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Why do international assignees stay? An organizational embeddedness perspective

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Abstract

We apply an organizational embeddedness perspective to examine international assignees’ retention with the organization. Specifically, we hypothesize that assignees’ social ties within and their perceived fit with the host unit positively relate to two sacrifices on leaving the organization: their firm-specific learning during the assignment, and their perceived career prospects in the organization. Perceived career prospects are expected to predict subsequent retention, moderated by firm-specific learning. These hypotheses are tested using a sample of 143 inpatriates in 10 German multinationals, with retention measured 2 and 4 years later. We show that inpatriates’ trusting ties with HQ staff and their fit with the HQ positively relate to their firm-specific learning and their perceived career prospects, and that the latter predicts their retention 2 and 4 years later. Perceived career prospects mediate the direct relationship between inpatriates’ fit with the HQ and inpatriate retention, and the indirect relationship between inpatriates’ trusting ties with HQ staff and their retention. Furthermore, inpatriates’ firm-specific learning mitigates the effect of perceived career prospects on retention decisions 2 years later. We contribute to the organizational embeddedness, careers, and international business literatures by explaining when and how facets of organizational embeddedness relate to assignee retention.

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Acknowledgements

We thank the three anonymous JIBS reviewers and JIBS Departmental Editor Rosalie Tung for their helpful feedback.

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Correspondence to B Sebastian Reiche.

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Accepted by Rosalie Tung, Area Editor, 17 November 2010. This paper has been been with the authors for three revisions.

APPENDIX

APPENDIX

SCALES OF PERCEPTUAL MEASURES

Fit with the HQ

(1=strongly disagree to 7=strongly agree)

  1. 1)

    I share the same ambitions and vision with HQ management.

  2. 2)

    I am enthusiastic about pursuing the collective goals and mission of the whole organization.

  3. 3)

    I see no difference between my own values and the HQ's corporate values.

Perceived Career Prospects

(1=strongly disagree to 7=strongly agree)

  1. 1)

    This company will provide me with future positions that build on my acquired knowledge, skills and contacts.

  2. 2)

    The knowledge, skills and contacts that I have acquired/will acquire during my assignment increase my chances of future employment in this company.

  3. 3)

    This company will provide me with future positions that fit with my career goals.

  4. 4)

    There are enough opportunities to pursue my career goals within this company.

  5. 5)

    I am confident that I will achieve my career goals within this company.

Inpatriate Learning

(1=strongly disagree to 7=strongly agree)

During my assignment to the HQ I have:

  1. 1)

    Acquired valuable knowledge that is instrumental for my professional development in the company.

  2. 2)

    Acquired valuable knowledge that is instrumental for my personal development in the company.

  3. 3)

    Learned the corporate culture.

  4. 4)

    Learned how things are done at the HQ.

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Reiche, B., Kraimer, M. & Harzing, AW. Why do international assignees stay? An organizational embeddedness perspective. J Int Bus Stud 42, 521–544 (2011). https://doi.org/10.1057/jibs.2011.5

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