Cultural Novelty and Adjustment Western Business Expatriates in China_REPLICATION_2006

8/10/2019 Cultural Novelty and Adjustment Western Business Expatriates in China_REPLICATION_2006

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Int. J. of uman Re.wurce Manag ement 17:7 July 2006 1209-1222 O Routledge

Cultural novelty and adjustment W estern

business expatriates in China

Jan Selmer

Abstract

Althou gh seld om formally teste d, the traditional assumption in the literature

on expatriate management is that the greater the cultural novelty of the host country, the

more d ifficult it wou ld be for the e xpatriate to adjust. To be able to test this propo sition, a

mail survey was directed towards Western business expatriates in China. Three

sociocuitural adjustment variables were examined: general, interaction and work

adjustment. Although a negative relationship was hypothesized between cultural novelty

and the three ad justment variables, resu lts of the hierarchical mu ltiple reg ression analysis

showe d that there was no significant association betwe en the m. Althou gh highly tentative,

the suggestion that it is as difficult for business expatriates to adjust to a very similar

culture as to a very dissimilar culture is fundamental. Implications of this potential ly

crucial finding are discussed in detail.

Keywords

Cu ltural novelty; sociocuitu ral adjustment; difficulty to adjust; China.

Introduction

There is an in tu i t ive log ic to i t : what seems very d if ferent cou ld be d if f icu l t to adjus t to

and wha t appears fami liar d oe s no t t ake l o ng t o g e t u .sed t o . Al thou gh s e l do m t es t ed by a

r igorous empir ica l inves t iga t ion, this has been the defau l t assumption regarding

expatriate adjustment for many years (cf. Black

et al.

1991) . This see ms to be a jus t if ied

assumpt ion suppor t ed by theo ry as we l l a s a myr iad o f anecdo ta l ev id ence . Soc ia l

l ea rn ing theo ry (Bandura , 1977) wou ld p r ed ic t s uch an ou tcome o f expa t r ia t e

assignme n ts . Perhaps even mo re convinc ing , many o f u s may have f e l t bewi ld e r ed when

dumped as t ou r is t s in f o r e ign l oca t ions unab le t o speak the l oca l l anguage and f ee l ing

very unsu r e abou t wha t t o do ne x t . Ho weve r , d is s en t ing vo ices have bee n hea rd c la iming

tha t i t cou ld be as d if f icu l t for business expatr ia tes to adjus t to a s imilar as to a very

d if fe r en t cu l t u r e (Brews te r , 1995; Brews te r et al. 1993; O'Grad y and Lane , 1996). So ,

does i t r ea l ly mat ter whatever the answer may be? Yes , this is an issue of considerable

theo r e t ica l and prac t ica l impor tance . Bes id es po t en t ia l ly l ead ing t o the need t o b r eak

new theo re t ica l gro u nd, far- reaching implica t ions can be expe c ted for in terna t ional f irms

with business expatr ia tes if so l id evidence can be produced tha t the t radi t iona l

assumption is untenable . This may emphasize the need for in terna t ional f irms to provide

bet ter suppor t for their business expatr ia tes , e i ther through appropr ia te cross-cu l tura l

Jan Selmer, Department of Management and International Busines.s, Aarhus School of Business,

Fugiesangs Alle 4, DK-8210 Aarhus V, Denmark (tel; -1-45 8948 6828; fax: +45 8948 6125;

e-mail: [email protected]).


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training or through m ore sophisticated selection m echan isms, to ensure that they are well

prepared to deal with assignments in both similar and dissimilar host cultures.

Therefore, the purpose of this investigation is to examine the association between

cultural novelty and expatriate adjustment. This is both relevant and important, since the

adjustment of expatriates may be related to their performance. Although the theoretical

link between expatriate adjustment and performance is conceptually unclear, it has been

observed that expatriate.s who are unable to adjust to work and life at a host location are

also likely to perform poorly (Ones and Viswesvaran, 1997). Emerging rigorous

empirical research supports a positive association between the adjustment of expatriates

and their work performance (Caligiuri , 1997; Kraimer et ai 200 1; Parker and McEvoy,

1993).

