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Why Expatriates’ Private Relations Matter

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Extending the Business Network Approach

Abstract

Due to increasing globalisation it follows that a growing number of expatriate managers, that is, individuals having a managerial position in a foreign country, play a critical role within multinational corporations (MNCs), acting as a link between headquarters and the international units (Au and Fukuda 2002). In order to perform well in this role, they need to align their behaviour with the host country’s cultural norms and values. The larger the cultural differences, the more demanding this task is likely to be. The expatriates need both a willingness to adapt as well as information regarding local conditions. Such information can be gained from various sources: the human resource department of the MNC in questions, locally from co-workers, other expatriates or personal friends among host country nationals. In total, the latter relationships constitute their social network which, in line with Osman-Gani and Rockstuhl (2008: 33) in the context of expatriates, is defined as ‘relational ties between the expatriate and other individuals, such as family, peer expatriates, local working partners, or local friends’.

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Acknowledgements

The authors are grateful to Aron Thyr for his contributions in earlier versions of the chapter.

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AppendixA Summary of the Private Relations

AppendixA Summary of the Private Relations

Informant

Counterpart

Creation

Use

Outcome

E1

Hans

Previous sales contact that turned into a customer and later became a personal friend

Exchange of local information, discussions on managerial problems etc.

Support and information

E1

Olle

Met him at the airport

Information exchange regarding management issues and emotional support

Support and to some extent important for business

E1

Jukka

Met through a mutual friend

Information exchange regarding management, and emotional support

Personal support and some business

E1

Stig

Met at the Swedish Club in St. Petersburg

Shares much information from his long experience in Russia

Knowledge of Russia

E1

Anton

Started as their IT supplier and then became a personal friend

Has plenty of local understanding

Knowledge about the Russian environment

E2

Bengt

Met him at the embassy in Moscow

Just socialising

Friendship

E2

Måns

Met him at a party in Moscow

Exchange of formal and informal information

More information about what he is doing, as well as some work-related information

E2

Tobias

Met him at the embassy in Moscow, used to do sports together

Exchange of information

Information on global economy etc.

E2

Linus

Met him when they were flying together to Russia

Not much use now, but could increase in the future

Not much outcome now, but wants more in the future.

E2

Cecilia

Met her through his wife

Mostly socialising, parties and similar activities

Access to her networks in Russia and Sweden

E3

Anna

His Russian wife, whom he met on a train from Moscow to St. Petersburg

Marriage. Most important of all relationships.

Support. Knowledge about culture and everyday life.

E3

Dmitry

Met while E3 was working at the Swedish Trade Council

Socialising, going to the gym, having fun

Have fun and be able to relax

E3

Andrey

Met through E3’s previous work

Socialising with him and his family. Spending time and share interests, go to a summer house, relax etc.

 

E3

Hans

Met through E3’s previous work

Socialising, going to concerts

Friendship with someone from Sweden. Sharing experience

E3

Irina

Met through his wife (his mother-in-law)

Babysits his child

Provides free time for the respondent and his wife to relax

E4

Gunnar

Met in St. Petersburg while E4 was studying Russian.

Discuss business ideas, meaning of life etc.

Important friendship

E4

Fredrik

Met through friends in Moscow

Talking over a beer, or in restaurants

Friendship

E4

Rickard

Met through friends

Not much usage since Rickard is occupied with a wife and child now

Friendship

E4

Anders

Met through friends in Sweden

Talking about life

Friendship

E4

Hans

Former business partner

Have dinner, maybe go to a concert.

Friendship, some information on Russian politics and market.

E5

Rolf

Met through work in Sweden (boyfriend)

Socialising

Friendship

E5

Stig

Met through work

Talking about different phenomena in Russia, about work, and so on

Introduced E5 to the Swedish Club, gets information about Russia

E5

Andrey

Met at the Swedish Club in St. Petersburg

Interacting on both personal and professional levels

Gets local information about the Russian culture

E5

Rickard

Met at the Swedish Club in St. Petersburg.

Hanging out on occasion, having lunch, meeting at the Swedish Club etc.

Rewarding from a personal point of view

E5

Ekaterina

Found her through the internet, met for classes in Russian

Meet for lessons in Russian

Provides much advice about the Russian mentality and help to learn Russian

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Johanson, M., Lundberg, H. (2016). Why Expatriates’ Private Relations Matter. In: Thilenius, P., Pahlberg, C., Havila, V. (eds) Extending the Business Network Approach. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-53765-2_6

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