Dimensions, Determinants, and Differences in the Expatriate Adjustment Process

Author(s): Margaret A. Shaffer, David A. Harrison and K. Matthew Gilley

Source: Journal of International Business Studies , 3rd Qtr., 1999, Vol. 30, No. 3 (3rd
Qtr., 1999), pp. 557-581
Published by: Published by: Palgrave Macmillan Journals on behalf of Academy of
International Business.

Stable URL: http://www.jstor.com/stable/155465

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 Dimensions, Determinants, and Differences
in the Expatriate Adjustment Process

Margaret A. Shaffer*
THE HONG KONG POLYTECHNIC UNIVERSITY

David A. Harrison**
UNIVERSITY OF TEXAS AT ARLINGTON

K. Matthew Gilley***
OKLAHOMA STATE UNIVERSITY

We comprehensively test the Black, by large multinational firms. The

Mendenhall, and Oddou (1991)
model of the dimensions and deter-
minants of adjustment to interna-
tional assignments. We also
expand the model to examine two
individual factors (i.e., previous
assignments and language fluency)
and three positional factors (i.e.,
hierarchical level, functional area,
and assignment vector) as modera-
tors of adjustment determinants.
Surveys were completed by 452
expatriates from 29 different coun-
tries assigned to 45 host countries
multi-dimensionality of adjustment
was investigated and confirmed.
Support for the expanded Black et
al. (1991) model was found.
Several significant moderating
effects emerged, showing different
patterns of adjustment for those
with different amounts of pervious
expatriate experience and levels of
host country language fluency.
Hierarchical level and assignment
vector were also important modera-
tors, but the effects for functional
area were generally weak.

Expatriates represent a major invest- foreign assignments are at least three

ment for multinational corporations times the base salaries of their domestic
(MNCs). It has been estimated that the counterparts (Wederspahn, 1992).
first-year costs of sending expatriates on Sixteen to forty percent of assignments

*Margaret A. Shaffer is an assistant professor of management at the Hong Ko

Polytechnic University. Her research interests include expatriate adjustment and perfor-
mance and workplace aggression.
* David A. Harrison is a professor of management at the University of Texas, Arlingt
He studies work role adjustment, executive decision-making, time, and organizational
measurement.

K. Matthew Gilley is an assistant professor of strategic management at Oklahoma State

University. His current research interests include expatriate issues, outsourcing, and
corporate governance.

JOURNAL OF INTERNATIONAL BUSINESS STUDIES, 30, 3 (THIRD QUARTER 1999): 55 7-581. 557

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EXPATRIATE ADJUSTMENT
end in failure (Black, 1988), and costs
have risen from as much as $250,000 a
decade ago (Copeland & Griggs, 1985) to
$1 million per failure for U. S. firms
today (Shannonhouse, 1996). In spite of
these high costs, MNCs are increasingly
using expatriates, not only for tradition-
al control and expertise reasons, but
also to facilitate entry into new markets,
or to develop international management
competencies (Torbiorn, 1994).
Consequently, the effective management
of expatriate assignments is an impor-
tant challenge for international human
resource managers.
Of the many factors affecting the suc-
cess of international assignments, cross-
cultural adjustment has probably
received the most attention from
researchers. To guide this research,
Black, Mendenhall, and Oddou (1991)
developed an integrated model of inter-
national adjustment. Yet, most empiri-
cal studies of adjustment have focused
on a (small) subset of the hypothesized
antecedents; none have attempted to
test the full, a priori model for all
dimensions of adjustment simultane-
ously. Furthermore, extant studies have
generally assumed that the adjustment
process is the same for all expatriates.
Differences in the process or patterns of
adjustment for different types of expa-
triates and assignments have not been
explored. Finally, expatriate investiga-
tions have generally been limited to a
restricted number of locations and to
expatriates representing one nationality
(e.g., Black, 1988, 1990; Nicholson &
Imaizumi, 1993).
The purpose of this paper is to inves-
tigate the personal adjustment of a
multinational sample of expatriates liv-
ing and working in 45 countries around
the world. Using the expatriate adjust-
ment model developed by Black, et al.
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(1991) as a foundation, we first assess
the dimensionality of adjustment and
comprehensively test the adjustment
determinants proposed in their model.
We then extend our study to examine
the complexity of the adjustment
process by considering the moderating
effects of both individual adjustment
factors (previous assignment experience
and host country language fluency) and
positional characteristics (hierarchical
level, functional area, and assignment
vector).
LITERATURE REVIEW AND
HYPOTHESIS DEVELOPMENT
Integrating the international and
domestic adjustment literatures, Black
et al. (1991) proposed two major compo-
nents of the expatriate adjustment
process. The first component, anticipa-
tory adjustment, includes selection
mechanisms and accurate expectations,
which are based on training and previ-
ous international experience. The prop-
er level of anticipatory adjustment facil-
itates the second major component, in-
country adjustment. This component
consists of four main factors: job (role
clarity, discretion, conflict, and novel-
ty), organizational (organizational cul-
ture novelty, social support, and logisti-
cal help), nonwork (culture novelty and
spouse adjustment), and individual
(self-efficacy, relation skills, and per-
ception skills) factors. These differen-
tially influence three dimensions of
adjustment: work, interaction with
host country nationals, and general cul-
ture.
After discussing the dimensionality of
adjustment to an international assign-
ment, we consider the direct determi-
nants of the dimensions proposed by
Black et al. (1991). Building upon this
model, we explore the complexity of the
 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY

FIGURE 1

DETERMINANTS OF ADJUSTMENT TO INTERNATIONAL ASSIGNMENTS

JOB FACTORS
Role Clarity (1) POSITIONAL FACTORS
Role Discretion (1) Hierarchical Level
Role Conflict (1) Functional Area
Role Novelty (1) Assignment Vector

ORGANIZATIONAL FACTORS

Supervisor Support (1)

Coworker Support (1)
Logistical Support (2,3) EXPATRIATE ADJUSTMENT
(1) Work
(2) Interaction
NONWORK FACTORS (3) General

Culture Novelty (2,3)

Spouse Adjustment (1,2,3)

INDIVIDUAL FACTORS

Achievement Self-efficacy (1,2,3)