This is crucial, since the reason for assigning expatriates to foreign locations is to

perform certain work tasks. So, depending on the finding of this study, the cultural

novelty may be a more or less relevant factor in assessing the performance of business

expatriates. Popular notions, such as hardship posting s and tough assign me nts ,

referring to a radically different cultural con text to justify special consid eration and

treatment for expatriates, may turn out to be an irrelevant line of argument.

Consequently, the main potential contribution of this investigation is the exploration of

the traditional, intuitively appea ling notion ofth e presumed negative association between

cultural novelty and expatriate adjustment.

The place of investigation is China. This host location was selected both for its

growing importance to Western business firms and its dissimilar cultural context

permeating d aily l ife and work of Western expatriates assigned there. Th e cou ntry s

entry into the World T rade O rganization has accen tuated its importance as a current and

potential market for Western and other international business firms. Virtually

uncontested, C hina has em erged as the world s m ost desirable m arket. W ith a

population of 1.3 billion, China has one-fifth of the population of the world. In 1979,

when China opened up for foreign investment, foreign businesses started to move in to

claim a share ofth e cou ntry s vast markets. China continues to attract more foreign direct

investment than any other developing country. However, establishing operations in

China may constitute more than a financial concern to foreign firms. China is distinctly

different from m ost other countries . From a W estern persp ective , Ch ina is seen as the

most foreign of all foreign places. Its culture, institutions, and people appear completely

baffling - a ma tter of absolu te difference, not of de gre e. (Ch en, 200 1: 17). This m akes

China a challenging destination for Western bu siness expatriates, since they have to deal

with a very different way of life than in their own country and they have to perform in an

unfamiliar work context. There is a wealth of evidence suggesting that many Western

business expatriates could find their assignment in China frustrating (Bjorkman and

Schaap, 1994; Kaye and Taylor, 1997; Sergeant and Frenkel, 1998).

After introducing the concept of expatriate adjustment, and especially the

sociocultural aspects of this notion, the association between this construct and cultural

novelty is discussed. Using social learning theory (Bandura, 1977) as the theoretical basis

for this relationship, three hypotheses are proposed. The methodology for testing these

hypotheses is delineated and the results of the analysis are presented. The findings are

discussed in detail, noting potential limitations and implications ofthe study. Finally, the

conclusions from this investigation are drawn.


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Expatriate adjustment

Sociocultural adjustment

The concept of sociocultural adjustment has been proposed and defined in the literature

on international adjustment (Searle and Ward, 1990; Ward and Kennedy, 1992; Ward

and Searle, 1991). Socio cultural adju stmen t relates to the ability to fit in or effectively

interact with members of the host culture (Ward and Kennedy, 1996). Sociocultural

adjustment has been associated with variables that promote and facilitate culture learning

and acquisition of .social skills in the host culture (Cross, 1995; Searle and Ward, 1990).

The sociocultural notion of adjustment is based on cultural learning theory and highlights

social behaviour and practical social skills underlying attitudinal factors (Black and

M endenhall, 1991; Furnham , 19 93; Klineberg, 1982).

Black et al. (1991) argued that the degree of cros.s-cultural adju.stment should be

treated as a multidimensional concept, rather than a unitary phenomenon as was the

previous dominant view (Gullahorn and Gullahorn, 1962; Oberg , I960). In their

proposed model for international adjustment. Black et al. (1991) made a distinction

between three dimensions of in-country adjustment: (I) adjustment to work, (2)

adjustment to interacting with host nationals and (3) adjustment to the general non-work

environment. This theoretical framework of international adjustment covers socio-

cultural a spects of adjustme nt and it has been sup ported by a series of empirica l .studies of

US expatriates and their spouses (Black and Gregersen, 1990, 1991a, 1991b, 1991c;

Black and Stephens, 1989). McEvoy and Parker (1995) also found support for the three

dimensions of expatriate adjustment.

ultural novelty and adjustment

In the literature on expatriate management, the traditional argument is that the greater the

cultural novelty of the host country, the more difficult it would be for the expatriate to

adju.st in the foreign location (Black etai. 1991). This is an intuitively appealing position

supported by common sense and a host of anecdotal evidence. Although conflicting

suggestions have been proposed over the years (Brewster, 1995; Brewster et al. 1993;

O G rad y an d Lane , 1996), the tenets of social learning theory (Ban dura, 1977) have been

used to justify this initial stance (Black and M end enha ll, 1991).

