DQ-1. Explain the common causes of expatriate failure. What are the major success factors for

expatriates? Explain the role and importance of each.

It is essential for companies wanting to capitalize on the global opportunity to develop a

better understanding of what makes expatriate assignments successful. Analyzing the process of

expatriate assignments, one can identify at least, three phases, pre-departure (willingness to

serve overseas, consistency in foreign assignment policy, support network, expatriate selection,

realistic orientation and briefing, pre-assignment trip, cultural training); during assignment

(purpose of the expatriates, trend of expatriate background, language training, company rewards,

bring expatriates and the local staff closer) and repatriation (personal follow up on the expatriate

performance, and emotional and psychological adaptation, career development). According

Kraimer (2010), most of causes for the expatriate failure are mostly preventable if proper

planning, training, and assessment is made in the pre-departure phase.

Adopting Harrison and Shaffer’s (2005) description of successful expatriates, expatriates

are said to be successful when they do not quit their assignments prematurely, and complete their

tasks and develop/maintain inter-personalities with employees in the host country. Expatriates’

ability to adjust is more than just a matter of psychological well-being in a foreign country, but

also a significant assistant to the success of international assignments (Toh & Densi, 2007).

Given the complexity of overseas assignments, it is understandable that not all expatriates

perform well on the international assignment. Studies found that failure rates associated with

expatriate assignments are between 25 and 40 percent (Sanchez, 2000), “the average cost to

relocate an expatriate to be $60,000 and a total cost of over $2 billion per year for American

expatriating firms” (Noe, 2006, p.646).

According to Kraimer, these are the recommended factors for expatriates success: Pre-

departure – choose employee wants to relocate to become expatriate, keep policy simple and

consistent, give expatriate continuous support, select the best expatriate, give expatriate a

realistic orientation, give expatriate a pre-assignment trip, and give expatriate a continuous

training program. During assignment – knowledge of local language is a big bonus, beware

expatriate feeling homesick and burn out, bring expatriate and local staffs closer. Repatriation –

value international experience greatly (2010).

References

Harrison, D.A., & Shaffer, M.A. (2005). Mapping the criterion space for expatriate success: task

and relationship based performance, effort and adaptation. International Journal of

Human Resource Management, 16(8), 1454-1474.

Kraimer, M.L., Wayne, S.J. & Jaworski, R.A. (2010). Sources of support and expatriate

performance: the mediating role of expatiate adjustment. Personnel Psychology, 5(4), 71-

99.

Noe, R.A.(2006). Human resource management: gaining a competitive advantage (5th ed.). New

York: Irwin.

Toh, S.M., & DeNisi, A.S. (2005). A local perspective to expatriate success. Academy of

Management Executive, 19(1), 132-146.