Social Self-efficacy (1,2,3)

aAdapted from Black, Mendenhall, and Oddou (1991); numbers in parentheses indicate the
dependent variables.

adjustment process by testing several country (socializing with host country

potential moderators. These relation-
ships are depicted in Figure 1.
Dimensionality of Adjustment
Expatriate adjustment has been
described by Black and his colleagues
(e.g., Black, 1988; Black & Gregersen,
1991b; Black et al., 1991) as having
three dimensions: adjustment to work
(job requirements), adjustment to inter-
acting with individuals in the foreign
nationals - HCNs), and general adjust-
ment to the foreign culture (living con-
ditions abroad). Exploratory factor
analyses (Black, 1988, 1990; Black &
Stephens, 1989) supported a multi-
dimensional adjustment construct for
American and Japanese expatriates. To
confirm these dimensions of adjustment
for our multinational sample, we pro-
pose the following:

VOL. 30, No. 3, THIRD QUARTER, 1999 559

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EXPATRIATE ADJUSTMENT
Hypothesis 1 Expatriate adjustment to
international assignments is a multi-
dimensional construct consisting of
three distinct factors.
Determinants of Expatriate
Adjustment
In this section, we discuss empirical
evidence related to the four factors pro-
posed by Black et al. (1991) as the direct
determinants of expatriate in-country
adjustment. Based on this evidence, we
hypothesize various effects of these fac-
tors on the different dimensions of
adjustment.
Job factors. Of the four job factors
specified by Black et al. (1991), all have
been found to be significantly related to
expatriate work adjustment. In a study
by Black and Gregersen (1991b), role
clarity, role discretion, and role conflict
were significant predictors of work
adjustment. However, evidence for role
novelty is inconsistent. Although
domestic studies of work-role transi-
tions (Munton & West, 1995) and an
expatriate study by Black (1988) do not
support the relationship between role
novelty and adjustment, Nicholson and
Imaizumi (1993) found role novelty to
be a significant predictor of work
adjustment for Japanese expatriates. To
test these four job factors, we propose:
Hypotheses 2a-b Role clarity (a) and
role discretion (b) will facilitate expa-
triate work adjustment.
Hypotheses 2c-d Role novelty (c) and
role conflict (d) will inhibit expatriate
work adjustment.
Organizational factors. Of the three
organizational factors identified by
Black et al. (1991), the only one that has
been empirically tested is that of logisti-
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cal support. In a study by Guzzo,
Noonan, and Elron (1994), expatriates'
judgments of sufficiency of employer
benefits and their perceptions of sup-
port were significant predictors of orga-
nizational commitment and intention to
quit. The other two factors, organiza-
tional culture novelty and social sup-
port, have not been studied empirically.
Although it seems likely that organiza-
tional culture novelty could affect expa-
triate adjustment, it was nearly impossi-
ble for initial subjects in the present
study to distinguish it from cultural
novelty in general. On the other hand,
social support, defined in terms of the
sources and quality of helping relation-
ships (Ganster, Fusilier, & Mayes, 1986),
does seem to be a unique and measur-
able factor. The relationship between
social support and stress has been stud-
ied extensively, and there is evidence
that social support acts as a stress buffer
(e.g., Cohen & Wills, 1985) and that it
has an indirect effect on strains such as
job dissatisfaction (e.g., Ganster et al.,
1986). To test the organizational fac-
tors, we propose:
Hypotheses 3a-b Higher levels of
social support from supervisors (a)
and coworkers (b) will facilitate expa-
triate work adjustment.
Hypothesis 3c Higher levels of logisti-
cal support will facilitate expatriate
interaction and general adjustment.
Nonwork factors. Both culture novel-
ty, which is the perceived distance
between the host and home cultures,
and spouse/family adjustment have
been found to be significantly related to
expatriate adjustment (Black &
Gregersen, 1991b; Black & Stephens,
1989). Just as role novelty is believed to
 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MArTHEw GILLEY
inhibit work adjustment, culture novel-
ty is expected to inhibit the other
dimensions of adjustment. Spouse/fam-
ily adjustment, which refers to the psy-
chological comfort experienced by the
spouse and children, has long been dis-
cussed as a potentially important influ-
ence on expatriate adjustment (Harvey,
1985). In a recent study by Arthur and
Bennett (1995), family situation was
rated by expatriates as the most impor-
tant contributor to successful interna-
tional assignments. Despite the poten-
tial influence of these family-related
factors, as well as others such as the
increasing number of dual-career cou-
ples (Harvey, 1997), spouse employ-
ment (Black & Gregersen, 1991a), and
the likely reciprocal effect of expatriate
adjustment on spouse adjustment
(Shaffer & Harrison, 1995), the effects of
spouse adjustment on expatriate adjust-
ment have generally been tested (e.g.,
Black & Stephens, 1989; Nicholson &
Imaizumi, 1993). These researchers
found that spouse adjustment was a sig-
nificant predictor of expatriate adjust-
ment. Thus, in keeping with the find-
ings regarding both of these nonwork
factors, we propose:
Hypothesis 4a Lower levels of per-
ceived discrepancy between host and
home cultures (i.e., less cultural nov-
elty) will facilitate expatriate interac-
tion and general adjustment.
Hypothesis 4b Higher degrees of
spouse adjustment will facilitate all
three dimensions of expatriate adjust-
ment.
Individual factors. According to the
Black et al. (1991) model, expatriate
adjustment is affected by three individ-
ual factors: self-efficacy, relation skills,
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and perception skills. Despite its inclu-
sion in the model and in transition
studies (Nicholson & Imaizumi, 1993),
self-efficacy, however, has not been
empirically tested as a predictor of
adjustment to international assign-
ments. Initially conceptualized as a
belief in a person's ability to succeed in
the enactment of a specific task
(Bandura, 1977), researchers have
recently explored the concept of general
self-efficacy, defined as "an individual's
past experiences with success and fail-
ure in a variety of situations which
should result in a general set of expecta-
tions that the individual carries into
new situations" (Sherer et al., 1982).
According to these researchers, there
are two dimensions of general self-effi-
cacy: one focuses on performance
achievements and another focuses on
interpersonal relationship development.
Because adjustment to international
assignments involves both dimensions,
we would expect high levels of achieve-
ment and social self-efficacy to facilitate
this process.
Several relational and perceptual
skills, such as willingness to communi-
cate, cultural flexibility, and social ori-
entation, have been found to be signifi-
