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Zeitschrift für Personalforschung, 27(3), 2013 159
German Journal of Research in Human Resource Management, 27(3)
Zeitschrift für Personalforschung, 27. Jahrgang, Heft 3, 2013 ZfP 27(3)
German Journal of Research in Human Resource Management, Volume 27, Issue 3
Special issue
Current issues in International HRM: Alternative forms of assignments,
careers and talent management in a global context
edited by Marion Festing, Pawan S. Budhwar, Wayne Cascio, Peter J. Dowling,
Hugh Scullion
Marion Festing, Pawan S. Budhwar, Wayne Cascio, Peter J. Dowling,
Hugh Scullion
Current issues in International HRM: Alternative forms of assignments,
careers and talent management in a global context 161
Frithjof Arp
Typologies: What types of foreign executives are appointed by local
organisations and what types of organisations appoint them? 167
Iris Kollinger-Santer, Iris C. Fischlmayr
Work life balance up in the air – Does gender make a difference
between female and male international business travelers? 195
Stefan Remhof, Marjaana Gunkel, Christopher Schlägel
Working in the “global village”: The influence of cultural intelligence
on the intention to work abroad 224
Marlene Walk, Heike Schinnenburg, Femida Handy
What do talents want? Work expectations in India, China, and Germany 251
Denise Ewerlin
The influence of global talent management on employer attractiveness:
An experimental study 279
Special issues 2004 – 2012
305
Editorial board of this special issue:
Prof. Dr. Maike Andresen, University of Bamberg, Germany
Prof. Dr. Joytsna Bathnagar, Management Development Institute, Gurgaon, India
Prof. Dr. Allen D. Engle, School of Business, Eastern Kentucky University, USA
Dr. Hosein Gharavi, La Trobe University, Australia
Dr. Sam Kovacevic, La Trobe University, Australia
Dr. Alma McCarthy, Cairnes School of Business and Economics, NUI Galway, Ireland
Dr. Anthony McDonnell, School of Management, University of South Australia, Australia
Prof. Dr. Jaap Paauwe, Tilburg University, The Netherlands
Prof. Dr. Markus Pudelko, University of Tuebingen, Germany
Prof. Dr. Yee Ng Kok Yee, Nanyang Technological University, Singapore
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp
ISSN (print) 0179-6437, ISSN (internet) 1862-0000 © Rainer Hampp Verlag, www.Hampp-Verlag.de
Frithjof Arp
*
Typologies: What types of foreign executives are appointed
by local organisations and what types of organisations
appoint them?
**
Current issues in international human resource management include global careers
that differ from traditional expatriate assignments. A number of foreign executives
have in recent years been appointed to positions in the headquarter operations of cul-
turally distant organisations. These appointments of foreign executives in local organi-
sations (FELOs) can be viewed as a specific form of self-initiated expatriation (SIE),
with several distinct types of FELOs found in fieldwork studies. This article offers ty-
pologies of the individuals and organisations involved in the FELO phenomenon.
These typologies elucidate that FELO appointments do not necessarily indicate a geo-
centric hiring approach, and assist in identifying which FELO workplaces produce
successful outcomes as well as those which are likely to fail. The applicability to other
country contexts, implications for theory on diversity in management teams, and key
criteria for FELO hiring practices are discussed.
Typologien: Welcher Typus ausländischer Führungskräfte wird
von lokalen Unternehmen verpflichtet, und welcher Typus lokaler
Unternehmen verpflichtet sie?
Zu aktuellen Themen der internationalen Personalforschung zählen globale Karrieren, die sich
deutlich von traditionellen Auslandsentsendungen unterscheiden. In den letzten Jahren ist eine
Anzahl ausländischer Führungskräfte in die Unternehmenszentralen kulturell ferner Organisa-
tionen verpflichtet worden. Diese foreign executives in local organisations (FELOs) können als
spezifische Form selbstinitiierter Expatriierung (SIE) betrachtet werden, wobei in Feldstudien
dezidiert unterschiedliche Typen von FELOs gefunden wurden. Dieser Artikel legt Typologien
der im FELO-Phänomen involvierten Personen und Organisationen vor. Sie zeigen auf, dass
die Verpflichtung ausländischer Führungskräfte nicht unbedingt auf geozentrische Personal-
praktiken hinweist und helfen, erfolgreiche sowie zum Scheitern neigende Arbeitsverhältnisse
zu identifizieren. Die Anwendbarkeit auf unterschiedliche Länderkontexte, Implikationen für
Theorien über kulturelle Vielfalt in Managementteams und die wichtigsten Kriterien der FELO
Einstellungspraxis werden erörtert.
