The dynamic change in expatriate roles: strategy type and stage of internationalization

Abstract

Purpose

The purpose of this paper is to provide an initial exploration of how expatriate roles change over time, across different stages of MNC international expansion, and subsequently theorize on the dynamic nature of change in expatriate roles.

Design/methodology/approach

The authors used the qualitative approach of building theory from interviews, creating theoretical propositions from empirical evidence. The authors conducted in-depth interviews with 22 top executives of large MNCs to derive rich descriptions on expatriate roles to build the cases which were subsequently comparatively analyzed.

Findings

The authors find that expatriate roles become increasingly differentiated over time, with different expatriates performing specialized roles. The findings suggest that the proportion of expatriates used as commanders in directly/explicitly controlling subsidiaries decreases over time. Role differentiation is strongly linked to the pressures for local responsiveness and pressures for standardization, respectively.

Research limitations/implications

The exploratory evidence and resulting theorization needs to be verified in other samples and refined further using more longitudinal designs.

Practical implications

Knowledge of how and when expatriate roles change provides crucial inputs to HR managers for designing expatriate jobs, selecting appropriate candidates, and preparing them through appropriate training.

Originality/value

The findings identify the unique contribution that expatriates in later stages move away from commander roles in to roles demanding socialization, networking, knowledge sharing, coaching, and training, especially in firms that are high on the dimension of local responsiveness. Bears become bumble-bees and spiders in later stages of internalization especially for firms pursuing multi-domestic and transnational strategies.

Citation

Lakshman, S. and Lakshman, C. (2017), "The dynamic change in expatriate roles: strategy type and stage of internationalization", Management Decision, Vol. 55 No. 8, pp. 1770-1784. https://doi.org/10.1108/MD-11-2016-0816