DOI: 10.1002/tie.22105
R E S E A R CH A R T I C L E
Dimensions of expatriates adjustment in distant subsidiaries:
A field study of a sub-Saharan African institutional distance
James B. Abugre1 | Karen Williams2 | Yaw A. Debrah2
1Department of Organisation & HRM,
University of Ghana Business School, Accra, Abstract
Ghana The aim of this study is to investigate the determinants of expatriates’ adjustments in
2School of Business and Economics, Swansea
distant and complex multinational subsidiaries. Using the institutional theory as a
University, Swansea, Wales, UK
basis for expatriates’ assignments in complex subsidiaries, the work employed a
Correspondence
sequential mixed methodology of data collection. An in-depth face-to-face interview
James B. Abugre, PhD, Department of
Organisation & HRM, University of Ghana with 21 senior expatriate executives and a quantitative survey of 204 expatriates
Business School, Box LG 78, Legon, Accra,
working in various multinational subsidiaries in Ghana served as data for the work.
Ghana.
Email: jbabugre@ug.edu.gh Consequently, a structural equation modeling (SEM) and a content analysis were the
basis of the data analysis. Findings showed host country culture plays a significant
role in determining expatriate adjustment in distant subsidiaries. Findings also
showed expatriates’ competence in cross-cultural communication significantly deter-
mines expatriates’ adjustment in distant subsidiaries. The work recommends an
intensive training of expatriates in cross-cultural communication and host cultural
values and behaviors for international assignees.
K E YWORD S
cross-cultural communication, expatriates’ adjustment, Ghana, host country culture,
institutional distance, MNCs, sub-Saharan Africa, subsidiary locations
1 | INTRODUCTION environments (Kostova, 1996). Thus, the more distant a host country
is from the organizational center of an MNC, the more the MNC must
The increasing globalization and search for newer markets have called manage and adapt to the cultural, regulatory, and cognitive differ-
for multinational companies (MNCs) to adopt multinational strategies ences in order to develop appropriate entry and operational strategies
which involve an increase in the number of expatriates sent oversees due to national differences. The central claim of institutional theories
on long-distance assignments (Hechanova, Beehr, & Christiansen, is “actors pursue their interests within institutional constraints”
2003). This explains why MNCs have to build an effective human (Ingram & Silverman, 2002, p. 1). This is why the expatriate adjust-
resource capacity of their international firms in order to absorb the ment is significant in international business. The reason is, the wide
difficulties encountered during institutional distance. The distance can differences between the cultural perspectives and behaviors may pose
result in problems of adaptability and adjustment of expatriates difficult and distressing situations for expatriates who are relocating
(Ramsey, 2005) due to wide cultural variations and uncertainties of to distant institutions (Neupert, Baughn, & Lam-Dao, 2005). MNCs
expatriate work life in the distant subsidiaries. Accordingly, Xu, Yigang would therefore as a matter of business interest search for key deter-
Pan, and Beamish (2004) argue institutional (regulatory and norma- minants of successful adjustment of their staff.
tive) distances have a great impact on expatriates’ strategies in the Successful adjustment means expatriates must be able to tran-
subunits abroad. scend cultural boundaries, and the ability to appropriately address and
Institutional distance is the degree of similarity or dissimilarity react to intercultural situations with skills that can help to improve
between the regulatory, cognitive, and normative institutions of two their capability for successful adaptation (Peterson, 2004; Thomas &
Thunderbird Int. Bus. Rev. 2019;1–14. wileyonlinelibrary.com/journal/tie © 2019 Wiley Periodicals, Inc. 1
2 ABUGRE ET AL.
Inkson, 2005). However, the great deal of research on expatriate resource management has received little attention in sub-Saharan
adjustment conducted in the last two decades has been predomi- Africa, and no work has established different dimensions or facets of
nantly directed to the West, with very little of this research having adjustment in the region. This has created a void in the knowledge of
been conducted in Africa, despite knowledge of the overwhelming how institutional distance can facilitate expatriate work adjustment
adjustment challenges the continent poses to expatriates (Okpara, due to contextual differences. However, Von Glinow, Drost, and
2016). It is therefore critical that we study contextual and country- Teagarden (2002) assert it is important for cross-cultural researchers
level determinants of expatriate adjustment for newer insight to to broaden their research lenses with multiple embedded contexts—
international management. Studying contextual determinants of expa- polycontextuality—as they search for solutions to global problems.
triates’ adjustment will allow for a more complete understanding of Hence, Langinier and Froehlicher (2018) emphasize the significance of
how complex and multilingual institutions—particularly those of sub- host context in setting internal adequacy standards for expatriates’
Saharan Africa affect expatriate adjustment and how this plays out in adjustment. Similarly, Haslberger, Brewster, and Hippler (2013) under-
global business. This is because multinational home-markets’ charac- score the strength of an expatriate's knowledge base which depends
teristics interact with institutional distance in different ways in the on the feedback received and interaction with hosts. Thus, we see the
operations of MNCs in developing countries (Liou, Chao, & Ellstrand, importance of host institutions playing a major role in expatriate
2017). Accordingly, institutional distance describes the difficulties, adjustment. Consequently, this work employs institutional theory as a
including costs and risks associated with conducting business across foundation to examine the dimensions of expatriate adjustment in
borders and or distant subsidiaries (Stahl, Tung, Kostova, & Zellmer- sub-Saharan Africa using Ghana as a context. The work thus responds
Bruhn, 2016). to Okpara and Kabongo's (2017) advocacy on the use of cross-level
For this reason, this work explores the dimensions of expatriates’ industry samples to find solutions for expatriate adjustment in Africa.
cross-cultural adjustment from a sub-Saharan Africa perspective. This Hence, we begin by reviewing the literature to set the theoretical
work contributes to international business management in three foundation of the study before generating the hypotheses. We next
major ways. discuss the context of the study and explain our multi-level study
First, given the complexities of the cultural issues of host subsidi- methodology. We then present the results and conclude with discus-
aries particularly those of distant locations like sub-Saharan Africa sion of our findings, implications, and limitations of the study.