Theoretical framework

Albert Bandura (1977) is one of the main proponents of social learning theory which

integrates cognitive and behavioral theories. In his book, Bandura (1977) asserts that in

addition to individuals learning based on the consequ ences of their own actions,

individuals can also learn and behave based on their vicarious experience, by observing

other peop le s behav iour and associated consequ ences and by im itating the m odelled

behaviour. In the same source, Bandura further suggests that people are capable of

choosing how they will respond in future situations. The complete theory can be found

elsewhere (Bandura, 1977, 1983) and only theoretical aspects underpinning the

discussion about the association between cultural novelty and expatriate adjustment will

be touched upon here.

Social learning theory would suggest that individuals entering a new culture tend to

pay attention to those elements in the foreign cultural context that are similar to their own

culture and, therefore, seem familiar. They may even superimpose familiarity on

anything that only remotely resembles familiar cues. Given this tendency of selective

perception towards the familiar, individuals are most likely to notice only those


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differences between their own and the host culture that are clearly visible and striking.

Initially, whether the host culture appears familiar or not, individuals are likely to make

use of past behaviour which in their own culture has proved from successful in similar

situations. However, to the extent that new cultural environment is different from their

own culture, generically similar situations may require radically different behaviours.

Hence, to the extent that the host culture requires different specific behaviours,

individuals are likely to exhibit inappropriate actions. In turn, these inappropriate

behaviours are l ikely to generate negative consequences (Black and Mendenhall , 1991).

If the cultural novelty of the host culture is large, the frequency of novel situations and

the probabili ty of the newcomers committing behavioural blunders are substantial

(Torbiorn, 1982). There is also a higher probability that the magnitude of the negative

consequences of displaying inappropriate behaviour in a host setting with high cultural

novelty will be greater (Black and Mendenhall , 1991). These arguments based on social

learning theory all seem to suggest that the higher the cultural novelty ofthe host culture,

the more likely expatriates are to exhibit inappropriate b ehaviours and gene rate n egative

consequences which may adversely affect their adjustment in the foreign location. In

other words, these arguments appear to propose a negative association between cultural

novelty and expatriate adjustment.

Another line of theoretical argumentation can be based on the factors that have been

shown to be important in influencing which models a person selects to focus his or her

attention on. Such factors include attractiveness and similarity of the model (Bandura,

1977). The cultural novelty ofthe host culture is likely to affect the similarity of potential

models and, therefore, the attractiveness of the models (i.e., host country nationals,

HC Ns). The greater the dissimilarity between parent country nationals (PCN s) and HC Ns

due to cultural novelty, the greater the likelihood that the individual will perceive

the models (HCNs) as less attractive and as a consequence pay less attention to the

behaviours modelled by HCNs. The less attention paid to modelled behaviours, the less

likely the individual is to acquire and retain new behaviours appropriate for the host

culture accurately, and the more likely the individual is to exhibit inappropriate

behaviours (Black and Me ndenhal l , 1991) . The m ore the individual displays

inappropriate behaviours and experiences negative feedback and consequences, the

greater will be the impediment to adjustment. Furthermore, the greater the cultural

novelty oft he host culture, the greater the dissimilarity betw een the individu al s notions

of appropriate behaviour and appropriate behav iour in the new culture (Torbiorn, 1982).

The greater the dissimilarity of appropriate and inappropriate behaviours between the

two cultures, the more difficult it will be for the individual to exhibit appropriate

behaviours, even if attention was paid to HCNs as models of appropriate behaviour

(Black and Mendenhall , 1991). Consequently, these arguments also seem to suggest a

negative relationship between cultural novelty and expatriate adjustment. Hypotheses

1 to 3 examine this proposition in terms of the three sociocultural dimensions of in-

country expatriate adjustment: general adjustment, interaction adjustment and work

adjustment.