cantly related to expatriate adjustment
(Black, 1990). Not only are such skills
difficult to measure, but they also tend
to vary across cultures (Harris & Moran,
1987). Therefore, for our multinational,
multi-location study, we include two
anticipatory adjustment variables (Black
et al., 1991) that are indicators of these
skills: previous international assign-
ment experience and host country lan-
guage fluency. With previous interna-
tional experience, relocation skills are
developed and these may facilitate
adjustment to a new assignment by
reducing uncertainty associated with the
EXPATRIATE ADJUSTMENT
move (Black et al., 1991). Fluency in the
host country language may also facilitate
adjustment by equipping individuals
with communications and perceptual
skills (Nicholson & Imaizumi, 1993). To
test the effects of these individual factors
on adjustment, we propose:
Hypotheses 5a-b Higher levels of
achievement (a) and social (b) self-
efficacy will facilitate all three dimen-
sions of expatriate adjustment.
Hypotheses 5c-d Previous interna-
tional assignments (c) and fluency in
the host country language (d) will
facilitate all three dimensions of
expatriate adjustment.
Moderating Relationships
An implicit assumption of the Black
et al. (1991) model is that it applies
equally well to all expatriates. As with
many theories of behavioral processes,
however, we think it is likely that some
of the factors that expatriates carry with
them to their assignments will moderate
some of the proposed relationships
(Howell, Dorfman, & Kerr, 1986). In
addition to the direct effects of previous
international assignment experience
and host country language fluency
described above, we also consider pos-
sible interactive effects of these vari-
ables, as well as three positional charac-
teristics (hierarchical level, functional
area, and assignment vector). Although
these variables are often important
selection criteria (Black et al., 1992;
Harvey, 1996), their role in the adjust-
ment process has not been systematical-
ly examined.
Individual factors as moderators.
Relocation skills acquired during previ-
ous overseas assignments might miti-
gate or enhance the impact of various
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adjustment antecedents by changing the
aspects of the assignment to which
expatriates direct their attention (Louis,
1980). Experienced expatriates are like-
ly to have gone through trial-and-error
processes of discarding ineffective cop-
ing strategies and retaining effective
ones. That is, previous experience may
change how expatriates adjust, by
allowing them to ignore what had not
worked for them in the past and to con-
centrate on what did (Russ & McNeilly,
1995). For example, first-time expatri-
ates may need more support from super-
visors or coworkers. On the other hand,
those who have had previous overseas
experience may be better able to with-
stand high levels of culture novelty.
Similarly, language fluency might
moderate the effect of the various
antecedents on adjustment (Bell &
Harrison, 1996). If expatriates are not
fluent in the host country language, cer-
tain inputs to their adjustment could be
weaker. For instance, a lack of fluency
might cause expatriates to rely more on
support from spouses or supervisors
(who likely speak the same language).
Because of the high degree of interac-
tion with host country nationals often
required in the work environment, we
would expect language fluency to
enhance the impact of role clarity and
discretion and diminish the impact of
role conflict and novelty. To examine
the moderating effects of these individ-
ual factors, we propose the following:
Hypothesis 6a Previous international
assignments has a moderating effect
on the relationship between the
antecedents (job, organizational, non-
work and individual factors) and the
dimensions of adjustment.
Hypothesis 6b Fluency in the host
 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY
country language has a moderating
effect on the relationship between the
antecedents (job, organizational, non-
work and individual factors) and the
dimensions of adjustment.
Positional factors as moderators.
Differences in the nature of work and
stress at varying hierarchical levels (e.g.,
Martin, 1980; Mintzberg, 1980) and
functional positions (Menon &
Akhilesh, 1994) should manifest them-
selves in differences in the nature of
adjustment to international assign-
ments. For example, because top man-
agers engage in more conceptual and
strategic decision making activities, role
clarity may not be as important as it is
for middle and lower-level managers.
For lower-level managers, who tend to
have less home-office support, the rela-
tionship between logistical support and
adjustment may be stronger than it is for
top managers. Functional position also
influences managerial selective percep-
tions (Waller, Huber, & Glick, 1995),
and the stress resulting from working in
different functional positions affects
one's adjustment to interacting with
others (Menon & Akhilesh, 1994).
Although expatriates are collectively
defined as individuals living and work-
ing in a foreign environment, they are
usually classified into three broad cate-
gories or vectors based on their national
origin relative to that of the parent com-
pany (Briscoe, 1995). Parent country
nationals (PCNs) are expatriates who are
from the home country of the MNC;
third country nationals are non-PCN
immigrants in the host country (e.g.,
those transferred between foreign sub-
sidiaries); inpatriates are employees
from foreign subsidiaries who are
assigned to work in the parent country.
There are several reasons why MNCs
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select various types of expatriates
(Harvey, 1996). For example, parent
country nationals facilitate communica-
tion between corporate and foreign
offices and third country nationals tend
to be more sensitive to cultural and
political issues. Such differences sug-
gest that the patterns of adjustment may
vary across the three types of expatri-
ates. To test the moderating effects of
the positional factors, we propose:
Hypothesis 7a The influence of job,
organizational, nonwork, and individ-
ual factors on expatriate adjustment
will vary depending on the assignee's
hierarchical level within the firm.
Hypothesis 7b The influence of job,
organizational, nonwork, and individ-
ual factors on expatriate adjustment
will vary depending on the assignee's
functional position.
Hypothesis 7c The influence of job,
organizational, nonwork, and individ-
ual factors on expatriate adjustment
will vary depending on the assign-
ment vector (parent country national,
third country national, and inpatri-
ate).
METHOD
Sample
To test the hypotheses presented
above, we surveyed international
assignees employed with ten large U.S.
multinational corporations in a variety
of industrial sectors, including trans-
portation, aerospace, petrochemical,
pharmaceutical, and other manufactur-
ing and service industries. Of the 1,090
surveys mailed, 483 were returned, and
a usable sample of 452 questionnaires
was analyzed, yielding a response rate
EXPATRIATE ADJUSTMENT