where management research has been deeply neglected (Jackson,
2004; Mol, Stadler, & Ariño, 2017), research on expatriate adjustment
2 | THEORETICAL PERSPECTIVE
has rarely been done (Okpara, 2016). The search for factors determin-
ing expatriate adjustment in such locations via this work is therefore
2.1 | Institutional distance in international business
appropriate and contributes significantly to the international human
resource literature. This contribution is also in response to Yang and An essential contextual framework serves as a theoretical foundation
Konrad (2011) who advocate for an institutional lens to explain ques- for this study is the institutional theory (Scott, 1995, 2014). Institu-
tions on areas of diversity since the institutional environment is very tional theory can be used to examine the effects of a foreign cultural
heterogeneous. environment where expatriates are expected to become new mem-
Second, MNCs have often been described as multilingual organi- bers. The three pillars used to dissect this issue on a specific environ-
zations (Luo & Shenkar, 2006). This presupposes the importance of ment are a set of regulatory, normative, and cognitive institutions in a
host country culture and cross-cultural communication as critical fac- given country (Scott, 1995). The regulatory component of an institu-
tors or basis of expatriates’ successful adaptation and adjustment in tional environment reflects the existing laws and rules in a particular
divers and distant subsidiary locations (Abugre, 2018). This work con- national environment promote certain types of behaviors and restrict
tributes to the international business field by examining these two others (Kostova, 1999, p. 314). The normative component reflects the
variables whether they can serve as foundations to determine expatri- values, beliefs, norms, and assumptions about human nature and
ate adjustment in distant institutions. This will undoubtedly extend human behavior held by the individuals in a given country. The cogni-
the institutional distant and expatriate adjustment theories of cross- tive component reflects the widely shared social knowledge and cog-
cultural communication and host country culture dimensions of inter- nitive categories (e.g., stereotypes) influence the way a particular
national business. Thus, we build on Lisak, Erez, Sui, and Lee's (2016) phenomenon is categorized and interpreted (Kostova & Roth, 2002).
suggestion fostering team shared communication inclusion is stronger This study, however, focuses on the normative and cognitive catego-
for teams with perceived higher cultural diversity and team communi- ries of institutional distance as appropriate foundation to the work.
cation inclusion positively affects multicultural team innovation. Thus, the home culture comprising values, norms, human behavior,
Third, although there have been some empirical studies conducted and the widely shared social knowledge and cognitive categories influ-
on expatriate adjustment, empirical development showing the dimen- ence location as country-specific serve as our institutional distance.
sions or how factors affecting cross-cultural adjustment of expatriates This suggests the need to distinguish between home and host country
in Sub-Saharan African Institutions has not been advanced since the specifics across institutional environments. The reason is institutions
initial work of Black (1988) and his contemporaries (Caligiuri, 2000). In with business practices differ in operations between host and home
fact, adjustment as an important facet of international human countries (Peng, Wang, & Jiang, 2008), hence differences between a
ABUGRE ET AL. 3
developing market and an advanced market on institutional dimen- adjustment problem. Expatriate Adjustment can be defined from two
sions are very visible. Consequently, high levels of home-host country perspectives. The first is the degree of psychosocial adaptation of the
difference impede the subsidiary's ability to interpret local cultures, expatriate to the new culture he has been sent to work. The second
norms, and rules, resulting in higher relational and transaction costs perspective defines it as the effectiveness of the expatriate on the
(Henisz & Delios, 2002). assignment measured by his productivity and work success (Black,
On the contrary, Stahl et al. (2016) argue the IB literature has 1988; Edmond, 2002).
overemphasized the negative side of distance and differences come Black and Stephens (1989) identified three significant facets of
with greater liabilities without portraying its benefits too; and this hin- expatriate adjustment: work, general, and interaction. According to
ders our deep understanding of institutional distance. Therefore, there them, work adjustment refers to the expatriate's psychological com-
is a need to widen the lens of distance and foreignness of interna- fort in relation to the job tasks of the foreign assignment. General
tional business. As a result, Edman (2016) highlights the dual nature of adjustment addresses the general living conditions and culture of the
distance and foreignness in terms of its ability to offer both benefits foreign country. Interactional adjustment focuses on the interaction
and shortcomings to MNCs. He goes further to reconcile the advan- with the host country nationals (Kraimer, Wayne, & Jaworski, 2001).
tages and liabilities of foreignness by presenting a framework furthers Subsequently, Andreason (2003) proposed five factors which influ-
our knowledge on when and how foreignness influences MNC subsid- ence the three facets of adjustment by Black and Stephens (1989).
iaries (Edman, 2016). Andreason's (2003) five factors are (a) job factors, (b) organizational
Notwithstanding these arguments, extant, and conventional litera- factors, (c) positional factors, (d) nonwork factors, and (e) individual
ture has it that institutional environment is a key determinant of firm factors. Job factors refer to a specific set of tasks and duties per-
structure and behaviors (DiMaggio & Powell, 1983). Therefore, formed by an expatriate. Organizational factors include organizational
national-level institutional conditions represent pivotal factors for dif- culture novelty and social support from co-workers and superiors.
ferentiating the behaviors of host versus home country MNCs (see Positional factors are concerned with the hierarchical placement of an
Dunning & Lundan, 2008). Thus, the lack of understanding of the expatriate within the firm, the functional area the expatriate works
institutional makeup of a host country can have serious effect on the for, and his/her nationality or origin. Nonwork factors include culture
survival and operations of international businesses. MNCs are thus novelty and spouse/family adjustment. Finally, individual factors are
encouraged to be fully aware of the cultural and intuitional systems of centered on five sets: achievement self-efficacy, social self-efficacy,
host nations they seek to operate in Wafler and Swierczek (2013) and relational and perceptual skills, previous international assignments,
Zheng, Yan, and Ren (2016). This will go a long way to help in easy and language fluency. All these factors are embedded in the sociocul-
adaptation and avoid several operational, cultural, and regulatory tural character of the institution which requires cross-cultural knowl-
problems (Sharma, Lindsay, & Everton, 2015; Wafler & edge, skills, and competencies of the environment (Abugre, 2016).
Swierczek, 2013). Additionally, institutional distance can lead to uncertainties caused by
Thus, institutional theory has emerged as an important theoretical unpredictable behaviors of home country agents (Xu et al., 2004), and
foundation for research on multinationals and expatriate adaptation this can cause psychological problems to expatriate adjustment. This
strategies in emerging economies, along with transaction-cost and is why distant institutions need to be investigated in relation to
resource-based views (Hoskisson, Eden, Lau, & Wright, 2000). A key adjustment of expatriates for appropriates strategy adaptation
characteristic of emerging economies particularly those in sub- of MNCs.
