CROSS CULTURAL WORK ADJUSTMENT CASE STUDY Harvard

Work Adjustment 1

CROSS CULTURAL WORK ADJUSTMENT CASE STUDY

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Introduction

Multinational corporations’ expansion has been spurred by the increasing economic

globalization. Consequently, this has led to a multiplication of the human capital moving across

the various countries. In the efforts to enhance and maintain their competitiveness globally,

MNCs face the daunting task of finding the right human capital that can effectively operate and

manage the overseas ventures. However, according to the “Employee Benefit Plan Review,

2001” (Tung , 1981, p. 69), these expatriates assignments have a failure rate of about 16% to

40%. With this failure rate, the financial costs of the underperformance and failure of MNCs are

very high. Therefore, expatriate failure is a serious concern for MNCs that requires effective

ways of dealing with it. The objective of this paper is to learn about the experiences of working

in cross-cultural environments and the general adjustments while working in a culturally

different environment.

Literature Review

One of the challenges facing the expatriates includes working in an environment that is

culturally different. Due to this, some of the major factors contributing to the expatriate failure

rate include the lack of language ability, difficulty in adjusting to the local culture and lack of the

local cultural knowledge (Andreason , 2003, p. 48). As a result, awareness to cultural

differences, knowledge of the cultures and good cross-cultural communication skills are required

of an expatriate for them to conduct a successful assignment overseas (Konanahalli, Oyedele,

Meding , & Spillane, 2011, p. 354). The reality is that these competences take time to acquire.

To acquire these competencies and reduce the financial costs of expatriate failures, MNCs have

provided cross-cultural training for their expatriates.

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Due to their global expansion, MNCs operate in environments that are culturally diverse.

Therefore, basic concerns for expatriates are cultural issues. Culture is what makes a person who

they are and their cultural background influences their actions (Ko & Yang, 2011, p. 159).

People learn about their local cultures through acculturation and socialization, which begin at

early ages of development. Having brought up in a different culture, expatriates are required to

be functional in a different culture. In order for this to happen, they need to appreciate the

beliefs, the norms, the values and behavior patterns and learn to adjust the differences as much as

possible (Ramalu, Wei , & Rose, 2011, p. 61). One of the crucial tools for expatriate competence

is their proficiency of the language(s) of the host country (Ko & Yang, 2011, p. 158). The more

an expatriate is knowledgeable of the local culture and proficiency in the local language, the

more the chances of them to be successful in their assignments. These add up to a cross-cultural

learning that significantly facilitates the expatriate’s professional life in a different culture.

Cross-cultural adjustment is the degree of psychological comfort ability of an expatriate

with different aspects of a foreign culture (Black , 1988). The adjustment involves the reduction

of uncertainties by enhancing harmony with the local culture through the learning and

appreciation of the local culture. Cross-cultural adjustment involves; work, interaction and

general adjustments. The work adjustments involve the expatriates adapting themselves to their

new tasks and roles in a different environment (Konanahalli, Oyedele, Meding , & Spillane,

2011, p. 278). Work adjustments are made easier by similarities and procedural generalities

within a corporation. Interactional adjustments deal with the comfort ability of the expatriate in

interacting with the nationals of the host country (Ramalu, Wei , & Rose, 2011, p. 63). Of the

three aspects of adjustments, interactional adjustments are the most difficult. Lastly, general

adjustment focuses on the overall adjustments of an expatriate in living in a foreign nation and

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adjusting to the local cultures. These general adjustments include factors such as the cost of

living, healthcare, the housing conditions et al. The success of expatriates is measured along with

their job satisfaction, their completion of the assignment, their performance and adjustment.

Methodology

For this study, the qualitative interview approach was preferred for data collection. This was due

to two main reasons:

1. It allows the interview participant to describe extensively their experiences in

their cross-cultural interactions (Ramalu, Wei , & Rose, 2011, p. 64)

2. It enhances the collection of detailed and rich information in the learning of the

experiences (Ko & Yang, 2011, p. 159).

However, literature review also plays a critical aspect in this study. Cross-cultural learning and

experiences is a broad subject with few researches done in this area. Therefore, to complement

on the interview data is the exploration of different studies that have been conducted relating to

this study.

