Working Papers

R & D

TOWARDS THE BOUNDARYLESS CAREER: A CLOSER LOOK AT THE EXPATRIATE CAREER

CONCEPT AND THE PERCEIVED IMPLICATIONS OF AN INTERNATIONAL ASSIGNMENT

by

G. K. STAHL *

E. L. MILLER** and

R. L. TUNG†

2001/76/ABA

* Assistant Professor of Asian Business at INSEAD, 1 Ayer Rajah Avenue, Singapore 138676. ** University of Michigan Business School, Department of Management, Ann Arbor, Michigan,

USA. † Simon Fraser University, Faculty of Business, Burnaby, B.C., Canada, V5A 1S6. A working paper in the INSEAD Working Paper Series is intended as a means whereby a facultyresearcher's thoughts and findings may be communicated to interested readers. The paper should beconsidered preliminary in nature and may require revision. Printed at INSEAD, Fontainebleau, France.

Toward the Boundaryless Career: A Closer Look at the Expatriate Career

Concept and the Perceived Implications of an International Assignment

Günter K. Stahl

INSEAD

Asian Business Area

SINGAPORE

E-Mail: guenter.stahl@insead.edu

Edwin L. Miller

University of Michigan Business School

Department of Management

Ann Arbor, Michigan, USA

E-Mail: elmiller@umich.edu

Rosalie L. Tung

Simon Fraser University

Faculty of Business

Burnaby, B.C., CANADA, V5A 1S6

E-Mail: tung@sfu.ca

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Abstract

Based on survey questionnaire data of 494 German expatriate managers on assignment to 59

countries, this study explored the nature of the expatriate career concept, the perceived impact of

an international assignment on career advancement and personal development, and the

effectiveness of corporate expatriate career management systems. The findings revealed that the

majority of expatriates view their international assignment as an opportunity for personal and

professional development and career advancement, despite perceived deficits in corporate career

management systems and a widespread skepticism that the assignment will help them advance

within their companies. The findings thus support the emerging notion of “boundaryless” careers.

The implications for theory and practice of international human resource management are

discussed.

Key words: expatriation, boundaryless careers, international human resource management

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Toward the Boundaryless Career: A Closer Look at the Expatriate Career

Concept and the Perceived Implications of an International Assignment

Expatriate assignments play an increasingly critical role in the execution of international business

strategies and the development of global managers (Mendenhall, 2001; Stroh & Caligiuri, 1998).

However, despite their strategic importance, international assignments do not always enhance

managers’ careers. In a study of management succession in U.S. companies with annual revenues

in excess of $1 billion, over 93 percent of responding executives did not consider international

experience one of the top three criteria for promotion into the ranks of senior management (Tung

& Miller, 1990). As a consequence, managers are often reluctant to accept the offer of an

international assignment for fear that it may result in a negative career move (Selmer, 1998;

Tung, 1988).

Although relatively little is known about the long-term impact of international assignments

on managers’ careers, empirical research corroborates such fears. In a survey of U.S. companies,

while 65 percent of HR executives thought an international assignment had a positive career

impact, 77 percent of expatriates felt it had a negative effect on their careers (Black, Gregersen,

Mendenhall & Stroh, 1999: 193). A study of German expatriate managers found that respondents

perceived career-related problems, such as anticipated difficulties finding a suitable reentry

position, lack of long-term career planning, and inadequate advancement opportunities after

reentry, as the most troublesome problems in their international assignments (Stahl, 2000). In

fact, research has shown that the majority of returning expatriates feel their overseas assignment

had a neutral, and sometimes negative, impact on their careers (Adler, 2001; Hammer, Hart &

Rogan, 1998). Not surprisingly, a substantial percentage of expatriates resign upon return and

seek employment elsewhere; others become professionally unproductive and personally

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dissatisfied because their companies fail to capitalize upon their overseas experiences (Black et

al., 1999; Caligiuri & Lazarova, 2001). Thus, from the individual manager’s point of view, an

expatriate career may appear as an increasingly unattractive and risky alternative (Selmer, 1998).

Then, why do managers continue to accept offers of international assignments? While few

systematic attempts have been made to examine the nature of the expatriate career concept, the

findings of a study conducted by Tung (1998) indicate that managers increasingly view an

international assignment as enhancing their internal, rather than external, careers. The emerging

notions of “internal” or “boundaryless” careers (Arthur & Rousseau, 1996; Parker & Inkson,

1999) suggest that managers value an international assignment for the opportunity it brings for

skill acquisition, personal development, and career enhancement, even though it may not help

them advance within their company.

The purpose of this study is to explore the nature of the expatriate career concept, in

particular the motivation of managers to accept an international assignment, and to examine how

the nature of the expatriate career concept affects International Human Resource Management

[IHRM] theory and practice.

