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Multinational enterprises (MNEs) have been troubled with the problem of expatriate premature return. This paper suggests addressing this problem by conducting realistic expatriate assignment previews (REAPs) for expatriate candidates. A model is proposed to explain the mechanism between REAPs and expatriates' intention to prematurely return from an assignment. Specifically, providing REAPs to expatriate candidates may reduce expatriates' early return intention and ultimately reduce the chance of expatriate premature return through the self-selection effect, the role clarity effect, the adjustment of expectations effect, the worry effect, the freedom of choice effect, and the organizational honesty effect. This model also proposes that expatriate candidates' prior expatriate experience moderates the effect of self-selection, role clarity, adjustment of expectations, and worry.
Key Words: Expatriate assignment, Premature return
Expatriate premature return refers to the termination of an expatriate assignment before it is completed. It has been estimated that expatriate premature return rates range from 10% to 20% (Black & Gregersen, 1999; Tung, 1982). Early termination of an expatriate assignment has both visible costs and hidden costs. According to Swaak (1995), the direct costs of a failed expatriate assignment could range from $200,000 to $1.2 million; these costs include compensation, training, development, orientation, and termination. Swaak (1995) further noted that this figure does not cover the hidden costs of a failed assignment, such as loss of business, damaged relationships with potential customers, suppliers, and host country government officials, and negative impact on the local employees. Moreover, this figure also does not include the emotional and financial loss to the expatriates, their spouses, children, and other family members due to the assignment failure (Swaak, 1995)
Because of the high costs of a failed expatriate assignment, much research attention has been paid to finding the causes of the problem and solutions to the problem (Bhaskar-Shrinivas, Harrison, Shaffer, & Luk, 2005; Black, Mendenhall, & Oddou, 1991; Shaffer & Harrison, 1998; Tung, 1982, 1987, 1998). Two basic reasons for expatriate premature return have been identified: (1) expatriates who returned early did not have a good person-job fit, and (2) expatriates who returned early failed to adjust to the assignment (e.g., Black et al., 1991; Shaffer & Harrison, 1998). One possible way to facilitate expatriate candidates' self-selection to increase person-job fit and to facilitate adjustment...