Interview Participant

In selecting the participant to be included in the interview, there was need to adopt a criteria that

enhances the richness and holistic nature of the collected information. The criteria adopted for

this study included;

a) The participant should be expatriate of a major MNC

b) The participant must have undergone cross-cultural training either before their

departure or after their arrival

c) The participant must have been on overseas assignment for more than three years.

d) The participant should have completed their assignment

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An Australian expatriate was recruited. The participant who was a master’s degree holder

had completed a five year assignment in Vietnam. Placed as the country’s head of operations, the

participant was required to align the organizational culture of the newly opened company

subsidiaries in Malaysia with the general strategy of the company. With the consideration of the

daunting task of integrating the company’s general organizational culture to subsidiaries in a

geographically and culturally diverse environment, the participant was considered to have gained

a good amount of experience to provide a holistic view of cross cultural adjustments. The

participant was reached by asking personally. The participant participated in the interview

voluntarily.

The Interview Protocol

In order to have the participant give the best answers to the interview questions and to

best express their experiences, the interview was primarily focused on their general adjustments

and their cross-cultural experiences. As identified in the literature review, cross-cultural training

was seen to be a significant influence of the expatriate’s experiences in foreign countries.

Therefore, the interview questions focused on the impact of the cross-cultural training on the

expatriate’s adjustments to their new environments and an assessment of the success of their

overseas assignment.

The interview asked about the methodology and the duration the participant took in their

cross-cultural training and when the training was taken, before departure or on arrival. To outline

the cross-cultural assignments, the interview questions were structured to elucidate what the

expatriates perceived as the most stressful activities during their cross-cultural engagements and

how they have adjusted, both behaviorally and psychologically, to their working and living in a

foreign culture. To understand the impact of cross-cultural training on his experiences, interview

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questions were asked whether the cross-cultural training facilitated his adjustments. The

interview also included two open-ended questions that needed the participant to perform a self-

evaluation of his job related performance. The interviews were through questionnaires sent to the

participant on his e-mail.

Data Collection

The data was collected through interviews to the selected expatriate and relevant studies

that have been conducted in relation to this topic. To enable the participant to extensively

express their experiences and their interactions in the foreign culture, the interviews conducted

were semi structured (Andreason , 2003, p. 48). To make sure that all important questions were

addressed, the participant was required to follow the specific set of questions that was provided

to them and as mentioned above.

Data Analysis

To analyze the collected data, a constant comparative method in addition to utilizing the

open coding method, was used. Open coding was used to develop and discover concepts. By

utilization of a line-by-line analysis, each data form was individually coded to organize the forms

into discrete parts. This simplifies and facilitates the comparisons of perceived differences and

similarities (Konanahalli, Oyedele, Meding , & Spillane, 2011, p. 353). Concepts that were

identified to be similar conceptually were grouped into categories. To systematically address the

similarities and differences existing in the derived categories, the constant comparative method

was utilized. This also facilitated the integration of the various categories. Finally, a theme set

that revealed the patterns of findings was identified through the integration of the various

categories together with their properties.

Results

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a) Cross-cultural Training

After the data analysis, the effect of cross-cultural training on expatriate adjustments and

competences was a theme that was derived from the analysis. As one of the interview questions,

the participant was urged to address how cross-cultural training impacted their performance in

their foreign assignments. The participant, who had attended the cross-cultural training, was

asked about his process of developing and applying his cultural awareness in both his

professional life and his residency. The participant exhibited an excellent ability in the

recognition of the various cultural differences. The participant also showed his appreciation of

acquiring cultural knowledge of the local cultures, and the need to develop appropriate behaviors

to facilitate the cross-cultural interactions (Black , 1988). Consequently, these skills facilitated

his job performances and interactions in his cross-cultural activities. For instance, the participant

confirmed that he gained his understanding of his the local norms through the attendance of

seminars that related to his professional work. He acknowledged his appreciation of the training

in his interaction with males or females on the thin line of sexual harassment. The participant

also noted his gradual awareness of the cultural differences and their impact on organizational

work behavior and the need to not impose the culture of the headquarters on the foreign

subsidiaries.

b) Self-evaluation

In the interview, the participant was asked to carry out a self-evaluation of his

performance on his job. This evaluation was based on two dimensions namely personal job and

relational performance. In regards to his relational performance, the participant evaluated his

performance as due to high “reverence for the local staff”. The participant also evaluated his

relational performance as due to his “understanding of local culture “and “leading with a heart”.

