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The Impact of National Culture on Expatriates Performance, Chinese Expatriates in African Countries
Abstract
This research aims at the influence of national culture on Chinese expatriates’ work performance in African countries (Algeria, Kenya and Nigeria) and the causal relationship between cultural differences and expatriates’ work performance so as to provide recommendations for China-based MNCs. The aim of this research is to study the cultural impacts on them and their performance in African countries and then provide suggestions for China-based MNCs to reduce negative influences on expatriate performance. The purpose of this research is to help Chinese MNCs to improve expatriates’ work performance by identifying the cultural distance they perceived and then assisting them to relieve cultural distance.
Many researches focus on expatriates from Western country taking international tasks in developing countries such as China, whereas the study for Chinese expatriates in less-developed countries is rare (Matondo, 2012; Noman et al., 2020; and Wang et al., 2016). There is a research gap in the cultural impact on Chinese expatriates in Africa. This research covered this gap. Also, this research is significant because it offers these companies recommendations on how to develop their expatriates’ performance, given that Chinese investment in African countries is booming.
This dissertation used positivism as its research philosophy and then developed a quantitative research with deductive approach, survey, 203 questionnaires and self-selection sampling technique. These techniques are consistent and supportive with quantitative research. The quantitative data was analysed frequency, descriptive, correlation and regression analysis. These research methodologies used by this dissertation are justified and explained in this chapter.
This research finds that culture differences have negative impacts on Chinese expatriates’ work performance, even with the help of effective compensation package and cross-cultural training. Cultural differences in masculinity, uncertainty avoidance and long-term orientation negatively affect expatriate performance. Perceived differences in uncertainty avoidance and long-term orientation are large and those in masculinity are middle. Cross-cultural training and compensation package can be used as two important approaches for Chinese MNCs to help expatriates to relieve negative impacts of cultural differences on expatriate performance. Effective cross-cultural training should help expatriates to overcome cultural issues, develop their capabilities to understand foreign culture, and understand local culture, customs and contexts. Meanwhile, effective compensation package is home-based approach that includes all cost expatriates need to maintain a Chinese lifestyle in Africa, be able to motivate them to work harder, and make them feel fair. Further research can use interpretivism to explore out other variables affecting expatriate performance. It also can identify specific approach to improve the effectiveness of cross-cultural training and compensation approaches.
1.1.1 Cross-Cultural Issues for Expatriates
1.1.2 Chinese Expatriates in Africa
1.3 Research Purpose, Objective and Question
2.2 The Important Role of Expatriates
2.3 Cross cultural Impacts on Expatriates
2.4 Hofstede’s National Culture Dimensions
2.7 Critical Review of Relevant Researches
3.5 Data Collection Techniques
1.0 Introduction
1.1 Research Contexts
1.1.1 Cross-Cultural Issues for Expatriates
With rise of Chinese economy, China has become a large Foreign Direct Investment (FDI) outflow country. Under Chinese government’ ambitious plan of exploiting African countries, there are increasingly more Chinese SOEs investing this continental. FDI brings expatriate issues which are related with cross-cultural challenges.
Briscoe and Schuler (2004) highlight that cross-cultural issues such as lack of cultural knowledge, adaptability, and language capability are main variable resulting in expatriate failure. Expatriate issues have been widely concerned by scholars and MNCs. Expatriates act a significant role in knowledge-transferring to branches and subsidies of MNCs in host country and in helping MNCs to expand business in international market (Zhou and Qin, 2009). Their performance is critical for MNCs to gain success in foreign markets in resource-based view (Grundey, 2008). However, cultural distance is a strong determinant affecting expatriate performance (Grundey, 2008). It is challenge for all people to work in a culturally different environment, especially for expatriate who take heavy responsibilities and important tasks. Culture distance creates divergences in management style, work style, work atmosphere, communication style, value and ideology, thus contributing to challenges to expatriates.
Furthermore, Chinese expatriate indeed faces challenges in overseas. Noman et al. (2020) study challenges to Chinese expatriates in Pakistan include cultural differences and language issues in both work and life environment. Even though this study does not focus on African countries but is very recent, it provides a hint that Chinese expatriates are very likely facing cultural challenges in African countries, which makes this research significant. According to Shepard (2019), there are one million Chinese people living and working in African countries. Most Chinese workers are employees of Chinese SOEs engaging in construction and resource extraction businesses supported by Chinese loans. Whereas, a group of temporary labour migrants have higher skills, featuring managers, semi-skilled supervisors, Chinese chefs and translators, who can be viewed as expatriates (Park, 2016). Given that there are such large number of Chinese expatriates in African, it is significant to study cultural impacts on them.
1.1.2 Chinese Expatriates in Africa
There are more 10,000 Chinese-owned companies operating in Africa and their business value has reached over US$ 2 trillion by October 2019 (Shepard, 2019). China regards African continental as the largest foreign construction market. In 2018, Chinese government claimed its ambitious plan of investing US$ 60 billion in African infrastructure (Shepard, 2019). The US$ 60 billion project has a variety of forms including assistance, investment and credit loan with the purpose of developing infrastructure, emergency, food aids, training and development of labour, trade etc. (The Telegraph, 2018). Chinese investment mainly focuses on natural resources, infrastructure, urbanisation, etc. Most large investment in Africa is carried by Chinese SOEs which are directly managed by the state.
As of 2018, there were 201,057 Chinese workers in African countries and 65% of them were active in Algeria, Angola, Nigeria, Kenya and Ethiopia. 30% of Chinese workers were working in Algeria. Despite of a decreasing trend of Chinese workers in Africa between 2015 and 2018, the number of Chinese workers still was huge in 2018 (Johns Hopkins University, 2019).
Figure 1
(Source: Johns Hopkins University, 2019)
Chinese expatriates are experiencing different issues in Africa. Due to the burst of Covid-19, the conflicts between Chinese expatriates and local people are rising in Kenya. Local residents blamed the responsibility of China for spreading the new coronavirus and expelled Chinese expatriates from their construction site (Olander, 2019). Given that Covid-19 is not expected to disappear in short-term, the confrontation also does not tend to vanish within 2020. Another challenge is the rise of nationalism and national narcissism in China, which also cultivates race discrimination (Cahlan and Lee, 2020). There is a trend that increasingly more Chinese discriminate African people especially in mainland China. Racism tends to reinforce Chinese expatriates’ negative attitude toward African culture and people, resulting in more cultural conflicts. Under the impact of racism, Chinese expatriates tend to devalue African culture and people resulting in more cultural conflicts. Osman-Gani and Rockstuhl (2009) highlight that cultural capability is related with understanding, being aware of and appreciating a foreign culture. Racism motivates Chinese expatriates to devalue African culture and then reduce their cultural capability.
Furthermore, China barely has relationship with African countries before 20th century. Unlike western countries, it has no colonial tier with African countries. Moreover, the geographical distance between China and Africa is long. With the growth of Chinese economy, its gap with African countries has become huge. Therefore, Chinese expatriates engage in a highly different environment in Africa.
