EFFECT OF SUPPORT AND CULTURAL INTELLIGENCE ON THE ADJUSTMENT AND PERFORMANCE OF EXPATRIATES AND THEIR FAMILY MEMBERS IN MALAYSIA MARLIN MARISSA MALEK ABDUL MALEK Doctor of Philosophy ASTON UNIVERSITY JUNE 2011 This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognise that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without proper acknowledgement. 1 ASTON UNIVERSITY EFFECT OF SUPPORT AND CULTURAL INTELLIGENCE ON THE ADJUSTMENT AND PERFORMANCE OF EXPATRIATES AND THEIR FAMILY MEMBERS IN MALAYSIA Marlin Marissa Malek Abdul Malek Doctor of Philosophy June 2011 Thesis Summary Theory suggests that people fear the unknown and no matter how experienced one is, the feelings of anxiety and uncertainty, if not managed well would affect how we view ourselves and how others view us. Hence, it is in human nature to engage in activities to help decipher behaviours that seem contrary to their beliefs and hinder the smooth-flowing of their work and daily activities. Building on these arguments, this research investigates the two types of support that are provided by multinational corporations (MNCs) and host country nationals (HCNs) to the expatriates and their family members whilst on international assignments in Malaysia as antecedents to their adjustment and performance in the host country. To complement the support provided, cultural intelligence (CQ) is investigated to explain the influence of cultural elements in facilitating adjustment and performance of the relocating families, especially to socially integrate into the host country. This research aims to investigate the influence of support and CQ on the adjustment and performance of expatriates in Malaysia. Path analyses are used to test the hypothesised relationships. The findings substantiate the pivotal roles that MNCs and HCNs play in helping the expatriates and their families acclimatise to the host country. This corroborates the norm of reciprocity where assistance or support rendered especially at the times when they were crucially needed would be reciprocated with positive behaviour deemed of equal value. Additionally, CQ is significantly positive in enhancing adjustment to the host country, which highlights the vital role that cultural awareness and knowledge play in enhancing effective intercultural communication and better execution of contextual performance. The research highlights the interdependence of the expatriates‟ multiple stakeholders (i.e. MNCs, HCNs, family members) in supporting the expatriates whilst on assignments. Finally, the findings reveal that the expatriate families do influence how the locals view the families and would be a great asset in initiating future communication between the expatriates and HCNs. The research contributes to the fields of intercultural adjustment and communication and also has key messages for policy makers. Key Words: expatriates, host country nationals, perceived organisational support, social support, cultural intelligence, 2 DEDICATION To my husband and soulmate, Rahim and my angels, Kiki, Nana and Lala. Thank you for keeping me grounded and believing in me. Girls, thanks for keeping me entertained whenever mummy is feeling down. This is for all of you, with love. 3 ACKNOWLEDGEMENTS First and foremost, Syukur Alhamdulillah for giving me the strength and the perseverance to complete this thesis. To Professor Pawan Budhwar, with whom I have had the privilege of working alongside for the past few years, I am truly indebted. I greatly appreciate your guidance, expertise, patience, advice and understanding in making this thesis possible. What makes the whole PhD process more bearable is how you have always spared some time, despite your busy schedule, to allow me to share my research progress, my incessant worries, my constant insecurities and my petty problems. I will make sure that when I have my own doctoral students, I will share with them what you have shared with me constantly, „that a PhD is supposed to be challenging but you should not suffer. Take a break, go shopping or go home and be with your family. Come back tomorrow, refreshed and you are ready to start again‟. So Sir, I took notice, and regardless of my depleting bank balance from the numerous shopping trips whenever I was feeling down, this is definitely worth it. To Professor Sam Aryee and Dr. Yves Guillaume, thank you for your constructive comments, time and effort in strengthening my thesis. I have enjoyed working with both of you. My sincere gratitude also goes to the staff and fellow doctoral students of the Work and Organisational Psychology Group and the RDP office for making my stay at Aston a very pleasant one. Doing a PhD is definitely a lonely process and I appreciate your support in making it a lot easier for me to feel at home in Birmingham. I would also like to convey my highest appreciation to my sponsor and employer, the Ministry of Higher Education Malaysia and Universiti Utara Malaysia for providing the financial aid and the opportunity to pursue my education at this level. This thesis would not be realised without the cooperation of my respondents, and for that I thank each and every one of you. Finally, to my family members and friends especially to my parents, husband, siblings and mummy‟s angels, Kisha, Kistina and Kalila Iman. Thank you for putting up with my unpredictable antics, helping me to stay focused and for just being there. I would not have come this far without all of your love and support. Happy reading. 