The willingness to relocate to another country: The impact of cultural similarity, destination safety, and financial incentive

James D. Westaby

42 citations0/0 files storedInternational Journal of Psychology

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International Student and Expatriate Challenges International Business and FDI Cultural Differences and Values

Abstract

Because of increased concerns about terrorism around the globe, international organizations are very interested in understanding how safety and cultural issues impact their employees' willingness to relocate abroad. This has been especially true for international companies based in the United States, given the recent salience of US activities around the world. Additionally, questions remain regarding the efficacy of financial incentives to motivate individuals' willingness to relocate when the destination may be dangerous. Therefore, the factors impacting willingness to relocate from the US to another country were examined experimentally in this study. Based upon theory and research in social and organizational psychology, it was hypothesized that cultural similarity, destination safety, and financial incentives would have direct effects on individuals' willingness to accept relocation offers. It was also predicted that cultural similarity and destination safety would moderate the effects of incentives upon willingness to relocate. The study used a 2 × 2 × 3 between-subjects design manipulating destination similarity (similar, different), destination safety (safe, dangerous), and bonus for relocating (0% bonus, 20% bonus, 40% bonus). Results from 196 participants at a university in the northeastern part of the US revealed that financial incentives and safety perceptions directly impacted willingness to relocate. In line with moderator predictions, financial incentives had a stronger effect on willingness to relocate when the destination was culturally different from the United States than when it was similar. Against expectations, there was no interaction between financial incentives and safety. Destination safety perceptions were relatively strong determinants of willingness to relocate.

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