1.1.3 Cross-cultural Issues
As figure 2 shows, all four countries have a high score on power distance and only Kenya’s power distance is 10 scores lower than other threes. The four countries generally have a low score on individualism, whereas China has the lowest score on this dimension (only 20) and Algeria has the highest score (35). In terms of masculinity, Algeria has the lowest score (35) while China has the highest score (66). The four countries are diverged in the dimension of uncertainty avoidance and African countries have a relatively higher uncertainty avoidance especially for Algeria (70). Additionally, the most significantly cultural difference is long-term orientation in which Nigeria only has the lowest score (13) followed by Algeria (26) while China has 87 score.
Figure 2: Hofstede national culture theory: Algeria, Angola, China, Nigeria and Kenya
(Source: Hofstede-Insights, 2020)
The figure 2 shows the cultural differences among the four countries showing a huge different between China and these African countries and thus implying cross-cultural issues Chinese expatriates face. These cultural differences are further explained in the Chapter Two – Literature.
1.2 Research Significance
This research is significant that tries to make academic contributions. Even though many scholars have discussed expatriate issues, the research for Chinese expatriates in African countries is rare. Many researches focus on expatriates from Western country taking international tasks in developing countries such as China, whereas the study for Chinese expatriates in less-developed countries is rare (Matondo, 2012; Noman et al., 2020; and Wang et al., 2016). Noman et al. (2020) focused on Pakistan while did not consider African culture. Their results are less applicable in Africa because the geographic distance between China and Pakistan is close and they share borders while the geographic distance between China and Africa is considerably long. The cultural difference between China and Africa is expected to be larger. Matondo (2012) study the cultural differences between China and Congo but it has no involvement in the impact of Chinese expatriates. Wang et al. (2016) studied cross-cultural skills for Chinese expatriates but did not explore the specific cultural difference perceived by Chinese expatriates and consider cross-cultural training as well as compensation. Thus, there is a research gap in the cultural impact on Chinese expatriates in Africa. It is significant for this research to cover this gap.
Furthermore, this research can make managerial contributions. Given that Chinese government plans to invest in US$ 60 billion in Africa, Chinese companies have to improve their performance to ensure their return on investment. Developing expatriates is important for them. It is significant to offer these companies recommendations on how to develop their expatriates’ performance, given that Chinese investment in African countries is booming.
1.3 Research Purpose, Objective and Question
This research aims at the influence of national culture on Chinese expatriates’ work performance in African countries (Algeria, Kenya and Nigeria) and the causal relationship between cultural differences and expatriates’ work performance so as to provide recommendations for China-based MNCs. The aim of this research is to study the cultural impacts on them and their performance in African countries and then provide suggestions for China-based MNCs to reduce negative influences on expatriate performance. The purpose of this research is to help Chinese MNCs to improve expatriates’ work performance by identifying the cultural distance they perceived and then assisting them to relieve cultural distance. The resultant objective of this research is to raise awareness of MNCs to pay attention to cultural impacts on expatriate and provide proper countermeasures in relation to cross-cultural training and compensation.
The three research objectives are identified in accordance with the research’s purpose and aim:
· To discuss existing theories and knowledge in terms of cultural impacts on expatriates, Hofstede’s national culture theory, Chinese expatriates, cross cultural trainings, and compensation
· To examine the causal relationships between cultural differences and Chinese expatriates’ performance and desired cross-cultural trainings and compensation packages by primary data
· To discuss results of primary data analysis with the existing theories and knowledge to conclude findings and make recommendations
Based on the research aim and purpose, there are two research questions.
· What is the causal relationship between perceived cultural difference and Chinese expatriates’ work performance in Africa?
· What Chinese-based MNCs should do to help their expatriates to overcome cultural difference and then have better performance?
1.4 Research Outline
Expatriate refers to those workers who work in a foreign country with special tasks and act an important role with specific skills (Rehman, 2018). They are highly different with average employees who work in overseas and they normal take responsibility of managing or transferring knowledge (Rehman, 2018). This research study those Chinese expatriates include high or middle of managers, specialists, experts and engineers. In other words, it does not cover Chinese labours.
The aim of this research is to evaluate the impacts of national culture on Chinese expatriates’ performance in African countries and then make recommendations for China-based MNCs in term of cross-cultural trainings and compensation. It plans to Hofstede’s national culture dimensions to measure the cultural impacts. It reviews literature related with six dimensions, cross-cultural training and expatriate compensation in the Chapter Two. This research justifies its methodologies in the Chapter Three. It used quantitative approach based on positivism, deductive approach and survey. It collected 203 questionnaires to collect primary data with self-selection sampling technique. The Chapter Four discusses results of primary data analysis with existing theory and knowledge. The final chapter summarises findings and make recommendations.
2.0 Literature Review
2.1 Introduction
This chapter discusses the role of expatriates, cultural impacts on them, Hofstede’s national culture dimensions, cross-cultural training and expatriate compensation. Then, it critically reviews those researches related with Chinese expatriates to identify a research gap. Finally, it develops its own conceptual framework.
2.2 The Important Role of Expatriates
Expatriates refer those persons who work in the country other than their native country for short-term or long-term and is professionals and skilled workers (Rehman, 2018). They have stronger technical capabilities and cross-cultural capabilities than normal workers.
Expatriates act a prominent role in a MNC’s performance in a host country. Most of expatriates take the responsibility of sharing knowledge to foreign subsidies and managing them, who have specific and important task taken from their headquarter (Minbaeva and Michailova, 2004). They take direct order from headquarter and allow headquarter to increase control and monitoring on these subsidies. According to Rehman (2018), an expatriate is expected to play the following roles: 1) to accomplish the strategic needs of a MNC (Edstrom and Galbralth, 1977); 2) to execute headquarters’ management style; 3) to control and coordinate a subsidiary; 4) to enhance work performance; 5) to offer greater supervision and expertise; and 6) to ensure the implementation of headquarters’ standards (Harzing, 2001).
Furthermore, expatriates can act as an agent to directly control subsidiaries and ensure compliance of local employees to headquarter. Also, they can share headquarters’ organisational culture to control a subsidiary indirectly and informally (Belderbos and Heijltjes, 2005). They play the role of forming social capital by cultivating interpersonal linkages which help HQ to control and communicate with subsidiary informally. Furthermore, some expatriates have the duty of transferring skills and knowledge. They can work as a trainer to develop local employees of a subsidiary. Moreover, some expatriates as a boundary-spanner take responsibility of collecting data and knowledge of a subsidiary and the host country for HQ (Johnson and Duxbury, 2010). Their role offers information and knowledge for their HQ’s decisions on further international expansion.
2.3 Cross cultural Impacts on Expatriates
Culture refers to the programming thinking of a group people in a society (Hofstede, 1980). It also can be viewed as the collective thinking of members in a society (Lebron, 2013). It can result in divergences in attitudes, opinions, perceptions and value (Hofstede, 1991). Each culture is unique, so cross cultural communication faces the challenges in the divergences in value, attitude and perceptions between two cultures.
