Foreign executives in local organisations (FELOs)

Arp, Frithjof

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Foreign executives in local organisations (FELOs)

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Arp, Frithjof. Monash University. Faculty of Business and Economics. Dept. of Management; 2011. Foreign executives in local organisations (FELOs).

Please use this identifier to cite or link to this item: http://arrow.monash.edu.au/hdl/1959.1/530591

Title: Foreign executives in local organisations (FELOs)
Creator: Arp, Frithjof
Contributor: Principal Supervisor: Kate Hutchings
Contributor: Supervisor: Wendy A. Smith
Subject: Foreign executive
Subject: Local organisation
Subject: Self-initiated expatriate
Subject: Local spouse
Subject: Asymmetry of cultural distance
Subject: FELO
Subject: Local company
Subject: Cross-cultural management
Subject: Malaysia
Subject: Asia
Subject: Cultural distance
Subject: Liability of foreignness
Subject: Advantage of foreignness
Subject: Degree of internationalisation
Date: 2011
Publisher: Monash University. Faculty of Business and Economics. Dept. of Management
Description: Foreign executives in local organisations (FELOs) of culturally distant countries are a rare international management phenomenon that differs significantly from expatriate assignments in the subsidiaries of multinational organisations. The phenomenon has not been systematically researched, although media reports and executive search firm publications see it as ‘fairly new, highly visible, and sometimes controversial’ with demand for FELOs in Asia ‘likely to continue’. The purpose of this research is to address the gap in the literature through a systematic investigation of the FELO phenomenon. It adopts a qualitative approach to examine what and when foreign executives contribute to local organisations, why they are appointed, and how cultural distance is bridged. To achieve its purpose, the study analyses data from in-depth semi-structured interviews with foreign executives (n=46) from 13 countries and their local colleagues (n=25) from various cultural backgrounds, in organisations founded and headquartered in Malaysia. Dyadic data is used for the triangulation of findings, while non-dyadic data, socio-biographical data, as well as ‘between’ and ‘within’ group analysis, adds to the richness of the findings and is utilised to establish typologies. The research setting allows the exploration of organisational and individual perspectives across multiple cross-cultural boundaries in a single language common to all participants. Utilising this heterogeneity of perspectives, the study identifies differences between FELOs and other phenomena (such as expatriate assignments), and distinguishes country-specific influences from those that are generalisable to FELO workplaces in other settings. The key findings of the research include that FELOs are initially appointed for temporary roles and their hard skills, and to help open foreign markets, enhance organisational reputation and portray internationalisation. Assumptions about the remuneration of FELOs are a potential source of resentment from host-country nationals, although many FELOs are learning- and experience-driven rather than motivated purely by income. The research further suggests that some FELOs remain in their positions due to their soft skills, progress with the internationalisation of the local organisations for which they work, and because of a unique ‘in/out group’-status that has developed based on their host-country involvement. For many FELOs, this involvement includes engagement in local industry associations, private relationships with host-country nationals, and bridging roles between groups of local colleagues. The originality, theoretical contribution and significance of this research lie in its exploration and analysis of an international cross-cultural workplace phenomenon that has been overlooked by research primarily focused on expatriate assignments. In distinguishing between individual (that is, psychological) and collective (that is, socio-cultural) distance, the study helps to explain how cultural distance can be asymmetric and contingent on direction. It generates new insight on the theoretical constructs of ‘degree of internationalisation’ and the ‘global mindset’ of management teams. The study also holds important practical implications, as it elucidates the career-paths and career-capital of the individuals involved in the FELO phenomenon, and the contribution these individuals make to local organisations through leverage of their unique ‘in/out group’-status.
Description: Table of contents released for public access by author.

collection(s): Doctorate theses
collection(s): Monash University Theses
Identifier: http://arrow.monash.edu.au/hdl/1959.1/530591
Identifier: ethesis-20120131-130847
Identifier: monash:80963
Language: eng
Rights: Restricted access and full embargo: full embargo to thesis full text for 3 years after 2011. After this date access to thesis full text is restricted to institutional document delivery requests to supply the thesis in whole or part, under Section 51 (2) of the Australia Copyright Act 1968.
Rights: This thesis is protected by copyright. Copyright in the thesis remains with the author. The Monash University ARROW Repository has a non-exclusive licence to publish and communicate this thesis online.
Type: thesis
Type: thesis(doctorate)

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Doctorate theses

Foreign executives in local organisations (FELOs)

Monash University Research Repository