Managers’ interest in international assignments: the role of work and career satisfaction

Abstract

As business globalizes, organizations need to attract increasing numbers of qualified managers for international assignments. An understanding of the motivation underlying managers’ intention to accept such assignments would therefore be valuable. The purpose of this research was to examine relations between work attitudes and interest in international assignments. Three hundred and fifty Canadian managers responded to a questionnaire assessing their work attitudes as well as their interest in international assignments. It was found that specific facets of job satisfaction (company identification, satisfaction with co-workers, and satisfaction with financial rewards) were negatively related to interest in international assignments. It was also found that the relation between career satisfaction and interest in international assignments was moderated by managers’ general beliefs about such assignments. Finally, the results showed that expected satisfaction with specific job characteristics in a future job (opportunity to use competencies, to travel, and extrinsic rewards) were positively related to managers’ interest in international assignments. The findings are discussed in terms of their implications for human resource planning in global organizations making use of international assignments.

Introduction

The increasing globalization of business is making it necessary for organizations to require their managers to accept some type of international assignment on a short- or long-term basis. Organizations need to find ways to increase the attractiveness of overseas assignments, as well as decrease the rate of failure and early repatriation. To do so, it is important to understand the motivation underlying managers’ willingness to work on international assignments. This could contribute to an organization's ability to adapt their relocation packages, the design of the overseas assignments, and their reward systems (Noe, Steffy, & Barber, 1988) to take into account managers’ expectations, and to facilitate human resources planning. Furthermore, it will assist organizations in making expatriate assignments more successful.

The following discussion is based on three assumptions. First, we use the literature on willingness to relocate domestically to provide a theoretical basis from which to develop hypotheses at the international level, although differences between the two types of mobility (domestic versus international) are recognized (Noe & Barber, 1993). Brett and Stroh (1995) examined managers’ willingness to relocate domestically as a predictor of their willingness to relocate internationally and their results suggest that the theoretical framework developed for domestic relocation could be adapted to international relocation decisions. Second, especially when relocation research does not address the issue, we use turnover research to provide a theoretical basis for developing hypotheses on intention to accept an international assignment. Since an international assignment represents a change in job characteristics, such as co-workers, supervisors, and location, it could be considered a “particular form of turnover” (Eby & Russell, 1998). A number of studies in the area of job relocation derived hypotheses based on turnover research (e.g., Brett & Reilly, 1988; Kirschenbaum, 1991). Finally, interest in an international assignment is considered to be an intention or willingness to relocate.

Intention is generally a good predictor of behaviour. Specifically, there is some evidence that willingness to relocate is a good indicator of the actual relocation decision. Brett and Reilly (1988) conducted a longitudinal study investigating the predictive validity of willingness to relocate domestically with regard to the actual relocation decision and found a significant effect over a five-year period. In addition to this empirical evidence, Fishbein and Ajzen's (1975) theory of reasoned action provides the theoretical rationale for the use of an intention measure. According to their theory, attitudes will predict behaviour through the influence of intentions. Thus, attitudes (and subjective norms) will predict intentions that will predict behaviour. In this case, willingness to relocate is the behavioural intention, which predicts the relocation decision (the behaviour).

In turnover research, intention to quit has received much attention. Tett and Meyer (1977), Mobley (1982) presented a model of turnover, based on withdrawal cognitions, that is useful in providing a theoretical rationale for the use of an intention measure. In the intermediate linkages model, dissatisfaction leads to thoughts of quitting, which lead to a search evaluation and behaviour, evaluation of alternatives, the intention to quit and, finally, to turnover. Thus, here again, attitudes lead to intentions, which lead to behaviour. Finally, in a meta-analysis study, Tett and Meyer (1993) tested several variables related to turnover. Intent to quit strongly predicted turnover, which, once more, emphasizes the validity of the intention in predicting behaviour. Furthermore, they found work attitudes to contribute independently to turnover, but this contribution was mostly limited to effects on intentions. Thus, work attitudes contribute to intent to quit, which, in turn, leads to turnover. This is consistent with Mobley (1977) and, in a broader way, with Fishbein and Ajzen's (1975) model. It is equally consistent with studies of willingness to relocate that used these models to provide their theoretical rationale (Brett & Reilly, 1988; Eby & Russell, 1998; Kirschenbaum, 1991).

