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The relationship between family adjustment and expatriate performance

TL;DR:

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Expatriate programs are costly and have a high failure rate, with family adjustment being a significant factor. This study investigated the relationship between expatriate family adjustment and expatriate performance, seeking to establish if family issues impact work performance and if prior international experience influences adjustment. The desired outcome was to identify if Human Resource (HR) support programs for families could improve expatriate adjustment and performance.

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The Relationship Between Family Adjustment and Expatriate Performance
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Full Study Reference:

Trompetter, D., Bussin, M., & Nienaber, R. (2016). The relationship between family adjustment and expatriate performance. South African Journal of Business Management, 47(2), 13-21.
https://doi.org/10.4102/sajbm.v47i2.56


One pager Summary:

Expatriate Challenges:

  • Expatriate assignments are expensive (three times the cost of a local hire) and have a high failure rate (up to 40%).
  • Family adjustment is a major reason for expatriate failure.

Research Focus:

  • Investigated the relationship between family adjustment and expatriate performance.
  • Examined the influence of home-to-work spillover.
  • Explored whether previous international assignments moderated family adjustment.

Key Findings:

  • No direct correlation was found between overall family adjustment factors and expatriate performance.
  • Longer assignments were linked to higher expatriate performance ratings.
  • Home-to-work spillover was confirmed, with positive home life improving work confidence and providing stress relief.
  • Children’s adjustment, particularly to schools and making friends, significantly correlated with expatriate performance.
  • Prior international experience was associated with easier adjustment.
  • Organizational support, especially relocation assistance, was valued and linked to higher performance ratings.

Dig Deeper (Longer Summary):

Introduction:

  • Organizations use expatriates to embed culture, policies, and transfer skills to host countries.
  • Expatriate programs are costly and risky, with family issues often cited as a reason for failure.
  • The study aims to understand the relationship between family adjustment and expatriate performance to improve the success rate of assignments.

Literature Review:

  • Expatriate failure is defined as premature return, resignation, or substandard performance.
  • Successful expatriate adjustment involves adapting to living conditions, social interactions, and work culture.
  • The Spillover theory suggests that experiences in one domain (e.g., family) can affect another (e.g., work).
  • Family systems theory emphasizes the family as a cohesive unit, where stress on one member affects the whole.
  • The Double ABCX theory highlights the role of family resources and perceptions in coping with stressors like relocation.

Research Design:

  • Quantitative, relational, exploratory design.
  • Convenience sampling of 81 expatriates from a multinational petrochemical company.
  • Survey instrument measuring demographic variables, family adjustment (physical, educational, health, social, financial), spillover, and expatriate performance (self-rated).

Results:

  • No significant relationship between overall family adjustment factors and performance.
  • Significant relationships found between specific adjustment items (children’s school adjustment, availability of hospitals) and performance.
  • Home-to-work spillover was confirmed, with 82.72% of respondents reporting that respect at home boosted their confidence at work.
  • Married respondents and first-time assignees reported higher levels of spillover.
  • Longer assignments were linked to higher performance ratings.
  • Use of relocation assistance was associated with higher performance ratings.

Discussion:

  • While no direct correlation was found between overall family adjustment and performance, specific aspects of family adjustment, especially children’s well-being, appear to be influential.
  • The U-curve adjustment theory was supported, with longer assignments linked to better performance.
  • Prior international experience and organizational support, particularly relocation assistance and cross-cultural training, were identified as important factors.
  • The study suggests that endogenous factors (related to the business directly) might be stronger predictors of performance than exogenous factors (external circumstances).

Practical Implications:

  • Organizations should provide comprehensive support to expatriate families, focusing on pre-departure, during-relocation, and post-relocation phases.
  • The family systems theory can be used to prepare families for the adjustment process. * Additional support for children’s education, such as tutoring or language lessons, could be beneficial.

Limitations:

  • Self-rated performance could be subject to bias.
  • Family adjustment was assessed by the expatriate, not directly by family members.

Suggestions for Future Research:

  • Investigate the effectiveness of organizational support programs.
  • Triangulate data from expatriates, spouses, and children to gain a more comprehensive understanding of family adjustment’s impact on performance.

Conclusion:

While a direct link between overall family adjustment and expatriate performance wasn’t found, the study highlights the importance of specific family adjustment factors, particularly children’s well-being. Organizational support, especially relocation assistance and cross-cultural training, is crucial for facilitating adjustment and improving expatriate performance. The findings emphasize the need for companies to invest in comprehensive support programs for expatriate families to enhance the success rate of international assignments. The longer an expatriate is on assignment, the better their self-rated performance.


Full Study Reference:

Trompetter, D., Bussin, M., & Nienaber, R. (2016). The relationship between family adjustment and expatriate performance. South African Journal of Business Management, 47(2), 13-21.
https://doi.org/10.4102/sajbm.v47i2.56


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