Exploration of challenges in expatriate management of multinational corporations in South Africa - an expatriate perspective

Abstract

With globalisation advancing constantly, international management and business expansion play a significant role in the quest of multinational corporations (MNCs) to remain competitive. To maintain competitive advantage, a local and global workforce is needed, which has led to an increasing number of expatriate managers in recent years. Expatriate managers are therefore of high importance to MNCs and often play a crucial role in their operations. It is also important that the expatriate process is strategically developed for the success of an international assignment. However, literature on expatriate management reveals that several challenges relating to the expatriate process affect international assignments. In the worst case these assignments lead to expatriate failure and premature termination of the assignment. The challenges identified in the existing body of knowledge on expatriate management are rather general and not linked to a specific country or region. Furthermore, a general lack of empirical research on expatriate management through a diverse cultural lens and from the perspective of expatriate managers in the host country exists. Challenges typically reflect the perspective of headquarters and rarely incorporate the viewpoint of expatriate managers in the host country. The purpose of this study was to explore the challenges that expatriate managers experienced (and expected to experience with regard to their repatriation) relating to the MNC’s expatriate management process during and after their international assignment in South Africa. By identifying and managing the challenges, the likelihood of expatriate failure and premature termination of the international assignment can be reduced. To address the purpose of this study, an interpretivist philosophy and inductive research approach were adopted. The research was therefore qualitative in nature and semi-structured interviews were conducted with expatriate managers working for two different German MNCs in Gauteng, South Africa. Convenience and snowball sampling were used in this regard to identify research participants as no database was available to access the whole population (or even the accessible population) of expatriate managers in South Africa or Gauteng. The collected data was analysed by means of thematic analysis and led to six themes. Each theme represents the answer to challenges in one stage or substage of the expatriate process.