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Purpose

Drawing upon the social exchange and psychological capital literature and applying a multilevel perspective, this paper examines how personal and organizational factors contribute to expatriates' adjustment and performance of international assignments in a terrorism-induced risky environment.

Design/methodology/approach

Data were collected using a non-probability sampling approach (e.g. purposive and subsequent snowball sampling). The authors tested the hypotheses using survey data of 138 expatriates with current international assignments in Pakistan.

Findings

Expatriates' perceived organizational and risk-taking propensity influences their performance through improved adjustment. Moderating effects suggest that an individual's satisfaction with the received organizational rewards strengthens the risk-taking propensity to adjustment relationship; resilience strengthens the adjustment to performance relationship.

Originality/value

This study extends existing expatriation literature by focusing on a specific type of risk factor pertinent to international assignments, i.e. terrorism. Integrating individual and organizational factors that influence adjustment and subsequent performance provides a clear picture rather if such factors are operationalized separately in the terrorism-induced risky environment context.

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