Expatriate Career Transitions and the Management of International Assignments

There has been a tremendous increase in research dealing with the selection, training, career-

pathing, and repatriation of expatriates (see Black et al., 1999; Brewster, 1991; Dowling et al.,

1999 for reviews). However, relatively little is known about whether expatriates perceive an

international assignment as having a positive or negative impact on their long-term career

advancement and what motivates expatriates in their decision to accept an international

assignment.

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In one of the first studies that had a closer look at the decision to accept an overseas

position, Miller and Cheng (1978) found that advancement in the organization hierarchy was the

primary motive influencing managers to accept an international assignment. Other important

motives were the appeal of increased pay, the opportunity to obtain greater job responsibility, and

the opportunity to improve one’s management skills and to gain international experience. The

results also suggested that there are certain risks associated with an overseas assignment,

including missed opportunities for advancement in the home office and difficulties finding a

suitable position upon return. The findings of a more recent study also found that managers

consider the opportunity to go abroad to be a mixed blessing (Yurkiewicz & Rosen, 1995).

International assignments provide expatriates with an opportunity to improve their general

management skills and intercultural competencies, assets important at higher organization levels

(Gregersen, Morrison & Black, 1998; Mendenhall, 2001). Some scholars and senior executives

even believe that international assignments are the “most powerful experience in shaping the

perspective and capabilities of effective global leaders” (Black et al., 1999, p. 2). Given that the

development of global leaders is key to success in today’s highly competitive and rapidly

changing global business world, one would expect that companies should reward managers for

pursuing an overseas assignment and developing an international perspective. Yet, empirical

research indicates that the majority of repatriates feel their international assignment had a

negative impact on their careers, and that the company does not value their overseas experience

and their newly acquired skills (Adler, 2001; Hammer et al., 1998).

Thus, there seems to be a discrepancy between the stated strategies of most companies to

internationalize their businesses and their actual IHRM policies and practices.

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Toward the Boundaryless Career: A Closer Look at the Expatriate Career Concept

If companies usually fail to reward managers for acquiring international expertise and to integrate

expatriate assignments into long-term career paths, as the preceding literature review indicates,

why do managers accept an international assignment? To explain this apparent contradiction,

Tung (1998) suggested that for many expatriates, the internal career has taken precedence over

the external career. According to Schein (1996), the “internal” career involves a subjective sense

of where one is going in one’s work life, whereas the “external” career essentially refers to

advancement within the organizational hierarchy. For individuals pursuing internal careers, one’s

work life may no longer be perceived as a progression of jobs within a single organization.

Rather, individuals will move from one company to another to pursue the best opportunities for

their professional development. Thus, career progress comes not from intra-company hierarchical

advancement, but rather from inter-company self-development (Parker & Inkson, 1999). Under

this perspective, careers can be viewed as “boundaryless” (Arthur & Rousseau, 1996).

Tung (1998), in a survey of U.S. expatriate managers in more than 50 countries, found that

managers increasingly view international assignments as enhancing their internal, rather than

external, careers. Most expatriates surveyed were seriously concerned about repatriation, yet an

overwhelming majority of them perceived the international assignment as essential to their

subsequent career advancement either in their current organization or elsewhere. Further, most of

the expatriates in the sample viewed their overseas position as an opportunity to acquire skills

and expertise usually not available at home. These findings suggest that expatriates value an

overseas assignment primarily for the experience and the opportunities it brings for personal

development and career enhancement, even though it may not be with their current company. The

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positive attitude that many expatriates have toward their international assignments, despite

problems with repatriation, support the emerging notion of boundaryless careers.

Other authors (Caligiuri & Lazarova, 2001; Inkson, Pringle, Arthur, & Barry, 1997) have

also suggested that “boundaryless“ careers are becoming the pattern for international assignees –

as with other high demand professionals, such as management consultants or information

technology engineers. Since international experience is a competitive asset that makes managers

more valuable for the external labor market, companies that do not provide adequate

opportunities for professional growth and career advancement upon repatriation may lose a

valuable human capital investment to a competitor (Caligiuri & Lazarova, 2001). Research done

by Black et al. (1999: 237) has shown that the retention of internationally experienced

professionals is in fact a major challenge for companies. These authors found that some European

and U.S. companies have lost between 40 and 55 percent of their repatriates within three years

after repatriation through voluntary turnover. The emerging notion of boundaryless careers

suggests that many of these repatriates have deliberately chosen to leave for a better job offer

elsewhere, and that they did not perceive the organizational exit as a negative career move.

Research Questions

Because of the exploratory character of this study, no hypotheses were generated. Instead, several

research questions were formulated to guide the empirical research process.

Previous research suggests that professional motives such as increased prospects of future

promotion and monetary considerations are the primary reasons influencing managers to accept

an international assignment (Miller & Cheng, 1978; Yurkiewicz & Rosen, 1995). Although this

research has increased our understanding of the expatriate job choice process, it has offered

relatively little insight into the personal and professional tradeoffs associated with the decision to

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accept an international assignment, and the potential negative consequences of refusing such an

offer. Moreover, in light of recent findings that the expatriate career concept is undergoing

significant change (Inkson et al., 1997; Tung, 1998), previous research dealing with the motives

for accepting an international assignment may be outdated. Therefore, the following research

question was addressed:

Research Question 1: What motivates managers to accept an international

assignment and what factors influence them in their decision to go abroad?

