Why do international assignees stay? An organizational embeddedness perspective

B. Sebastian Reiche*, Maria L. Kraimer, Anne-Wil Harzing

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We apply an organizational embeddedness perspective to examine international assignees' retention with the organization. Specifically, we hypothesize that assignees' social ties within and their perceived fit with the host unit positively relate to two sacrifices on leaving the organization: their firm-specific learning during the assignment, and their perceived career prospects in the organization. Perceived career prospects are expected to predict subsequent retention, moderated by firm-specific learning. These hypotheses are tested using a sample of 143 inpatriates in 10 German multinationals, with retention measured 2 and 4 years later. We show that inpatriates' trusting ties with HQ staff and their fit with the HQ positively relate to their firm-specific learning and their perceived career prospects, and that the latter predicts their retention 2 and 4 years later. Perceived career prospects mediate the direct relationship between inpatriates' fit with the HQ and inpatriate retention, and the indirect relationship between inpatriates' trusting ties with HQ staff and their retention. Furthermore, inpatriates' firm-specific learning mitigates the effect of perceived career prospects on retention decisions 2 years later. We contribute to the organizational embeddedness, careers, and international business literatures by explaining when and how facets of organizational embeddedness relate to assignee retention. Journal of International Business Studies (2011) 42, 521-544. doi:10.1057/jibs.2011.5

Original languageEnglish
Pages (from-to)521-544
Number of pages24
JournalJournal of International Business Studies (JIBS)
Volume42
Issue number4
DOIs
Publication statusPublished - May 2011
Externally publishedYes

Keywords

  • international assignments
  • organizational embeddedness
  • retention
  • career prospects
  • learning organizational knowledge
  • MULTINATIONAL-CORPORATIONS
  • CAREER SUCCESS
  • KNOWLEDGE TRANSFER
  • VOLUNTARY TURNOVER
  • JOB EMBEDDEDNESS
  • SOCIAL IDENTITY
  • EXPATRIATE ADJUSTMENT
  • REPATRIATION CONCERNS
  • INPATRIATE MANAGERS
  • WEAK TIES

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