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Purpose

In an era when expatriates are increasingly used as strategic conduits for developing capabilities in local business units, we identify what and how host-country nationals in a developing economy learn from self-initiated expatriates whose assignments focus on organizational capacity development objectives.

Design/methodology/approach

Semi-structured interviews with 23 Vietnamese host-country nationals rendered a sample of 138 learning episodes for qualitative content analysis. Respondents were employed in Vietnamese government and non-government organizations and worked closely with multiple self-initiated expatriates in a variety of professional contexts.

Findings

Host-country nationals develop a broad array of primarily “soft” capabilities. This learning is typically informal and vicarious in nature. While learning tends to arise incidentally through day-to-day activities, host-country nationals facilitate this by structuring their formal and informal interactions with expatriates to maximize their learning potential.

Research limitations/implications

While the study's exploratory design and specific context limit the transferability of our results, analysis of a sample of specific learning episodes allowed us to map “hotspots” of particular activities and contexts in which certain learning outcomes transpired.

Practical implications

Our results put into sharp focus the overlooked roles of expatriates as models (to be observed), mentors (to be consulted) and collaborators (to be partnered with) who can catalyse valued learning opportunities for local colleagues.

Originality/value

We provide a comprehensive account of the nature and extent of informal learning that host-country nationals accumulate during interactions with expatriates, and so contribute to a more nuanced understanding of the experiences of host-country nationals in international business.

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