Abstract
While, expatriation has numerous well-documented benefits for organizations, it is often considered extremely costly and time consuming for MNCs. For this reason, when business conditions become hostile such as in times of economic uncertainty, the expatriate program in MNCs is typically targeted for cost saving. The ensuing outcome is argued to lead to a loss of trust with the MNC. Whilst in a crisis, costs need to be managed carefully and the pressure to increase the bottom line is unquestionably critical, we argue there is an additional need to judiciously explore ways to restructure the expatriate’s total rewards for work while limiting the loss of trust between the expatriate and the MNC. Real options theory is used to provide a theoretical framework to help understand how decisions can be made that encourage trust building between the expatriate and the MNC and at the same time focus on profit-maximization.
Original language | English |
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Title of host publication | 20th Annual Irish Academy of Management Conference 2017 |
Subtitle of host publication | Conference Programme |
Place of Publication | Belfast |
Publisher | Irish Academy of Mangement |
Number of pages | 29 |
Publication status | Published - 2017 |
Externally published | Yes |
Event | Annual Irish Academy of Management Conference (20th : 2017) - Belfast, United Kingdom Duration: 30 Aug 2017 → 1 Sept 2017 |
Conference
Conference | Annual Irish Academy of Management Conference (20th : 2017) |
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Country/Territory | United Kingdom |
City | Belfast |
Period | 30/08/17 → 1/09/17 |
Keywords
- Expatriate Manager
- Compensation
- Economic Uncertainty
- Real Options Theory