Cross-cultural issues have strong impacts on expatriates’ performance (Takeuchi et al., 2002). Expatriates tend to experience cultural shock that compromises their work capabilities and negatively affects their emotion (Naeem et al., 2015). These issues can cause unappreciated communication, misunderstanding and conflicts (Javidan and House, 2001). Furthermore, expatriates face different communication style, work style and management/leadership style in host country (House et al., 2004). Furthermore, Khairullah and Khairullah (2013) find that cultural differences result in divergences in decision-making style and approach. An expatriate tends to be isolated by host country’s workers if he or she have a lower cultural capability. The expatriate also is likely to have negative attitude toward work style, communication, organisational atmosphere and leadership style in host country, thus resulting in a lower performance.
2.4 Hofstede’s National Culture Dimensions
Hofstede et al. (2010) revisited its national culture dimensions that measure the characteristics and uniqueness of a national culture. As discussed, most Chinese companies engage in Algeria, Angola, Nigeria and Kenya and their cultural differences has shown in Figure 2. Therefore, this dissertation adopted Hofstede’s theory to measure the cultural differences in the three countries.
2.4.1 Power Distance
In those countries with higher power distance, people have more tolerance to inequal distribution of power (Hofstede et al., 2010). Employees in such culture prefer to take direct and specific orders and work without autonomy (Hofstede et al., 2011). The relationship between managers and employees is inclined to paternalism and companies tend to have a patriarchal system in which managers are older than employees and act the role of ‘father’ or ‘older brother’. In such society, social hierarchy is clear, and people accept those people with privilege (Hofstede, 2004). Thus, employees and managers do not have an equal partnership and managers can enjoy privileges. In such culture, older people have more respects. In workplace, they are more likely to be leader and receive more respects. In Chinese companies specially in SOEs, HR manager select manager or decide job promotion based more on an employee’s age, tenure, loyalty and ethical performance rather than on his capabilities and performance (Selmer et al., 2009). An employee with longer work experience in the country can prove his/her loyalty.
2.4.2 Individualism
In those countries with low individualism, they have collectivistic culture. In workplace, employees are encouraged to sacrifice individual interests for mutual interests and to work collaboratively. Employees are expected to have undoubted loyalty to employers and are involved and committed to their workplace (Schneider and Barsoux, 2002). They have stronger sense of belongness to their workplace. Private interests and spaces are undervalued. More importantly, in such culture especially in China, personal relationship and social connections (Guanxi) are important under the impact of Confucianism (Hofstede and Bond, 1988). Chinese people value harmony and avoid both positive and negative confrontations. Differences are considered as threats to harmony (Matondo, 2012). Furthermore, face-saving is important in China and Chinese people do not want to hurt their own face and others’ face during interaction (Nye, 2012). As a result, they tend to send ambiguous message and use intermediates in communication to avoid conflicts and direct rejection so as to save face for them and others (Zhang, 2008). Indirect and ambiguous communication tend to arouse uncertainties and miscommunications (Zhang, 2008). However, ambiguous communication is not prominent in African countries.
2.4.3 Masculinity
Masculinity means the extent to which members of a society prefer achievement, heroism, assertiveness and material rewards for success (Hofstede et al., 2010). This dimension is built based on the assumption that values of male and female are different, and the distribution of the values is a basic issue for all societies. Male’s values are very assertive and competitive, which is maximally different with female’s values which are modest and caring.
Chine, Kenya and Nigeria have high scores on masculinity. People in these countries consider material rewards as the evidence of be successful and pursue achievements. In such culture, divergence in emotional and social roles between male and female is maximised (Hofstede et al., 2010). Chinese people put job into the first place and are willing to work in leisure time (Zhang, 2008). Male should and female may be assertive and ambitious. Work is more important than family, so employees are more willing to take overtime. The strong is admired and more respected. Fathers address facts while mothers focus on feelings. Boys are expected to fight back while girls are not.
However, Algeria has a low score on masculinity. Algerian employees tend to pay more attention to family and be less motivated by material achievements. They may be less willing to involve work overtime or in weekend.
2.4.4 Uncertainty Avoidance
This dimension measures the extent to which people in a society tolerate to unknown situations and ambiguity (Hofstede et al., 2010). China has the lowest score on this dimension (30), followed by Kenya (50), Nigeria (55) and Algeria (70). This means that Chinese people enjoy uncertainties and Chinese languages and communication contain many ambiguities (Zhou and Qin, 2009). In workplace, Chinese people have their own interpretation on contracts and rules. Employees and businesses rely on relationship (Guanxi) to make sure and reduce uncertainties (Fu and Kamenou-Aigbekaen, 2011). They trust in their relationship with others rather than contracts. In their perspective, rules are flexible and changeable based on situations and contexts. However, they demand others’ loyalty to relationship. Chinese managers tend to have unwritten rules upon employees and consider situations and circumstances (Fu and Kamenou-Aigbekaen, 2011). The compliance to rules and regulations of an organisation can be flexible to adopt to actual situation.
Nevertheless, those countries with higher score on uncertainty avoidance are more dependent on rules and laws to reduce uncertainties. They prefer to adopt specific rules to reduce uncertainties (Hofstede, 1991). They have emotional demands for specific rules and laws. Truth is not dependent on situations in these cultures. More importantly, they have low willingness to accept change and have preference to avoid risks.
2.4.5 Long-term Orientation
Long-term orientation measures how people of a society conserve their past while address challenges at present and in future (Hofstede et al., 2010). Algeria has 26 score showing a normative culture in which people concern an absolute truth, are normative in thinking and show low propensity to save for the future. Meanwhile, Nigeria has a lower score (13). Employees and managers in the two countries show high concerns to short-term interests and goal (Matondo, 2012). They are more likely to be motivated by salary and monthly bonus.
However, China the highest score on this dimension. They are very practical and pragmatic who believe that truth is based on circumstance, context and time (Hofstede et al., 2010). They can easily change traditions to adapt to new context and show high preference to save and investment. Chinese people are inclined to thriftiness and perseverance to accomplish outcomes (Hofstede, 2011). Employees have long-term perspective who consider pension, health care and life insurance as well as value life-changing opportunities such as training opportunities (Fu and Kamenou-Aigbekaen, 2011).
Based on above discussion, this dissertation sets a base showing Chinese worker’s value.
|
Culture dimensions |
Chinese worker’s value |
Sources |
|
Power distance |
Managers have privilege Expected work autonomy is low Managers should have privilege |
(Hofstede, 2004) (Selmer et al., 2009)
|
|
Individualism |
Harmony is important Communication style should avoid conflicts and use intermediates Workers should be willing to make personal sacrifice for group interests |
(Hofstede and Bond, 1988) (Matondo, 2012) (Zhang, 2008)
|
|
Masculinity |
Financial reward is success Job first Working at leisure time is acceptable |
(Hofstede et al., 2010) (Zhang, 2008) |
|
Uncertainty Avoidance |
Rule can be broken based on situation and context Preference to change Unknown things are acceptable |
(Zhou and Qin, 2009) Fu and Kamenou-Aigbekaen, 2011)
|
|
Long-term orientation |
Long-term rewards (pension) is important Long-term perspective is more important Overly focusing on short-term interests is inappropriate |
(Hofstede et al., 2010) (Fu and Kamenou-Aigbekaen, 2011) |
Table 1
2.5 Cross-Culture Training
Cross-cultural training cultivates expatriates’ cultural capabilities and thus empowers them to address cultural differences in a host country (Morris and Robie, 2001). Cultural capability is a determinant of an expatriate’s performance (Ko and Yang, 2011; Grundey, 2008). Therefore, cross-cultural training is significant and may act a mediating role affecting the relationship between cultural difference and expatriate performance.