Managers are cautious when it comes to accepting an expatriate assignment (see Adler, 1986; Taillieu, 1992; Weeks, 1993). The decision of going abroad can be disruptive to family and community life, and research in both the international and domestic relocation areas has focussed on these issues (e.g., Brett & Stroh, 1995; Brett, Stroh, & Reilly (1992), Brett, Stroh, & Reilly (1993); Eby & Russell, 1998; Fox & Krausz, 1987; Gould & Penley, 1985; Landau, Shamir, & Arthur, 1992). However, other aspects of the relocation decision, such as factors relating to work and careers, have been relatively neglected. Noe and Barber (1993) and Noe et al. (1988) have advocated a more thorough examination of work-related factors as predictors of willingness to relocate. Eby and Russell (1998) emphasized the importance of career-related cognitions, which encompass employees’ self-efficacy for advancement, relocation beliefs, and desire for career advancement, in explaining willingness to relocate domestically. They also suggested that work attitudes will be important contributors to employees’ willingness to relocate domestically.

Aryee, Chay, and Chew's (1996) study of willingness to accept mobility opportunities in similar versus dissimilar cultures emphasized the importance of career-related factors. In a sample of Singaporean managers, they examined relations between a number of variables (i.e., demographic, personality, career, spouse-related, and company relocation policy) and managers’ willingness to accept mobility opportunities. They found career-related variables to make the most incremental contribution when attempting to explain managers’ willingness to relocate. This was true for relocation to both similar and dissimilar cultures. These findings suggest that relocation, in particular international relocation, should be considered from the perspective of a career-related decision. The purpose of this study is to investigate work- and career-related attributes influencing managers’ interest in international assignments.

Results concerning the relations between job satisfaction and different indicators of willingness to relocate have been mixed. Noe et al. (1988) investigated the relation between mobility and job favourability, defined as the employee's satisfaction with his/her work, and also looked at the discrepancy between the current and the ideal job, an indirect indicator of job satisfaction. They investigated four types of mobility, two of which involved relocation. Job favourability (satisfaction) did not relate significantly to transfers involving relocation. However, consistent with their prediction, discrepancy from one's ideal job was a positive predictor of the intention to accept an offer for both lateral transfer with relocation and promotion with relocation. Brett et al. (1993) investigated job satisfaction and its relation to willingness to relocate domestically. Contrary to the hypothesis, job satisfaction did not significantly predict willingness to relocate domestically. However, they measured only two facets of the construct: satisfaction with wages and satisfaction with intrinsic factors. Furthermore, the first variable was assessed through the use of a one-item scale. The facets they measured cannot be considered to cover exhaustively the construct of job satisfaction. Some aspects of job satisfaction that were neglected in Brett et al. (1993) might have an impact on managers’ intentions to accept an international assignment. Veiga (1983), on the other hand, found relations between career mobility (a construct conceptually similar to relocation) and facets of job satisfaction. More specifically, Veiga (1983) found that satisfaction with recognition, advancement, and salary were negatively related to career mobility. Finally, Kirschenbaum (1991) found that dissatisfaction with the workplace was positively related to relocation intentions.

These mixed results suggest that relations between work attitudes and relocation may be complex. First, they suggest that facet measures of job satisfaction are important to consider in this research rather than general measures of this construct. In addition, some aspects of job satisfaction that were neglected may have an impact on managers’ intentions to accept an international assignment. Because the literature is scarce with regard to these relations, it is difficult to make specific predictions about facets of job satisfaction. However, a few studies may be useful in suggesting certain facets that could explain some variance in managers’ interest in international assignments. The work itself (Adler, 1986; Mobley, 1982), financial rewards (Veiga, 1983), and career future (Adler, 1986; Tung, 1998; Veiga, 1983) seem to be all potentially important facets of job satisfaction in determining an employee's intention to relocate.

If the lack of clear findings regarding the relation between job satisfaction and relocation suggests that facets of job satisfaction should be measured, they also suggest that managers do not accept an international assignment (or any type of relocation offer) based solely on their job satisfaction or dissatisfaction. Rather, this type of decision, as Aryee et al. (1996) suggested, may be career-related, which would imply that career satisfaction could be an important consideration in examining correlates of managers’ interest in international assignments.

Although it has been established that relocation has important implications for careers, there is a paucity of studies that have looked at the influence of career satisfaction on employees’ willingness to relocate and turnover intentions. However, a number of studies have investigated variables closely related to career satisfaction, defined as the degree to which one is satisfied with the progress of his/her career.

Noe and Barber (1993) and Aryee et al. (1996) studied several variables related to career satisfaction. They found that career insights and distance from career goals were positively related to willingness to relocate to a dissimilar culture. Veiga (1983) also studied concepts similar to career satisfaction. He found that fear of stagnation and career impatience were positive predictors of managers’ mobility. These studies, however, provide only indirect evidence of the relation between career satisfaction and willingness to relocate internationally.