Saharan Africa is the complexity of the environment resulting from
multilingual and diverse cultural and ethnic configuration (Abugre,
4 | HOST COUNTRY CULTURE AND
2018) which requires enormous learning in order to facilitate adapta-
EXPATRIATES ADJUSTMENT
tion and adjustment. Therefore, institutional theory can provide a
framework to investigate the determinants of expatriate adjustment
Culture is a challenging phenomenon to define. According to Kroeber
in subsidiary locations.
and Kluckhohn (1985), the problematic and challenging nature of cul-
ture renders the concept to as many as 164 definitions in the cultural
3 | INSTITUTIONAL DISTANCE AND literature. Nonetheless, in generic terms, Hofstede (1991) describes
EXPATRIATE ADJUSTMENT culture as the collective programming of the mind differentiates the
members of a group of people from another. Consequently, the
Institutional distance provides different interpretation for expatriate human mind is programmed through the unique cultural beliefs and
behavior and adjustment. Expatriate adjustment describes the suc- values which are absorbed by the individuals of a community at a ten-
cessful adaption process of an individual to his social and work behav- der age (Samovar & Porter, 1995), and they grow up with them. This
ior in a foreign culture. Generally, due to the distant and newness of is why each country or community is unique and its people behave
the environment in which the expatriate has been assigned to work, differently from others as their home cultural system differ widely
there can arise a problem of adaptation or acculturation usually from others. Thus, the link between host country culture and expatri-
referred in international human resource literature as expatriate ate behavior has always been a subject of interest to international
4 ABUGRE ET AL.
business researchers (Black, 1988). The reason is that local knowledge communication styles between expatriates and indigenous employees
in developing countries differs significantly from corporate knowledge of the subsidiary can sometimes cause expatriates to incorrectly con-
held by expatriates, and these variations in knowledge behaviors clude they disagree on substantive issues with the indigenous
determine the critical importance of expatriate adjustment and busi- employees and thus, negatively influencing expatriate behavior in the
ness performance (Li & Scullion, 2010) in the subsidiary. Additionally, subsidiary location. Consequently, institutional theory suggests the
the geographical reach and inefficient administration system of major basis of group uncertainty and anxiety in work organizations
host country firms often make expatriates business activities practi- (Gudykunst & Hammer, 1988). The greater the distance between
cally impossible (Lord, 2002). To facilitate such socialization process it expatriates and local employees on cultural and communication differ-
is critically important that expatriates devote their efforts to develop- ences, the greater expatriates experience uncertainty and anxiety in
ing and maintaining “managerial ties with the host country culture relations to working with local employees in the subsidiary. Besides,
(Geletkanycz & Hambrick, 1997, p. 654)—‘executives’ boundary- cross-cultural differences in linguistic styles create uncertainty for
spanning activities and their associated interactions with the external multinational team members, and uncertainty is a source of stress
entities” or the distant institutions. (Gudykunst & Hammer, 1988). Adjustment of expatriates, in this case,
Therefore, host country culture is the most influential construct can only be achieved through uncertainty reduction (Black, Menden-
defines locational and distant cultures and drive the process of a hall, & Oddou, 1991), as uncertainty reduction theory suggests emo-
successful international assignment, adaptation, and adjustment. tions and emotional awareness play a significant role in cross-cultural
Black (1988) explains the adjustment phenomenon as the perceived business communication (Berger, 1987; Gudykunst & Hammer, 1988).
degree of psychological comfort and acquaintance an individual As a result, Ozcelik and Paprika (2010) describe cross-cultural commu-
enjoys in working in a different culture. Hence, the significance of nication as inherently an emotional processes people because it
host country culture promotes and facilitates culture adaptation or involves a greater volume of uncertainty and the likelihood for misun-
learning and acquisition of social skills in the host culture (Searle & derstanding. Hence, Matveev and Nelson (2004) advocate for expatri-
Ward, 1990). The concept of sociocultural adjustment is based on ates’ cross-cultural communication competence in order to manage
cultural learning theory and calls for social behavior and social skills cross-cultural uncertainties with cultural empathy and interpersonal
emphasize attitudinal factors of the person (Black & Mendenhall, skills in distant institutions.
1991). Consequently, the ability of expatriates to recognize the Distant institutions are unfamiliar and create sociopsychological
institutional differences between MNC HQ (where they are coming uncertainty which the expatriate would try to reduce, especially with
from) and distant subsidiary locations (where they are assigned to) regard to expected new behaviors. Accordingly, and for more than
will encourage their ability to learn the host country culture in order three decades, cross-cultural researchers have focused on finding the
to facilitate their adaptation and adjustment in the subsidiary essential skills for expatriates’ adjustment and success in their interna-
location. tional assignments (Black et al., 1991). Thus, exploring the relationship
Hence, we hypothesize: between cross-cultural communication and expatriate adjustment is
very important in international business (Abugre, 2016). This is
H1: Host country culture will significantly determine because the psychological adjustment of expatriates in foreign subsid-
expatriate adjustment in distant subsidiary institutions. iaries suggest expatriate adaptation to subsidiary behaviors are
embedded in how competent they can interact to solve managerial
5 | CROSS-CULTURAL COMMUNICATION issues in the subsidiary. Hence, we hypothesize:
AND EXPATRIATE ADJUSTMENT
H2: Cross-cultural communication competence will signif-
Contextual complexities arise due to intense differences in cultural icantly determine expatriate adjustment in distant subsid-
values and understanding of the communicative behaviors of people iary institutions.