Prior research has shown that there is a discrepancy between the stated strategies of most

companies to internationalize their businesses and their actual IHRM policies and practices.

Corporate expatriate management systems have been characterized as insufficient (Feldman &

Thomas, 1992), haphazard (Mendenhall et al., 1987), and irrelevant (Selmer, 1998). As a

consequence, expatriates may perceive a disconnection between their international assignments

and their long-term career plans. Therefore, a question can be raised as to whether expatriates

perceive corporate IHRM policies and practices, in particular those related to the development

and career-pathing of international managers, as enhancing their career advancement.

Research Question 2: Do expatriates perceive corporate IHRM policies and practices

as enhancing their career advancement? Are they satisfied with how their companies

approach the expatriation and repatriation process?

In explaining why managers continue to accept offers of international assignments, despite

the lack of systematic career planning in most companies, it has been argued that managers

increasingly view international assignments as a chance to enhance their internal, rather than their

external, careers (Tung, 1998). Accordingly, expatriate managers may value an international

assignment for the opportunities it brings for skill development and career advancement, even

9

though it may not be with the same company. Up to this point, however, few attempts have been

made to empirically examine the nature of the expatriate career concept and the significance that

the notion of boundaryless careers has in motivating managers to accept an international

assignment. Therefore, the following research question was addressed

Research Question 3: What is the nature of the expatriate career concept?

Specifically, are boundaryless careers becoming the pattern for international

assignees?

Method

Organizational Context and Sample Characteristics

In attempting to better understand what motivates expatriates to accept an international

assignment, whether they perceive corporate IHRM policies and practices as enhancing their

careers, and what the nature of their career concept is, we surveyed expatriate managers of 30

German companies in 59 countries. Among the companies were seven of the 20 largest German

firms. They represented a variety of industries, including electronics, cars, pharmaceuticals,

consumer products, and financial services. We selected expatriates of German companies for this

study because we were interested in exploring expatriate career issues in a non-U.S. sample.

Germany is one of the major economic players in the world, with large numbers of managers

working abroad. By studying expatriate career issues in a non-U.S. sample, it is possible to assess

potential cross-cultural differences when the findings are compared against those obtained from

U.S. subjects (e.g., Tung, 1998; Tung & Arthur Andersen, 1997).

A survey questionnaire, along with self-addressed envelopes for return, were sent to HR

executives working in the corporate head offices in Germany. The HR executives then forwarded

the questionnaires to the expatriates abroad. The completed questionnaires were returned directly

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to the first author to ensure confidentiality of responses. Of the 1058 survey questionnaires

mailed, 549 were returned; 494 were usable, for a response rate of 47 percent.

As Table 1 indicates, the “typical” respondent in this study was a college-educated male,

between 30 and 40 years old, married, occupying a middle management position, had been posted

to a North-American, Western-European, or South-East-Asian country, and had been on the

expatriate assignment between 6 to 18 months. Since some of the research questions focused on

aspects of the expatriate job choice process prior to the international assignment (e.g., motives for

going abroad), the sample for this study was drawn from expatriates who had been posted to their

overseas locations no longer than two years. It was hoped that this group of expatriates would be

able to provide more reliable retrospective accounts of the job choice process prior to their

international assignments than expatriates who had been living abroad for many years.

Interestingly, the demographic profile of respondents suggests that there is a slow but

steady increase in the use of women in international assignments. In the early 1990s, less than 3

percent of German expatriates were women; this figure increased to 5 percent in the mid-1990s,

to 7 percent in the late 1990s (Stahl, 2000), and to 10 percent in the present study. A similar trend

has been observed for U.S. expatriates (Adler, 2001; Tung, 1998).

Table 1 about here

Instruments and Measures

Based on an extensive review of the expatriate career literature and previous research conducted

by the authors, a survey questionnaire was developed to examine expatriates’ attitudes toward

their international assignments and their experience abroad, including the perceived career

implications of an international assignment.

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The survey questionnaire comprised five sections. The first section contained demographic

questions, including those related to spouse and family characteristics. The second section

contained questions related to the expatriate job choice process. A sample item in this section

presented expatriates with a list of motives for going abroad and asked them to rank order the five

most important considerations in their decision to accept an overseas assignment. The third

section contained questions regarding career expectations, including the perceived impact of an

overseas assignment on the career. A sample item in this section measured opportunities for

career advancement within the company. The fourth section contained questions related to

satisfaction with corporate expatriation policies and practices, including perceived discrepancies

between the company’s stated strategy to internationalize its business and its actual policies and

practices. A sample item in this section measured satisfaction with the compensation and benefits

package. The final section contained questions regarding repatriation. A sample item in this

section measured concern about reduced responsibility and autonomy upon repatriation.