Cross-cultural training has following functions: 1) to inform expatriates cultural differences and make them able to identify cultural differences (Takeuchi et al., 2012); 2) to make expatriates understand a foreign cultural and its rationale such as how the culture is formed; and 3) to make expatriates appreciate foreign culture and work in the culture’s way (Cerdin and Brewster, 2014). Such training develops trainees’ language capabilities, inform them history, customs, environment and laws of a host country.
Such training can effectively assist expatriates to address cross-cultural issues (Ko and Yang, 2011). Culture training programs develop expatriates’ cultural competencies including to identify cultural differences, understand them, appreciate an exotic culture and act in the way of the culture (Osman-Gani and Rockstuhl, 2009).
2.6 Expatriate Compensation
Expatriate compensation has strong impacts on an expatriate performance (Nazir, 2014). Proper compensation can relieve the negative impact of cultural difference on expatriate performance (Shih et al., 2005). This means that it can be a mediating factor affecting the relationship between cultural difference and expatriate performance. Compensation can motivate expatriates to overcome cultural differences and local employees’ resistance thus improving expatriates’ performance.
Currently, there are three mainstream compensation approaches: home-based, host country-based and international approach, whereas none of them is perfect (Shih et al., 2005). Home-based approach compensates expatriates on the basis of their counterparts’ payment in home country and extra rewards for being a foreign country or taking a difficult task. This approach is attractive to those expatriates from a developed country who works in a developing country (Nazir, 2014). It is suitable to compensate Chinese expatriates working in an African country. However, host-country based is less attractive because it pays Chinese expatriates based on African standards. Also, international approach is not appliable for most Chinese SOEs engaging in Africa, because this approach pays an expatriate based on task difficulties at international level. However, these SOEs only engage in Africa and have no international standards.
Nevertheless, home-based approach is less effective to encourage an expatriate to adopt to local culture because it still adopts the standards of home country plus extra costs and rewards (Nazir, 2014). This approach motivates expatriates to continuingly live in a way of home country, which is proper for short-term expatriates rather than long-term expatriates.
To be specific, home-based approach compensates the following aspects: hardship pay, cost of living, house relocation costs, home leave costs, spousal assistance, health care in a host country, travelling costs, etc.
2.7 Critical Review of Relevant Researches
Noman et al. (2020) study the challenges of Chinese expatriates in Pakistan by surveys. They identify the challenges include work factors (different time perceptions and work style differences) and non-work factors (languages challenges and cultural differences). They highlight two important cross-cultural training approaches including formal learning and informal learning. Formal learning is pre-departure training conducted by employers, while informal learning is the self-learning of expatriates who search local culture by the internet. However, this research did not consider African culture and it focused on Pakistan where is close to China and has a border with it. The cultural difference between China and Africa is expected to be larger.
Matondo (2012) study the cultural differences between China and Congo in the aspect of Chinese construction companies by a survey. This research finds empirical evidences supporting cultural impacts on local employees’ attitudes and behaviour. The purpose of this research is to help these Chinese companies to understand the country’s culture while it has no involvement in the impact of Chinese expatriates.
Wang et al. (2016) studied cross-cultural skills for Chinese expatriates by in-depth interviews. They found that Chinese expatriates adopted self-maintenance skills to address difficulties in local environment. This study also recognised cultural differences on Chinese expatriates. However, it did not explore the specific cultural difference perceived by Chinese expatriates and consider cross-cultural training as well as compensation.
2.8 Conceptual Framework
Based on Hofstede’s national dimensions, this dissertation identifies five independent variables (Figure 3). It plans to measure perceived cultural differences in these five aspects. Then, it devises two mediating factors affecting the relationship between cultural differences and expatriate performance: cross-cultural training and compensation package. Firstly, cross-cultural training cultivates expatriates’ cultural capabilities and thus empowers them to address cultural differences in a host country (Morris and Robie, 2001). Therefore, it may act a mediating role affecting the relationship between cultural difference and expatriate performance. Secondly, proper compensation can relieve the negative impact of cultural difference on expatriate performance (Shih et al., 2005). This suggests that it can be a mediating factor affecting the relationship between cultural difference and expatriate performance.
Figure 3: Conceptual Framework
3.0 Methodology
3.1 Introduction
This dissertation used positivism as its research philosophy and then developed a quantitative research with deductive approach, survey, 203 questionnaires and self-selection sampling technique. These techniques are consistent and supportive with quantitative research. The quantitative data was analysed frequency, descriptive, correlation and regression analysis. These research methodologies used by this dissertation are justified and explained in this chapter.
3.2 Research Philosophy
This dissertation adopted positivism philosophy and quantitative research. The philosophy adopts natural scientific approaches to study an observable phenomenon. The concept of quantitative research is developed based on positivism philosophy. More importantly, positivism and quantitative research ensure the credibility of data collection and analysis. Aligning with positivism, researches collect credible data and conducts credible data analysis (Wilson, 2010). The research theoretical framework and research hypothesis are built on the basis of existing reliable theories and knowledge. Thus, positivism-based research can generate less arguable and controversial findings and these findings have high level of generalisation (Cohen et al., 2007). Positivism can generate law-findings and is more much practicable and manageable to conduct a large scale of research than interpretivism (Collis and Hussey, 2007). This dissertation planned to offer reliable findings for all Chinese MNCs engaged in Africa, so it adopted positivism and quantitative research.
Quantitative research allows researchers to collect a large sample size in a more effective way that qualitative research (Saunders et al., 2012). Furthermore, the findings of quantitative research are supported by empirical evidences. In accordance with positivism, quantitative research builds rigorous research framework and a package of research methodologies to study an observable phenomenon in a scientific way (Saunders et al., 2012).
This dissertation justified its research framework in the Chapter Two and collected 203 questionnaires by a set of methodologies which fit in quantitative research. More importantly, many culture-related researches adopt positivism and quantitative approach (Hofstede, 1980). Meanwhile, many previous studies investigating Chinese expatriates by quantitative research, survey and questionnaires (Matondo, 2012 and Noman et al. 2020).
On the other hand, interpretivism philosophy is not suitable and feasible for this research. Even though qualitative research based on interpretivism has proficiency in studying feelings and behaviours as well as collecting dynamic data (Creswell, 2007), many culture-related researches did not use it. For example, Hofstede (1980) adopted survey to collect quantitative data from IBM employees because it was hard for researchers to build a larger sample size and find highly generalised results by qualitative researches.