Key words: foreign executives, expatriates, self-initiated expatriation,
cultural distance, typologies (JEL: M12, M14, M16, M51, Z10)
___________________________________________________________________
* Dr. Frithjof Arp, Department of Management, Faculty of Business & Economics,
Monash University, Melbourne, Australia.
E-mail: frithjof.arp@monash.edu, FELOresearch@gmail.com, www.FELOresearch.info.
** Anonymous reviewers have contributed to this article through constructive criticism.
They encouraged a clearer distinction of the FELO phenomenon from other concepts in
the literature, extended discussion and implication sections, and further clarification of
some parts of the individual and organisational typologies. Their contribution is much
appreciated.
Article received: December 28, 2012
Revised version accepted after double blind review: July 20, 2013.
168 Frithjof Arp: Typologies
Introduction
A number of foreign executives have in recent years been appointed to positions in
the headquarter operations of culturally distant organisations. International executive
search consultants have been retained, for instance, to find ‘Western’ executives for
Korean, Japanese and Chinese companies (see e.g. The Korn/Ferry Institute, 2009).
While these foreign executives in local organisations (FELOs) can probably best be
viewed as a specific form of self-initiated expatriation (SIE), their workplaces differ
significantly from typical expatriate assignments (Arp, Hutchings, & Smith, 2011,
forthcoming 2013).
For example, FELO workplaces are different from the subsidiaries of foreign
multinationals in that they are often share-market listed and can be among ‘national
icons’. The host-country nationals (HCNs) that FELOs supervise, and HCN superiors
that they report to, ascribe a ‘local’ national identity to these organisations. While the
superiors of expatriates often know little about distant subsidiary operations, FELOs
report to local chairpersons, family-owners or dominant shareholders that are well in-
formed about, and often have significant influence on, operational decisions. While
traditional expatriates in the local subsidiaries of multinationals pursue foreign objec-
tives, FELOs have to demonstrate that they serve local interests. These and other
points of distinction are prominently mentioned by participants of in-depth interview
studies (e.g. Arp, forthcoming 2013; Arp et al., 2011), highlighting that FELOs as well
as their local peers perceive these workplaces to be quite different from other forms
of expatriation. In addition, research with these two groups of executives illustrates
that the reasons why foreign executives are initially appointed in spite of significant cul-
tural distance, what they contribute to the local organisations that they work for, why
some of them remain in their positions, and why these positions are not filled with lo-
cal executives (Arp, forthcoming 2013), have little to do with the reasons for tradi-
tional expatriate assignments (i.e. trust; allegiance; control of foreign subsidiaries, see
e.g. Harzing, 2001a; Harzing, 2001b). Indeed, case studies illustrate that foreign execu-
tives are sometimes specifically hired to compete against expatriates representing for-
eign multinationals in the domestic markets of their local employers (Arp, 2012). The
same case studies demonstrate that FELOs work in very different organisational con-
texts from, and without the perceived ‘safety net’ of, other expatriates. Fieldwork for
these studies also found several distinct types of FELOs, thus highlighting the need to
develop typologies. This is a gap that the present study aims to address.
Theoretical framework
The international human resource management (IHRM) literature categorises as SIE
those international workplaces where individuals have not been assigned to their host-
country by an employer. The originators of the SIE construct had noted that “every
year thousands of young people head overseas for a prolonged period of travel, work,
and tourism” (Inkson, Arthur, Pringle, & Barry, 1997, p. 358), and SIE research has
been at a crossroad of management, tourism, and labour migration ever since. Indeed,
some recent reviews “seek clarification of the SIE construct”, noting that the SIE lit-
erature is growing “but seems to be developing without a clear basis” (Doherty,
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 169
German Journal of Research in Human Resource Management, 27(3)
Richardson, & Thorn, 2013, p. 108). An increasing variety of studies not directly con-
cerned with managerial level issues are placed under the SIE construct, including con-
tract workers from neighbouring countries in Singapore (Lee, 2005), nurses in Saudi
Arabia (Bozionelos, 2009), and studies of academics teaching abroad (Froese, 2012;
Richardson & Mallon, 2005; Selmer & Lauring, 2010, 2011, 2012). Many SIEs re-
searched to date work in foreign subsidiaries of established multinational firms rather
than local organisations (see e.g. sample in Vance, 2005) and some SIEs may decide to
settle permanently in their host countries and thus become migrants (Suutari &
Brewster, 2000). Further, most SIEs do not work in host-countries of significant cul-
tural distance (Inkson et al., 1997; Inkson & Myers, 2003; Lee, 2005; Myers & Pringle,
2005; Suutari & Brewster, 2000), and the few that do work for local organisations do
not hold managerial positions (see analysis of SIE studies and samples in Arp et al.,
forthcoming 2013).