In addition, expatriates were asked to respond to several open-ended questions. A sample

item asked expatriates if and why they believed that their international assignment had a positive

impact on their overall career. Responses to the open-ended questions were extracted from the

questionnaires and analyzed by using content analytical techniques.

Results

In this section, the findings of descriptive statistical analyses are presented to address the main

research questions under investigation.1

Expatriate Job Choice

The first research question sought to examine what motivates managers to accept an international

assignment and what factors influence expatriates’ career decisions. Table 2 presents the various

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motives for accepting an international assignment, rank ordered according to their perceived

importance. The findings indicate that career-related motives such as opportunities for

professional development and future opportunities for career advancement are among the primary

reasons influencing managers to accept an international assignment. However, rather than merely

viewing the overseas assignment as a prerequisite for subsequent career advancement, the

findings suggest that expatriates also place a high intrinsic value on the challenge of living and

working overseas.

Table 2 about here

The notion of “intrinsic” motivation refers to the sense that something is worth doing it for

its own sake, e.g., because it is interesting and creates a learning opportunity, and not because it

is rewarded with money or praise (Deci, 1975). The expatriates in this study ranked “personal

challenge” – a clearly intrinsic motive – as the most important reason why they had accepted the

assignment. In contrast, monetary reasons were considered only moderately important in the

decision to go abroad. Interestingly, compared to U.S. managers who consistently rank financial

rewards as one of the top reasons for accepting an international assignment (Tung & Arthur

Andersen, 1997; Yurkiewicz & Rosen, 1995), German expatriates seem to put a higher emphasis

on intrinsic motives. This finding may be explained by the fact that most German companies

have reduced the sizes of compensation packages for expatriates in recent years.

Torbiörn (1982: 82) distinguishes between negative motives or “push factors“ that drive

employees toward an international assignment (e.g., dissatisfaction with the situation in the home

country) and positive motives or “pull factors“ (e.g., the expectation that an overseas assignment

could provide great satisfaction). In order to find out more about the “push factors“, expatriates

were asked whether they anticipated any negative consequences if they had refused the overseas

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assignment. The findings revealed that 69 percent of respondents believed that a manager can

never or can only once turn down an international assignment without it negatively affecting

his/her subsequent career advancement; 61 percent believed that rejection of the job offer would

have limited their subsequent career opportunities within the company. Thus, although the

expatriates in the sample were positively and intrinsically motivated to go abroad, they also

anticipated serious negative consequences if they had refused the international assignment.

Satisfaction with IHRM Policies and Practices

Prior research has found that corporate IHRM policies and practices are often non-strategic and

ad hoc (Mendenhall et al., 1987; Selmer, 1998). Asked whether they see a discrepancy between

their company’s stated strategy to internationalize its business and its actual IHRM policies and

practices, 65 percent of the expatriates in this study felt there was such a discrepancy, while 35

percent said there was no such discrepancy. Table 3 summarizes the reasons given by those

expatriates who saw a discrepancy. Note that the percentage data likely provide conservative

estimates of the actual figures, because few expatriates provided more than one explanation. The

results indicate that a lack of long-term career planning and company support during the overseas

assignment are the most important reasons why expatriates perceive a discrepancy.

Table 3 about here

In order to find out more about the perceived career implications of an international

assignment, respondents were asked to indicate to what extent their company rewards its

employees for acquiring international expertise. Table 4 shows that respondents were rather

skeptical that their company will reward them for pursuing an international assignment, for

developing an international perspective, for developing a worldwide network of associates, and

for acquiring fluency in a foreign language. Expatriates who perceived a discrepancy between

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their company’s stated strategy to internationalize its business and its actual IHRM policies and

practices were much more pessimistic that their company will reward them for pursuing an

international assignment, for developing an international perspective, for developing a worldwide

network of associates and for acquiring fluency in a foreign language than were respondents who

saw no such discrepancy. Apparently, expatriates who perceive corporate IHRM policies and

practices as non-strategic do so because they see a disconnection between their overseas

assignment and their subsequent career advancement within the company.

Table 4 about here

Given the prevailing doubts among expatriates that they will be rewarded for acquiring

international expertise, how satisfied are respondents with the way their company approaches the

expatriation and repatriation process? Table 4 indicates that the majority of expatriates in this

study were not very satisfied with how the HR department handled their overseas assignment,

especially the long-range planning of their repatriation. This finding is consistent with prior

research indicating that repatriation may be the most problematic stage in the expatriation cycle

(Adler, 2001; Hammer et al., 1998; Tung, 1998).

