EXPATRIATE RETURN ON INVESTMENT

McNulty, Yvonne M., and Tharenou, Phyllis (2004) EXPATRIATE RETURN ON INVESTMENT. In: Academy of Management Conference Proceedings. From: Academy of Management Meeting, 6-11 August 2004, New Orleans, LA, USA.

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Abstract

[Extract] Clearly, obtaining a return on investment from long-term assignments is important. First, cost-reduction is one of the reasons MNCs use alternatives to xpatriation, including virtual team assignments and tele-working, short-term assignments, business trips, cross-border commuting, inter-regional travel, frequent flying, rotational assignments and host country nationals (HCNs) (Cendant, 2002; GMAC Global Relocation Services, National Foreign Trade Council, and SHRM Global Forum, 2001; GMAC et al., 2002; KPMG, 2003; PricewaterhouseCoopers, 2000, 2001). Yet MNCs still continue to use expatriate assignments (Mercer Human Resource Consulting, 2003; PricewaterhouseCoopers, 2002). Second, determining a return on investment is necessary to justify the continued use of long-term assignments. As Bonache, Brewster, and Suutari (2001) asserted, cost-effective alternatives are often available. Third, the continued reporting of expatriate assignment failures, with 44% of MNCs reporting failures in the Asia Pacific region and 63% reporting failures in Europe (Cendant, 2001), seems to indicate that the direct and non-direct costs associated with expatriation are substantial. It highlights the need to understand the return on investment from international assignments.

Item ID: 14954
Item Type: Conference Item (Refereed Research Paper - E1)
Date Deposited: 23 Nov 2010 06:32
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150308 International Business @ 100%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 100%
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