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Expatriate Managers′ Loyalty to the MNC: Myth or Reality? An Exploratory Study

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  • Moshe Banai

    (Baruch College, City University of New York)

  • William D Reisel

    (Baruch College, City University of New York)

Abstract

This exploratory study examines five antecedent conditions of organizational commitment among groups of American, Dutch, Israeli and British managers in six multinational banking corporations. Role, nationality, age, seniority, and rank are tested as correlates of the organizational commitment construct among three groups of managers: Headquarters (HQ) officials, expatriate managers, and host-country managers in foreign subsidiaries.No support was found to the widespread belief that expatriate managers are more loyal to the company than host-country nationals. Age predicted organizational commitment more accurately than did nationality or role. Further analysis of the organizational commitment construct found evidence for a two-factor model: Loyalty/identification and involvement. Age was then found to be predictive of organizational loyalty/identification and nationality predicted organizational involvement. Managers′ nationality could therefore be used to compare and differentiate their organizational involvement.© 1993 JIBS. Journal of International Business Studies (1993) 24, 233–248

Suggested Citation

  • Moshe Banai & William D Reisel, 1993. "Expatriate Managers′ Loyalty to the MNC: Myth or Reality? An Exploratory Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 233-248, June.
    • Handle: RePEc:pal:jintbs:v:24:y:1993:i:2:p:233-248
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    Cited by:

    1. Guttormsen, David S.A., 2018. "Does the ‘non-traditional expatriate’ exist? A critical exploration of new expatriation categories," Scandinavian Journal of Management, Elsevier, vol. 34(3), pages 233-244.
    2. Florian Becker-Ritterspach & Christoph Dörrenbächer, 2011. "An Organizational Politics Perspective on Intra-firm Competition in Multinational Corporations," Management International Review, Springer, vol. 51(4), pages 533-559, August.
    3. Heidenreich, Stefan & Mohr, Alexander & Puck, Jonas, 2015. "Political strategies, entrepreneurial overconfidence and foreign direct investment in developing countries," Journal of World Business, Elsevier, vol. 50(4), pages 793-803.
    4. Davina Vora & Tatiana Kostova & Kendall Roth, 2007. "Roles of subsidiary managers in multinational corporations: The effect of dual organizational identification," Management International Review, Springer, vol. 47(4), pages 595-620, October.
    5. Dörrenbächer, Christoph & Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz, 2013. "Staffing foreign subsidiaries with parent country nationals or host country nationals? Insights from European subsidiaries," Working Papers 74, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    6. Ibrahim Rashid Humaid Al Shamsi & Salim Alsinani, 2018. "A Study of Organizational Factors and Employee Retention: The Case of Ministry of Civil Service in Oman," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 3(2), pages 72-82.
    7. Diamantino Ribeiro & Natacha Jesus-Silva & João Ribeiro, 2021. "The Multiplier Effect of European Union Funds in the Alentejo Region, Portugal, Between 2014-2020," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 7, ejes_v7_i.
    8. Li, Liang (Arthur) & Schotter, Andreas P.J. & Beamish, Paul W., 2024. "The origin and nationality of general manager successors in local-market-seeking MNE subsidiaries," International Business Review, Elsevier, vol. 33(3).
    9. Rickley, Marketa & Karim, Samina, 2018. "Managing institutional distance: Examining how firm-specific advantages impact foreign subsidiary CEO staffing," Journal of World Business, Elsevier, vol. 53(5), pages 740-751.
    10. Kong, Lingshuang & Ciabuschi, Francesco & Martín Martín, Oscar, 2018. "Expatriate managers' relationships and reverse knowledge transfer within emerging market MNCs: The mediating role of subsidiary willingness," Journal of Business Research, Elsevier, vol. 93(C), pages 216-229.
    11. Harzing, Anne-Wil, 1997. "Response rates in international mail surveys: Results of a 22-country study," International Business Review, Elsevier, vol. 6(6), pages 641-665, December.
    12. Piotr Zientara, 2008. "Employment Of Older Workers In Poland: Issues And Policy Implications," Economic Affairs, Wiley Blackwell, vol. 28(4), pages 62-67, December.

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