Expert Systems with Applications 41 (2014) 5483–5494

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Expert Systems with Applications

The influence of individual, family, and social capital factors

a r t i c l e i n f o a b s t r a c t

Keywords: This research is conducted to get more understanding about the antecedents and consequences of
Family to work conflict expatriate adjustment. Expatriate adjustment is a very important factor for the expatriate and for the
Social capital organization. As prior studies have explained that family, individual, and social capital factors signifi-
Expatriate adjustment cantly related to expatriate adjustment, but these studies did not integrate the antecedents and conse-
Innovative work behavior
quences of expatriate adjustment into a more comprehensive research model. Therefore, this study
Expatriate performance
Knowledge transfer
aims to integrate relevant research streams into a more comprehensive model of expatriate adjustment
Psychological support and empirically test the viability of the model. The results of this study illustrated that expatriates with
Organizational support higher emotional intelligence, cultural intelligence, and experience abroad can adjust more easily in the
new work environment. Also, family support and family adaptability have positive influence on expatri-
ate adjustment. Expatriates who had prior experiences on parental demand and family to work conflict
tend to be able to manage these problems more easily. Furthermore, social capital and mentoring behav-
ior are also important factors that can enhance the success of expatriate adjustment which could further
influence expatriate performance, innovative work behavior, knowledge transfer, and organizational per-
formance. Finally, this study also identified that psychological contract and organizational support as two
important moderators that can enhance expatriate adjustment and success.
Ó 2014 Elsevier Ltd. All rights reserved.

1. Research background and motivation experience can have a lasting impact on their identities (Haslberger
& Brewster, 2009). Therefore, expatriate adjustment is very
The rapid globalization of world economy has resulted the important not only for the expatriate, but also for the organization.
increasing of global mobility and flexibility of business activities. As the issue about how to enhance expatriate adjustment, previous
Global human resources with international experiences are invalu- studies never integrated individual, family, and social factors into a
able assets for both individuals and companies (Haslberger & more solid research framework. This study intends to fill this
Brewster, 2009) to win in the competitive global marketplace research gap and empirically test the viability of the framework.
(Wu & Ang, 2011). MNCs sent a lot of employees overseas because First of all, expatriate’s personal factors play important roles to
international experience is a key channel to develop global talent deal with the new environment. Expatriates who are well-adjusted
and leadership (Takeuchi, Shay, & Jiatao, 2008; Tarique & Schuler, into new cultures and tolerant about different environments tend
2010). International assignments played a vital role in expanding to have an internal locus of control, flexible, interest in other peo-
and building global skills (Shay & Baack, 2004). Likewise, a basic ple and socially adaptable character (Tucker, Bonial, & Lahti, 2004).
criterion for MNCs’ success is their employee’s ability to adapt, to Furthermore, expatriates with good emotional intelligence (EQ)
understand the other cultures and to expand a global mindset tend to understand their emotion better and perform better in
(Scullion & Collings, 2006). MNCs must realize that the changes their overseas adjustment and commitment (Lii & Wong, 2008).
in attitudes, knowledge, and behaviors during expatriate Besides EQ, cultural intelligence (CQ) is another important factor
for expatriate adjustment because CQ is aimed to capture the
⇑ Corresponding author. Tel.: +886 6 2050611x31; fax: +886 6 2050611. ability to adapt, to understand, and to act appropriately across cul-
E-mail addresses: [email protected] (L.-Y. Lee), [email protected] tures (Thomas & Inkson, 2004). Likewise, expatriates’ previous
(N. Kartika). international experiences can influence their adjustment because

http://dx.doi.org/10.1016/j.eswa.2014.02.030
0957-4174/Ó 2014 Elsevier Ltd. All rights reserved.
5484 L.-Y. Lee, N. Kartika / Expert Systems with Applications 41 (2014) 5483–5494