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 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY

of 41.5%. Questionnaires were com- Job Factors

pleted by expatriates assigned to 45
Role clarity was measured using a 6-
countries. They were of 29 different
item, 7-point (1=very false to 7=very
nationalities (67% American, 9%
true) scale developed by Rizzo, House,
British, 7% Australian, and all others
and Lirtzman (1970). Since this was
less than 3%), all of whom spoke and
originally a measure of role ambiguity,
read English. Characteristics of the
it was reverse-scored to indicate role
sample are presented in Table 1; demo-
clarity (Odewahn & Petty, 1980). A typ-
graphic data are comparable to those of
ical statement on the role clarity scale
the population. The individual compa-
is: "I know exactly what is expected of
nies coordinated the distribution and
me." Role discretion was measured
collection of the surveys with their
using a modified subscale (with a 7-
internal mail services and forwarded
point response format) from Hackman
them (sealed) to the researchers. In this
and Oldham's (1975) Job Diagnostic
manner, respondent confidentiality was
Survey. The reverse-scored question
assured.
was replaced with one not reverse-
scored to improve the measurement
Measures
properties of the scale (Idaszak &
Operationalizations of the constructs
Drasgow, 1987). An example of a ques-
are described below. Most measures
tion on this scale is: "How much auton-
have been used in previous research,
omy is there in your job?" Role conflict
and each had sound psychometric prop-
was measured using an 8-item, 7-point
erties in the present sample (see Results
(1=very false to 7=very true) scale devel-
section).
oped by Rizzo, House, and Lirtzman
(1970). An example of a statement on
Expatriate Adjustment
the role conflict scale is: "I receive
Expatriate adjustment was measured incompatible requests from two or more
with the scale developed by Black and
people." Role novelty was measured
his colleagues (Black, 1988; Black &
with a 4-item, 4-point (1=almost identi-
Stephens, 1989). This scale assesses
cal to 4=almost completely different)
three dimensions of adjustment and
scale developed by Nicholson and West
consists of 7 items for general adjust-
(1988). An example of a statement on
ment, 4 for interaction adjustment, and
this scale is: "The methods used to do
3 for work adjustment. General adjust-
the job are almost identical/have minor
ment items examined such things as the
differences/have major differences/are
expatriates' adjustment to living condi-
almost completely different from my
tions, housing, and food. Interaction
previous job."
adjustment items investigated the expa-
triates' adjustment to socializing with Organizational Factors
HCNs. Work adjustment items exam-
Supervisor and coworker support
ined the expatriates' adjustment to the
were operationalized with two sub-
requirements of the new position. For
scales from a survey by Caplan, Cobb,
each item, respondents indicate their
French, Harrison, and Pinneau (1975).
degree of adjustment on a 7-point scale
Each subscale consists of 4 items with
(1=very unadjusted to 7=very adjusted).
responses on a 5-point Likert-type scale.
A typical statement on the support

VOL. 30, No. 3, THIRD QUARTER, 1999 565

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EXPATRIATE ADJUSTMENT
scales is: "How much have you been
able to rely on (your supervisor or
coworkers) when things get tough?"
Logistical support was not measured
with a forced-choice rating scale such as
Guzzo et al. (1994) because the corpora-
tions included in the sample did not
want to make some features of support
salient, or create explicit expectations
that some aspects of logistical support
should be improved. Therefore, we
operationalized the construct by exam-
ining comments written by the respon-
dents in response to open-ended ques-
tions (e.g., "If there is anything we did-
n't cover that you think companies
should know about international assign-
ments, please use the space below...").
Comments were coded 1 if they had a
positive tone, -1 if they had a negative
tone, or 0 if the tone was neutral or no
comment was made. One example of a
negative comment is: "I thought that
we were not given enough time or help
in finding accommodation when we
first arrived". Two trained raters rated
organizational support responses indi-
vidually, first using a practice set of
comments, and then using actual com-
ments from the surveys. Inter-rater reli-
ability for organizational support was
.95. Although this is a less-than-ideal
measure of logistical support, we use it
so that we can test the Black et al.
(1991) model in as complete a form as
possible.
Non-work Factors
Culture novelty was measured using a
scale that Black and Stephens (1989)
adopted from Torbiorn (1982). This
measure consists of 8 items to which
respondents compared their native
country to the host country on various
characteristics, using a 5-point Likert-
type scale (1=very similar to 5=very dif-
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ferent). Spouse adjustment was mea-
sured by having respondents indicate
the extent to which they thought their
spouse "belonged," "felt comfortable,"
and "felt at home" in the host country.
Responses were on a 5-point scale
(1=strongly agree to 5=strongly dis-
agree). To avoid losing data from single
respondents, the mean for this variable
was used for those individuals who
were not married. According to Cohen
and Cohen (1983), this procedure will
not affect estimates of relationships
among other variables.
Individual Factors
Self-efficacy was measured using the
self-efficacy scale developed by Sherer
and colleagues (1982). It contains two
subscales. The Achievement Self-effica-
cy subscale (17 items) focuses on goal
attainment, and the Social Self-efficacy
subscale (6 items) focuses on the devel-
opment of interpersonal relationships.
Responses were made on a 5-point scale
(1=strongly agree to 5=strongly dis-
agree). A typical statement on the
achievement subscale is: "When learn-
ing something new, I soon give up if I'm
not initially successful." Previous inter-
national assignments was operational-
ized as the frequency of assignments,
including the present one. Language
fluency was assessed by asking respon-
dents to report what foreign languages
they spoke and their degree of fluency.
We then matched these reports with the
language of the host country and city of
assignment (Campbell, 1991) and coded
respondents' host country language
skills on a scale from 0 to 3 (O=none,
1=poor, 2=average, 3= very good).
Positional Factors
Hierarchical level was measured by
asking respondents to indicate their
 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY