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c) Vietnamese Culture

Looking at the interview transcript, it can be pointed out that the participant was pointing

to factors that complicated his adjustments. Some of these aspects are due to the characteristic

Vietnamese culture. When the participant was asked about the culture, the participant answered,

“I was interested in it”. The participant also referred to the fact that his spouse referred to the

Vietnamese people as being “very hospitable”. The characteristics of being interesting and

hospitable are mentioned about the Vietnamese culture. The perception of the participant and his

spouse on the local culture played a great contribution on the degree of cross cultural adjustment

( Leung, Bhagat, Buchan, Erez, & Gibson, 2005, p. 362).

d) Anticipatory Adjustments

Studies have shown that expatriates previous cross cultural experience have a positive

relationship with their cross-cultural adjustments (Young-Chul , 1991, p. 152). The participant

had a 3 year expatriate experience in China before he was assigned to Vietnam. The interview

data also supports the fact that the expatriate’s previous experience seems to help the participant

to have a better and more accurate expectations of Vietnam and have a enhanced coping ability

with the process of cross-cultural adjustment (Kim, 2002, p. 262). From the interview, “I have a

lot of travel experience. I have been to Hong Kong, Russia, Iraq and Malaysia. Therefore, I had

a rough idea of what the experience would be like and I was not really shocked. Because I had

studied the Vietnamese culture, the language and philosophy of the Vietnamese, I knew some of

the things that I would expect.”

e) General Adjustment

When the participant talked about his first impression of Vietnam, despite the previous

experiences and study of the Vietnamese culture, the participant indicated signs of having

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experienced a cultural shock. “When I first got to Vietnam, it was a little bit disorienting.

Honestly, I was first disappointed. There were communications problems and scooters were

everywhere. So, to be honest I was a little bit nostalgic”. Although the expatriate experienced

cultural shock on arrival (also referred to as the honeymoon stage) (Furnham, 1988, p. 54), he

coped and he felt that he was able to overcome it after a period of time in Vietnam. This

indicates that the cultural differences between the Western and Eastern countries and the new

general environment could be the biggest problem for expatriates to deal with (Black , 1988, p.

282).

f) Motivation for moving to Vietnam

When the participant was asked why he had decided to move to Vietnam, he stated that

he was interested in Vietnamese culture. However, he had also gone to Vietnam to take

advantage of the opportunity of being a country head for the corporation, a position superior than

the one he had held before. Other than a good remuneration, the participant also recognized the

impact of this experience on his professional career. “Firstly, I went to Vietnam because I was

intrigued by the Vietnamese culture. From a professional perspective, the move to Vietnam

offered me tremendous professional progress and opportunities. To start with, the position that I

took in Vietnam, country head, was of a higher rank than I held here in Australia. Basically, I

had received a promotion. Other than that, the experience of managing the corporate’s

operations in the whole of Vietnam up-scaled by skills and expertise.”

g) Job Satisfaction

When talking about his job, the participant stated that he enjoyed his assignment in

Vietnam. This statement indicates that working adjustment is a unique contributor to the

expatriate’s job satisfaction (Tung & Miller, 1990, p. 72). “Yes, I did like the assignment. To

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start with, the assignment was hard. It was really hard for the first couple of months. But after a

while, through experience and adjusting to the new environment, it worked out well. After

several years, I relaxed a bit more and begun to actually enjoy the job. However, the first few

months were very stressful.”

h) Intention to Stay

Generally, the participant claimed that when he decided to go to Vietnam, he had planned

to be there for just one or two years. He had gone to Vietnam to kick start the corporate

operations in the country and he had not expected a longer stay. Due to the demands of the job,

the participant ended up staying more than he had expected. He claimed that “the reason why I

opted staying in Vietnam for three more years rather than the initially planned stay of two years

was because I really enjoyed my assignment and then I had become accustomed to the

Vietnamese lifestyle.” From the interview data, it can be seen that the previous cross-cultural

experiences of the expatriate and his language proficiency was instrumental in the cross-cultural

adjustment (Ko & Yang, 2011, p. 161). The purpose of moving to Vietnam was for professional

progression, different life experience and to travel around Asia. The expatriate’s intention to stay

in Vietnam has a huge connection with the participants’ reasons for going to Vietnam.

