Research Project Employees‘ Living and Working Conditions across the Globe Preliminary Report – June 2016

Contents 2 1Summary 3Preliminary Results 4 Conclusion & Looking Forward 2 Background of our Study & Introduction to Sample

Executive Summary 3 Recruiting Sources Many expats (27.1%) were introduced to their jobs by another person. 25.1% found their job on a listing on the internet Expatriate Characteristics Middle-aged, mostly male, highly educated, managerial level 69.1% self-initiated expats Private companies are the main employer of expatriates (84.6%) 87.2 % of surveyed expatriates are generally satisfied with their job Making International Assignments Successful Organizational support (POS) and cultural intelligence (CQ) are central drivers for community & organizational embeddedness  Community & org. embeddedness are antecedents of job satisfaction and happiness  Considerable differences in community & org. embeddedness and happiness across countries  Female expats show less org. embeddedness

Contents 4 1Summary 3Preliminary Results 4 Conclusion & Looking Forward 2 Background of our Study & Introduction to Sample

Research Background  Which organizational and personal factors lead to a successful expatriation? Constant increase in expatriate numbers Expatriates as important agents, e.g. in M&A’s Expatriates often face difficulties in foreign environments, e.g. lack of support from HCNs/parent company, low cultural embeddedness, challenges for private relationships High rate of expatriation failure Failure causes high additional costs for firms 5

6 Resarch Project Overview  Main leg of study in April – June 2016: Collect data from 26 countries  Identification via LinkedIn and Internations  Personal survey invitations by  Main leg of study in April – June 2016: Collect data from 26 countries  Identification via LinkedIn and Internations  Personal survey invitations by General research questions: Find out about: The work and living conditions of expatriates The integration into the workplace and social community Organizational and personal factors that leverage work attitudes and retention Expats‘ happiness across the globe Factors that influence knowledge acquisition (follow-up survey) Data collection Quantitative: Web-based questionnaire Two time-waves 80 Items Items/scales: demographics & constructs e.g, embeddedness, cultural intelligence (CQ), language skills, organizational support (POS), knowledge gaining motiviation Global study: 30 different countries

Invitation Letter 7

Countries Surveyed 8 Argentina, Australia, Austria, Brazil, China, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Mexico, Namibia, Nigeria, Portugal, Qatar, Russia, South Africa, South Korea, Spain, Sweden, Thailand, The Netherlands, Turkey, USA

Data Collection & Sample s sent out: Final sample size: 1755 Response rate= 13.42% Highest numbers of responses in European countries Difficulties in obtaining sufficient numbers in African, Latin American, and Middle Eastern countries 9

Sample Characteristics Ratio Women/Men Accompanied by partner  Ø Time in HC: 5.8 years  67.8% with managerial rank  93% with university degree  N=1755  Ø Age: 38.6 years  Ø Tenure: 5.9 years 10

Sample Characteristics Type of OrganizationIndustries 11

Contents 12 1Summary 3Preliminary Results 4 Conclusion & Looking Forward 2 Background of our Study & Introduction to Sample

Community Embeddedness across Countries 13

Organizational Embeddedness across Countries 14

Job Satisfaction across Countries 15

Happiness across Countries 16

Predictors of Community Embeddedness 17 Community Embeddedness Gender Age Cultural Intelligence(CQ) Organizational support (POS) Language Ability n.s. +*** CQ, POS, and host country language proficiency increase community embeddedness

Predictors of Organizational Embeddedness 18 Organizational Embeddedness Gender Age Cultural Intelligence(CQ) Organizational support Language Ability -*** n.s. +*** +** CQ, POS and host country language proficiency increase organizational embeddedness. Female expats indicate weaker org. embeddedness

Expat-Study: The Mediating Effects of Org. Embeddedness How cultural intelligence (CQ) influences job satisfaction Indirect Effect: 0.13*** 19 Org. Embeddedness CQ Job Satisfaction 0.22***0.58*** CQ facilitates expatriates‘ organizational embeddedness in the host country Perceptions of being organizationally embedded at the same time leverage expatriates‘ satisfaction with their job A significant amount of the effect of CQ on job satisfaction is carried via organizational embeddedness CQ facilitates expatriates‘ organizational embeddedness in the host country Perceptions of being organizationally embedded at the same time leverage expatriates‘ satisfaction with their job A significant amount of the effect of CQ on job satisfaction is carried via organizational embeddedness 0.10**

Expat-Study: The Mediating Effects of Community Embeddedness How cultural intelligence (CQ) influences expatriate happiness Indirect Effect: 0.18*** 20 Community Embeddedness CQ Happiness 0.25***0.76*** CQ helps expatriates to embed themselves in their non-work community Having ties within the community leads to increased happiness for expats A significant amount of the effect of CQ on happiness is carried via community embeddedness CQ helps expatriates to embed themselves in their non-work community Having ties within the community leads to increased happiness for expats A significant amount of the effect of CQ on happiness is carried via community embeddedness 0.10*

Contents 21 1Summary 3Preliminary Results 4 Conclusion & Looking Forward 2 Background of our Study & Introduction to Sample

Conclusion & Looking Forward 22 Conclusion  We identified cultural intelligence and perceived organizational support, and language ability as important prerequisites for community and organizational embeddedness  Results indicate that community and organizational embeddedness increase expat job satisfaction  Cultural intelligence leverages expat happiness through facilitating embeddedness  Expat organizational embeddedness is highest in the USA  Expat community embeddedness is lowest in Nigeria, Turkey, and Qatar  The happiest expats live in Australia Looking Forward  Finalize study and compile data from pilot study (fall 2015)  Implement follow-up surveys to obtain a fuller understanding and better investigate the consequences of expatriates‘ work and life conditions, e.g. employee turnover, knowledge acquisition and exchange  We will conduct more sophisticated data analyses, e.g. multi-level analysis, structural equation modeling

Thank you from Goettingen, Germany. 23

Contact Details 24 Prof. Dr. Dr. Fabian J. Froese Georg-August University of Göttingen Professor and Chair of HRM and Asian Business Phone +49 (0) Sam Davies (MA) Georg-August University of Göttingen Research Associate Tel.: +49 (0)

Contact Details 25 Sebastian Stoermer (MSc) Georg-August University of Göttingen Research Associate Tel.: +49 (0)