Expatriate management in Australian multinational enterprises

Abstract

Globalization, uncertain domestic markets and increasing competition are encouraging construction firms to internationalize. Although expatriates are commonly used by many construction companies to establish and manage overseas operations, there has been little research into the challenges of managing these people. Through case studies of five Australian construction firms and semi-structured interviews with 10 human resource managers and 36 expatriates, the question of how construction firms select, deploy, develop and support expatriate managers on overseas projects is explored. The results show that firms tend to adopt a highly pragmatic approach to expatriate recruitment and see the process as a logistical rather than a developmental challenge. Selection processes are often reactive, ad hoc and intuitive and based more on technical knowledge than softer behavioural skills and knowledge. Preparation for expatriate assignments is often outsourced, many expatriates feel unsupported while overseas, repatriation is poorly managed and overseas assignments are often seen as a barrier to career progression rather than an investment. These findings are at odds with contemporary research in international human resource management and are important because a major determinant of international project performance is effective human resource management. The findings also contribute to the design of better expatriate human resource management systems.

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