Cross-Cultural Adjustment of German expatriates in Brazil: How relational factors

influence the effectiveness of German expatriates

Isabella Kargl | 16. May 2019

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Background of studyContext− Increase of international assignments to key emerging markets− Brazil rated as the second country with the greatest challenges for expatriates

after China and before USA, India and Russia (GMTS 2016)

(Source: Global Mobility Trend Survey 2016)

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Background of study

MNC underestimate problems in cultural adaption in terms of cultural distant countries

Requires identification of essential factors for transcultural adaptation of expatriates

(Source: Hofstede Insights 2019)

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Problem DefinitionBrazilian culture traits are in main focus (Borell de Araujo et. al. 2014)

1. Foreignism Fixation on foreigners

2. FormalismReducing risks, ambiguity, and uncertainty by creating rules, regulationsand procedures

3. Jeitinho brasileiroBending or breaking the rules in order to deal with difficult or forbiddingsituations that emerge in different social contexts

4. PersonalismHow Brazilians use their social network to resolve daily obstacles

Study concentrates predominently on Jeitinho Brasileiro and Personalism

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Research GapLack of studies about common understanding of indigenous relational factors in high power distance and collective cultures (Akoorie et al. 2013; Smith 2010)

Resulting research questions:

− Based on theoretical literature, how does relational influence in high power distance and collective nations such as Brazil and China influence theadjustment and effectiveness of expatriates?

− How do relational factors (jeitinho and personalism) influence the effectivenessof German expatriates in Brazil?

− What are the challenges of relational factors for German expatriates in Brazil?

− How to overcome challenges of relational factors when assigning a German expatriate to Brazil?

Objective of research

− Research of indigenous relational factors ( Jeitinho and Personalism) ofBrazilian culture

− How relational power influences the adaptation and effectiveness of German expatriates in Brazil

− Research of work relationships with Host Country Nationals and its impact on expatriate effectiveness

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Objective

Theoretical framework- Expatriates adjustment- (Black 1991, Parker and McEvoy 1993, Oberg 1960, Black and Mendenhall 1991)− General – Concept of culture shock− Work – Job-related stress factors and job-related adjustment success factors− Interaction – Organizational, individual and contextual antecedents

(Toh and DeNisi 2007)

- Social exchange perspective on expatriate adjustment- (Liu and Shaffer 2005)− Opportunity forms of social capital− Motivational forms of social capital− HCNs ability forms of social capital

- Indigenious Relational Factors (Barbosa 2006, Duarte 2006, Borell de Arujo et al. 2014)

− Origin of indigenous relational power

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Methodology

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Research Design− Literature Review of expatriate adjustment factors and relation to cultural

context – Brazil & Germany− In-depth Interviews with German managers having working experience in

Brazil

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ResultsQualitative study (Grounded Theory) revealed a pattern around ninethemes of expatriate adjustment and performance factors

They were affected by relational culture traits jeitinho and personalism

Discussion of findings

Impact of culture of origin

Application of Jeitinhos challenges German values, behaviors, attitudes and norms

Negative impact on expatriate adjustment

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Participant 1: ”I won’t do it, I would always say the fact how it is but I would talkto my Brazilian colleague. If we are going into a key account presentation andmaybe we should say like this and this. I do understand where you come frombut don’t ask me for confirmation of what you are telling them in the meeting.Don’t make me part of your jeitinho. Because that is where I cannot, I cannot. Ineed to tell the truth. I will actually say you misinterpreted the things. So that ishow we managed it.”

Discussion of findings

Impact of positive norm of reciprocity

Intense cultivation of relationships with work peers

Beneficial for work effectiveness, productivity and access toinformation

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Participant 2: “I think the jeitinho, I really liked it, because you need it, right,you need let’s call it a work-around, you need to get creative, you need tofind work-around solutions of how you get things done because otherwiseyou just don’t get what you want. So I felt like that was, that looks quite easyfor me to adapt and I think in my nature of the job that I have been doing inGermany which was also kind of a, more an entrepreneurial role, I think thatwas quite normal I guess. The personalism is exactly what I had to kind ofdiscover over there.”

Results

Impact of positive perception of Brazilian co-worker‘s ability

Personalism grants access to instrumental support and solutions

Strong impact on relational performance, job performance andknowledge transfer

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Participant 4: “I mean, I first have to understand my other counterparts to builda trust relationship which is a foundation to build a successful relationshipapproach and I think they do a really, really good job, culturally speaking, to firsttry to understand who you are, what is your family constellation, what is yourname, while I think coming out of a German culture, people sometimes onlydon’t even care what is your name, I mean, they just want to know what is thetopic.”

Results

Challenges of Jeitinho and Personalism for German expatriates

Brazilian relational culture traits caused high efforts to meet socialexpectations (Relational performance and interaction adjustment)

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Participant 7: “It is a lot more relation driven than it is in Germany and not somuch solution or best performer or whatever driven. So, you need to knowpeople, if no, you don’t get very far.”

Participant 2: ”Even though I adapted to the culture, I don’t think that isnecessarily the best way of working, right, it is extremely time consuming,and it depends very much on personal relationships which I don’t think itshould. You should be able to, you know, keep it professional and keep itefficient regardless if you are a buddy with that person and if you can shareyour love of football or not, it should not necessarily be visible in the outcomeof the product.”

Conclusions

Jeitinho and Personalism is resulting of Formalism Public service does not represent a social goodwill in Brazil Application of Jeitinho perceived by Germans as unethical and wrong Finding right balance between socializing and not wasting time is a

critical factor fo being successful in Brazilian society More humanc centric behavior helps to overcome challenges of

relational factors e.g. small talk is a must Affiliating personality characteristics for interaction represent a

special tool kit for navigating in the Brazilian society

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Limitations of the research

− Isolation of Jeitinho and Personalism− Rather small amount of interview participants living in same Brazilian

region− Inbalance of organizational and self-initated expatriates as interview

partners− Lack of interview partners to cover industry diversity

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Contribution & Implications for practice

1. Cultural training for Brazil requires country setting

2. Continous tracking of expatriate‘s development to avoid

malajustment in early stage

3. Implementation of repatriation and progression plan by sending

entity

4. Stronger focus on self-initiated expatriates

5. Specific performance measurements for expatriates in collective

countries

Development of expatriate – host country nationals interaction

practices

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Personenfolie

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− Lehre:> Bachelor in International Management, Master in Global Sales and

Marketing> Team Lead of SMART AIESEC Brazil, Praktikant in HR Rewards, Cross-

Border Employment Team bei Adidas AG

Junior Sales Manager at Smec

BA. MA. Isabella Kargl