The present study differs from the extant literature on SIE mentioned above.
Avoiding the “broad and necessarily subjective interpretation of what SIE encom-
passes” (Doherty et al., 2013, p. 97), research of the FELO phenomenon focuses on
managerial, international and cross-cultural issues by investigating a specific group of
(a) individuals at the managerial level, (b) workplaces in local organisations rather than
subsidiaries of foreign multinationals, and (c) workplace relationships involving signif-
icant cultural distance. The importance of investigating and categorising these excep-
tional cross-cultural workplaces lies in the need to understand which types of individ-
uals, organisations and hiring strategies are involved. Typologies will assist in identify-
ing which FELO workplaces produce successful outcomes and those which are likely
to fail.
FELOs are exposed to heightened levels of scrutiny (Arp et al., 2011,
forthcoming 2013). They have to bridge cultural distance in exceptional circumstances
as they hold managerial positions in the headquarters of organisations to which host-
country nationals (HCNs) they supervise, and shareholders they report to, ascribe a
‘local’ national identity. Hymer (1960), Zaheer (2002) and Nachum (2006) note that
organisations around the world have a local identity as they are perceived to be ‘one of
ours’ in their home country. However, Zaheer (2002, p. 352) writes that “local does
not necessarily mean domestic” as a local organisation can have international opera-
tions. Thus, the term ‘local’ connotes where organisations are founded and headquar-
tered, and that FELO workplaces are not in foreign subsidiaries but in the headquar-
ters. Despite Zaheer’s (2002, p. 352) observation, scholarship more frequently takes an
interest in the international operations of established multinationals than in local or-
ganisations’ headquarters. The hiring of foreign executives into positions at headquar-
ters of local organisations remains under researched, and the present study thus makes
a clear point of difference.
Difference to other concepts and research questions
The acronym FELO was developed to avoid confusion with other concepts such as
‘inpatriate’. The main proponents of inpatriation define it as “the relocation of foreign
employees/managers to the parent country of the organization” (Harvey, Reiche, &
Moeller, 2011, p. 1, emphasis added). The relocation of existing employees differs from
170 Frithjof Arp: Typologies
the appointment of FELOs as it occurs within a multinational organisation. In addi-
tion, the term ‘inpatriate’ has added a level of confusion surrounding the definition of
an expatriate, as its proponents define HCNs as inpatriates. However, HCNs only be-
come ‘inpatriates’ when they are transferred into the multinational’s parent-country
operations as expatriates, and it is questionable “whether the term ‘inpatriate’ adds
enough value to justify its use” (Dowling, Festing, & Engle, 2008, p. 4). The semantics
and etymology of the term inpatriate are similarly confused. First, inpatriates are not in
but out of their patria (Latin, “Fatherland”). Second, if the term was meant to be anto-
nymic to expatriate, it would have to be impatriate (just as import is antonymic to ex-
port). In addition, inpatriation proponents predominantly focus on reassignments for
the purpose of expansion of globalised MNOs into the country-of-origin of the
inpatriate: “the emerging market that the organization is attempting to penetrate”
(Harvey, Novicevic, & Speier, 1999. p. 41). This is not the case for the different, rare
and specific international FELO workplaces of interest here.
Fieldwork for in-depth interview studies (Arp, forthcoming 2013; Arp et al.,
2011) found several distinct types of FELOs, of which two were illustrated in case
studies (Arp, 2012). Questions from scholars and industry practitioners such as execu-
tive search consultants about the implications for practice from those studies empha-
sise the need for a more comprehensive individual and organisational typology. To fill
this gap, the research questions addressed in the present article are: (RQ1) what types
of foreign executives are appointed by local organisations? And: (RQ2) what types of
local organisations appoint foreign executives? The article begins with a review of ex-
tant international workplace typologies, and discusses the extent to which they may
help explain what type of individuals and organisations are involved in the FELO
phenomenon. This review is followed by a description of the methods utilised in the
research. The empirical part of this article then presents typologies that emerged from
the data of 46 FELO workplaces in Malaysia, triangulated from in-depth interviews
with foreign and local participants, and further validated through comparison with
FELO cases in other countries. After discussing these typologies and their limitations,
the article concludes with suggestions for further research.