expatriate with more international experiences tend to have more indirect cost including training, relocation, and compensation have
opportunities to learn about daily life and way of thinking and been estimated at US$ 80,000 per expatriate. Therefore, research
learning new set of business practices in the new environment on improving expatriate adjustment is important to be conducted.
(Haslberger & Brewster, 2009). However, previous studies have never integrated relevant variables
Secondly, many empirical studies have stated that family into a more comprehensive framework to investigate the collective
factors in expatriation can serve as an important role for the expa- influence of these antecedent variables on expatriate adjustment
triate adjustment (Takeuchi, Lepak, Marinova, & Yun, 2007). Even and performance, the results of this study may provide significant
though family and spouse are the major expatriate stresses on for- contributions not only to the international human resource prac-
eign assignment (Shaffer & Harrison, 2001), the family support tices, but also the theoretical development on expatriate selection,
especially from spouse can provide assistance for expatriate to ad- training, and management.
just in the stressful new environment (Kraimer, Wayne, & Jaworski,
2001). The adaptation of expatriate families to a host culture is
crucial for international business assignments (Takeuchi, 2010). 2. Literature review and hypotheses development
However, an important stressor for families on international
assignment is from work-family conflict and parental demand, 2.1. Expatriate intelligence/cultural intelligence (EQ/CQ) and
which may reduce expatriate adjustment (Parasuraman & expatriate adjustment (EA)
Simmers, 2001). Moreover, expatriate need personal networks to
created exchanges. Social networks and social capital during Emotional intelligence, which is also called intelligence quo-
international assignments may have significant implications for tient (EQ), has an impact on overseas adjustment and commitment
expatriate’s effectiveness or performance success (Liu & Shaffer, (Hassan & Diallo, 2013; Lii & Wong, 2008). Emotional intelligence
2005). is the ability to perceive accurately, appraise, and express emotion,
Finally, psychological contract is important because expatriates the ability to access and to generate feelings, and the ability to ac-
rely on their firm support in the risky, ambiguous, and uncertain cess and to understand emotion and emotional knowledge. Expa-
working environment (Haslberger & Brewster, 2009). Thus, it is triates with high EQ tend to perform well in domestic as well as
suggested that psychological contract may act as a mediating overseas workplace (Cote & Miners, 2006). Moreover, expatriates
variable for the influence of individual factors, family factors, and with higher EQ tend to have better ability to understand his/her
social capital on expatriate adjustment and its influence on emotions, to sense and to acknowledge their emotions better than
expatriate consequences. Likewise, organizational support is also others (Wong, Law, & Wong, 2004), so they can adjust better in the
important because it can lower depression and work conflict for new environment.
employees and also can assist expatriate to feel good working in In addition, cultural intelligence (CQ) also has a significant
the organization (Selmer, Ebrahimi, & Mingtao, 2002). Therefore, influence on adjustment (Crowne, 2013; MacNab, Brislin, & Worth-
organizational support may act as a moderating variable for ley, 2012). Earley and Ang (2003) proposed that the cultural intel-
the influence of individual factors, family factors, and social ligence (CQ) reflects capability of a person to gather, to interpret,
capital on expatriate adjustment, and its effect on expatriate and to function effectively across cultural settings or in multicul-
consequences. tural situations. There are three core elements of CQ (Ng & Earley,
Based on the above discussion, it seems that previous studies 2006): cognition, motivation, and behavior. The cognitive facet of
have made a great deal of efforts to evaluate the critical factors CQ refers to the information-processing aspects of intelligence
of expatriate adjustment and stress, and their influence on MNC and conceptualized by the self-concept theory (Early, 2003). The
success. However, researchers only focused on many fragmented motivational aspect of CQ reflects self-concept and motivates
views of expatriate adjustment, which may be significant with par- adaptation to new culture surroundings. The behavioral aspect of
tial representation, but neglected to develop a comprehensive CQ suggests that adaptation is not only having motivation and
framework of expatriate adjustment. This study intends to inte- knowing what to do and how to do it, but also reflected a person’s
grate individual, family and social aspect of antecedents to identify ability to adapt for a new culture. Expatriate with higher CQ tend
their influences on expatriate adjustment and performance. Specif- to have higher cultural sensitivity and flexibility that enable expa-
ically, the objectives of this study are follows: triates to adapt to new cultural surroundings and can enhance the
ability of expatriates to learn in different environments and then
(1) To explain the influences of individual factors, family factors, result in better cross-cultural adjustment (Lubinski, 2004; Tem-
social capital factors on expatriate adjustment. pler, Tay, & Chandrasekar, 2006).
(2) To explain the influences of expatriate adjustment on expa- Furthermore, expatriates’ previous international experience has
triate performance, innovative work behavior, knowledge been believed to influence the expatriate development of cultural
transfer, and organizational performance. knowledge and appropriate behaviors that are required in different
(3) To identify the moderating effect of psychological contract cultures (Kim & Slocum, 2008; Takeuchi, Tesluk, Yun, & Lepak,
and organizational support on the relationship between 2005). The more the past work and non-work experience abroad,
independent variables (family factors, individual factors, the more the expatriate will exert relevant skills on expatriate ca-
and social capital factors) and expatriate adjustment. reer (Okpara & Kabongo, 2011). According to social learning theory
(4) To identify the moderating effect of psychological contract (Black & Mendenhall, 1990), behavior can be acquired by the direct
and organizational support on the relationship between experience or by observing the behavior of others. Therefore, expa-
expatriate adjustment and the expatriate consequences triates who are in new environment spend their time to interact
(expatriate performance and innovative work behavior) with others may have more opportunity to learn about daily life
and the subsidiary consequences (knowledge transfer and (Caligiuri, 2000). Likewise, expatriate with previous work and
organizational performance). non-work international experience may influence their develop-
ment of knowledge, skills, and behaviors (Takeuchi et al., 2005).
As indicated by Shaffer, Harrison, Gregersen, Black, & Ferzandi Some cultural experiences abroad also may influence the level of
(2006), the direct cost associated with expatriate adjustment fail- expatriate adjustment (Lee & Sukoco, 2010). Based on the above
ure have been estimated at US$ 150,000 per expatriate, while the description, this study proposes: