In the complex landscape of international business, it’s common for companies to assign their employees as expatriates in overseas roles. These expatriates are essential for maintaining connections between the headquarters and foreign branches and subsidiaries, bridging cultural, language, and business practice gaps. Traditionally, the focus has primarily been on the positive outcomes of expatriates who engage in boundary-spanning activities. These activities encompass formal and informal communication, coordination across diverse cultures and organizational structures, and cultivating business networks and trust both within the company and externally.

However, the potential downsides, such as increased workload and stress, have often been overlooked. A recent collaborative study by Kyoto University and Hunan University, which analyzed data from expatriates and local employees at Chinese multinational subsidiaries, has revealed that the boundary-spanning activities of expatriates could also have adverse effects. According to Ting Liu, the lead author from Kyoto University’s Graduate School of Management, the research indicates that while these activities are beneficial for building essential social capital, including fostering trust and a sense of belonging among staff, they can also lead to significant role stress.

This stress can cause expatriates to experience emotional burnout, leading to their perception of outsiders by local employees. The study highlights the need for careful management of boundary-spanning to mitigate these risks. The research utilized three datasets collected in 2022. The initial two were used to develop a scale for measuring the boundary-spanning activities of expatriates, and the third dataset—comprising 177 pairs of expatriates and local coworkers from the energy engineering sector across various Asian countries—served as the main focus of the analysis.

Tomoki Sekiguchi, a co-author from Kyoto University’s Graduate School of Management, emphasized the study’s importance in initiating a crucial dialogue about the balance between organizational benefits and the personal costs to individuals involved in these roles. The study notably highlights the contrast between the benefits organizations receive from expatriates, such as creating international networks, and the personal toll these roles can take, including stress and exhaustion, urging a more empathetic approach.

Jiayin Qin from Kyoto University’s Graduate School of Economics stressed the importance of multinational companies and global managers overseeing overseas subsidiaries fully grasping the positive outcomes and the potential drawbacks of expatriate boundary-spanning activities. By achieving a deeper understanding of these dynamics, companies can strive to amplify the benefits while mitigating the negative impacts, ensuring a healthier balance for all involved.

Yaxi Shen from Hunan University’s School of Business summarized the findings by advocating for a balanced approach that enhances the positives while reducing the negatives, thus ensuring a healthier and more sustainable working environment for expatriates and the local employees they interact with. This comprehensive study not only sheds light on the dual-edged nature of boundary-spanning activities but also calls for a strategic revision of how these roles are managed within global enterprises, offering a promising path forward.

More information: Ting Liu et al, Expatriates’ boundary-spanning: double-edged effects in multinational enterprises, Journal of International Business Studies. DOI: 10.1057/s41267-024-00690-x

Journal information: Journal of International Business Studies Provided by Kyoto University