(Abugre, 2018). The interaction between individuals from different
cultures entails varied and distinctive communication styles, including 6 | CONTEXTUAL AND HISTORICAL
tone of voice, speed, volume, use of pauses, directness or indirect- BACKGROUND OF HOST INSTITUTION
ness, formality or informality, choice of words, the use of jokes, and (GHANA)
other manners of speech (Tannen, 1995). These linguistic styles are
culturally acquired and constitute the value systems, and they vary Ghana is an emerging economy with a free market system where
from culture to culture (Tannen, 1995), and thus explains the cross- businesses are expected to grow, develop, and become competitive
cultural differences in communication. through markets. After more than 100 years of colonial rule under
When expatriates are sent to distant or subsidiary locations, the the British monarchy, Ghana became the first sub-Saharan African
challenges of cross-cultural communication and understanding of the country to gain independence from her British colonial masters in
foreign work behaviors and demands can be the basis of expatriate 1957 hence, the official language of work is the English language
frustrations and maladjustment. This is because differences in inherited from the British. However, there are over 100 indigenous
ABUGRE ET AL. 5
languages spoken by the citizens. Ghana runs a constitutional 7 | METHODOLOGY AND RESEARCH
democracy known as the presidential system of governance and has DESIGN
been acclaimed the most stable nation in Sub-Saharan Africa (SSA)
and also adjudged global best performer in access to credit and place To meet the study objectives, this work used a mixed-methods
for doing business in West Africa (World Bank, 2011), thereby approach (Tashakkori & Teddlie, 2003), which is a procedure for gath-
strengthening the growth in her external investments inflows. ering and analyzing both quantitative and qualitative data within a sin-
Ghana possesses some 70% of West Africa's proven gold reserves gle study (Creswell, 2005). The significance of triangulating both
(Utter, 1993). The historical importance of mining in the economic quantitative and qualitative methods in a single research work is to
development of Ghana is significant and well documented, with the sufficiently capture the trends and details of complex issues in cultural
country's colonial name—Gold Coast—echoing the importance of the values and behaviors in distant environment. Thus, a combination of
mining sector. Gold dominates the mining sector and Ghana is Africa's quantitative and qualitative methods complements each other to pro-
second most important producer of gold after South Africa, the third vide a more rigorous and complete picture of the research problem
largest producer of manganese and aluminum and an important pro- (Johnson & Turner, 2003; Tashakkori & Teddlie, 2003). This is
ducer of bauxite and diamonds (Coakley, 1999). Additionally, more because, to understand the world better, we need both numbers and
than 50 foreign companies have invested in the upstream sector of words to appreciate our complex context (Miles, Huberman, &
the country's fresh oil industry (Yeboah, 2009). These foreign compa- Saldana, 2014).
nies include the US, Canada, UK, Australia, and Scandinavian oil com- Thus, our survey method began with sending a letter (with a
panies just to mention a few. Hence, the proliferation of MNCs and sample interview guide and questionnaire attached) to the Ghana
expatriates in the country. Investment Promotion Centre (GIPC)—this is the regulatory body
The country's political culture is vibrant with free speech amid supervises all multinational corporations in Ghana. The GIPC then
over 481 private FM radio stations and about 93 TV stations selected 23 MNCs with active expatriates in operations. This means
scattered all over the country broadcasting in the numerous indige- the GIPC conveniently selected MNCs had consistent and sustained
nous languages. With the numerous tribes and indigenous lan- number of expatriates actively working in Ghana. The aim was to
guages, Ghanaians place strong values on the authorities of Chiefs make sure the selected MNCs had a number of expatriates cur-
as custodians of the various lands and cultures. Ghanaian cultural rently working to be part of the survey project. A cover letter from
principles are strongly respected even within corporate organiza- the GIPC was then attached to our initial letter requesting permis-
tions with values-oriented strongly toward respect for leadership sion to undertake the study to the respective HR managers of the
selected MNCs. The letter specifically stated only expatriates are to
and the elderly. Consequently, the cultural values around families,
complete the questionnaires and, also demanded an interview
communities, hierarchy, and social relationships have influenced
schedule with either the HR manager or the managing director if
human resource management practice in Ghana (Aryee, 2004). This
they were expatriates. Hence, the target population in this study
political culture portrays interconnectedness where people are
was all expatriates working in Ghana in the selected (by GIPC)
intrinsically interwoven within the social fabric of communality.
MNC subsidiaries.
Additionally, the society is rooted in a tribal system, which influ-
Accordingly, the questionnaires were given to the HR managers of
ences the perceptions and interpretation of power. This is
the various MNC subsidiaries in Ghana, who then distributed the
manifested in highly centralized organizations, the minimization of
questionnaires to all their expatriates to which the researcher was to
autonomy at lower levels of hierarchies, and the prioritizing of orga-
come back in 2 months' time for collection of the completed question-
nizational relations over strong performance orientation (Blunt &
naires. The involvement of the HR managers in the survey made the
Jones, 1997). Thus, it is evidently a difficult situation for expatriates
data collection easier and effective as they facilitated the accomplish-
who are from individualistic cultures to enter into these close-knit
ment of our target. Additionally, some HR managers of the exploration
Ghanaian relationships without the understanding of such complex companies demanded the researcher's email address and soft copy of
institutions. Because, institutional distance does not only describe the instrument to be sent to those expatriates in off-shore operations
challenges to establish legitimacy, but it also provides opportunities and the mines. Thus, for the survey data, while the majority of the
to leverage differences in the institutional environment between completed questionnaires were obtained from the respective HR
the host nation and home country (Martin, 2014); since home coun- managers, a few were mailed directly to the researcher by the expatri-
try characteristics interact with institutional distance in different ates who work in offshore oil-fields and in the mines. Therefore, from
ways when influencing decision-making of MNCs in developing 250 expected potential expatriate participants, 204 responded
countries (Liou et al., 2017). Consequently, Abugre (2016, p. 138) (Table 1), which constituted a response rate of 81.6%.
affirms “the multiplicity of African cultures and the communicative Reliability and validity of the survey scales and items were
behaviors of local staff certainly impact on sub-Saharan business established, using descriptive statistics, discriminant validity test and
operations, and global managers have to appreciate the possibilities internal consistency reliability indexes (confirmatory factor analysis
of the African people” in doing business. and Cronbach's alpha, item-total correlation and corrected item-total
6 ABUGRE ET AL.
TABLE 1 Nationalities of quantitatively sampled expatriate respondents
Western expatriates
Nationality USA British Australians Canadians French New Zealand Spanish Germans Swedish Irish Danish
Sample size 42 36 11 11 8 6 5 4 2 3 2
Asian expatriates
Nationality Indian Pakistanis Bangladeshi Sri Lankan
Sample size 7 3 1 1
South American expatriates
Nationality Brazilians Guatemalans Paraguayans Uruguayans
Sample size 2 1 4 3
Middle and Eastern European expatriates
Nationality Lebanese Albanian Uzbekistani Other third-country nationals
Sample size 5 1 1 45
Demographic characteristics of expatriates
Males Females Married Unmarried Divorced Living with family in Ghana unaccompanied by family
179 25 149 44 10 73 127
correlation), as well as inter-item correlations and factor analysis. TABLE 2 Confirmatory factor analysis (CFA) results
This rigor is meant to enhance the quantitative aspect of the Variables loading T-value
empirical work.
