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An Empirical Investigation of Terrorism-induced Stress on Expatriate Attitudes and Performance

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  • Bader, Benjamin
  • Berg, Nicola

Abstract

Despite international terrorism's increasing relevance for international business, the effects of terrorism that confront employees during assignments abroad have hardly been investigated. Applying a stress perspective, this article analyzes the impact of terrorism-induced stress on attitudes and the performance of expatriates. Employing data from 143 expatriate managers in high-risk countries, the study shows that several terrorism-related stressors create a significant stress level for the individual, causing negative work attitudes and attitudes towards host country nationals (disaffection). This eventually leads to worse performance. We applied partial least squares (PLS) structural equation modeling (SEM) to analyze the entire impact path and found substantial support for our hypotheses. Of all the relevant stressors, intra-family conflicts due to terrorism have the greatest impact.

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  • Bader, Benjamin & Berg, Nicola, 2013. "An Empirical Investigation of Terrorism-induced Stress on Expatriate Attitudes and Performance," Journal of International Management, Elsevier, vol. 19(2), pages 163-175.
    • Handle: RePEc:eee:intman:v:19:y:2013:i:2:p:163-175
    DOI: 10.1016/j.intman.2013.01.003
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    1. Venancio Tauringana & Ishmael Tingbani & Godwin Okafor & Widin B. Sha'ven, 2021. "Terrorism and global business performance," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5636-5658, October.
    2. Bader, Benjamin & Schuster, Tassilo, 2015. "Expatriate Social Networks in Terrorism-Endangered Countries: An Empirical Analysis in Afghanistan, India, Pakistan, and Saudi Arabia," Journal of International Management, Elsevier, vol. 21(1), pages 63-77.
    3. Anika Breitenmoser & Benjamin Bader, 2016. "Repatriation outcomes affecting corporate ROI: a critical review and future agenda," Management Review Quarterly, Springer, vol. 66(3), pages 195-234, June.
    4. Yifan Zhong & Jiuhua Cherrie Zhu & Mingqiong Mike Zhang, 2021. "Expatriate Management of Emerging Market Multinational Enterprises: A Multiple Case Study Approach," JRFM, MDPI, vol. 14(6), pages 1-23, June.
    5. Dimitrova, Anna & Triki, Dora & Valentino, Alfredo, 2022. "The effects of business- and non-business-targeting terrorism on FDI to the MENA region: The moderating role of political regime," International Business Review, Elsevier, vol. 31(6).
    6. Dimitrova, Mihaela & Chia, Sherwin Ignatius & Shaffer, Margaret A. & Tay-Lee, Cheryl, 2020. "Forgotten travelers: Adjustment and career implications of international business travel for expatriates," Journal of International Management, Elsevier, vol. 26(1).
    7. Reade, Carol & Lee, Hyun-Jung, 2016. "Does ethnic conflict impede or enable employee innovation behavior? The alchemic role of collaborative conflict management," LSE Research Online Documents on Economics 65613, London School of Economics and Political Science, LSE Library.
    8. Johannes Leder, 2019. "Living Well in Times of Threat: The Importance of Adjustment Processes to Explain Functional Adaptation to Uncertain Security in Expatriates Deployed in the Sudan," Risk Analysis, John Wiley & Sons, vol. 39(5), pages 1105-1124, May.
    9. Tingbani, Ishmael & Okafor, Godwin & Tauringana, Venancio & Zalata, Alaa Mansour, 2019. "Terrorism and country-level global business failure," Journal of Business Research, Elsevier, vol. 98(C), pages 430-440.
    10. Isabelle Yee Shan Chan & Mei-yung Leung & Qi Liang, 2018. "The Roles of Motivation and Coping Behaviours in Managing Stress: Qualitative Interview Study of Hong Kong Expatriate Construction Professionals in Mainland China," IJERPH, MDPI, vol. 15(3), pages 1-24, March.
    11. Bader, Benjamin & Berg, Nicola & Holtbrügge, Dirk, 2015. "Expatriate performance in terrorism-endangered countries: The role of family and organizational support," International Business Review, Elsevier, vol. 24(5), pages 849-860.
    12. Koveshnikov, Alexei & Lehtonen, Miikka J. & Wechtler, Heidi, 2022. "Expatriates on the run: The psychological effects of the COVID-19 pandemic on expatriates’ host country withdrawal intentions," International Business Review, Elsevier, vol. 31(6).
    13. Pooja Thakur-Wernz & Helena Barnard & Marianne Matthee, 2024. "Knightian uncertain violence and the challenge of FDI-assisted development: policy recommendations where civilian lives are at risk," Journal of International Business Policy, Palgrave Macmillan, vol. 7(3), pages 356-390, September.
    14. Raja, Usman & Azeem, Muhammad Umer & Haq, Inam Ul & Naseer, Saima, 2020. "Perceived threat of terrorism and employee outcomes: The moderating role of negative affectivity and psychological capital," Journal of Business Research, Elsevier, vol. 110(C), pages 316-326.
    15. Armijos Bravo, Grace & Vall Castelló, Judit, 2021. "Terrorist attacks, Islamophobia and newborns’ health," Journal of Health Economics, Elsevier, vol. 79(C).
    16. Jürgen Harrer & Andreas Wald, 2016. "Levers of enterprise security control: a study on the use, measurement and value contribution," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 7-32, February.
    17. Lee, Hyun-Jung & Reade, Carol, 2015. "Ethnic homophily perceptions as an emergent IHRM challenge: evidence from firms operating in Sri Lanka during the ethnic conflict," LSE Research Online Documents on Economics 59971, London School of Economics and Political Science, LSE Library.

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