Effect of outgroup social categorization by host-country nationals on expatriate premature return intention and buffering effect of mentoring

Abstract

Outgroup social categorization by host-country nationals (HCNs) is a common challenge for expatriates and it has received inadequate scholarly attention in expatriate research. This study explores how outgroup social categorization affects expatriate intention to terminate international assignments prematurely and how this adversity can be lessened through organizational mentoring interventions. We theorize that outgroup social categorization by HCNs results in social isolation for expatriates, which triggers expatriates' early return intentions, and mentoring mitigates this indirect effect. The hypotheses were supported by the analyses of multisource data collected from expatriates and their local co-workers in multinational enterprises operating in China. Theoretical and practical implications of the research findings are discussed.

Introduction

Expatriates play a major role in control over subsidiaries, knowledge transfer, coordination, and problem solving that are important to the success of multinational enterprises (MNEs; Pate and Scullion, 2018). An expatriate's intention to terminate an international assignment prematurely affects expatriate work attitudes and performance and has severe consequences for the broader MNE (Andresen et al., 2018; Wang and Varma, 2019). For several decades, extensive research has been devoted to the causes of expatriate premature return intention (Nguyen et al., 2015). Research reveals that expatriate-related factors, such as expatriates' inability to adjust to and work in new environments and family issues, are the main causes of expatriate premature return intention (e.g., Nguyen et al., 2015; Ritchie et al., 2015). Despite growing literature underscoring the importance of host-country nationals (HCNs) to expatriate success (Shen et al., 2018; van Bakel, 2019), the role of HCNs in expatriate premature return intention has not been adequately explored.

Social categorization theory posits that people tend to categorize those with different salient demographic attributes into various social groups and under certain circumstances being categorized as outgroup members results in negative consequences (Tajfel and Turner, 1979; Turner, 1987). It is suggested that HCNs tend to categorize expatriates into outgroups based on salient attributes, such as national identity, cultural background, and language (Bonache et al., 2016). Hence, outgroup social categorization by HCNs is a common challenge for expatriates (Toh and DeNisi, 2007; Varma et al., 2006). Toh and DeNisi (2007) conceptualized that outgroup categorization is negatively related to HCNs' socializing behavior toward expatriates, and this has negative consequences for expatriate adjustment and work performance. Extensive studies, such as Leonardelli and Toh (2011), Pichler et al. (2012), Varma et al. (2012), Sonesh and DeNisi (2016), and Peltokorpi (2020), have empirically explored the consequences of social categorization by HCNs. The focus of past studies however was on how outgroup social categorization by HCNs related to HCNs' willingness to assist and socialize with expatriates. Therefore, at least three important questions remain unaddressed: 1). Whether outgroup social categorization by HCNs affects expatriate work attitudes and behaviors? 2). What are the underlying mechanisms through which outgroup social categorization by HCNs affects expatriate work attitudes and behaviors? And 3). How should MNEs intervene to mitigate the negative impact of outgroup social categorization by HCNs on expatriates? Addressing these questions makes important theoretical contributions and has significant practical implications.

The current study addresses the issues in relation to expatriates' responses to HCN social categorization. First, supported by social categorization theory, it explores the association between outgroup social categorization by HCNs and expatriate intention to terminate international assignment prematurely. The literature recognizes that expatriates and their families frequently experience social isolation in host environments (Jonasson et al., 2017). Accordingly, this study considers the mediation of expatriates' feelings of social isolation, which refers to “the perception of a lack of availability of support and recognition, missed opportunities for informal interactions with co-workers, and not being part of the group” (Marshall et al., 2007, p. 196). Second, this study endeavours to explore the interventions MNEs can take to minimize the impact of outgroup social categorization by HCNs. Specifically, we contend that mentoring weakens the effect of outgroup social categorization by HCNs on expatriates' experience of social isolation. Our theoretical framework is depicted in Fig. 1.

We believe that this research advances the expatriate management literature in several ways. First, in domestic contexts, social categorization sometimes is appropriate, hence does not always necessarily bring about severe negative consequences (Haslam et al., 1996). The expatriate community, especially those are from the same home country, however, is normally small and has limited resources in the host country. Hence, the benefits of interacting with other expatriates may not offset the negative effect of outgroup categorization by HCNs. How outgroup social categorization by HCNs affects expatriates would differ from social categorization in domestic contexts. This study therefore helps better understand expatriate consequences of outgroup social categorization by HCNs. Second, our proposed model unpacks an understudied underlying mechanism in expatriate research, the mediation of social isolation. Indeed, some expatriates can survive without interacting with locals because peer expatriates can provide them with useful tips to manage daily life (Wang, 2002). However, they may find socializing in expatriate circles is only sufficient in the short term. In the long term, expatriates who live and work away from their home country have a great need to integrate into social and work groups in the host country. If this need is unmet, expatriates are prone to social isolation. As such, expatriates are appropriate testing subjects for studying social isolation. Although social isolation has been indicated to have detrimental consequences for individuals, such as children (e.g., Rubin and Mills, 1988), and older people (e.g., Cattan et al., 2005), research on its consequences for expatriates is limited and lacks a theoretical rationale. The current research develops a better understanding of the antecedents and consequences of social isolation in expatriate research. Third, the ostracism literature emphasizes the role of organizational support in coping adversity (e.g., Chung, 2017; Kwan et al., 2018). This study extends literature to expatriate research by examining how mentoring invention minimizes the adverse impact of outgroup social categorization by HCNs on expatriates. Doing so, this study provides new insights in mentoring as a boundary condition that changes the effect strength of outgroup social categorization by HCNs on expatriate premature return intention.