The International Journal of Human Resource Management 8:4 August 1997 Pre-expatriation: the role of HR factors in the early stages of internationalization Denice E. Welch and Lawrence S. Welch Abstract While there has been considerable research on the early stages of inter- nationalization, HRM aspects have not generally been part of this work, even though many of the important variables revolve around the key people involved and such aspects as their knowledge and networks. In this article, the somewhat neglected area of HRM and intemationalization before full-scale expatriation is examined. From the limited available research, it would appear that, within companies, many of the emerging HR issues in early intemationalization are dealt with as and when they arise, in a relatively ad hoc matiner, often through the maiketing department. It is argued that there is potential for a more substantial role to be played by HR staff, but this may well depend on the development of more intemationally oriented HR staff as a starting point. Keywords Intemationalization, human resource management, pre-expatriation There has been considerable research on intemational human resource management (IHRM) issues with respect to intemational companies assigning staff to new and/or existing foreign operations (see, for example, Tung, 1982; Mendenhall and Oddou, 1985; Brewster, 1991; Welch, 1994). In the main, this has led to a research and literature focus on expatriation and staffing policies, centred on companies with a network of foreign subsidiaries and the accompanying heavy IHRM demands. Even in the investigation of newly intemationalizing companies, the research emphasis has tended to remain on expatriate management issues (Forster and Johnsen, 1996). In an earlier paper (Welch and Welch, 1994), we argued that this focus provides a very limited perspective on the extent of IHRM demands on intemationalizing companies, with regard to the range of operation methods that companies are increasingly required to use in order to develop and service foreign markets, and to the duration and nature of assignments. However, even when these aspects are considered, companies typically are assumed to be well along the intemational path.. To some extent, this is understandable, given that there is often little or no formal HR department involvement in the early stages of intemationalization. What still tends to be overlooked, though, is the role played by people during these early stages, and an appreciation of the impact of personnel policies and practices on the development of the company's intemational competencies and capabilities. This is despite the fact that, in one of few studies on this issue, Gomez-Meija (1988: 501) concluded: 'human resource management strategies have a significant effect on a firm's subsequent export performance' (see also Hendry, 1996). Concurrently, there has been a substantial body of research into the inter- nationalization of companies. While much of the focus has been on multinationals, there has also been a stream of research that has been concemed with the process by which companies itiitiate and develop intemational business operations (Johanson and Vahlne, 1977; Welch and Luostarinen, 1988; Buckley and Ghauri, 1993). Although a 0985-5192 © Chapman & Hall 1997