In sum, although career satisfaction has been neglected in research on turnover and willingness to relocate domestically, some variables related to career satisfaction have been investigated (Aryee et al., 1996; Noe & Barber, 1993; Veiga, 1983). These studies suggest that to the extent that managers are satisfied with the progression of their current career, they could be less likely to be interested in an international assignment.

Managers’ general beliefs concerning the instrumental value of domestic versus international assignments should affect their interest in an international assignment. Eby and Russell's (1998) analysis of factors influencing willingness to relocate emphasizes the importance of managers’ beliefs in understanding their relocation intentions. Indeed, they found that relocation beliefs, defined as the employees’ perception of a direct link between relocation and career advancement, was a significant predictor of willingness to relocate domestically. Adler's (1986) study offers more specific insights regarding how students perceive international assignments to be beneficial to their career. In her survey, MBA students had mixed feelings concerning the instrumentality of international assignments for their career, life, and work. These were amongst the most frequent reasons given to accept as well as to refuse an international assignment.

Thus, Eby and Russell (1998) as well as Adler (1986) have suggested that employees’ general beliefs can be important in understanding their willingness to relocate. Aryee et al. (1996) also highlight the importance of employees’ general beliefs as important factors in the decision to relocate. They go further to specify the role that these general beliefs may play. They suggest that the strength of the relation between career-related variables and willingness to relocate would depend, in part, on the extent to which employees perceive expatriate assignments to be instrumental to their career. Thus, they suggest that employees’ general beliefs may moderate the relation between career-related variables and employees’ willingness to relocate.

Following the suggestion of Aryee et al. (1996), we hypothesize that managers’ beliefs about the advantages and disadvantages of international assignments could act as a moderator of the relation between career satisfaction and willingness to relocate internationally. Career satisfaction may be negatively related to interest in international assignments when managers believe that domestic job is instrumental to their career, whereas when managers believe that an international assignment is more instrumental to their career, current career satisfaction should not negatively affect interest in international assignments. Thus, regardless of their beliefs about international assignments, if employees are satisfied with the progression of their career in their current location, they may not wish to go through the uncertainty associated with accepting an international assignment.

Mobley (1982) considers job satisfaction to be a present-oriented construct, while turnover is future-oriented. He advocates the use of a future-oriented measure of satisfaction such as future attraction of the present role. In the original intermediate linkages model, Mobley (1977; see also Mobley, Griffeth, Hand, & Meglino, 1979) included job satisfaction and the comparison of alternative jobs to the current job as predictors of intention to quit. Hinsz and Nelson (1990) tested Mobley's (1977) intermediate linkages model and other competing models of turnover. They found that expected satisfaction with the job characteristics in the next job (comparison of alternatives to the present job) and job satisfaction were both significant predictors of turnover intentions. Furthermore, in a study of attitudes toward an employer-initiated relocation in the US military, Fisher and Shaw (1994) found that expected satisfaction with the next job, measured prior to moving, was positively related to pre-move attitudes toward relocation. Also, pre-move attitudes were positively related to post-move attitudes.

Willingness to relocate is future-oriented, which suggests that expected future satisfaction may be an important predictor to consider. Furthermore, if the decision to accept or reject an international assignment is indeed a career-related decision, managers, in making that decision, should evaluate to what extent the assignment they will accept has characteristics they desire. Thus, people interested in international assignments should expect to be more satisfied with the job characteristics associated with international assignments. An examination of the literature on international assignments indicates that there are salient characteristics associated with these jobs.

Considerable research has shown that autonomy, responsibility, and job challenge are major components of international assignments (Baker & Ivanevich (1981), Adler (1986); Baker & Ivanevich, 1971; Birdseye & Hill, 1995; Black & Gregersen, 1990; Goman, 1994; Naumann, 1993; Taillieu, 1992; Torbiörn, 1982). Furthermore, people interested in international assignments want to travel and learn from other cultures. They think that international assignments represent an opportunity to have a cross-cultural and personal growth experience (Adler, 1986). On the other hand, even though international assignments often involve higher salary and fringe benefits, they also often impose a financial burden on expatriates, which can take the form of taxes, moving fees and so on (Esquenazi-Shaio, 1996; Gregersen & Black, 1990). Therefore, we suggest that managers who expect to be more satisfied with the challenge, autonomy, responsibility, financial rewards, and opportunities to travel and learn from other cultures in their next job will be more interested in international assignments.

To summarize, certain facets of current job satisfaction (i.e., financial rewards, career future, and kind of work) should be related to managers’ interest in international assignments. Furthermore, career satisfaction should be more strongly and negatively related to interest in international assignments if managers believe that domestic assignments can be more beneficial to their careers and personal lives than international assignments. Finally, managers’ expectation of satisfaction in the next job should be positively related to their interest in international assignments.