Challenges for foreign companies in China: Implications for research and practice

As a large country with great development potential, China has been one of the most popular foreign direct investment destinations. However, foreign companies increasingly face a variety of challenges especially during the “soft-landing” of the Chinese economy and amidst anti-globalization tendency. Based on a comprehensive review of the extant literature, we provide a critical overview of some of the key challenges for foreign companies in China, focusing on two challenges related to the business environment, namely regulatory and cultural challenges, and two management challenges, namely innovation and human resource management. We provide managerial implications and outline directions for future research

Best of both worlds: How embeddedness fit in the host unit and the headquarters improve repatriate knowledge transfer

Knowledge transfer within multinational enterprises is a source of competitive advantage. However, we know little about repatriates’ role in reverse knowledge transfer upon their return to headquarters (HQ). Using an organizational embeddedness perspective, we conceptualized how embeddedness fit – individuals’ perceived match between their knowledge and skills and the job requirements – during the expatriation assignment and upon repatriation predicts repatriate knowledge transfer. To test the hypotheses, we collected multi-wave survey data from 129 repatriates and their supervisors and developed a repatriate knowledge transfer scale. The results show that perceived organizational support from HQ positively influences embeddedness fit, both in the host unit during expatriation and in the HQ upon repatriation. Further, embeddedness fit in the HQ upon repatriation has a direct effect, while embeddedness fit in the host unit during expatriation has an indirect effect on repatriate knowledge transfer via increased communication frequency with the former host unit. In addition, we found that knowledge transfer is particularly pronounced for repatriates with both high levels of embeddedness fit in the HQ upon repatriation and frequent communication with colleagues in their former host unit. Our results highlight the critical importance of helping expatriates increase their perceived embeddedness fit for reverse knowledge transfer to occur

Reverse knowledge flows: How and when do preparation and reintegration facilitate repatriate knowledge transfer?

This paper applies a generalized exchange perspective to examine how and when reintegration in headquarters (HQ) facilitates repatriate knowledge transfer (RKT). Specifically, we theorize how the preparatory stage for repatriation – when expatriates are still abroad – enhances reintegration in HQ upon repatriation and subsequently RKT via interpersonal and career- related pathways. For the former, we hypothesize that communication frequency with HQ actors before re- entry enhances RKT via reintegration. We also hypothesize that commu-nication frequency with HQ actors before re- entry improves trust in HQ actors, which, in turn, strengthens the positive effect of reintegration on RKT. For the second pathway, we hypothesize that career and repatriate support before re- entry increases RKT via reintegration. We also hypothesize that career and repatriate support before re- entry enhances career satisfaction upon re- entry, which, in turn, strengthens the positive effect of reintegration on RKT. Time- lagged data from 129 assignees and their HQ supervisors support most of our hypotheses

Reverse knowledge flows: How and when do preparation and reintegration facilitate repatriate knowledge transfer?

This paper applies a generalized exchange perspective to examine how and when reintegration in headquarters (HQ) facilitates repatriate knowledge transfer (RKT). Specifically, we theorize how the preparatory stage for repatriation – when expatriates are still abroad – enhances reintegration in HQ upon repatriation and subsequently RKT via interpersonal and career- related pathways. For the former, we hypothesize that communication frequency with HQ actors before re- entry enhances RKT via reintegration. We also hypothesize that commu-nication frequency with HQ actors before re- entry improves trust in HQ actors, which, in turn, strengthens the positive effect of reintegration on RKT. For the second pathway, we hypothesize that career and repatriate support before re- entry increases RKT via reintegration. We also hypothesize that career and repatriate support before re- entry enhances career satisfaction upon re- entry, which, in turn, strengthens the positive effect of reintegration on RKT. Time- lagged data from 129 assignees and their HQ supervisors support most of our hypotheses