Literature review
Typologies of individuals in international workplaces
The literature offers a large number of international workplace typologies (Björkman
& Stahl, 2006; Black & Gregersen, 1992; Caligiuri & Colakoglu, 2007; Harzing &
Ruysseveldt, 2004). However, these typologies are not entirely applicable to FELOs
due to the difference of FELO workplaces to traditional expatriate assignments (Arp
et al., 2011).
Expatriates
Black and Gregersen (1992), for example, distinguish ‘dual allegiance’-expatriates from
those with their ‘hearts at home’, others described as ‘hired guns / free agents’ and yet
others that have ‘gone native’. They consider ‘dual allegiance’-expatriates the most de-
sirable while describing ‘hired guns’ as internationally experienced specialists without
much allegiance to either the local subsidiary or the distant corporate headquarters,
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 171
German Journal of Research in Human Resource Management, 27(3)
committed only to their ‘gun slinging’ careers in various host-countries and the eco-
nomic benefits of their ‘expatriate package’. A sub-category of hired guns is described
as ‘plateaued-career free agents’ without opportunities in their home country and little
international experience or language skills, who take on international assignments to
progress their careers and are “attracted by the sweet financial packages common to
most overseas assignments” (Black & Gregersen, 1992, p. 63). In turn, ‘gone natives’
are described as expatriates with long host-country experience, high levels of com-
mitment to the subsidiary operations, strong identification with and attachment to
their host-country’s culture, language, values and business practices. Parallels of these
descriptions to some FELOs are apparent from the findings in the present study, help
in distinguishing between different types of FELOs, and are discussed below.
Other early typologies focus on the roles and tasks of expatriates. Hays (1974),
for example, distinguishes structure reproducers, operatives, troubleshooters and chief
executive officers. The latter drive all aspects of operations and strategy while opera-
tives perform functional tasks in an existing operational structure, generally at a lower
level supervisory position. Troubleshooters, in turn, are sent to a foreign subsidiary to
analyse and solve operational problems while structure reproducers build or replicate
structures in a foreign subsidiary such as financial reporting or production systems
from another part of the MNO. This role- and task-focused typology is utilised in
studies of selection and training (see e.g. Tung, 1981), helping to explain the contin-
gency of these processes on the roles of expatriates and the tasks assigned (Tung,
1998). Roles for which FELOs are appointed and the tasks they are assigned consti-
tute elements of the typologies presented in this study, too. While FELOs perform
their roles at headquarters instead of foreign subsidiaries, and the driving of opera-
tions and strategy as well as the performing of functional tasks are standard elements
of their workplaces, the distinct role of structure reproducer versus troubleshooter has
been emphasised for FELOs (cf. Arp, forthcoming 2013). Hence, these roles consti-
tute an important element of distinction in the FELO typologies presented below.
Further typologies take into account expatriate adjustment stages varying over
time. Constructs of ‘coping’ with psychological and cross-cultural adjustment (see e.g.
Searle & Ward, 1990; Ward, 1996; Ward & Kennedy, 1999) are combined to form var-
iations of a ‘U-curve’ (Black & Mendenhall, 1991). Shapiro, Ozanne and Saatcioglu
(2008), for instance, suggest that a typology of expatriates may involve four distinct
categories. These are the ‘romantic sojourner’ (a naïve and not very effective tourist
type focused on the new experience), the ‘foreign worker’ (expatriates that have be-
come disappointed with the local environment and realise that they are not on a per-
manent holiday), the ‘skilled worker’ (those that have accepted the host-country cul-
ture as it is and become valuable assets to their organisations), to the most effective
type of ‘partners’ (expatriates that have developed a high level of cultural sensitivity,
adjusted their own behaviour and influence the behaviour of their colleagues). The ty-
pology of FELOs presented here also takes into account adjustment stages over time,
as data suggest that the tenure of appointments varies widely (Arp et al., 2011). In ad-
dition, the data analysis in this as well as other studies must note a potential survivor-
ship bias in FELO samples as short-tenure appointments (‘romantic sojourners’) may
be underrepresented. A typology of expatriates offered by Stahl et al. (2009) distin-
172 Frithjof Arp: Typologies
guishes between developmental (or learning driven) and functional (demand driven)
assignments as predictors of expatriate turnover intentions. While repatriation con-
cerns (along with a lack of support from, and career advancement opportunities with-
in, the parent-company) are reported to be a major source of frustration for both
types of expatriates, those individuals who are most likely to do well in international
positions (those on ‘developmental or learning driven’ assignments) are also the most
likely to view their expatriation as a career stepping-stone to positions in other organi-
sations. “Compared to functional assignees, developmental assignees [..] are also more
optimistic about their career prospects with other possible employers [..] more inclined
to leave their companies than functional assignees, presumably because they would
have better career opportunities available outside their companies” (Stahl et al., 2009, p.