level within their organizations (upper-, Dimensionality of Adjustment to

middle-, or lower-level of the firm). International Assignments
Functional area was measured by hav-
To examine the dimensionality of
ing respondents indicate whether they
expatriate adjustment (Hypothesis 1),
were in management or technical posi-
we conducted an exploratory factor
tions. Assignment vector was opera-
analysis on a random half of the data.
tionalized by creating three subsamples:
In this analysis, we used principal axis
parent country nationals (U.S. citizens
extraction and several techniques for
living in a foreign country), third coun-
determining the number of factors:
try nationals (non-U.S. citizens living in
scree plots, parallel analyses of random
a foreign country), and inpatriates (non-
data, maximum likelihood tests, and
U.S. citizens living in the United
interpretability criteria. Oblique rota-
States).
tions (promax) were used to help arrive
Because these measures were
at the simplest factor structure (Ford,
assessed by self-report ratings, common
MacCallum, & Tait, 1986). These meth-
method variance is a concern.
ods suggested either three or four fac-
However, for some variables, such as
tors of expatriate adjustment. Over- and
number of previous assignments, hierar-
under-factoring also led to the conclu-
chical level, functional position, and
sion that three or four factors likely
language fluency, it is unlikely that
existed in the data. Careful inspection
common method variance is a problem
revealed that the fourth factor was a
(Crampton & Wagner, 1994). Moreover,
minor one (a 'doublet'), arising from an
as common method variance inflates
especially strong correlation between
correlations, it increases the shared
only two items, both of which used the
variance among all independent vari-
term "facilities." Rather than treat this
ables, making it less likely that one
as a substantive factor, we regarded it as
would find unique, significant beta-
a wording artifact in the confirmatory
weights. Also, because common
factor analysis described below,
method variance is a main effect, it only
accounting for it as correlated error
inflates zero-order correlations and does
between the two items.
not inflate the possibility of falsely
In the second random split of the
detecting moderator variables.
data, we conducted a confirmatory fac-
tor analysis (CFA) using LISREL VIII
RESULTS
and maximum likelihood estimation
Means, standard deviations, zero-
(J6reskog & S6rbom, 1993). Each item's
order correlations, and reliability coeffi-
loading on its respective factor was esti-
cients for all variables are presented in
mated iteratively, using starting values
Appendix A. Except for logistical sup-
from the earlier exploratory analysis.
port, reliabilities were estimated using
All cross-loadings were fixed to zero
coefficient alpha. For logistical sup-
and were therefore potential sources of
port, inter-rater reliability was estimat-
lack of fit. Factor variances were set at
ed from the correlation between two
1.0 in lieu of choosing one item per fac-
raters' judgments about (the lack of)
tor as a "marker" variable with a load-
logistical support indicated in open-
ing of 1.0. Consistent with Black et al.'s
ended comments.
(1991) formulation, factors were
allowed to correlate. Results of the CFA

VOL. 30, No. 3, THIRD QUARTER, 1999 567

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EXPATRIATE ADJUSTMENT
(see Appendix B) supported Hypothesis
1. The three dimensional model, with
each adjustment item loading on only
one factor, yielded a close fit to the data
(Bagozzi & Yi, 1988). Fit indices were:
X273 = 124.81 (p<.Ol), GFI = .93, AGFI = and planning a series of models
cedures
.90, NFI = .94, CFI = .97, and SRMR =
.05.
Analytic Approach for Testing
Hypotheses 2-5
To evaluate the Black et al. (1991)
model in its entirety, we used tests pro-
vided by structural equation modeling
techniques (SEM: e.g., Bollen, 1989).
We compared various indices of good-
ness-of-fit (Mulaik et al., 1989) to arrive
at a bestfitting structural model, and
then examined the paths in the model
that reflected each hypothesis. Prior to
reporting numerical results, however, it
is important to describe the critical
choices we made before model fitting
(Medsker, Williams, & Holahan, 1994).
Accounting for measurement error.
In addition to simultaneously account-
ing for all relationships in a model, the
other main advantage of SEM is unbi-
ased estimation of relationships in the
presence of measurement error. To
account for this, we used a technique
first suggested by Kenny (1979), in
which a single total score is used as a
measure of each construct, with error
variance set at (1-estimated reliability)
x total variance of that score.
Netemeyer, Johnston, and Burton (1990)
showed that this technique conformed
better to distributional assumptions and
produced virtually identical estimates
of latent regression parameters as the
multi-indicator approach. We therefore
applied this procedure to each total
score for all variables except language
fluency and number of previous assign-
ments, which were measured with sin-
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gle items and assigned error variance of
0.
Parameter estimation and sequential
tests. Another set of SEM considera-
tions involves choosing estimation pro-
to be tested. We chose maximum likeli-
hood estimation because it provides the
best parameter estimates in moderate
sample sizes, and it yields fit indices
that allow for comparisons of nested
models (J6reskog & S6rbom, 1989). In
our modeling approach, we first fit the
Black et al. (1991) framework, described
as Model 1 below and in Table 2.
Depending on its fit, we were prepared
to progressively relax sets of restrictions
by estimating new paths until accept-
able fit was attained and further
changes did not improve it.
Results for Tests of
Hypotheses 2-5
Overall model. Table 2 reports the
results of our SEM analyses. Sequential
models are listed, along with their fit
statistics and the incremental improve-
ment in X2 from the previous, more
restricted, model. In terms of overall fit,
the Black et al. (1991) model had a X216 =
117.48 (p < .01), GFI =.97 and an AGFI
= .75, with CFI=.91 and NFI=.91. These
fit indices are near or slightly below rec-
ommended levels for close fit (Bagozzi
& Yi, 1988). Therefore, we proceeded
with relaxing some of the restrictions in
the model.
A noteworthy feature of our modeling
sequence stems from the fact that the
original Black et al. (1991) model
restricts culture novelty and logistical
support to affect only interaction and
general adjustment. Likewise, it con-
strains job-related factors (role clarity,
role discretion, role conflict, and role
novelty) to affect only work adjustment.
 MARGARET A. SHAFFER, DAViD A. HARRISON AND K. MATTHEW GILLEY

