Expatriates' hesitation and the localization of Western business operations in China

Abstract

Many foreign firms intend to localize their business operations in China. The incumbent expatriates' ability and willingness to bring about their own replacement is crucial. However, expatriates could be less than enthusiastic about the prospect of making themselves redundant. They may not be mentally prepared for such an endeavour, considering themselves unable or unwilling to localize, impeding such a process. To examine this proposition, a mail survey was directed to Western business expatriates in China. Results showed that there was a negative relationship between localization and expatriates' unwillingness to localize, because they prefer to stay on or are of the opinion that localization is not necessary. However, expatriates' perceived inability to localize was not associated with localization. Considering oneself unsuitable to train locals or that it is not one's job to train local employees did not seem to obstruct localization as expected. Implications for firms intending to localize their business operations in China are discussed in detail.

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