Based on interpretivism, qualitative research requires researchers to involve into research phenomenon and directly experience it to generate insights (Creswell, 2007). However, the data collection process of qualitative research for culture-related phenomenon can be problematic (Saunders et al., 2012). One researcher is unable to collect a larger sample size to find generalised results. However, the perception of a group of researchers can be largely varied and their data collection skills can be very different. As a result, their data collected tend to come from different standards and thus has a lower validity and reliability. It is hard to completely avoid bias in data collection process of qualitative data. Therefore, this research adopted quantitative research.
3.3 Research Approach
This dissertation used deductive approach to study cross-cultural impacts on Chinese expatriates. This approach studies or explains an observable phenomenon based existing and reliable knowledge (Kervin, 1999). As discussed in the Chapter Two, the dissertation identified that many reliable theories such as Hofstede’s national theory and other researches’ findings can be used to explain the cross-cultural impacts. It is not necessary to find new theories for the explanation, which therefore makes deductive approach more suitable for this dissertation. Moreover, the results of deductive approach are more reliable because they have supports of previous studies (Saunders et al., 2012). This dissertation’ findings are supported by the knowledge discussed in the Chapter. Furthermore, deductive approach aligns with quantitative research and philosophy allowing researchers to build hypothesis based on existing theories (Saunders et al., 2012).
Nevertheless, inductive approach does not certainly generate valid finding even though it encompasses right data and analysis because it adopts a down-top approach making its results have less or no support of previous studies (Saunders et al., 2012). Inductive approach generates new insights, whereas it needs more further researches to prove these insights. The results of inductive approach therefore are more arguable. Generally, deductive approach is more suitable for this dissertation.
3.4 Research Strategy
Survey was employed as research strategy because it aligns with quantitative research. It covers many data collection techniques including questionnaires and interviews (Robson, 2002). Survey is much more managerial and feasible for this dissertation than case study and focused group. Case study centralizes one or a few of samples to dig out in-depth finding while cannot have high generalised findings (Saunders et al., 2012). In other words, its findings are less applicable for all Chinese MNCs in Africa. Also, to implement a focused group, a researcher has to control all variables and well design a context for participants (Robson, 2002). However, it is hard to find these participants and create a research context that can stimulate African work environment of expatriates. On the other hand, directly using survey to collect data from real expatriates who are experiencing the real context is much more efficient and proper. Thus, the dissertation used survey.
3.5 Data Collection Techniques
203 questionnaires were collected by this research via the internet. Questionnaire is viewed as the most effective technique to gather quantitative data because it can build a large sample size and collect huge amount of numerical data in short-term (Robson, 2002). By close-end question, questionnaire can quantify participants’ answers and be used for quantitative research (Neuman, 2005). Also, in the process of data collection, researchers can use questionnaires to avoid interaction with respondents and their negative impacts on data validity and reliability (Robson, 2002), which complies with quantitative research and positivism. Furthermore, questionnaire can be spread broadly by the internet to access a large number of research populations in short-term (Neuman, 2005). Although the design of a questionnaires can be time consuming, the quantitative data from questionnaires can be analysed by statistic software in an effective way (Easterby-Smith et al., 2008).
This dissertation designed a close-end and online questionnaire. All its questions were close ended and could be divided into five sections. The first section collected demographics of respondents including age, gender, education and income and measured their job-related situations including job role and work time in Africa. The second section measured perceived cultural differences in terms of five Hofstede’s national culture dimensions (Hofstede et al., 2011). The third sections collected data about cross-cultural training to examine whether or not these respondents have received desired training. The fourth section measured whether or not these respondents gained desired compensation. The fifth section collected data to understand work performance of these respondents. From the second section to the fifth section, this dissertation adopted Likert scale including strongly disagree (=1), disagree (=2), neutral (=3), agree (=4) and strongly agree (=5). This means that strongly disagree is quantified to 1 and strongly agree is quantified to 5 in statistical analysis. The questions in the third, fourth and fifth section were developed by the researcher based on the literature review.
To be specific, the second section measured perceived cultural differences of Chinese expatriates. Therefore, all questions in this section are asked based on Chinese value concluded in Table 1 (Chapter Two). In this table, this dissertation summarises Chinese workers’ value in each of Hofstede’s dimensions. Then, it designed questions of the second section based on these values. If respondents strongly agree with these questions, it means that the perceived cultural difference is considerably low. Otherwise, if respondents strongly disagree with these questions, it means that they perceive differences in these dimensions. In other words, perceived cultural differences are large.
The dissertation built the online questionnaire at the website known as WJX.cn. It developed a webpage for the questionnaire and shared its link to potential respondents.
3.5.1 Research population
This research collected data from Chinese expatriates including top and middle level managers, trainers as well as experts who act the role of transferring knowledge such as engineers. It targeted those expatriates who has worked in Algeria, Kenya and Nigeria over a half year.
3.6 Sampling Technique
Self-selection was employed by this dissertation because it has been the most effective way to build a large sample size. By self-selection sampling, the researcher collected data from those who voluntarily offered data. They were not motivated by rewards so were more likely to offer reliable data. However, the representativeness of self-selection is criticised for being low. To relieve self-selection’s low representativeness of research population, this research collects a larger sample size (203).
This research was unable to use any probability sampling techniques and it could not implement any random technique because it did not have the database that covered all Chinese expatriates. The researcher could not ensure that each one of Chinese expatriates had the same possibility to be chosen. Hence, probability sampling techniques were not applicable.
By self-selection sampling, this researcher used social connections and found a HR manager of those Chinese SOEs who have been engaging in African markets. With the help of the HR manager, the researcher was allowed to involve into online chatgroups of Chinese expatriates in a Chinese social media (WeChat). These Chinese expatriates exchange information and maintain communication in these chatgroups and each chatgroup has 300 to 500 members. The researcher involved into these chatgroups and spread the link of the questionnaire. Many respondents forwarded the link to other chatgroups or their friends who shared the similar experience. By this way, the research collected 203 questionnaires.
3.7 Time Horizons
This research adopted cross-sectional time horizon. The researcher collected data without intervening research environment. It only collected data for one time without any comparison related with time. Hence, this time horizon is proper for this research. The research collected primary data between 16th July and 19th August 2020.
3.8 Data Analysis
This research adopted statistical analysis to test research hypotheses. Frequency analysis was used to describe participants’ demographics. The research used correlation analysis to examine the strength of correlation between independent variables and dependent variable. By regression analysis, the research identified the significance between independent variables and dependent variable.
3.9 Research Ethics
The research fully complied with ethical codes of the University. It conducted an anonymous survey that did not record and inquire any identity information related with these respondents especially name and contact. Also, the research has been well protecting the primary data by using passwords and the researcher’ work laptop. More importantly, the data and results of this research are only accessible for the University. It involves no debriefing because debriefing could arouse ethical issues and conflicts. The data will be destroyed by the research by the end of December 2020.
More importantly, this survey involved zero deception. It explained its purpose and aims as well as participants’ rights by a consent letter in a direct and frank way. They have the rights to connect the University to make confirmation, to quit the research and to withdraw their data before 21 August 2020. By the consent letter, the survey ensured that participants had been fully aware of this research before they made decision to offer data.
4.0 Results
4.1 Introduction
This chapter uses frequency analysis to address demographics of respondents including age, gender and education, measure their job status and deal with every question. Then, it uses correlation analysis to test the relationship between the mediating factors (cross-cultural training and compensation). Finally, it adopted regression analysis to examine the conceptual framework.