Thus, the next step in our SEM plan was
to allow culture novelty and logistical
support to affect work adjustment
(Model 2 in Table 2). However, this did
Table 3, along with significance levels.
not result in significantly better fit: AX22
= 2.63 (n.s.). In the ensuing step, we Standardized coefficients are given to
allowed job-related factors to "spill over"
and affect interaction and general adjust-
ment (in addition to their original effect
on work adjustment; see Model 3 in
Table 2). The fit of this less restricted
Model 3 was a substantial improvement
over the fit of the original Black et al.
(1991) model: AX212 = 60.62 (p < .01).
Allowing both of these additions to
occur jointly (Model 4 in Table 2) did not
improve fit over Model 3: AX22 = 2.89
(n.s.), but it fit much better than Model 2:
AX212 = 60.88 (p < .01). The GFI, CFI,
NFI, and SRMR associated with Model 3
were also idicative of close fit (Bagozzi &
Yi, 1988). Consequently, an augmented
Black et al. theory, with additional
effects of job-related factors on interac-
tion and general adjustment, was chosen
as the best-fitting model.
Specific hypotheses. Within this
best-fitting model, it was possible to
examine structural coefficients (paths)
that reflected specific hypotheses. The
parameter estimates are presented in
aid in comparing effect sizes.
The values in Table 3 show that role
clarity, role discretion, and role novelty
- but not role conflict - all had a
unique impact on some form of adjust-
ment, and in the anticipated directions.
These results support Hypotheses 2a,
2b, and 2c, but not 2d. The strongest
effects of job factors were on work
adjustment, as originally predicted by
Black et al. (1991), although the only
significant (and negative) impact of role
novelty was on general adjustment.
Role clarity appeared to be the strongest
determinant of work adjustment, with a
standardized effect size that was twice
as large as any other predictor.
Organizational factors also exhibited
many of their proposed effects.
Coworker support (Hypothesis 3b) and
logistical support (Hypothesis 3c) both

TABLE 2
TESTS OF OVERALL STRUCTURAL MODELS FOR EXPATRIATE ADJUSTME

Model X2df AX2df GFI AGFI CFI NFI SRMR

1. Black, Mendenhall,
& Oddou (1991) Theory 117.48**16 .97 .75 .91 .91 .05
2. Model 1 plus Nonwork
Inputs to Work Adjustment 114.85**14 2.632 .97 .72 .91 .91 .05
3. Model 1 plus Work-related
Inputs to Interaction and
General Adjustment 56.96**4 60.62**2 .99 .49 .95 .96 .03
4. Models 2 and 3 combined 53.94**2 2.892 .99 .03 .95 .96 .02
Note: GFI is the Goodness of Fit Index; AGFI is the Adjusted Goodness of Fit
Index; CFI is the Comparative Fit Index; NFI is the Normed Fit Index;
SRMR is the Standardized Root Mean Square Residual.

pI**P<O
<3.01

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EXPATRIATE ADJUSTMENT

TABLE 3
STANDARDIZED PATH COEFFICIENrTS (y)
FOR BEST FITTING STRUCTURAL MODEL
Dependent Variable

Predictors Work Interaction General

Adjustment Adjustment Adjustment
Job Factors
Role Clarity .42** .08 .14*
Role Discretion .21** .11* .10
Role Conflict .03 -.05 -.06
Role Novelty -.02 -.07 -.15**

Organizational Factors
Supervisor Support -.05 -.03 -.01
Coworker Support .11 .29** .10
Logistical Support .10* .08

Nonwork Factors
Culture Novelty -.17** -.30**
Spouse Adjustment .06 .13** .34**

Individual Factors
Achievement Self-efficacy .07 .06 -.12
Social Self-efficacy -.03 .10 .01
Previous Assignments .02 .12** .02
Language Fluency .06 .23** -.02
R2
0 .34** .36* * .37**

*p <.05 ** p <.01

facilitated interaction adjustment. on general adjustment far exceeded

Indeed, coworker support had the
strongest influence of any variable on
this part of an expatriate's acclimation
to the international assignment. In con-
trast, supervisor support (Hypothesis
3a) did not significantly affect adjust-
ment.
The observed effects of nonwork fac-
tors also supported their corresponding
Hypotheses (4a and 4b). Culture novel-
ty hindered general adjustment, while
spouse adjustment helped it. The
impacts of both of these nonwork inputs
those of any other variable. The same
nonwork factors also had significant
effects on interaction adjustment,
although they were not as potent.
Results did not support the relevance
of the individual factors specified in
Hypotheses 5a and 5b. Neither achieve-
ment self-efficacy nor social self-effica-
cy explained incremental variance in
any of the dimensions of adjustment.
On the other hand, the individual fac-
tors specified in Hypotheses 5c and 5d
were important. Both the amount of

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 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY
previous experience in international
assignments and host country language
fluency seemed to aid in an expatriate's
interaction adjustment.
Tests of Moderating Effects
A final set of SEM tests involved the
moderating effects of individual and
positional factors proposed in
Hypotheses 6a-b and 7a-c. The treat-
ment of these discrete-step variables as
moderators is fairly well established
and straightforward in SEM
(Marcoulides & Schumaker, 1996). It is
accomplished through the creation of
subsample covariance matrices at each
level of the moderator (Cole, Maxwell,
Arvey, & Salas, 1993). Moderating
effects are evaluated by comparing the
fit of models whose parameters are
forced to be the same across all subsam-
ples versus being allowed to vary freely
across those subsamples. If there is a
significant improvement in fit, the paths
differ across subsamples and an overall
moderating effect has been detected.
The source of the overall effect can then
be pinpointed by subsequently restrict-
ing particular (sets of) paths, to see if
keeping them the same across subsam-
ples significantly degrades the fit of the
model (Lomax, 1983). In the tests
described below, we followed the over-
all moderator tests with analyses indi-
cating if the moderating effects occurred
for the job, organization, nonwork, or
individual factors. These results are
presented in Table 4.
Previous assignment experience.
Previous experience on international
assignments was a significant overall
moderator of the influences on adjust-
ment (AX268 = 124.82, p < .01), which
supports Hypothesis 6a. Specifically, it
moderated the impact on the job (AX224 =
39.25, p < .01), organizational (AX216 =
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40.54, p < .01), and other individual
(AX218= 29.20, p < .01) factors.
Language fluency. Consistent with
Hypothesis 6b, language fluency inter-
acted with the model's independent
variables to influence adjustment (AX2
= 134.38, p < .01). Significant interac-
tions were found for both job (AX224 =
44.39, p < .01) and individual (AX218 =
47.48, p < .01) factors.
Hierarchical level. In accord with
Hypothesis 7a, hierarchical level also
moderated the effects of the proposed
determinants of adjustment (Ax274 =
131.43, p < .01). In particular, job (AX224
= 38.43, p < .05), organizational (AX216 =
42.94, p < .01), and individual (AX224 =
56.56, p < .01) factors all had their
influences moderated by managerial
level.
Functional area. Although it was the
weakest of all proposed moderators,
functional area did have a significant
overall interactive effect (AX237 = 66.90,
p < .01), which was predicted by
Hypothesis 7b. Specifically, it moderat-
ed the influence of the individual fac-
tors on adjustment (AX212 = 22.46, p <
.05). This effect stemmed from a single
large difference in the influence of lan-
guage fluency on the interaction adjust-
ment of managers versus technicians.
Assignment vector. According to
Hypothesis 7c, employees on overseas
assignments will experience different
patterns of adjustment depending on
whether they are parent country nation-
als, third country nationals, or inpatri-
ates. This proposition was born out in
the data, with a test showing that the
moderating effects of assignment vector
were significant overall (Ax274 = 182.44,
p < .01). This positional variable mod-
erated the impact of all types of inputs
to adjustment: job (AX224 = 51.74, p <
.01), organizational, (AX216 = 56.32, p <
QUARTER, 1999 571
EXPATRIATE ADJUSTMENT