Host country culture (α = .659, CR = 0.674,
AV = 0.650)
8 | QUANTITATIVE PHASE OF THE STUDY I recognize differences in cultures between local 0.435
staff and myself in this company
8.1 | Data collection and measurement of scales I am willing to be open to the cultural differences in 0.809 5.29
this company
First, the quantitative phase involved a cross-sectional survey design I am willing to display patience with actions of local 0.651 5.131
to collect information from expatriates in the various subsidiaries staff due to cultural uncertainties
MNCs in Ghana. The core survey items formed 7-point Likert type Cross-cultural communication (α = .680, CR = 0.706,
scale. The measures related to subsidiary host culture, cross-cultural AV = 0.617)
communication, and expatriates’ adjustment. Table 2 presents the sur- I am conscious of my own cultural condition when 0.479
vey items measuring each variable, as well as reliability indexes for communicating with local staff
each subscale. First, the survey items on host country culture were Increase interaction with local staff enables me to 0.713 5.568
understand better their culture
adapted from the predeparture knowledge of host country scale by
Competence in host country norms is important for 0.590 5.187
Black (1990). (Response format: 1 = strongly disagree to 7 = strongly
my career growth
agree). Second, the survey items on cross-cultural communication
Host country communication competence facilitates 0.660 5.44
scale were adapted from the cross-cultural communication compe- cross-cultural information flow
tence (CCC) questionnaire based on the 3C Model (Matveev, Rao, & General adjustment (α = .776, CR = 0.821, AV = 0.665)
Milter, 2001). The wordings were however modified to fit into the My adjustment in this company 0.744
study context, and the response format was 1 = strongly disagree to
My interaction with local staff 0.734 9.619
7 = strongly agree. Third, expatriates’ adjustment items were based on
My job and responsibilities 0.657 8.646
expatriate managers’ adjustment to (1) work roles (2) interacting with
Working with local staff 0.770 10.041
host nationals, and (3) the general work relationship with host
Social interaction outside work 0.609 8.025
nationals (Black, 1988). The response format was: 1 = very dissatisfied
Training effectiveness 0.403 5.29
to 5 = very satisfied. Two professors teaching international manage-
ment in the university were used to secure the content validity of the
survey instrument. Based on the pilot testing, some survey items were
revised slightly. The control variables were measured as follows: gender (coded
Control variables: Four control variables (gender, marital status, 0 = Female, 1 = Male), marital status (coded 1 = married, 2 = Not mar-
family status, and accompanied by family) were included in the ana- ried, 3 = divorced), family status (1 = Yes, 2 = No), and accompanied
lyses to cater for alternative explanations for significant relationships. by family (1 = Yes 2 = No).
ABUGRE ET AL. 7
9 | QUANTITATIVE DATA ANALYSIS 9.1 | Findings from the quantitative strand
The survey results used SEM as the central tool for investigating the
Both univariate and multivariate statistical procedures were used to
study hypotheses (H1 and H2). Our quantitative survey results
analyze the survey data. Specifically, the use of structural equation
showed the hypothetical model perfectly fits the data (see Table 5).
modeling (SEM) to determine how the individual factors predicted the
Consequently, we tested our study hypotheses, that is, H1: Host coun-
observed variables of the study. Thus, before testing the hypotheses,
try culture will significantly determine expatriate adjustment in distant
confirmatory factor analysis was conducted on general adjustment
subsidiary institutions and H2: Cross-cultural communication compe-
(GA), host country culture (HC), and cross-cultural communication
tence will significantly determine expatriate adjustment in distant subsidi-
competence (CCOM) as items used in the survey. Table 2 contains the
ary institutions. The test results, in Table 5 and Figure 1, show host
results of a confirmatory factor analysis of the observed variables. The
country culture is found to be a significant determinant of expatriates’
use of Cronbach's alpha (α), construct reliability (CR), and average vari-
general adjustment (β = .79, t = 9.07, p < .001). Additionally, cross-
ance explained (AVE) were employed to examine and strengthen the
cultural communication is found to be a significant determinant of
reliability and validity of the scales. Results indicated the Cronbach's
expatriate adjustment (β = .29, t = −3.33, p < .001). Accordingly, both
alpha and construct reliability coefficients were above 0.65; whereas
hypotheses are supported as strong determinants of expatriate adjust-
AVE were within the 0.5 acceptable thresholds. Thus, the reliability of
ment in distant subsidiary locations. With regards to the control vari-
the scale was confirmed fit for the study. Additionally, construct valid- ables, none was found to be significant and therefore, all control
ity was achieved by making sure only items loaded well on the scales variables (gender, marital status, having family and accompanied by
were used while, discriminant validity was tested by comparing the the family to distant location) did not have influence on the predictor
square root of the AVE coefficients with the highest correlation of variables.
specific constructs (Table 2). The results also show the number of
items retained under each construct thus making sure common
method bias (CMB) was taken care of. The issue of CMB is further 10 | QUALITATIVE PHASE OF THE STUDY
enhanced by employing the qualitative interview of senior executive
10.1 | Qualitative research design and sample
informants which is used to triangulate the quantitative data to offer
a better clarification of study findings. The Goodness of Fit Indices of The qualitative phase involved an in-depth face-to-face interview with
the variables has all met the recommended threshold for analysis (see 21 senior expatriate executives. These executive informants were
Table 3). drawn from the 23 MNCs list given to us by the GIPC. Information
Additionally, Table 4 presents the correlation results of the means, gathered from the interviews constitute an essential aspect of this
standard deviations, and inter-correlations among variables of the work and considered a wide array of contextual factors inherent in
study. From Table 4, expatriate's general adjustment correlates institutional distance and adjustment of expatriates. Also, the poten-
strongly and positively with host country culture (r = .57), and with tial impact of organizational-level control on the role of cross-cultural
cross-cultural communication competence (r = .77). communication and host country culture of subsidiary MNCs were
TABLE 3 Fit indicators of the structural model of the study
Indicators CMIN/DF C.F.I G.F.I PClose SRMR TLI IFI RMSEA
Study values 1.682 0.976 0.976 0.187 0.057 0.937 0.977 0.058
Appropriate level <5 ˃0.90 ˃0.95 ˃0.05 <0.08 ˃0.90 ˃0.90 <0.06
TABLE 4 Correlation matrix across latent variables
Variables Mean SD 1 2 3 4 5 6 7
1 Gender 1.12 0.32 1
2 Marital status 1.85 0.51 −0.25** 1
3 Family status 1.36 0.57 0.17* −0.30** 1
4 Accompanied by family 1.66 0.57 0.11 −0.18* 0.65** 1
5 Host country culture 3.40 0.33 −0.03 0.16* 0.01 −0.06 1
6 CC. Communication 4.27 0.44 −0.10 0.07 0.06 0.04 0.77** 1
7 General adjustment 3.85 0.44 0.04 0.09 −0.08 −0.12 0.57** 0.31** 1
Note: **.01, *.50 (two-tailed).