4.2 Frequency Analysis
4.2.1 Demographics Analysis
There are 203 questionnaires which are analysed. The largest age group is 28-to-32-years old accounting for 32.5%, followed by 33-to-38-years old (28.6%). The smallest age group is 22-to-27-years old accounting for 8.9%. This means that more that half of respondents (61.1%) are between 28 and 38 years old. The age distribution is reasonable because workers at this age have sufficient work experience and can endure hardship in Africa.
|
Age Distribution |
|||
|
|
Frequency |
Percent |
|
|
Valid |
22 – 27 |
18 |
8.9 |
|
28 – 32 |
66 |
32.5 |
|
|
33 – 38 |
58 |
28.6 |
|
|
39 – 44 |
29 |
14.3 |
|
|
Above 44 |
32 |
15.8 |
|
|
Total |
203 |
100.0 |
|
Table 2
Most of respondents are male and female respondents only account for 3.4%. This can be explained by the fact that African environment is difficult for female workers and most of Chinese MNCs involve in construction projects, mining and other industry of the second sectors in which have fewer female workers in the first place.
|
Gender Distribution |
|||
|
|
Frequency |
Percent |
|
|
Valid |
Male |
196 |
96.6 |
|
Female |
7 |
3.4 |
|
|
Total |
203 |
100.0 |
|
Table 3
Figure 4
56.2% of respondents gradated with a Bachelor Degree which allows them to transfer knowledge and act important role in host country. 24.6% of respondents have a collage degree. 18.7% of respondents have a master agree or above. Only 1 respondent left school before college. These results show that respondents generally have enough knowledge and education background to act important role in subsidiary.
|
Education Distribution of Respondents |
|||||
|
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
|
|
Valid |
Before collage |
1 |
.5 |
.5 |
.5 |
|
Collage |
50 |
24.6 |
24.6 |
25.1 |
|
|
Bachelor |
114 |
56.2 |
56.2 |
81.3 |
|
|
Master or above |
38 |
18.7 |
18.7 |
100.0 |
|
|
Total |
203 |
100.0 |
100.0 |
|
|
Table 4
4.2.2 Job Statues Analysis
27.1% of respondents have worked in Africa for 2.6 to 3 years, followed by 1.6 to 2 years (25.6%). 24.6% of respondents have over 3-year work experience in Africa. 10.8% of respondents have 2.1 to 2.5 years work experience. These results show that all respondents have sufficient experience to offer data and their data is valid.
|
How long have you been working in Africa |
|||
|
|
Frequency |
Percent |
|
|
Valid |
6 – 12 months |
9 |
4.4 |
|
1 to 1.5 year |
15 |
7.4 |
|
|
1.6 to 2 years |
52 |
25.6 |
|
|
2.1 to 2.5 years |
22 |
10.8 |
|
|
2.6 to 3 years |
55 |
27.1 |
|
|
Above 3 years |
50 |
24.6 |
|
|
Total |
203 |
100.0 |
|
Table 5
As Table 3 shows, about half of respondents work in Algeria, followed by Kenya (35.5%) and Nigeria (17.2%). This distribution is consistent with Johns Hopkins University (2019)’s data that Algeria has the largest number of Chinese workers, followed by Kenya and Nigeria.
|
Which country did you involve |
|||||
|
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
|
|
Valid |
Algeria |
96 |
47.3 |
47.3 |
47.3 |
|
Kenya |
72 |
35.5 |
35.5 |
82.8 |
|
|
Nigeria |
35 |
17.2 |
17.2 |
100.0 |
|
|
Total |
203 |
100.0 |
100.0 |
|
|
Table 6
66.5% of respondents work as experts and 33.5% of respondents work at management position.
|
Job role of respondents |
||||||
|
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Valid |
Management position |
68 |
33.5 |
33.5 |
33.5 |
|
|
Working as an expert |
135 |
66.5 |
66.5 |
100.0 |
||
|
|
Total |
203 |
100.0 |
100.0 |
|
|
Table 7
4.2.3 Power Distance
Based on the results in Table 7, perceived differences in power distance is not high. 58.1% of respondents perceive that managers offer specific orders in my workplace including 30.0% agree and 28.1% strongly agree.
57.1% of respondents perceive that employees do not expect autonomy in their workplace including 32.5% and 24.6% agree. This means that expected autonomy is low.
62.5% of respondent agree that managers enjoy certain level of privilege including 49.3% strongly agree and 23.2%. This means that managers in African countries also enjoy privilege.
These results show that perceived differences in power distance including expected work autonomy and equality are low.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
Managers offer specific orders in my workplace. |
15.8 |
11.3 |
14.8 |
30.0 |
28.1 |
|
Employees do not expect autonomy in my workplace. |
13.8 |
6.9 |
22.2 |
24.6 |
32.5 |
|
Managers enjoy certain level of privilege in my workplace. |
11.8 |
6.4 |
9.4 |
23.2 |
49.3 |
Table 8
4.2.4 Individualism
75.5% of respondents agree that organisational harmony is advocated and concerned in their workplace. Only 18.7% of respondents disagree with it including 13.3% strongly disagree and 5.4% disagree. This means that harmony is appreciated in the respondents’ workplace.
49.4% of respondents agree that they can understand local employees’ communication style in their workplace. This means that they perceive a relatively difference in communication style. However, 46.4% of respondents disagree with it.
Additionally, 36.8% of respondents agree that local employees are willing to make personal sacrifice for group interests while 43.8% of respondents disagree with it. This means that perceived differences in propensity to group interests are moderate.
Generally, perceived differences in individualism are moderate.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
Organisational harmony is advocated and concerned in my workplace |
13.3 |
5.4 |
13.8 |
35.0 |
32.5 |
|
I can understand local employees’ communication style in my workplace |
23.2 |
23.2 |
14.3 |
20.2 |
19.2 |
|
Local employees are willing to make personal sacrifice for group interests. |
24.6 |
19.2 |
9.4 |
19.2 |
27.6 |
Table 9
4.2.5 Masculinity
70.9% of respondents agree that local employees are motivated by financial rewards as much as they do. This means that perceived differences in material reward orientation is low.
45.8 % of respondents agree that local employees put job in the first place including 21.7% agree and 24.1% strongly agree. This means that perceived difference in job-first value is moderate.
59.6% of respondents agree that local employees can accept work overtime and in weekend as much as they do. This means that perceived difference in attitude toward work overtime is low.
Generally, the perceived differences in masculinity is middle.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
Local employees are motivated by financial rewards as much as I do. |
6.9 |
3.9 |
18.2 |
30.0 |
40.9 |
|
Local employees put job in the first place. |
12.8 |
8.9 |
32.5 |
21.7 |
24.1 |
|
Local employees can accept work overtime and in weekend as much as I do. |
5.9 |
9.4 |
25.1 |
27.1 |
32.5 |
Table 10
4.2.6 Uncertainty Avoidance
76.4% of respondent disagree that local employees do not always follow rule under any context, at any time and situation including 68.5% strongly disagree and 7.9% disagree. No respondent strongly agrees with it and only 2.0% of respondents agree it. In other words, many Chinese respondents (76.4%) perceive that local employees always follow rule under any context, at any time and situation. The perceived difference in flexibility to rule is high.