In order to find out more about the anticipated reentry difficulties of expatriates, several

items addressed concerns about different aspects of the repatriation process. Table 4 indicates

that relatively few respondents were concerned about different aspects of their repatriation, such

as career advancement, degree of autonomy and responsibility, size of the compensation package,

and opportunities for using the newly gained international expertise upon return. Thus, although

the majority of expatriates were dissatisfied with how their company approached the repatriation

process, many of them were relatively nonchalant regarding the outcomes of their repatriation.

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There are several possible interpretations of this finding. First, the expatriates in the sample

had been on their overseas assignments for less than two years. Despite their dissatisfaction with

how the company planned for their reentry and future careers, it is plausible that they were not

highly concerned about repatriation at such an early stage of their overseas assignment. Second,

83 percent of expatriates were guaranteed a reentry position upon completion of the overseas

assignment. This figure is much higher than the 40 percent found in a study of U.S. expatriates

conducted by Tung (1998), who also found that most expatriates were seriously concerned about

repatriation. Having a guaranteed position upon return may have resulted in a higher degree of

job security and less concerns about repatriation. Finally, the changing nature of the expatriate

career concept may explain respondents’ nonchalance regarding their repatriation. Issues related

to the career orientation of expatriates will be addressed in the following section.

Expatriate Career Concept and Career Aspirations

In order to find out whether boundaryless careers are in fact becoming the pattern for

international assignees, expatriates were asked to indicate the likelihood that successful

performance in their current overseas assignment will advance their career within or outside the

company. Table 5 indicates that an overwhelming majority of respondents believed that their

international assignment will have a positive impact on future career opportunities among other

possible employers, while considerably fewer expatriates were confident that it will help them

advance within their current company. Also, expatriates were highly optimistic that their overseas

assignment will help them improve their professional and management skills, and they firmly

believed that it will enhance their intercultural skills as well. The finding that the vast majority of

expatriates viewed their international assignment as an opportunity for skill development and

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future career advancement, even though it may not be with their current company, clearly

supports the notion of boundaryless careers.

Table 5 about here

Additional evidence comes from the finding that a considerable number of expatriates were

willing to resign upon return and seek employment elsewhere. Asked whether they would leave

their company for a better job in another firm, 51 percent of respondents said they were willing to

do so, whereas only 25 percent indicated that they were unwilling to leave their company. Given

the traditionally high loyalty of German professionals toward their employers, this finding

provides strong support for the notion of boundaryless careers. It may also explain why the

expatriates were only moderately concerned about career advancement upon return. Apparently,

respondents were confident that the demand for their international expertise on the labor market

was high and, therefore, they would be able to find better jobs elsewhere.

Additional insight into the expatriate career concept comes from responses to an open-

ended question. Respondents were asked to indicate to what extent they agreed with the statement

that their international assignment will have a positive impact on their overall career, even if it

does not enhance their advancement within their company, and to explain their answer in detail.

The findings revealed that 89 percent of respondents agreed with this statement, while only 11

percent disagreed. Table 6 indicates that expatriates who were confident that their international

assignment had a positive impact on their overall careers mainly believed so because they felt it

enhanced their personality development, enabled them to develop a global mindset, and enriched

their personal lives. In addition, many expatriates believed that an overseas assignment will help

them improve their managerial, interpersonal, and communication skills, and enable them to

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create a valuable network of personal relationships. However, only few expatriates believed that

their overseas assignment will have a direct effect on their subsequent career advancement.

Table 6 about here

These findings suggest that expatriates perceive an international assignment as having an

impact on their internal career, to borrow Schein’s (1996) terminology, through the acquisition of

knowledge, skills, and experiences that are usually not available in the home country. Further,

expatriates seem to place a high intrinsic value on the overseas assignment per se, rather than

merely viewing it as a prerequisite for hierarchical career advancement.

Discussion

This study extended the current research on expatriation and repatriation in several ways. First,

while empirical research on the antecedents of expatriate and repatriate adjustment abounds, few

systematic attempts have been made to examine the career development aspects of international

assignments. This study focused on the nature of the expatriate career concept, in particular the

significance of “boundaryless” careers in motivating managers to accept an overseas assignment,

and explored how this notion of careers affects the attitudes of expatriate managers toward their

international assignments.

Building on prior research on U.S. expatriates (e.g., Feldman & Thomas, 1992; Tung,

1998), this study is one of the few to examine the career implications of international assignments

in a non-U.S. sample of expatriates. The findings clearly support Tung’s (1998) conclusion that

boundaryless careers are becoming the pattern for international assignees. Although the majority

of expatriates in this sample were clearly dissatisfied with how their company rewarded its

employees for pursuing an international assignment and how it approached the repatriation

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process, they firmly believed that their overseas assignment will help them improve their

professional and management skills and enhance their careers, though not necessarily within their

current company. However, rather than merely viewing international mobility as a prerequisite

for subsequent career advancement, the expatriates placed a high intrinsic value on the overseas

experience per se, especially on the opportunities it brings for personality development and

enrichment of their personal lives.