8 ABUGRE ET AL.
key determinants of the objectives of this work. Hence, informants total of six open-ended questions explored the major determinants of
for the interview were mainly very senior-level expatriate executives expatriates’ adjustments factors in a sub-Saharan Africa business envi-
in the respective MNCs. The empirical data were accessed through ronment. The explored questions included: the significance of cross-
the experiences and interactions narrated by all informants and cultural communication to expatriate work in distant institutions, key
recorded using a semi-structured interview guide. The demographic determinants of expatriates’ adjustment in multicultural context, host
characteristics of participants are located in Table 6. country communication competence and expatriate adjustment, host
country culture and expatriate adjustment, the importance of training
in cross-cultural communication, and host cultural values.
10.2 | Interview protocol development
The content of the interview protocol was grounded in the quantita- 11 | PROCEDURE AND DATA ANALYSIS OF
tive results from the first phase of the study. Because the aim of the THE QUALITATIVE INTERVIEW
qualitative phase was to explore and elaborate on the results of the
statistical tests (Creswell, Plano Clark, Gutmann & Hanson, 2003), our The informants in this study were required to offer the description of
goal was to understand how the predictor variables can differently their day-to-day experiences of working with the indigenous staff in
contribute to the determinants of expatriates’ adjustment in distant the subsidiaries relative to cross-cultural interactions and the host
and complex subsidiaries like those of sub-Saharan Africa. Hence, a country culture in their workplaces in as much detail as they wished
to share. As a result, the informants shared their lived experiences
with the interviewer through audio interviews. Each taped interview
TABLE 5 Model output on standardized regression weights
lasted between 30 min to 1 hr 20 min. The advantage of recording
(β) estimate T-values p responses of participants with an audio-taped is the researcher can
Controls engage in long conversations and concentrate on listening and analyz-
Gender 0.039 0.675 .5 ing what was being said without having to worry about taking notes
Marital status −0.034 −0.566 .571 (Sacks & Jefferson, 1992). The taped interviews were transcribed one
Family status −0.068 −0.897 .37 after the other from each of the 21 subjects, and the significant state-
Accompanied by family −0.021 −0.28 .78 ments extracted from these transcriptions became the relevant infor-
Path mation for this study for analysis. From the transcriptions, meanings
CC. Communication −0.292 −3.331 *** were formulated from these significant statements. The formulated
! G adjustment meanings were arrived at by reading, rereading, and reflecting upon
Host C. culture 0.794 9.067 *** the significant statements in the original transcriptions to get the true
! G adjustment
meaning of the informants’ statements. The aggregated formulated
Note: ***.001 (two-tailed). meanings which emerged from the transcripts were then organized
Host country culture 
.79 e1 
.1 
.37 
.77 
General Adjustment 
.29 
.02 
Cross-cultural Communication 
.07 .03 
.04 
.17 Accompanied by family 
Family Status 
.65 
.18 
Marital Status 
Gender 
.11 
.25 
.30 F IGURE 1 Direct path
relationship of construct
ABUGRE ET AL. 9
TABLE 6 Demographic
Informant Position of interviewee in MNC Gender Years in Ghana Country of origin
characteristics of interviewed
respondents Informant 1 Vice-president-HRM Male 3 years Canada
Informant 2 V.P. transformation Male 2 years South Africa
Informant 3 Group director-HRM Female 5 years USA
Informant 4 Director HRM & Operations Male 5 years UK
Informant 5 Vice-president-HRM Male 2 years USA
Informant 6 Regional manager- HR Female 6 years USA
Informant 7 Director-Finance & Admin Male 3 years USA
Informant 8 Plant manager Male 4 years South Africa
Informant 9 Managing director Male 8 years France
Informant 10 General manager Male 2 years Lebanon
Informant 11 Regional policy advisor Male 2 years Kenya
Informant 12 Regional economist Female 2 years Burkina Faso
Informant 13 BOC manager Male 2 years Paraguay
Informant 14 Senior manager-CT Male 9 years Germany
Informant 15 Reg. Commercial manager Male 2 years Tunisia
Informant 16 Head of credit Male 7 years UK
Informant 17 Head business support & CR Male 2 years UK
Informant 18 Head fixed-income trading Male 5 years Wales
Informant 19 Senior operations officer Male 6 years Bangladesh
Informant 20 Managing director Female 3 years USA
Informant 21 Brands manager Male 4 years Germany
into categories of themes which were common to all the subjects’ expatriates’ adjustment in MNC subsidiaries in sub-Saharan Africa
descriptions. These are expatriates’ general adjustment, significance as follows.
of cross-cultural communication to expatriate adjustment in distant
subsidiary, and significance of host country culture to expatriate
adjustment in distant subsidiaries. 12.2 | Host country culture and expatriates’ general
adjustment
11.1 | Validation of the qualitative data Statements from all the 21 senior expatriate executives confirmed the
importance of host country culture as critical determinants of expatri-
The categories were referred to the original descriptions in order to
ates’ adjustment in the subsidiary. The reason is the differences in
validate them. A further validation of the categorized data was under-
applying the culture and background of people in a particular location
taken by contacting some of the participant-informants since it was
is prerequisites in expatriates’ understanding of the local people and
very difficult to contact all of them again. Seven of the total sampled
their value systems and consequently adjusting fully in that environ-
participant-informants were revisited while the other eight were con-
tacted through telephone (telephone numbers and email addresses of ment. Host culture and its value systems are very significant lessons
participants were collected by the interviewer during the interviews). to be learned by strangers in order not incur the displeasure of the
This was done to facilitate feedback if the descriptions formulated val- inhabitants or the local people. When strangers and for that matter
idated their initial experiences in which they agreed. expatriates go contrary to the cultural norms of host country, the con-
sequences can be disastrous to both expatriates and their company as
they (expatriates) are likely to be alienated by the indigenes. You can
12 | STUDY RESULTS
only adjust well in an environment when you are accepted by the
indigenous people, and this can facilitate your work performance.