88.5% of respondents disagree that local employees are willing to accept change including 69.5% strongly disagree and 19.2% disagree. This means that they perceive high level differences in preference to change.
79.8% of respondents disagree that local employees are fine to unknown things. Only 19.5% of respondents agree with it. This means that 79.8% of respondent perceive that local employees are not fine to unknown things. They are resistant to uncertainties.
Generally, the perceived differences in uncertainty avoidance is high.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
Local employees do not always follow rule under any context, at any time and situation. |
68.5 |
7.9 |
21.7 |
2.0 |
0 |
|
Local employees are willing to accept change. |
69.5 |
19.2 |
3.0 |
6.4 |
2.0 |
|
Local employees are fine to unknown things. |
67.5 |
12.3 |
0.5 |
14.3 |
5.4 |
Table 11
4.2.7 Long-term Orientation
For the latest cultural dimension, the perceived difference is high. 69.5% of respondents disagree that local employees are motivated by long-term rewards such as pension and life insurance as much as expatriates do. This means that local employees are not motivated by long-term rewards as Chinese expatriates do. The perceived differences in attitude to long-term reward is large.
69.9% of respondents disagree that local managers have long perspective on their company’s growth including 44.8% strongly agree and 25.1% disagree. This means that local managers do not have long perspective on their company’s growth. They have short-term perspective.
69.0% of respondents disagree that local employees and manager do not overly focus on short-term interests and neglect long-term interests. This means that local employees and manager overly focus on short-term interests and neglect long-term interests. The perceived difference in attitude toward long-term interests is large.
Generally, the perceived difference in long-term orientation is high.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
Local employees are motivated by long-term rewards such as pension and life insurance as much as I do. |
62.6 |
6.9 |
7.9 |
12.3 |
10.3 |
|
Local managers have long perspective on our company’s growth. |
44.8 |
25.1 |
10.8 |
6.4 |
12.8 |
|
Local employees and manager do not overly focus on short-term interests and neglect long-term interests. |
59.6 |
9.4 |
10.8 |
12.3 |
7.9 |
Table 12
4.2.8 Cross Cultural Training
62.0 % of respondents agree that their cross-cultural training is helpful for them to overcome cultural issues in my workplace, which shows a good effectiveness of their cultural training.
62.0% of respondents agree that their cross-cultural training developed their capabilities to understand foreign culture. This means that their training is effective.
65.5% of respondents agree that they had a cultural training allowed them to understand local culture, customs and contexts. 21.6% of respondents disagree with it and 16.3% of respondents are neutral. This result shows that many Chinese SOEs offer cultural training.
Generally, 65.5% of respondents accepted the cross-cultural training introducing local culture, customs and contexts, 62.0% of respondents’ training is helpful to overcome cultural issues and 62.0% of respondents’ training has developed their capabilities. Therefore, these cultural training is effective.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
My cross-cultural training is helpful for me to overcome cultural issues in my workplace. |
11.3 |
10.3 |
16.3 |
32.0 |
30.0 |
|
My cross-cultural training developed my capabilities to understand foreign culture. |
10.3 |
9.9 |
17.7 |
30.5 |
31.5 |
|
I took a cultural training offered by my company allowing me to understand local culture, customs and contexts. |
12.8 |
9.4 |
12.3 |
27.6 |
37.9 |
Table 13
4.2.9 Compensation Package
73.9 of respondents agree that their compensation covers all costs they need to maintain a Chinese lifestyle in Africa. This means that home-based compensation is effective and proper.
69.9% of respondents agree that their compensation motivates them to work harder. 17.7% of respondents disagree with it. This shows that compensation is motivating and has positive impacts on motivation of expatriates.
71.4% of respondents agree that their compensation is fair to me, which shows the effectiveness and suitability of their compensation.
Generally, compensation package is proper and effective.
|
% |
Strongly Disagree |
Disagree |
Neutral |
Agree |
Strongly Agree |
|
My compensation covers all costs I need to maintain a Chinese lifestyle in Africa. |
4.9 |
6.9 |
14.3 |
36.5 |
37.4 |
|
My compensation motivates me to work harder. |
6.9 |
10.8 |
12.3 |
30.0 |
39.9 |
|
I feel that my compensation is fair to me. |
10.3 |
3.4 |
14.8 |
30.5 |
40.9 |
Table 14
4.3 Correlation Analysis
The correlation coefficient is 0.541 (larger than 0.299 and smaller than 0.699). Therefore, the correlation is moderate. In other words, there is a moderate relationship between expatriate performance and cross-cultural training.
|
Correlations |
|||
|
|
Expatriate Performance |
Cross-cultural training |
|
|
Expatriate Performance |
Pearson Correlation |
1 |
0.541** |
|
Sig. (2-tailed) |
|
0.000 |
|
|
N |
203 |
203 |
|
|
Cross-cultural training |
Pearson Correlation |
0.541** |
1 |
|
Sig. (2-tailed) |
0.000 |
|
|
|
N |
203 |
203 |
|
|
**. Correlation is significant at the 0.01 level (2-tailed). |
|||
Table 15
The correlation coefficient is 0.513 (between 0.299 and 0.699), showing a moderate relationship. Thus, there is a moderate relationship between expatriate performance and compensation package.
|
Correlations |
|||
|
|
Expatriate Performance |
Compensation package |
|
|
Expatriate Performance |
Pearson Correlation |
1 |
0.513** |
|
Sig. (2-tailed) |
|
0.000 |
|
|
N |
203 |
203 |
|
|
Compensation package |
Pearson Correlation |
0.513** |
1 |
|
Sig. (2-tailed) |
0.000 |
|
|
|
N |
203 |
203 |
|
|
**. Correlation is significant at the 0.01 level (2-tailed). |
|||
Table 16
4.4 Regression Analysis
Given that cross-cultural training and compensation package are viewed as two mediating factors affecting the relationship between cultural differences and expatriate performance. This research runs the following regression equation:
Expatriate performance = β + β (uncertainty avoidance) + β (individualism) + β (power distance) + β (masculinity) + β (long-term orientation) + β (cross-cultural training) + β (compensation package)
In this equation, R is 0.64 suggesting a moderate relationship between these independent variables and the dependent variable (expatriate performance). Also, the R square is 0.468. This means that 46.8% of the variants in expatriate performance can be predicted by these independent variables. In other words, these independent variables can predict 46.8% of expatriate performance.
|
Model Summary |
||||
|
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
|
|
0.685a |
0.469 |
0.450 |
0.72334 |
|
|
a. Predictors: (Constant), uncertainty avoidance, individualism, compensation, masculinity, cross-cultural training, power distance |
||||
Table 17
The P-value is 0.000 which is smaller than 0.05. This means that the relationship between these independent variables and the dependent variable (expatriate performance) is significant.
|
ANOVAa |
||||||
|
|
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
|
|
Regression |
90.000 |
7 |
12.857 |
24.573 |
0.000b |
|
Residual |
102.028 |
195 |
.523 |
|
|
|
|
Total |
192.028 |
202 |
|
|
|
|
|
a. Dependent Variable: Performance |
||||||
|
b. Predictors: (Constant), uncertainty avoidance, individualism, compensation, masculinity, cross-cultural training, power distance |
||||||
Table 18
The P-value of compensation (0.000), cross-cultural training (0.000) power distance (0.004) and individualism (0.033) is lower than 0.05. These results show that compensation, cross-cultural training, power distance and individualism have a significant relationship with expatriate performance, alone.
