International Journal of Engineering and Advanced Technology (IJEAT)
ISSN: 2249 – 8958, Volume-8 Issue-5C, May 2019
617
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number:E10880585C19/2019©BEIESP
DOI: 10.35940/ijeat.E1088.0585C19
ABSTRACT--- Emotional intelligence and social competencies
are a few constructs that predict the cultural adjustment of
expatriates. There is a dearth of studies that explored the impact
of emotional intelligence and social competencies on the cultural
adjustment of expatriates in Malaysia. Hence, this study focusses
on the relationship between emotional intelligence and social
competencies on cultural adjustment of expatriates. Additionally,
the mediation role of self-motivation was examined. This
quantitative study used a cross-sectional survey to collect primary
data. Random sampling was used to collect data from a sample of
301 expatriates. Questionnaires were sent either by hand or
electronically. This study used PLS SEM to estimate the model.
The results pointed out that emotional intelligence and social
competencies are essential predictors of cultural adjustment. The
results also revealed the mediating role of self-motivation. The
findings added to the current body of knowledge and presented
new insights into the contribution of emotional intelligence and
social competencies towards cultural adjustment of expatriates.
Based on the findings, organizations and HR managers involved
in managing expatriates for global assignment can implement
policies and processes to select and prepare the right expatriates
for global assignments.
Keywords: Emotional intelligence, social competency, self-
motivation, cultural adjustment, expatriates .
I. INTRODUCTION
As a result of globalization, more and more organizations
are running on global functional models and global mobility
plays a key role in solving the labor availability conundrum
[1]. As stated in the in the survey by PWC [1], the
importance of having the right talent is the most critical
factor for business growth. A survey by PWC [1] stated that
due to the changes in the global environment, multinationals
need to identify, recruit and retain talent globally. The
Global Mobility Trends survey by BGRS [2] also stated that
the HR function of equipping their MNCs and preparing
their expatriates is more critical and challenging nowadays.
The report by BRGS [2] further stressed that for sustained
competitive advantage, talent mobility has become a key
contributor. Palthe [3] added that multinationals depend on
expatriates for sustaining competitive advantage and they
need expatriates to manage the complexity. Therefore, as
stated by Dowling, Festing and Engle [4], a critical success
factor for MNCs is having the right people to manage and
Revised Manuscript Received on April 19, 2019.
Jugindar Singh, School of Management, Asia Pacific University of
Technology and Innovation
Nik Hasnaa Nik Mahmood, Fakulti Teknologi & Informatik Razak,,
Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
Zabedah bt Othman, Business School, Open University Malaysia,
Kuala Lumpur, Malaysia
operate international operations. However, having access
and effectively managing talent globally continues to be a
challenge for MNCs.
The number of expatriates going on global assignments is
increasing and the data from PWC [1] revealed that number
of expatriates on global assignments have increased by 25%
and a further 50% growth is predicted in assignments by
2020. This will further increase the challenge placed on
MNCs and HR managers. This will also lead to an increase
in the need for expeditious knowledge transfer [1].
Furthermore, as stated in the Global Mobility Trends survey
by BGRS [2], only 54% respondents reported that they have
enough internationally experienced employees and another
20% stated that they are unsure. Furthermore, around 80%
of companies do not formally assess the adaptability of
global assignees. Hence, there is a possibility of failure that
can result in business disruption and additional expenses. A
total of 55% of the respondents to a survey by KPMG [5],
stated that up to% 55% of the respondents stated that up to
5% of global expatriates failed where they returned before
completing the assignment. Failure in global assignments is
both very costly and risky [6]. This issue was supported by a
PWC Global CEO Survey, which reported that talent
management is given high priority by global organizations
[1]. A survey by PWC [7] stated that the cost to send
expatriates on global assignments is substantial. It was
estimated that a global assignment cost US$311,000 p.a.
The survey also stated that the premature termination of
global assignment is 4%. Therefore, organizations need to
implement policies and processes to mitigate the causes of
failure.
In the economic development of Malaysia, the
Information and Communications Technology (ICT) sector
plays a crucial role. The performance results of MSC
Malaysia for the year 2016 showed that Malaysia recorded
RM16.3 billion new investments with RM47.1 billion
revenue generated [8]. There are an estimated 355,119
employees engaged in the digital industry in 2017 and
around 12% of current talents in digital industry are non-
Malaysians [9]. Frost and Sullivan [9] research revealed
that talent requirement in the ICT sector will reach over
540,000 jobs by 2020. Due to limited availability of skills
locally, organizations are hiring expatriates. In addition, the
hiring cost and attrition rates were other reasons that the
respondents stated for hiring expatiates [9]. Therefore, is
Emotional intelligence, social competencies and
cultural adjustment of expatriates in Malaysia:
The mediating role of self-motivation.
Jugindar Singh Kartar Singh, Nik Hasnaa Nik Mahmood, Zabedah bt Othman