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 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY
.01), non-work (AX21o = 36.24, p < .01),
and individual factors (AX224 = 49.36, p <
.01). The source of these variations in
adjustment patterns was almost always
a difference of inpatriates versus parent
and third country nationals. In fact, the
expanded Black et al. (1991) model had
much greater explanatory power for
inpatriates than for the other two
groups. The R2 for the latent adjustment
variables ranged from .66-.75 in the
inpatriate subsample, but ranged from
.39-.49 in the parent and third country
national subsamples.
DISCUSSION
Summary
This study provides considerable sup-
port for, and empirical clarification of,
the Black et al. (1991) model of expatri-
ate adjustment to international assign-
ments. First, factor analysis confirmed
that adjustment to international assign-
ments has three substantive dimen-
sions. Second, the Black et al. (1991)
model fit fairly well, but the fit
improved when the work-related factors
were allowed to influence interaction
and general adjustment. Third, all of
the immediate antecedents proposed by
Black et al. (1991) that we tested
emerged as either significant main or
interactive effects on adjustment.
However, this study goes beyond con-
firming their model by testing factors
that we proposed would moderate the
influence of the antecedents on the
three types of adjustment. We found
that two proposed individual factors
(previous international assignment
experience and host country language
fluency) and three positional factors
(hierarchical level, functional area, and
assignment vector) are noteworthy mod-
erators of various relationships involv-
VOL. 30, No. 3, THIRD QUARTER, 1999 573
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ing all three dimensions of adjustment.
Below, we further explore the results
and make concrete suggestions for
application and research in this critical
domain.
Main Effects
Our analyses revealed that many of
the direct effects proposed by Black et
al. (1991) were indeed significant pre-
dictors of adjustment. The significance
of three job-related factors (i.e., role
clarity, role discretion, and role novelty)
highlights the importance of job design
to the success of international assign-
ments. This suggests that multinational
firms should place more emphasis on
designing global positions such that
expatriates have more clearly defined
jobs and greater decision-making
authority. Furthermore, greater levels
of pre-departure training may be neces-
sary for expatriates expected to experi-
ence higher levels of role novelty.
Of the organizational support factors,
logistical support and coworker support
were significant positive predictors of
adjustment. As a result, firms seeking
to enhance the effectiveness of their
expatriates should attempt to foster a
supportive organizational culture both
at home and abroad. For example, dedi-
cated home-office support staff, ideally
comprised of highly experienced expa-
triates, could aid in this initiative by
acting as mentors for international
assignees. On-site organizational sup-
port could be fostered by providing
cross-cultural skills training for both
expatriates and their host country
national colleagues.
The non-work factors, culture novelty
and spouse adjustment, were important
direct effects of interaction and general
adjustment, as predicted by Black et al.
(1991). Thus, cross-cultural training for
EXPATRIATE ADJUSTMENT
expatriates and their spouses, whose
own adjustment will likely be affected
by culture novelty, is vital for the suc-
cess of international assignments. In
addition, because the level of adjust-
ment experienced by expatriates' spous-
es directly influences the adjustment
processes of the expatriates themselves,
firms must place more emphasis on
preparing spouses for international
assignments and supporting those
spouses once in the foreign environ-
ment. Having a person in the firm that
spouses could contact directly, rather
than relying on 'second-hand' informa-
tion from expatriates, would help to
reduce much of the uncertainties associ-
ated with settling into a foreign culture.
Also, with the increasing number of
dual career couples, it is likely that
more spouses will want to work. By
offering employment assistance, such as
help with work visas or subsidized
career development activities, MNCs
can facilitate the adjustment of these
spouses.
Of the individual factors, previous
international experience and fluency in
the host-country language had signifi-
cant, direct effects on expatriate interac-
tion adjustment. However, these main
effects are only part of the influence of
such variables on adjustment; they also
were associated with differing patterns
of other inputs to adjustment, as dis-
cussed below.
Moderating Relationships
Several interesting results surfaced
with respect to the moderating power of
previous assignment experience, lan-
guage fluency, hierarchical level, func-
tional area, and assignment vector.
Each proposed moderator had a signifi-
cant influence on adjustment in general,
and all of the antecedents of adjust-
574 JOURNAL OF INTERNATIONAL BUSINESS STUDIES
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ment, except for role novelty, were
involved in significant interactions.
The differential effects for nonwork fac-
tors, however, occurred only in interac-
tions involving assignment vector. This
suggests that culture novelty and spouse
adjustment have a more universal
impact on adjustment, regardless of the
expatriate's experience, language fluen-
cy, or position in the organization.
Below, we discuss some of the stronger
interactions involving each of the five
moderators.
Previous international experience.
Experience in previous international
assignments was found to be a powerful
moderator, especially in relationship
with supervisor and coworker support.
Supervisor support seemed to work in
differing ways, depending on whether
the expatriate was a first-timer or had
been on several international assign-
ments. For those on their first assign-
ment, supervisor support negatively
influenced all three dimensions of
adjustment. The opposite effect was
found for more experienced expatriates,
suggesting that those who have been on
multiple assignments tend to rely more
on on-site management rather than the
home office (effects for logistical sup-
port were neutral) to facilitate the
adjustment process. Similarly, expatri-
ates on their first assignment relied less
on coworker support for their work and
general adjustment than did those with
more international assignment experi-
ence. These findings indicate that
home office support of expatriates may
be generally lacking, and suggests that
firms should take steps to improve their
global support networks.
Language fluency. Although role con-
flict did not have a direct impact on any
dimension of adjustment, it was
involved in important interactions with
 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY
host-country language fluency. For all
three aspects of adjustment, the nega-
tive impact of role conflict was stronger
for those who were fluent than for those
who had only moderate host-country
language skills. Thus, fluency in the
host-country language exacerbated the
effects of role conflict on adjustment.
Perhaps those who are fluent are more
aware of the contradictory demands
from host country nationals and parent
company employees; those who are not
fluent may not even notice the conflict-
ing signals.
Hierarchical level. Several significant
interactions involving hierarchical level
emerged. For job factors, the moderat-
ing effect on work adjustment was car-
ried by the increasingly important influ-
ence of role discretion as expatriates
held higher-level positions. Thus, con-
sistent with Karasek's (1979) job
demands/control theory of stress, expa-
triates are better adjusted as long as job
demands are matched by role discretion
or control. Hierarchical level also inter-
acted with previous assignment experi-
ence to influence work adjustment. For
middle-level managers, the effect was
positive, indicating that previous
assignment experience enhanced work
adjustment for these managers. For
senior-level expatriates, however, the
opposite effect emerged. This reversal
in effects masks the overall important
influence that previous assignment
experience has on the work adjustment
of expatriates at different hierarchical
levels. In particular, the negative
impact of previous assignment experi-
ence on the work adjustment of upper-
level managers has important implica-
tions for both staffing and training deci-
sions.
Functional area. Functional area was
the weakest of the proposed moderators,
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but it did have a significant overall
effect on adjustment, primarily because
of one large difference. Host-country
language fluency was much more
important for the interaction adjustment
of technical expatriates than managerial
expatriates. This may be indicative of
the important role of technicians in the
transfer of knowledge to host country
nationals, in which case language train-
ing is critical for this group of expatri-
ates.
Assignment vector. The three assign-
ment categories were all involved in sig-
nificant interactions with at least one of
each of the job, organizational, non-
work, and individual factors. The pat-
terns of adjustment were quite similar
for parent country nationals and third
country nationals. The only difference
between these two groups was that cul-
ture novelty had a significant negative
impact on the interaction adjustment of
parent country nationals but no impact
on third country nationals. This pro-
vides support for the contention that
TCNs tend to be more culturally sensi-
tive and empathetic (Harvey, 1996). In
contrast, there were distinct differences
between the inpatriates and the other
two subsamples. For example, role clar-
ity and coworker support were impor-
tant determinants of all three dimen-
sions of adjustment for inpatriates, but
they affected only one adjustment
dimension for parent and third country
nationals. Thus, the adjustment
involved in moving to the country of
the parent firm seems to be a substan-
tially different process from that
involved in moving out to or moving
between international subsidiaries.
This suggests that MNCs need to con-
sider different intervention programs to
facilitate the adjustment of inpatriates.
QUARTER, 1999 575
EXPATRIATE ADJUSTMENT