Implications for Practice

One of the most striking findings of this study was the positive attitude that expatriates had

toward their international assignment, despite a widespread dissatisfaction with how their

company rewarded international experience and approached the repatriation process. While there

is a growing recognition that managers working for companies perceived to deal

unsympathetically with career development concerns will be more reluctant to accept offers of

international assignments (Selmer, 1998), the fact that expatriates place a high intrinsic value on

the overseas experience suggests that companies will continue be able to recruit capable

managers for international assignments in the future. However, this does not imply that

companies will also be able to retain these managers upon repatriation. This study found that the

majority of expatriates were confident that the demand for their international expertise on the

external labor market was high, and they were willing to leave their company for a better job

elsewhere.

These findings have important implications for IHRM practice. In terms of organizational

career development programs, the notion of integrating international assignments into logical

career paths seems to be the most critical variable in facilitating expatriation and repatriation

success (Feldman & Thomas, 1992; Oddou & Mendenhall, 1991). Organizational career

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development programs and repatriation practices, such as managing expatriates’ career

expectations, providing career-path information, organizing participation in networking activities

that allow expatriates to stay in touch with key people in the organization, providing ongoing

coaching or mentoring, continuously reviewing performance during the international assignment,

and improving expatriates’ career self-management skills can facilitate the career-pathing and

repatriation of international managers (Caligiuri & Lazarova, 2001; Selmer, 1999). While well

meaning organizational career development programs and repatriation practices are necessary for

managing expatriates’ career expectations, there are preparatory activities and commitments the

organization must undertake. If the organization fails to meet these requirements, there is little

chance that its career development and repatriation programs will be able to successfully respond

to the growing boundaryless career orientation of expatriates and the increasing turnover rates

among repatriates.

If the organization expects to develop a well-meaning career development program and

implement effective repatriation practices several preliminary steps must be undertaken. It will

be critical for the IHRM function and management to seek a thorough understanding and

explanation to the following questions: (1) “Who is leaving or recently left, and who is staying?”

(2) “Are there professional and personal characteristics of those repatriates who are preparing to

leave or have left the organization within a year or two after repatriation which differentiate them

from their repatriate peers who have chosen to remain with the organization over the same time

period?” With a better understanding of the dimensions of repatriate turnover, the IHRM function

will be able to propose steps to rectify the problem. Typically turnover data are reported in the

aggregate and little attention has been directed toward a more fine-grained analysis of repatriate

turnover. Clearly some turnover upon repatriation is functional and beneficial to the firm because

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the repatriate’s skills and experiences are no longer needed by the organization as it competes in

the global marketplace. Consequently, there may be no available job for the repatriate, and

termination is the best personnel decision for the repatriate and for the organization.

In other cases repatriate turnover maybe dysfunctional to the organization because it inflicts

a costly expense in terms of lost investment in human resources if the repatriates had been

members of the firm’s managerial and professional elite or if they had joined companies which

are considered to be the firm’s competitors in the global marketplace. Examples of dysfunctional

turnover if the repatriate had completed an assignment that was intended to: (1) develop his/her

leadership skills, (2) to groom him/her for high-level organizational assignments, or

(3) capitalize upon a unique combination of technical and interpersonal skills considered to be

critical to longer term organizational success (Caligiuri & Lazarova, 2001). An in-depth

understanding of who is leaving and who is staying will provide the basis for designing career

development programs and repatriation practices that will address the needs of repatriates who

are motivated by a boundaryless career orientation and whose skills and talents the organization

seeks to retain.

As Caligiuri and Lazarova (2001) forcefully argue, “honesty is the best recommendation

for building a repatriation system.” Organizational honesty in terms of the positive contribution

of international experience, requires the firm to be honest and forthright in terms of its personnel

decisions, positive expressions and actions of senior management and continuous support,

commitment and communication with its expatriates during and upon completion of their global

assignments. Lazarova and Caligiuri (2000), in a recent study of the antecedents of turnover

intentions among repatriates, found that rather than choosing any specific type of repatriation

assistance, repatriates rated visible signs that the company values overseas experience and that

21

international expertise is beneficial to one’s career as the most important element in the IHRM

system. Specifically the company’s leadership must aggressively demonstrate that it values

international expertise, and such experience will enhance one’s career advancement and prestige

within the organization. Unfortunately, only one third of the expatriates surveyed in this study

felt that their international experience was appreciated by their companies.

While well designed career development programs can be helpful in repatriating and

retaining managers after an international assignment, companies will not be able to capitalize on

the overseas experience of their workforce unless they have developed a truly global corporate

culture. As more and more companies are moving away from multinational organizations toward

more global ways to organize and manage, the development of global leaders is becoming

increasingly important for companies in order to succeed in the business world (Adler, 2001;

Stroh & Caligiuri, 1998). An effective way to develop this new breed of managers is to send them

on international assignments where they can assume a broader range of duties and improve their

general management skills and intercultural competencies (Gregersen et al., 1998; Mendenhall,

2001; Tung, 1998). As the findings about the changing nature of the expatriate career concept

indicate, companies need to do a much better job at leveraging and rewarding the global skills of

the managers in whom they have invested a lot of money during their international assignments if

they want to retain them upon repatriation.