12.1 | Findings from the qualitative strand
Thus, majority of the interviewees suggested the need for expatriates
From the 21 interviews on institutional distance and expatriate to be trained in the specific host country culture in order to facilitate
adjustment, several many significant statements were extracted, but their understanding of the work behaviors and attitude of local
the analysis of these significant statements revealed two major clus- employees in order to adjust well in the community. Expatriates would
ters of themes captured the importance of the determinants of perform better if they adjust their own attitudes and adapt
10 ABUGRE ET AL.
successfully to the host culture and behaviors of the community. This compared to others, and this will help you adjust well
is noted by Informant 20 in the following quotation: in the system.
There is a host culture, and there is an expatriate's cul- Likewise, Informant 17 opined:
ture, and all two are different. So yes, for an expatriate to
adjust well and succeed in his/her work in Africa, he/she If you have cross-cultural communication competence,
must learn from the ground and it's not only a training you will get things done faster and in time. The disadvan-
that has to happen in the classroom. It's a training that tage of not having it is that, you can antagonise every-
has to happen in the expatriate's own heart, it's a training body and, in the process, get nothing done, and it works
that the expatriate in a distant environment has to desire both ways for the expatriate and the local staff. If you
or force himself to want to leave. don't have cross-cultural communication competence you
can bring negative energy into the team, if you have it
Also, Informant 16 eloquently illustrated this as: you can positively contribute to your own adjustment in
the locality and the overall organizational development.
Experience has shown that expatriates may have all the
technical knowledge and skills for a particular role but Also, Informant 13 said:
they are not always successful in their job role. Usually,
when they come into the new environment they typically The benefit of cross-cultural communication competence
find their performance slump in the initial stages and is that you can have more confidence in yourself, and you
either they come out of the slump and become extremely can understand more of the people. Because we are
positive contributors, or they remain in the trough. It is human beings and we need each other at least here in life.
not because they don't know their jobs, it's because they Therefore, understanding each other especially during
see the host country as a distant institution from theirs work would give an advantage to the company; because,
and are therefore unable to adapt to the environment due the expatriate is able to adjust well from the competence
to cultural differences. acquired from cross-cultural communication.
12.3 | Cross-cultural communication competence By and large, the degree of expatriates’ interaction with colleagues on
and expatriate general adjustment the amount of information that is effectively shared will depend on
the expatriates’ cross-cultural communication competence. To the
The interview conversations of the respondents demonstrated ade- expatriate, cross-cultural communication is crucial, and its compe-
quately cross-cultural communication competence of expatriates is tence is critical in all aspects of international business and culture.
very instrumental in their overall adjustment for subsidiary opera- Understanding the components of cross-cultural communication is
tions, as it helps expatriates to build rapport with local staff and what will make international assignment easier, better, and in the long
improves expatriate's effectiveness in the location. The results also term will hopefully benefit the MNC.
showed cross-cultural communication competence is what gets
expatriates to fully understand the local environment about the
13 | DISCUSSION OF FINDINGS
culture of the people around them. The interviewees considered
cross-cultural communication competence of an expatriate as an
The purpose of this study was to investigate the critical determinants
advantage to the MNC because expatriates would benefit from
of expatriates’ adjustments in distant and complex multinational sub-
better communication, better teamwork, and consequently able to
sidiaries. Consequently, the work examined the extent to which host
work better with local staff leading to their overall adjustment.
country culture and cross-cultural communication could yield value to
This is articulated vividly through the words of Informant 9 as
international business as critical determinants of expatriates’ adjust-
follows:
ment. Using two strands of empirical results thus quantitative and
There are many advantages of cross-cultural communi- in-depth qualitative analysis, we found host country culture plays a
cation competence of expatriates. An advantage is that significant role in determining expatriate adjustment in distant subsidi-
you are able to read and interpret the messages of the aries. Generally, the findings indicated cultural behaviors of subsidiary
environment. So, you have a better understanding of host nations are significant determinants of expatriates’ general
how the society is organized in order to avoid simple adjustment (β = .79, t = 9.07, p < .001). This is complemented by the
mistakes that would not help you adjust well with the qualitative findings which explained further host country culture is a
indigenes. Cross-cultural communication competence very significant lesson for expatriates to adjust well with the local
also enables you understand the local codes and the employees and the host community. Second, findings from the study
environment, yes, and this gives you a lot of advantages indicated expatriates’ competence in cross-cultural communication in
ABUGRE ET AL. 11
subsidiary host nations is a significant determinant of expatriates’ Finally, the geographic focus of this study—Ghana, an emerging
adjustment (β = .29, t = −3.33, p < .001). This finding is equally com- country contributes significantly to the global strategy of multina-
plemented by the qualitative results which explained further and, in tional institutional distance in emerging economies and complex sub-
more detail, that cross-cultural communication competence of expa- sidiaries. The fact that most international studies focus on the
triates is very instrumental in their overall adjustment in host subsidi- Western context at the neglect of Africa and other scarce areas is at
ary locations, as it helps expatriates to build rapport with local staff odds with effective institutional distance debate and thereby draws in
and improve expatriate's effectiveness in understanding contextual the neglected region of management scholarship (Walsh, 2015). As
value systems in the location. “context matters in global strategy” especially in locations and institu-
tions that have received limited attention in the past (Mol et al., 2017,
p. 3). This study undoubtedly contributes to multinational institutional
13.1 | Contributions of this work
distance strategy and offer new insights to the theory that responds
The contribution of this work is fourfold. First, our findings on host to the widening of cross-cultural lenses and the polycontexturality
country culture as an important determinant of expatriates’ adjust- debate (Von Glinow et al., 2002).