Discussion

The results obtained from the interview data largely confirms results from studies that

had been conducted previously, some of which have been discussed in the literature review

section. The results indicate that the working adjustment of the expatriate made the largest

contribution to his job satisfaction (Konanahalli, Oyedele, Meding , & Spillane, 2011, p. 358). It

also shows that the total time the participant spent living in Vietnam made the largest

contribution to his intention to stay (Tung R. , 1981, p. 72). Additionally, the interview data

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confirms that the participant’s previous experience helped him in his cross-cultural adjustments,

especially in the terms of general adjustments (Haslberger & Esarey, 2005).

Contrary as it would have been expected, the results of the interview did not show a

connection between the participant’s intention to stay and their cross-cultural adjustment. In the

interview data, there is no direct connection between the participant’s intention to stay and their

cross-cultural adjustment. However, it is partly connected to the participant’s job satisfaction and

working adjustment (Andreason , 2003, p. 50). The interview data enable a more insightful look

at this unexpected result.

Conclusion

The study has several conclusions. To begin with, there are several factors that affect the

ability of an expatriate to learn. People who have language training and cross-cultural training

prior to their arrival in the host country, have a better understanding and more agreement with

their learning in the host country. This means that those experiences would be instrumental to the

expatriate in the learning of the host culture. Corporations should always perform an evaluation

and modification of their training programs. However, as it has been seen, receiving this kind of

training does not necessarily ease the difficulties that are to be experienced in the host country

but it helps to manage expectations.

The human resource department could provide cultural mentors as well as provide

information about the host country. This enhances the expatriate’s adjustment and assists him to

perform his assignments better. The main way of expatriate learning the host culture is through a

continuous relationship with the people in the host country. Therefore, a cultural mentorship

program could focus on the establishment of long-term relationships with the natives of the host

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country. Similarly, provision of information from the headquarters about the host country would

be useful to the expatriate adjustment efforts.

The findings of the study provide information about the cross-cultural adjustment of

expatriates and factors that influence their cross-cultural adjustments in their overseas

assignments. The results of the study could be beneficial in the understanding the factors

consisted of job satisfaction, cross-cultural training, intention to stay, general adjustment and the

motivation that played a significant relationship with cross-cultural adjustment.

Finally, the expatriate himself has to challenge every adjustment that is posed to him.

Here the expatriate has a considerable measure of control. Even though it would not be feasible

to change some individual variables, the expatriate can adjust his attitudes and cultural skills for

a better and smoother adjustment. The expatriate can be able to manage traits such as

introversion and learn behaviors that would normally run contrary to his natural style. Personal

development and training could be just as important for an expatriate just like the cross-cultural

training.

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References

Andreason , A. (2003). Expatriate adjustment to foreign assignments. International Journal of

Commerce and Management, 13(1), 42-60.

Black , J. (1988). Work role transitions: a study of American expatriate managers in Japan.

Journal of International Business Studies, 19(2), 277-294.

Furnham, A. (1988). The adjustment of sojourners. In Young, Y. Kim , & B. William, Cross

cultural adaptation (pp. 42-61). Newbury Park: Sage.

Haslberger, A., & Esarey, S. (2005). Moving People Abroad: a Guide to Successful Transitions.

Ashridge.

Kim, Y. (2002). Adapting to unfamiliar culture. In W. Gudykunst , & B. Moody, Handbook of

international and intercultural communication (pp. 259-273). Thousand Oaks, CA: Sage.

Ko, H.-C., & Yang, M.-L. (2011). The Effects of Cross-Cultural Training on Expatriate

Assignments. Intercultural Communication Studies, XX(1), 158-174.

Konanahalli, A., Oyedele, L., Meding , J., & Spillane, J. (2011, September). Organizational,

Host Country and Work Factors influencing a British Expatriates's Adjustment on

International Architectural Engineering and Construction Projects. 351-360.

Leung, K., Bhagat, R., Buchan, N., Erez, M., & Gibson, C. (2005). Culture and international

business: recent advances and their implications for future research. Journal of

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Ramalu, S., Wei , C., & Rose, R. (2011, May). The Effects of Cultural Intelligence on Cross-

Cultural Adjustment and Job Performance amongst Expatriates in Malaysia. International

Journal of Business and Social Science, 2(9), 59-71.

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Tung , R. (1981). Selection and training of personnel for overseas assignments. Columbia

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Tung, R., & Miller, E. (1990). Managing in the twenty- first century: The need for global

orientation. Management International Review.

Young-Chul , C. (1991). Cross -Cultural Adjustment of Expatriates: Theory & Research

Findings on American and Japanese Expatriates. Seoul Journal of Business, 3(1), 147-

168.

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