Future Research

This study provided some new insights into the career development aspects of international

assignments. However, its inherent limitations have to be considered, as well as avenues for

future research. First, the results have to be replicated using different samples and research

methodologies to establish their generalizability. While the results corroborate those of a large-

22

scale study of U.S. expatriates (Tung, 1998), and, therefore, suggest that findings on expatriate

careers are to some degree generalizable across different national samples, future studies should

replicate and elaborate these findings by collecting data from nationally more diverse samples.

Second, quantitative studies that focus on hypothesis testing have to be combined with

more qualitative methodologies to better understand the changing nature of the expatriate career

concept. Because of the exploratory character of this study, no hypotheses were generated.

However, from the findings of this and other studies (e.g., Feldman & Thomas, 1992; Tung,

1998), as well as from theoretical research dealing with the changing nature of the expatriate

career concept (e.g., Inkson et al., 1997), it is now possible to derive hypotheses and empirically

test them. In addition, qualitative methodologies such as in-depth interviews and case studies

should be employed to find out more about the career implications of expatriate assignments.

Third, an interesting question concerns the career orientation of those managers who have

dismissed an overseas assignment because they believe it is not instrumental for the development

of their careers. Are those managers any less internally oriented in terms of their career

development than their expatriate counterparts? These questions can provide the source for future

investigations aimed at exploring other dimensions and complexities of the boundaryless career

orientation.

Fourth, from a broader perspective, non-work related issues such as family situation, dual-

careers, support of the spouse, etc., are important, yet understudied aspects of expatriate careers.

For example, the trailing spouse’s career orientation and job opportunities overseas may play an

important role in the decision to accept or reject an international assignment, and may also

influence the level of work performance and satisfaction overseas (Harvey, 1996). Future

23

research – and IHRM practice as well – would probably benefit from a closer examination of

non-work related variables that enhance or constrain expatriate careers.

Fifth, greater attention has to be devoted to the analysis of expatriate turnover.

Disaggregating turnover into functional and dysfunctional turnover based on the goals of the

assignment, the firm’s intention for assigning an individual to a global job and repatriate’s career

expectations will help to improve our understanding of the determinants of turnover and possible

organizational responses for coping with it. In-depth study and knowledge will contribute to the

construction of expatriate turnover models as well as insights and practical recommendations to

global corporations and their management cadres about how to manage the career expectations of

repatriates.

Conclusion

This study represents an incremental advance in terms of the perceived dynamics of expatriate

career development, and it contributes to an understanding of the internal or boundaryless career

notion. For the academic researcher interested in IHRM, the results of this study make two

contributions. First, rather than replicating what is known about how firms go about selecting

individuals for overseas assignments, this study examined expatriate perceptions concerning the

reasons why they accepted an overseas assignment. Given the results of this study, one can

conclude that at least with respect to this sample of German expatriates their career orientation

becomes an important factor in their motivation to accept an overseas assignment. Traditionally,

loyalty to the firm and blind acceptance of the firm’s decision had been the basis for acceptance

of the overseas assignment: the firm decided where and when an employee was to be assigned

abroad. This study indicates that for many of the expatriates the assignment was evaluated in

terms of what it would contribute to their personal and professional development and their

24

subsequent career advancement. Second, the notion of the boundaryless career concept of

expatriates provides new insights into the emerging body of knowledge on career orientations.

The basis for early and excessive turnover among repatriates has been expanded to include

the career orientation of the repatriate as another factor that contributes to repatriation failure.

Fortunately the firm can work on this problem, and it can seek to take corrective action to deal

with dysfunctional IHRM policies and practices. Some of the organizational actions have been

discussed earlier in the paper. For the firm it is important to know that there is something that it

can do, and that is to clearly demonstrate that it appreciates and values the expatriate’s experience

and that it will capitalize on that experience upon return.

Note

1 The results of additional data analyses (e.g., significance tests on the basis of region of

assignment, position level, and gender) can be obtained from the first author.

Acknowledgment

We would like to thank the editor and two anonymous reviewers of the Journal of World

Business for their helpful comments on an earlier version of this paper.