Hypothesis I: Cultural novelty has a negative association with general adju.stment.

Hypothesis : Cultural novelty has a negative association with interaction adjustment.

Hypothesis 3: Cultural novelty has a negative association with work adjustment


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Method

Sample

A mail survey targeted at business expatriates assigned by Western firms to China was

used as the source to extract data for this study. The number of returned questionnaires

was 165, representing a response rate of 25.2 perc ent . This is not high, but it is equivalent

or higher than other mail surveys of business expatr ia tes (Harzing, 1997;

Naumann, 1993).

The average age oft he respondents was 44.68 years (SD = 8.61) and on the average,

they had spent 5.98 years in Ch ina (SD = 7.45) and had lived abroad for 9.94 years

(SD = 8.77), including China. Most of the expatriate managers were from the US

(24.2 per cent), Germany (13.3 per cent), Britain (9.7 per cent), Australia (9.2 per cent)

and Denmark (5.5 per cent). Expatriates from other Western countries made up smaller

groups. As shown in Table 1, consistent with other recent studies of business expatriates

(Caligiuri, 2000 ; Selmer, 2 00 1; Shaffer

et al.,

1999), most of the respondents were male

and married. Almost all the respondents had managerial positions, of which the majority

was CEOs. Joint ventures were the most frequent place of work. The sampled

respondents were located in most of the 23 provinces of China, but a majority was from

the three largest citie.s: Beijing (32.7 per cent), Shanghai (25.5 per cent) and Guangzhou

(9.7 per cent).

Instrument

Cultural novelty was measured by the scale used by Black and Stephens (1989) adopted

from Torbiorn (1982)

(alpha =

.77). The expatriates were asked to indicate on a five-

point Likert-type scale how sim ilar or different a number of conditions w ere where they

lived in China compared to their home country. As in the original scale, the response

categories varied from I = extremely different to 5 = extremely similar (sample item:

Every day custom s that must be foll ow ed ). F or easier interpretation of the results, this

Table Background of the .sample

Background variables Frequency

Gender

Male 157 95

Female 8 5

Married 126 77

Position

CE O 125 76

Manager 36 22

Non-managerial 3 2

Type of organization

Joint-venture 68 42

Wholly-owned subsidiary 47 29

Repre sentative office 40 25

Branch 6 4

ote N = 165


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scale was reversed in the analysis to make a higher score represent a higher cultural

novelty.

Respon dents also comp leted Black and Steph ens (1989) 14-item scale to assess

sociocultural adjustment. This scale is designed to measure three dimensions: general

adjustment

(sample i tem: Fo od ) ,

interaction adjustment

(sample item: Spea king with

host natio nals ) and work adjustment (sample item: Supe rvisory respons ibilities ). The

respondents indicated how well adjusted they were to China on a scale ranging from

1 = very unadjusted to 7 = com pletely adjusted. Principal com pon ents factor analys is

with varimax rotation produced the three previously identified dimensions of expatriate

adjustment. Seven items on general adjustment (alpha = .S\) and four items on

interaction adjustment (alpha = .81) were identified. However, due to low reliability,

one of the three items on work adjustment was deleted resulting in a reliability of

alpha

= .70 for this two-item factor.

Time in China was used as a control variable. It is essential to control for the time

expatriates had spent in China since expatriate adjustment is a process over time (Black

and Mend enhall, 1991; Church, 1982; Furnham and Bochner, 1986). The variable

time in

China w as measured by directly asking the respondents how long they had been assigned

to China.

esults

Table 2 displays sample means, standard deviations and zero-order correlations. The

mean score for the variable

cultural novelty

is significantly higher than the neutral

midpoint, 3.00, of the scale (t = 19.75; p < .001), not surprisingly, suggesting that the

Western expatriates felt that China as a host location represented a relatively high

cultural novelty. Also all of the three variables of expatriate adjustment have

significantly higher mean scores than the midpoint of the scale,

general adjustment

(t = 22.35;p < .001), interaction adjustment (t = 17.68;/?

Cultural Novelty and Adjustment Western Business Expatriates in China_REPLICATION_2006

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