ment make a significant contribution to the international human
resource literature. Not only does the study illustrate host country 13.2 | Theoretical and management implications
culture determines expatriate adjustment but also the impact of dis-
tant cultures that are often complex in nature like those of Ghana and There are several implications for the study findings. Theoretically,
sub-Saharan Africa due to the multiplicity of cultural and linguistic the study offers evidence on the significance of host country culture
characteristics (Abugre, 2016; Jackson, 2004). Hence, a contribution as critical determinants of expatriates’ adjustment and suggests expa-
to expatriate knowledge and behaviors to assignments in distant loca- triates ought to have training in host country culture particularly those
of distant and complex host subsidiaries which depict great variations
tions. This finding validates Ward and Kennedy (1996) and Searle and
from those of expatriates’ home culture. Accordingly, the contribution
Ward (1990) who suggested cultural values as important facilitator to
of this work theorizes that host country culture is associated with the
expatriate adaptation. However, this study goes beyond this to
institutional distance which explains MNCs should seek local knowl-
emphasize the significance of host country culture which the host cul-
edge and legitimize their effective operations in the host country cul-
tural values are embedded in. Hence, this finding suggests when expa-
ture by adopting to practices that are socially valuable within an
triates learn or adapt host country culture and behaviors, they
institutional field. By this, norms such as culture, place of gender, sex-
enhance their general conduct in the local community where they
ual orientation and hierarchical relationships, what is acceptable and
work, and this also improves their understanding of the indigenous
what is supposed to be avoided are learned.
people leading to improved communication, and a healthy relationship
Second, this work provides empirical evidence on cross-cultural
with the local staff. This promotes team-member and team-shared
communication as an important antecedent of expatriate adjustment
goals.
in distant locations and suggests MNCs must reinforce and pay critical
The second contribution is that by examining the influence of
attention to host cultural symbolic meanings and understanding
cross-cultural communication, we extend the knowledge on MNCs as
through expatriates’ training in cross-cultural communication. The
multilingual communities (Luo & Shenkar, 2006) where parent and
absence of effective communication and interaction between expatri-
subunit functional languages are both significant to MNCs operations
ates and local staff leads to uncertainty and anxiety between the two
in distant locations. Accordingly, our contribution holds higher levels groups, and these can create mistrust and misattribution. However,
of information exchange will lead to better relationship between since institutional theory posit organizations operate within a social
expatriates and local employees and the vice versa. Thus, the degree framework of norms, values, and taken-for-granted assumptions
of expatriates’ cross-cultural communication competence relates to a about what constitutes appropriate or acceptable behavior (Scott,
strong expatriates and local employees’ relationship, particularly in 2014). Conformity to social expectations contributes to organizational
distant locations. The success of communicating and identifying with success and survival (DiMaggio & Powell, 1983). Hence, competence
local staff facilitates interpersonal relationship between expatriates in cross-cultural communication enhances both oral and nonverbal
and local staff which can lead to speedy adjustment of the expatriate. behaviors of distant institutions, and so develop high-quality relation-
Our third contribution extends international human resource liter- ship that offer many opportunities to adjustment.
ature on expatriate adjustment. This work thus extends the factors or A third theoretical contribution is the extension of the determi-
antecedents of expatriate adjustment by showing host country culture nants of expatriates’ adjustment literature. By providing evidence and
and cross-cultural communication are strong determinants of expatri- support on the two study hypotheses, and reinforcing the findings
ates’ adjustment. Hence, training of expatriates to acquire compe- through an intensive qualitative interview, this work has contributed
tence in host country culture and cross-cultural communication will to theory on the dimensions of expatriates’ adjustment.
give expatriates a much broader perspective on their job than before Finally, the study has touched on some managerial and practical
and make them now think honestly at a higher level in a global busi- implications for MNCs staffing strategies. First, this study implies mul-
ness embrace multiculturalism. tinational staffing capabilities in host country culture and competence
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14 ABUGRE ET AL.
Wafler, B. H., & Swierczek, F. (2013). Closing the distance: A grounded
theory of adaptation. Journal of Asia Business Studies, 8(1), 65–80. Dr. Karen Williams (bkwilliams55@outlook.com) is an Associate
Ward, C., & Kennedy, A. (1996). Crossing cultures: The relationship Professor of Comparative industrial relations and Human resource
between psychological and socio-cultural dimensions of cross-cultural management at Swansea University, UK. Her background is in lin-
adjustment. In J. Pandey, D. Sinha, & D. P. S. Bhawuk (Eds.), Asian con-
tributions to cross-cultural psychology (pp. 289–306). Thousand Oaks, guistics (German and French) and international relations. She com-
CA: Sage Publications. pleted her PhD in conflict resolution in the German and British
World Bank (2011). Doing business 2011: making a difference for Entre- manufacturing industry at the University of Surrey. Her research
preneurs Economic Community of West African States (ECOWAS). interests include the transfer of industrial relations strategies and
Retrieved from www.doingbusiness.org/subnational-reports/.
practices in multinational companies and the influence of different
Xu, D., Yigang Pan, Y., & Beamish, P. W. (2004). The effect of regulative
and normative distances on MNE ownership and expatriates strate- societal and organizationally based systems of industrial relations
gies. Management International Review, 44(3), 285–307. in the world of work.
Yang, Y., & Konrad, A. M. (2011). Understanding diversity management
practices: Implications of institutional theory and resource-based the-
Dr. Yaw Debrah (y.a.debrah@swansea.ac.uk) is Professor of
ory. Group & Organization Management, 36(1), 6–38.
Yeboah, S. (2009) Thirst for Nation's oil—Anticipating another battlefield? Human Resource and International Management at the Swansea
The Chronicle, 26th August 2010. Retrieved from http://ghanaian- University, UK. He writes on human resource issues in developing
chronicle.com/?p=5349. countries and also in international human resource management.
Zheng, Y., Yan, D., & Ren, B. (2016). Institutional distance, firm heteroge- His scholarly work has appeared in journals such as Human Rela-
neities, and FDI location choice of EMNEs. Nankai Business Review
International, 7(2), 192–215. tions, Journal of Applied Psychology, Journal of Organizational
Behavior, International Journal of Human Resource Management.
AUTHOR BIOGRAPHIES
Dr. James Abugre (jbabugre@ug.edu.gh) is a Senior Lecturer at How to cite this article: Abugre JB, Williams K, Debrah YA.
the University of Ghana Business School. He teaches human Dimensions of expatriates adjustment in distant subsidiaries: A
resource management and international business. He obtained his field study of a sub-Saharan African institutional distance.
PhD from the University of Swansea, and his research interest Thunderbird Int. Bus. Rev. 2019;1–14. https://doi.org/10.
covers human capital issues, international management of multi- 1002/tie.22105
national corporations, cross-cultural communication, and cross-
cultural management.