102; emphases added). In an earlier study of 494 expatriates assigned by German
companies to 59 countries, Stahl, Miller and Tung (2002, p. 222; emphasis added) had
found that “the vast majority of expatriates viewed their international assignment as
an opportunity for skill development and future career advancement, even though it may
not be with their current company”. Yet this is nothing new, as most expatriates cite as their
reasons for accepting international assignments not their desire to achieve project re-
sults or be good corporate citizens, but a sense of adventure, advancement of their
personal development, and a wish to work in different cultures (Mendenhall &
Oddou, 1988). What may be new — as the present work on FELOs illustrates — is
that the expatriates of multinationals today are more inclined to leave their companies
to take up positions with local organisations (and thus become FELOs). A recent sur-
vey, for example, suggests that 38% of contemporary expatriates wish to remain in
their host-country (GRTS, 2010). In view of these findings, it needs to be considered
which types of expatriates become FELOs in order to avoid repatriation and reverse
culture shock, and take up career advancement opportunities in local organisations in-
stead — a question answered by the present study.
Self-initiated expatriates and boundary-less careers
The concept of a developmental type of expatriate in the Stahl et al. (2009) study res-
onates with the concepts of boundary-less careers (Arthur & Rousseau, 1996; Bird,
1994), protean careers as described by Hall (1996), and the career-paths of learning
driven individuals that are found in self-initiated expatriation (e.g. Inkson et al., 1997;
Peltokorpi & Froese, 2009; Suutari & Brewster, 2000). Boundary-less careers are not
limited to the crossing of physical national borders (that is, working in a foreign coun-
try), but include the crossing of metaphysical boundaries (that is, across socio-ethno-
religio-linguistic boundaries). The career capital of such boundary-less careers includes
exposure to, and often significant involvement with, different thought, linguistic and
paralinguistic expression, and cultural conceptualisations. Indeed, the crossing and
bridging of metaphysical boundaries may extend to private relationships, such as mar-
riage to culturally different local spouses (cf. Peltokorpi & Froese, 2009). As case stud-
ies illustrate (Arp, 2012), a record of crossing and bridging such boundaries in their
private life is an important element in the selection of suitable FELOs, and distinguish
some types of FELOs from others. Hence, the typologies in the present study take in-
to account private relationships and FELOs’ boundary-spanning exposure under the
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 173
German Journal of Research in Human Resource Management, 27(3)
headings of (a) being ‘at home’ in their host-country as well as (b) an ability to make
use of their unique insider/outsider status.
The SIE concept exemplifies such notions of boundary-less and protean careers,
and a typology of SIEs is provided by Suutari and Brewster (2000) from their study of
Finnish engineering union members (a comparison of 147 SIEs and 301 organisa-
tional expatriates). Some SIEs in their sample work for local organisations, but primarily
in nearby countries. Most work in European countries (69%), and only a minority on dis-
tant shores (North America 10%, Asia 13%, and others 8%). Hence, the defining criteria
of the FELO phenomenon (work at executive level, in local organisations, and involving
significant cultural distance) are largely absent in that study. The typology categorises (1)
young opportunists travelling as tourists and working abroad, (2) job seekers primarily
motivated by fear of unemployment at home, (3) middle-aged and international-minded
officials in EU and UN organisations, (4) professionals that have decided to stay abroad
longer or indefinitely, (5) professionals who repeatedly work abroad for different em-
ployers, and (6) trailing spouses of expatriates who have found work in the host-country.
