Chapter 8: Governance Of Psychological Contracts Via Reciprocity: The Case of International Expatriation Management

With increased globalization more expatriate managers are being sent on foreign assignments by multinational corporations (Employment Conditions Abroad [ECA] International, 2007). Expatriates are employees who live and work in management positions outside of their country of citizenship. Our study focuses on assignments of between 1 to 5 years’ duration. The aims of the managers taking on such assignments differ from those of their respective companies. Whereas employees see mainly opportunities to advance their career development, good financial incentives or personal lifestyle benefits as the rewards of a period of working abroad (Stahl, Miller, Einfalt, & Tung, 2000), multinational companies regard such assignments as a way to control the foreign subsidiary and to develop its personnel (Stahl et al., 2000; Fischlmayr, 2004).