Suggestions for Future Research levels and for the effects of role conflict
across assignment vectors. Also, just as
Insofar as this study is cross-sectional
differences were found between man-
and correlational, our results and con-
agerial levels and functional areas, there
clusions are somewhat tenuous. To
may be differences in adjustment pat-
enhance internal validity, and to
terns for line and staff managers. To
increase our understanding of the
address these issues, future researchers
adjustment process, future research
could collect more detailed information
should focus on collecting longitudinal
about expatriates' positions, including
data. However, conducting longitudinal
their day-to-day duties and responsibili-
research of any type is challenging. A
ties, involvement in decision-making,
longitudinal investigation of expatriate
and interactions with parent, third
adjustment would compound an
county, and host country nationals.
already-difficult process. One way of
overcoming this difficulty would be to
Conclusion
follow expatriates throughout their
All indications are that the number of
assignment, regularly surveying them
international assignees will increase over
using a diary-keeping method or short
the next decade. To help firms and inter-
e-mail questionnaires.
national assignees maximize the effec-
Another concern is that our classifica-
tiveness of these assignments, it is impor-
tions of parent country nationals, third
tant that we continue our investigation of
country nationals, and inpatriates are
factors that influence the adjustment
defined relative to the United States as
process. This study has provided several
the parent country. Thus, these cate-
insights into the complexities of this
gories are confounded with national ori-
process by (1) confirming the dimension-
gin and generalizability of the moderat-
ality of expatriate adjustment, (2) testing
ing effects of the assignment vector is
and supporting a comprehensive model
restricted to expatriates employed by
of adjustment, and (3) extending that
United States' MNCs. To better differ-
model to account for systematic differ-
entiate the effects of assignment type
ences in adjustment patterns across expa-
and country of origin, we encourage
triates with different language skills,
future researchers to include MNCs
international experiences, hierarchical
from a variety of nations.
levels, functional positions, and assign-
The results of this study also stimu-
ment vectors, all in a large and heteroge-
late consideration of several substantive
neous sample of expatriates. Further
issues and argue for a more complex
investigations will help both practition-
reformulation of the adjustment
ers and theorists to better understand the
process. For example, the positive and
challenges associated with managing
negative effects of achievement and
today's global work force.
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 MARGARET A. SHAFFER, DAVID A. HARRISON AND K. MATTHEW GILLEY

APPENDIX B
FACTOR LOADINGS FOR ADJUSTMENT ITEMS FROM CONFIRMATORY ANALYSIS

Work Interaction General

Adjustment Adjustment Adjustment

Performance standards .84

Job requirements .83
Supervisory responsibilities .71

Interacting with HCNs outside work .91

Working with HCNs .86
Interacting with HCNs daily .81
Speaking with HCNs .69

Housing conditions .81

Shopping .76
Cost of living .69
Entertainment .69
Living conditions .66
Food .66
Health care .66

Inter-factor Correlations
Work Adjustment 1.00
Interaction Adjustment .33 1.00
General Adjustment .35 .54 1.00

Only loadings greater than .25 are reported.

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