The P-value of masculinity (0.259), uncertainty avoidance (0.675) and long-term orientation (0.78) is larger than 0.005. These results show that masculinity, uncertainty avoidance and long-term orientation have no significant relationship with expatriate performance, alone.
Furthermore, the Beta of masculinity, uncertainty avoidance and long-term orientation is negative. This means that masculinity and uncertainty avoidance have a negative relationship with expatriate performance, respectively.
According to the result of the analysis, the equation is shown in the below.
Expatriate performance = 1.247 + 0.342 (compensation package) + 0.248 (cross-cultural training) + 0.159(power distance) + 0.103 (individualism) - 0.070 (masculinity) - 0.027 (uncertainty avoidance) – 0.011 (long-term orientation).
|
Coefficientsa |
||||||
|
|
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
||
|
B |
Std. Error |
Beta |
||||
|
|
(Constant) |
1.247 |
.307 |
|
4.064 |
.000 |
|
Compensation package |
.342 |
.053 |
.360 |
6.421 |
.000 |
|
|
Cross-cultural training |
.248 |
.054 |
.295 |
4.598 |
.000 |
|
|
Power distance |
.159 |
.054 |
.192 |
2.929 |
.004 |
|
|
Individualism |
.103 |
.048 |
.136 |
2.146 |
.033 |
|
|
Masculinity |
-.070 |
.062 |
-.068 |
-1.133 |
.259 |
|
|
Uncertainty avoidance |
-.027 |
.064 |
-.023 |
-.420 |
.675 |
|
|
Long term orientation |
-.011 |
.040 |
-.015 |
-.279 |
.780 |
|
|
a. Dependent Variable: Expatriate Performance |
||||||
Table 19
4.5 Summary
The major findings of this chapter are showed in Table 20. This research did not examine the relationship between each of these dimensions and expatriate performance because the impact of these dimensions on expatriate performance has been affected by cross cultural training and compensation.
|
|
Frequency Analysis |
Correlation Analysis |
Regression Analysis |
|
Power distance |
Moderate perceived difference |
Not applicable |
Significant and positive relationship with expatriate performance |
|
Individualism |
Moderate perceived difference |
Not applicable |
Significant and positive relationship with expatriate performance |
|
Masculinity |
Moderate perceived difference |
Not applicable |
Insignificant and negative relationship with expatriate performance |
|
Uncertainty Avoidance |
High perceived difference |
Not applicable |
Insignificant and negative relationship with expatriate performance |
|
Long-term orientation |
High perceived difference |
Not applicable |
Insignificant and negative relationship with expatriate performance |
|
Cross cultural training |
Effective |
Moderate and positive relationship with expatriate performance |
Significant and positive relationship with expatriate performance |
|
Compensation package |
Effective |
Moderate and positive relationship with expatriate performance |
Significant and positive relationship with expatriate performance |
Table 20
5.0 Discussion
What is the causal relationship between perceived cultural difference and Chinese expatriates’ work performance in Africa?
Even with effective compensation package and cross-cultural training, perceived differences still have negative impacts on Chinese expatriates’ work performance. This research finds that masculinity, uncertainty avoidance and long-term orientation have an insignificant and negative relationship with expatriate performance. In other words, perceived differences in masculinity, uncertainty avoidance and long-term orientation negatively affect expatriate performance even though these expatriates accepted effective cross-cultural training and proper compensation package. These results are consistent with many previous studies (Khairullah and Khairulla, 2013; House et al., 2004; Javidan and House, 2001; Naeem et al., 2015; and Takeuchi et al., 2002).
Furthermore, this research finds that the perceived differences in uncertainty avoidance and long-term orientation are large based on the frequency analysis. This finding is supported by previous studies (Hofstede, 1991; Hofstede et al., 2010; and Hofstede, 2011). As figure 2 shows, Chinese culture are mainly different with those African countries in terms of long-term orientation and uncertainty avoidance. In masculinity dimensions, Hofstede’s culture model shows that China are close with the Kenya and Nigeria while are very different with Algeria. However, the perceived difference in masculinity is masculinity. This can be explained by that over 47% of respondets work in Algeria.
What Chinese-based MNCs should do to help their expatriates to overcome cultural difference and then have better performance?
This research finds that cross-cultural training and compensation package are two mediating factors affecting the relationship between cultural differences and expatriate performance. Cross-cultural training and compensation package have a moderate relationship with expatriate performance alone. In the regression analysis, they have significant impacts. Therefore, they can be viewed as two important approaches for Chinese MNCs to help expatriates to relieve negative impacts of cultural differences on expatriate performance. Many previous studies support this finding (Morris and Robie, 2001; Ko and Yang, 2011; Grundey, 2008; and Takeuchi et al., 2012).
Based on the frequency analysis, effective cross-cultural training should be helpful for expatriates to overcome cultural issues, develop their capabilities to understand foreign culture, and understand local culture, customs and contexts. This finding is supported by Osman-Gani and Rockstuhl (2009).
Also, this research finds that effective compensation package is home-based approach. Effective compensation should include all cost expatriates need to maintain a Chinese lifestyle in Africa, be able to motivate them to work harder, and make them feel fair.
6.0 Conclusions
This research finds that perceived culture differences have negative impacts on Chinese expatriates’ work performance, even with effective compensation package and cross-cultural training. Perceived differences in masculinity, uncertainty avoidance and long-term orientation negatively affect expatriate performance even though these expatriates accepted effective cross-cultural training and proper compensation package. Perceived differences in uncertainty avoidance and long-term orientation are large and those in masculinity are middle.
This research finds that cross-cultural training and compensation package are two mediating factors affecting the relationship between cultural differences and expatriate performance. They can be used as two important approaches for Chinese MNCs to help expatriates to relieve negative impacts of cultural differences on expatriate performance. Effective cross-cultural training should be helpful for expatriates to overcome cultural issues, develop their capabilities to understand foreign culture, and understand local culture, customs and contexts. Meanwhile, effective compensation package is home-based approach. Effective compensation should include all cost expatriates need to maintain a Chinese lifestyle in Africa, be able to motivate them to work harder, and make them feel fair.
In addition, this research has following recommendations for further researches. Firstly, this research is constricted by positivism philosophy. It can generate law-like findings, but it cannot explore insights. It finds that its independent variables can predict 46.8% of expatriate performance. Further research can use interpretivism to explore out those variables that can explain 53.2% of variants in expatriate performance. It also can identify specific approach to improve the effectiveness of cross-cultural training and compensation approaches.