25

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Table 1 Demographic Profile of Expatriate Sample

Demographic variables Frequency Percentage

Gender male female

440 47

90% 10%

Age < 30 30-40 > 40

49 302 136

10% 62% 28%

Marital status married not married

317 170

65% 35%

Position level senior management middle/lower management professional/technical other

109 266 98 10

23% 55% 20% 2%

Region of assignment North-America South- and Latin-America Western-Europe Eastern-Europe South-East-Asia Africa and Middle East

163 38

119 43

105 17

34% 8%

25% 9%

22% 3%

Length of stay in host country < 6 months 6 months - 12 months 12 months - 18 months 18 months - 24 months

33 182 196 75

7% 37% 40% 16%

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Table 2 Motives for Accepting an International Assignment

Motives Among five most important

Most importanta

Personal challenge 83% 39%

Professional development 78% 17%

Importance of the job itself 68% 22%

Future opportunities for advancement 61% 7%

Geographic location of the assignment 54% 4%

Monetary considerations 50% 5%

Anticipated job success 39% 2%

Normal career advancement pattern 21% 1%

Family considerations 18% 2%

Encouragement from spouse or partner 15% 1%

Encouragement from colleagues and superiors 6% 0%

Fear of restricted career opportunities within the home office 3% 1%

a Respondents were asked to rank order the five most important considerations in their decision to accept an international assignment (n = 435)

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Table 3

Reasons why Expatriates Perceive a Discrepancy between their Company’s Stated

Internationalization Strategy and Actual IHRM Policies and Practices

Perceived discrepancy between strategy and IHRM policies and practicesa Percentage of Expatriatesb

Lack of career planning and support during the international assignment – Lack of long-term career planning and/or reentry planning – No systematic development of managers for international careers – Lack of company support during the international assignment

53%

IHRM policies reflect low degree or early stage of internationalization – Ethnocentric staffing and/or compensation policy – Top management is parochial and/or has no international experience – International experience is not valued/rewarded at corporate headquarters

30%

Deficits in implementing a global strategy – There is no visible/clear strategy to internationalize the business – There is a gap between statements of top management and actual practice – Speed of implementation of global strategy is too slow

17%

a Responses to an open-ended question were content-analyzed b Percentage data refer to sub-sample of expatriates who perceived a discrepancy and responded to the question (n = 242)

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Table 4

Expatriates’ Perception of Corporate IHRM Policies and Practices

Perception of IHRM Policies and Practices Percentage of Expatriatesa

Rewards for International Assignment very little/ little extent

neutral very great/ great extent

Rewards for pursuing an international assignment 30% 33% 37%

Rewards for developing an international perspective 33% 31% 37%

Rewards for developing a worldwide network of associates 39% 31% 30%

Rewards for acquiring fluency in a foreign language 40% 36% 25%

Satisfaction with HR practices dissatisfied/ highly dissatisfied neutral satisfied/

highly satisfied

Pre-departure preparation for requirements of the new job 41% 33% 26%

Pre-departure cross-cultural training 42% 34% 24%

Compensation and benefits package 39% 26% 35%

Ongoing support during the international assignment 44% 32% 24%

Long-range planning of the repatriation 64% 22% 14%

Concerns about repatriation concerned/ highly concerned

neutral not/ not at all concerned

Career advancement upon repatriation 20% 23% 58%

Reduced responsibility and autonomy on the job 42% 22% 36%

Reduced size of compensation package upon repatriation 33% 21% 47%

Limited opportunities for using new knowledge and skills 37% 22% 41%

Spouse’s/partner’s job and career upon repatriation 30% 18% 52%

a Sample sizes vary between n = 441-465 for perceived rewards; n = 451-483 for aspects of satisfaction; and n = 318-474 for aspects of repatriation

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Table 5

Perceived Impact of the Assignment on Career Advancement and Development

Perceived career impact Percentage of Expatriatesa

highly unlikely/ unlikely neutral highly likely/

likely

Advancement within the company 15% 26% 59%

Career opportunities among other possible employers 4% 7% 89%

Demonstration of professional or managerial skills 6% 9% 85%

Development of professional and managerial skills 5% 11% 84%

Development of intercultural skills 1% 4% 95%

a Sample sizes vary between n = 466-483 for different aspects of career development

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Table 6 Reasons why Expatriates Believe that their International Assignment

will Have a Positive Impact on their Overall Career

Perceived positive impact of international assignment on careera Percentage of Expatriatesb

Enhances personality development and enriches personal life – Leads to a more mature personality and broadens the horizon – Reduces ethnocentrism, narrow-mindedness, and intolerance – Enables one to develop a global mindset – Forces one to take initiative and assume responsibility – Enriches one’s life in general

71%

Improves managerial, interpersonal, and communication skills – Enhances professional or managerial skills – Enhances interpersonal and communication competence – Enhances intercultural skills – Allows one to acquire fluency in a foreign language – Enables one to create a network of international contacts

34%

Directly affects subsequent career advancement – Leads to job offers from possible employers in the home country – Creates career opportunities in the host country or other foreign subsidiaries – Increases visibility for “headhunters” – Is an essential part of the Curriculum Vitae of any manager

15%

a Responses to an open-ended question were content-analyzed b Percentage data refer to sub-sample of expatriates who agreed with the statement, “Even if the overseas assignment will not enhance my career prospects within my company, it will have a positive impact on my overall career”, and who responded to the question (n = 295)