4 Glossary of Terms Term Definition Expatriate A specially chosen individual who is sent temporarily on international assignments abroad and who is expected to fulfil a specialised organisational function or career enhancement exercise across countries and cultures. Cultural A system of interacting knowledge and skills, linked by Intelligence (CQ) cultural metacognition, that allows people to adapt to, select and shape the cultural aspects of their environment. Host country The local people of the country where the expatriate is national (HCN) assigned to. Perceived Employees global beliefs concerning the extent to which the organisational organisations value their contributions and care about their support (POS) well-being and is believed to be the contributing element to increased feelings of commitment and engagement of positive behaviours that supports organisational goals Multinational A business organisation that has business activities in corporation (MNC) various countries abroad. Adjustment The degree of comfort or absence of stress associated with being an expatriate. Is further segregated into three categories; general, interaction and work adjustment. Adjustment can also mean becoming adjusted to the host country‟s cultural norms and values. Expatriate task The effectiveness with which expatriates perform activities performance (ETP) that contribute to the organisation's technical core, either directly by implementing a part of its technological process, or indirectly by providing it with needed materials or services. Expatriate Activities that are directed at maintaining the interpersonal 5 Contextual and psychological environment that needs to exist to allow Performance the technical core to operate. Can sometimes be viewed as (ECP) relationship-based performance. Host country The country where the MNC has a subsidiary in. The MNC in this case will be referred to as the parent company. International A specialised assignment or task for expatriates in a host assignment country which can function as knowledge transfer, competence development, problem solving or career enhancement exercise for the assigned individual. Anxiety Generalised or unspecified sense of disequilibrium or „imbalance‟. It stems from the feelings of uneasy, tense, worried or apprehensive about what might happen. Uncertainty A cognitive phenomenon where it affects the way we think about strangers and depends on what we want to be able to predict, what we can predict and what we might be able to do about it. Mindfulness Being more open to new information and making more distinctions about a stranger‟s differences and adding more sub-categories rather than making general assumptions to our present mindset. Norm of reciprocity A felt obligation to reciprocate behaviours deemed of equal value to compensate initial positive behaviour. Spillover effects A working spouse's experiences carried over into the home; likewise, home experiences influencing a person's work life. Power distance The extent to which the less powerful person in a society accepts inequality in power and considers it as normal. Collectivist Collectivist cultures assume that individuals through birth and possibly later events belong to one or more close „in- groups,‟ from which they cannot detach themselves. The in- 6 group (whether extended family, clan or organisation) protects the interest of its members, but in turn expects their permanent loyalty. A collectivist society is tightly integrated. Individualist Individualist cultures assume individuals look primarily after their own interests and the interests of their immediate family (husband, wife, and children). An individualist society is loosely integrated. Uncertainty Refers to how comfortable one is facing ambiguous and avoidance risky situations. 7 LIST OF CONTENTS Table of Contents Page Number CHAPTER 1: INTRODUCTION TO RESEARCH 1.1 Chapter and Research Overview ………………………………. 18 1.2 Research Background ………………………………………...... 24 1.3 Research Objectives ……………………………………………. 34 1.4 Expected Theoretical Contributions …………………………… 38 1.5 Structure of the Thesis …………………………………………. 40 1.6 Summary …………………………………………………………. 42 CHAPTER 2: THEORETICAL FRAMEWORK 2.1 Chapter Overview ……………………………………………. 43 2.2 Introduction to the Expatriate Research Field ……………. 44 2.3 Anxiety/Uncertainty Management (AUM) Theory ………… 50 2.4 Support During Expatriation ………………………………… 57 2.4.1 Social Exchange Perspective ………………………….. 58 2.4.2 Perceived Organisational Support …………………….. 61 2.4.3 Host Country Support …………………………………… 63 8 2.5 Cultural Intelligence …………………………………………… 70 2.5.1 Multiple Intelligence Theory …………………………….. 73 2.5.2 Cross-Cultural Perspective ………………………........... 77 2.6 The Malaysian Context ……………………………………... 82 2.7 Summary ……………………………………………………… 86 CHAPTER 3: HYPOTHESES DEVELOPMENT 3.1 Chapter Overview …………………………………………….. 87 3.2 Support from MNCs And HCNs ……………………………... 87 3.2.1 Support from Multinational Corporations (MNCs) …. 90 3.2.2 Support from Host Country Nationals (HCNs) ……... 94 3.3 Cultural Intelligence …………………………………………… 99 3.4 Family Adjustment …………………………………………….. 105 3.5 Family Related Support from MNCs and HCNs …………… 107 3.5.1 Spouse-related HCN Support ……………………….. 108 3.6 Cultural Intelligence of Expatriate‟s Spouse ……………….. 110 3.7 Adjustment on Performance …………………………………. 111 3.8 Spouse Adjustment and Expatriate Adjustment …………… 115 3.9 Conclusion ……………………………………………………… 119 9 CHAPTER 4: RESEARCH METHODOLOGY 4.1 Chapter Overview ……………………………………………….. 120 4.2 Research Design ………………………………………………... 120 4.2.1 The Survey Method ……………………………………… 125 4.2.2 Population and Sample …………………………………. 127 4.2.3 Research Variables and Measures ……………………. 130 4.2.3.1 Cross-cultural Adjustment ……………………………. 131 4.2.3.2 Organisation Support …………………………………. 132 4.2.3.3 Host Country Support …………………………………. 135 4.2.3.4 Cultural Intelligence ………………………………….... 138 4.2.3.5 Expatriate Performance ………………………………. 141 4.2.4 Control Variables ………………………………………... 145 4.2.5. Pilot Test ………………………………………………… 145 4.2.6 Data Collection …………………………………………. 148 4.2.7 Reliability and Validity …………………………………. 152 4.2.7.1 Exploratory Factor Analysis …………………………. 152 4.2.7.2 Item Analysis ………………………………………….. 153 4.2.7.3 Convergent Validity ……………………………………. 154 10
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