Unlocking the secrets of expat employees: the role of diversity leadership, work adjustment and self-esteem in inhibiting psychological withdrawal behaviour

Purpose - Adjusting professionally to new work roles in a foreign work environment can be a challenging and stressful experience for expatriates. However, whether this experience translates into counterproductive behaviour remains to be examined. Hence, drawing on organisational support theory (OST; Eisenbergeret al., 1986), this study aims to investigate whether work adjustment mediates the effect of diversity-oriented leadership on psychological withdrawal behaviour. The authors also propose that the relationship between diversity-oriented leadership and psychological withdrawal behaviour (via work adjustment) is moderated by organisational-based self-esteem. Design/methodology/approach - Dyadic data from 148 paired surveys of full-time expatriate employees and direct supervisors working in hotels were collected. Smart-PLS procedures with SEM were used to assess the research hypotheses. Findings - Overall, the authors received empirical support for the mediation and moderated model. Contrary to the expectations, the authors demonstrate that diversity-oriented leadership has no significant direct effect on expatriate employees’ psychological withdrawal behaviours; however, this effect is significant only via the full mediation of work adjustment. This relationship appears stronger among expatriate employees who feel important and valued by their organisation (i.e. organisational-based self-esteem). Originality/value - This research is valuable in various ways, including adding to the emerging literature on expatriate employees in the UAE, which heavily relies on such employees for economic growth. Furthermore, as many organisations are hiring a diverse workforce, diversity-oriented leadership is crucial in ensuring that culturally and demographically diverse employees remain productive and become valuable and significant members of the organisation.