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’.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Adler, P., & Kwon, S. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27, 17–40.
Au, K. Y., & Fukuda, J. (2002). Boundary spanning behaviors of expatriates. Journal of World Business, 37, 285–296.
Ayios, A. (2004). Trust and Western-Russian business relationships. Aldershot: Ashgate.
Batjargal, B. (2003). Social capital and entrepreneurial performance in Russia: A longitudinal study. Organization Studies, 24, 535–556.
Björkman, I., & Kock, S. (1995). Social relationships and business networks: The case of western companies in China. International Business Review, 4, 519–535.
Burt, R. S. (1992). Structural holes: The social structure of competition. Cambridge, MA: Harvard University Press.
Burt, R. S. (2004). Structural holes and good ideas. American Journal of Sociology, 110, 349–399.
Butler, B., & Purchase, S. (2008). Use of social capital among Russian managers of a new generation. Industrial Marketing Management, 37, 531–538.
Caligiuri, P. M. (1997). Assessing expatriate success: Beyond just “being there”. New Approaches to Employee Management, 4, 117–140.
Farh, C. I. C., Bartol, K. M., Shapiro, D. L., & Shin, J. (2010). Networking abroad: A process model of how expatriates form support ties to facilitate adjustment. Academy Of Management Review, 35, 434–454.
Gadde, L.-E., & Dubois, A. (2002). Systematic combining: An abductive approach to case research. Journal of Business Research, 55, 553–560.
Håkansson, H., & Snehota, I. (Eds.) (1995). Developing relationships in business networks. London: Routledge.
Inkpen, A. C., & Tsang, E. W. K. (2005). Social capital, networks and knowledge transfer. Academy of Management Review, 30, 146–165.
Johanson, M. (2008). Institutions, exchange and trust: A study of the Russian transition to a market economy. Journal of International Management, 14, 46–64.
Kuznetsov, A., & Kuznetsova, O. (2005). Business culture in modern Russia: Deterrents and influences. Problems and Perspectives in Management, 2, 25–31.
Larimo, J., & Huuhka, A. (2007). Internationalization of the biggest Finnish and Swedish retailers in the Baltic states and Russia. Journal of East-West Business, 13, 63–91.
Lin, N. (2001). Social capital: A theory of social structure and action. Cambridge, MA: Cambridge University Press.
Liu, X., & Shaffer, M. A. (2005). An investigation of expatriate adjustment and performance. A social capital perspective. International Journal of Cross Cultural Management, 5, 235–254.
Manev, I. M., & Stevenson, W. B. (2001). Nationality, cultural distance, and expatriate status: Effects on the managerial network in a multinational enterprise. Journal of International Business Studies, 32, 285–303.
Michailova, S., & Worm, V. (2003). Personal networking in Russia and China: Blat and Guanxi. European Management Journal, 21, 509–519.
Nilsson, O., & Thyr, A. (2012). The importance of social networks for expatriate managers: A case study from Russia. Master thesis, Uppsala University, Department of Business Studies, Uppsala.
O’Neill, J. (2001) Building better global economic BRICs. Available at: http://www.goldmansachs.com/our-thinking/brics/brics-reports-pdfs/build-better-brics.pdf
Osman-Gani, A. M., & Rockstuhl, T. (2008). Antecedents and consequences of social network characteristics for expatriate adjustment and performance in overseas assignments: Implications for HRD. Human Resource Development Review, 7, 32–57.
Puffer, S. M., & McCarthy, D. J. (2011). Two decades of Russian business and management research: An institutional theory perspective. The Academy of Management Perspectives, 25, 21–36.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed., ). Harlow: Financial Times Prentice Hall.
Wagner, G., & Vormbusch, U. (2010). Informal networks as “global microstructures”: The case of German expatriates in Russia. Critical Perspectives on International Business, 6, 216–236.
Wang, X. (2002). Expatriate adjustment from a social network perspective: Theoretical examination and a conceptual model. International Journal of Cross Cultural Management, 2, 321–337.
Wang, X., & Kanugo, R. N. (2004). Nationality, social network and psychological well-being: expatriates in China. International Journal of Human Resource Management, 15, 775–793.
Wang, X., & Nayir, D. Z. (2006). How and when is social networking important? Comparing European expatriate adjustment in China and Turkey. Journal of International Management, 12, 449–472.
Acknowledgements
The authors are grateful to Aron Thyr for his contributions in earlier versions of the chapter.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
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 |
Copyright information
© 2016 The Editor(s) (if applicable) and The Author(s)
About this chapter
Cite this chapter
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
Download citation
DOI: https://doi.org/10.1057/978-1-137-53765-2_6
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-53763-8
Online ISBN: 978-1-137-53765-2
eBook Packages: Business and ManagementBusiness and Management (R0)