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Fostering expatriate affective commitment : a total reward perspective

Author

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  • Christelle Tornikoski

    (EM - EMLyon Business School)

Abstract

Purpose – The purpose of this paper is to examine whether organizations can encourage the loyalty of their international employees through the composition of their expatriate packages. Design/methodology/approach – Two separate but complementary theoretical perspectives – the total reward approach, and the exchange-based construct of state of the psychological contract (SPC) – are used to explain the affective commitment of expatriates. Hypotheses are developed and tested on a sample of 263 assigned and self-initiated expatriates from Finland. Findings – A positive SPC relating to tangible universal rewards (i.e. the compensation package traditionally considered in previous expatriate research) is not linked to an increase in the overall affective commitment of expatriates. In contrast, a very strong positive relationship was found between the expatriates' SPC relating to total rewards (which include intangible particularistic rewards (IPR)) and affective commitment. Research limitations/implications – The sample only includes highly educated Finnish expatriates, which limits the external validity of the results. Moreover, the cross-sectional nature of this study does not allow for confirmation of the cause-effect relationship between the SPC and affective commitment. Practical implications – The results suggest that, as a rule, organizations could improve the retention of their valuable international employees via the exchange of IPR usually found in socio-emotional and trusting employment relationships. Originality/value – First, this paper focuses on expatriate perceptions regarding their compensation. Second, it applies the "concreteness" and "particularism" dimensions developed by Foa and Foa to distinguish between the constituting components of the bundle of total rewards and provide an evaluation-oriented measure of the SPC relating to this bundle. Third, this approach enables explaining expatriates' affective commitment.

Suggested Citation

  • Christelle Tornikoski, 2011. "Fostering expatriate affective commitment : a total reward perspective," Post-Print hal-02312641, HAL.
  • Handle: RePEc:hal:journl:hal-02312641
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    Cited by:

    1. Nelu FLOREA & Elena-Sabina TURNEA, 2018. "Organizational Rewards In Romanian Companies," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 11, pages 37-42, July.
    2. Maley, Jane F. & Moeller, Miriam & Ting, Alina F., 2020. "Sustainable expatriate compensation in an uncertain environment," Journal of International Management, Elsevier, vol. 26(3).
    3. McWha-Hermann, Ishbel & Jandric, Jakov & Cook-Lundgren, Emily & Carr, Stuart C., 2022. "Toward fairer global reward: Lessons from international non-governmental organizations," International Business Review, Elsevier, vol. 31(1).

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