Multinational corporation strategic posture and work role transitions: An empirical test of a cross-level model of expatriate manager adjustment

Reviews of the multinational corporation (MNC) strategy and expatriate adjustment literatures provided the foundation for extending extant work role transition theory in three ways. First, cross-level relationships between MNC strategic posture and expatriate general manager mode of adjustment were empirically tested. The meso paradigm supports the theoretical existence of relationships among variables at different levels of analysis (e.g., between strategy (organizational level of analysis) and expatriate adjustment behaviors (individual level of analysis)), but few studies have examined such relationships. Second, relationships between expatriate general manager mode of adjustment and subordinate outcomes (e.g., subordinate ratings of managerial effectiveness and supervisor satisfaction) were empirically tested. Previous research has not examined these relationships. And third, these relationships were empirically tested in an international context. There is no evidence in the literature that cross-level international studies have been conducted, and limited evidence of theory-driven research on expatriate adjustment or expatriate managerial effectiveness.;Empirical investigation of these relationships was conducted through survey data from nine multinational hotel companies, twenty-four corporate headquarter executives, one hundred and ninety-four subsidiary expatriate general managers, and five hundred and five subsidiary executive committee members who reported directly to the expatriate managers. Results from structural equation modeling indicated a good fit of the cross-level model to the data and results from correlation analysis provided evidence that many of the relationships in the model are statistically significant. Specifically, expatriates from firms with global strategic postures tended to utilize adjustment modes aimed at personal change or trying to make personal changes in subordinates. Although expatriate attempts to make personal changes in subordinates had a significant relationship with subordinate ratings of managerial effectiveness, expatriate personal change as a mode of adjustment had a nonsignificant relationship with subordinate ratings of managerial effectiveness and supervisor satisfaction. Meanwhile, expatriate manager role innovation was significantly related to subordinate ratings of supervisor satisfaction, and expatriate manager attempts to make role innovation changes in subordinates was significantly related to subordinate ratings of supervisor satisfaction. These results and implications for management practice are discussed.