Key Factors of Corporate Expatriates' Cross-Cultural Adjustment – an Empirical Study

Abstract

This study investigates the difficulties that expatriates encounter while relocating to a foreign cultural environment. The examination of the issue is based on the results of primary research conducted among the Japanese community living and working in Hungary. Many circumstances make it difficult for an expat to feel at ease in the host country. Integration and thus the success of the posting are greatly hampered by overcoming cultural differences as well as linguistic challenges in a non-English speaking country. Language fluency issues are stated to trigger a series of practical, task-related barriers as well as broader social and emotional difficulties. Japanese multinational corporations use English for internal corporate communication. The typical posting period for Japanese expats in Hungary is 4-6 years. They are typically senior executives who arrive together with their families. Over the years, the preparedness, language skills and cross-cultural competencies of the expatriates have improved significantly, while the infrastructure of the host country is also much better prepared to receive foreigners and their families.Implications for Central European audience: The first Japanese MNCs arrived in Hungary more than 30 years ago, when the transition from a planned economy to a market-based economy was just beginning (Pierce, 1991; Andor, 2019; Jaklič et al., 2020). Japanese expats arrived in a country where, compared to their home country (Hideo, 1990), human resources management was not a recognized corporate function (Pierce, 1991). A typical posting period at that time was one to two years. Expatriates usually did not experience that as an honour or professional development (Matus, 2006).