for managers to avoid uncertainty and be collectivistic, they will likely care more about the demands of social situations and adapt.
Former experiences in the U.S. and English language skills were the other two variables determined to impact assignment effectiveness. Prior experience in the U.S. increases one's ability to adapt by giving a more realistic and accurate understanding of the assigned tasks and communications competencies needed. Previous experience reduces ambiguity, uncertainty, and the stress about the nature of the new work environment. Local language fluency is important as well in adjusting as it provides the opportunity to develop interpersonal relationships and obtain information from diverse sources. If an expatriate fails to interact with local employees, it likely will influence their work adjustment, which may also be critical for task performance. This carries over into job satisfaction.
Tight Cultures
Particularly in this research, the concept of tight or loose cultures comes into play. Korean culture is considered more tight in comparison to the U.S., a loose culture. A tight culture has clear norms and shared ideas about deviant behavior. Members of tight cultures are expected to conform, and they are endowed with reliable mental compasses that are self-guides to behavior.
In this context of tight-loose cultures, some expats will cope by intending to return home early from assignment. "The Koreans do not have this option or issue," Slocum explains. "If an individual is having an adjustment problem, then the home country firm will expect them to 'work it out.' Coming home early would be a sign of defeat and dishonor for both the individual and the company: Failure is not acceptable." That said, organizations, managers, and peers have a role in providing appropriate social support to help expatriates adjust to their new environment.
Slocum also advises expatriates on assignment to understand how their performance will be measured- what metrics will be used. "Koreans, in this case, didn't like to be evaluated by non-Koreans," he relayed. "This is a status problem, which will not be overcome even in the next three to five years. They still believe they are reporting to their bosses in one of the chabals in Korea. And that is not likely to happen." Additionally, pay raises in Korea (and many other Asian nations) are typically based on seniority versus performance. Conversely, the U.S. is a pay-performance country. Slocum adds, "The Koreans struggle with that when they are assigned to US managers and pay is based on U.S. standards. That is a problem which needs to be addressed."
Slocum believes that Arab cultures such as from the countries of Saudi Arabia and Iran would fall into the tight cultures model. They too have clear norms. Countries such as Korea, Japan, the eastern part of China (not so much western), Saudi Arabia, and Kuwait, for example, where there are strict norms about what is acceptable and not acceptable, will find this line of research informative.
In Summary
The authors argue that U.S.-based expats with a high level of self-monitoring, longer prior experience in the U.S. and greater English fluency will have greater success in their cross-cultural adjustment. This study shows that the type of international experience matters rather than preferring any previous international experience. Another implication is that Korean companies need to manage expats according to the different assignment destinations. Slocum concludes that, "Firms should take heed of the notion of adjustments, whether they are due to a trailing spouse's needs for adjustment to understanding customs and cultural norms of the U.S. in this case. Simply selecting people without having them subjected to the cultural mores of the U.S. is not a good idea."
With the growing trend of emerging market multinationals contributing more to global business, the Asian expat may become a more common occurrence. Slocum indicates that firms that have global aspirations currently need to be in three markets-the U.S. market, Asia, and Europe. Relatively speaking, the U.S., owing to its openness as society compared to the other markets, is very attractive for expatriate assignments.
"Individual differences and expatriate assignment effectiveness: The case of U.S.-based Korean expatriates" by John Slocum of SMU Cox and Kwanghyun Kim of Texas A&M was published in Journal of World Business, January 2008.
Written by Jennifer Warren. |