The authors note that category 4 includes respondents who have no plans to return to
Finland, that there might be more such individuals in reality, and that “they might dis-
appear altogether” (Suutari & Brewster, 2000, p. 432) from longitudinal research sam-
ples of expatriates. Indeed, additional SIE studies highlight that many SIEs enter into
“longer-term unification with friends, spouses, or relatives” and that “a significant
proportion of SIEs in Japan is reported to have local partners” (Peltokorpi & Froese,
2009, p. 1099 and p. 1104). This indicates that family- and private-life influences on the
SIE phenomenon are probably underestimated, that the SIE construct is too loosely de-
fined and that studies of SIEs, as mentioned earlier in the theoretical framework, sit at a
crossroads between IHRM, sociology and migration-research (cf. Doherty et al.,
2013). Importantly, the Suutari and Brewster (2000) typology also illustrates that the
type of organisation providing the SIE workplace needs to be considered — a gap filled
by the present study.
Organisational typologies
Based on work of Perlmutter (1969), the IHRM literature frequently categorises or-
ganisations as having ethno-, poly-, regio- or geo-centric hiring practices, and the pre-
sent study’s organisational typology partly utilises this broad categorisation. Caligiuri
and Stroh (1995) establish empirically that non-ethnocentric management positively
correlates with economic variables (return on capital, sales growth, return on equity,
profit margin), and that ethnocentric management is significantly less successful. Non-
ethnocentric organisations benefit from an increased (global) talent pool, recruit the
best managers for their needs, implement a genuinely strategic approach to their oper-
ations, and gain competitive advantage. Caligiuri and Stroh (1995) caution, however,
that non-ethnocentric management is possible only within the economic, social, political
and legal constraints of the country of operation. Pudelko and Harzing (2007), in turn,
investigate HRM practices in the subsidiaries of American, Japanese and German
companies and report that, increasingly, the deciding factor in appointments or pro-
motions is merit and skill rather than ethnicity or nationality. However, such studies
do not test HRM practices in the corporate headquarters, and American, Japanese or
174 Frithjof Arp: Typologies
German companies may not necessarily have a geocentric HRM approach there. In-
deed, studies in developed economies demonstrate that foreigners are rare in the
boardrooms of the overwhelming majority of organisations (e.g. Caligiuri, Lazarova, &
Zehetbauer, 2004; Palmer & Varner, 2007; Staples, 2007, 2008). Until empirically in-
vestigated at headquarters level in additional countries, it may be assumed that the rea-
sons for FELO appointments in those countries are as mundane as in countries al-
ready investigated (Arp, forthcoming 2013).
Other typologies (e.g. Adler & Gundersen, 2008) conceptualise a sequential pro-
gression of organisations from (1) a domestic phase where foreign activities are lim-
ited to the export of surpluses, via (2) a multi-domestic phase where activities include
production and sales in several host countries, and expansion into new markets causes
a great need for knowledge on target markets and cultures via (3) a multinational
phase aiming for the standardisation of products and services, and foreign activities
are used to achieve cost leadership, to a (4) global phase when worldwide sourcing is
combined with adaptation to host-country needs. Prior to the present study it was
conceivable that a similar sequential progression could be identified for local organisa-
tions appointing foreign executives from significantly different cultural backgrounds.
However, although these distinct phases of organisational development were consid-
ered during fieldwork, the findings of the present study do not indicate these phases
to be a clear part of the FELO workplace typology. Why FELO appointments may not
be contingent on the internationalisation phase and market focus will be discussed below.
Further categorisations (e.g. Claessens, Djankov, & Lang, 2000) distinguish large,
small or medium-sized firms, stock market-listed vs. privately-held, or family-
controlled vs. government-linked companies (GLCs). Small- and medium-sized organ-
isations comprise a large percentage of organisations globally, and some are even de-
scribed as ‘born global’ because of their globally-minded founders (Weerawardena,
Mort, Liesch, & Knight, 2007). On the other hand, privately-held family companies
are often brought down by an inability of family members to maintain, build on, and
manage family empires once the founder is dead. For example, evidence from 93 of
the largest family-run business groups in Thailand suggests that resources are fun-
nelled out of family group firms when descendants take up key positions (Bertrand &
Schoar, 2006). GLCs suffer from concentrated ownership and control, too. Claessens,
Djankov and Lang (2000) find high levels of state-control in 2,980 stock-market listed
Asian organisations, and Nowland (2008) reports that separation of ownership and
control in large Asian non-financial organisations is associated with increased organi-
sational performance and market value. In addition, Fraser, Zhang and Derashid
(2006) analyse stock-market listed organisations over a ten year period and find that
organisations with political patronage (especially the larger ones in their sample) carry
more debt than others. Indeed, “the direct participation by government officials in the
control of a large part of the corporate sector opens up the possibility of wide-spread
conflicts between public and private interests of some individuals, leading to crony
capitalism” (Claessens et al., 2000, p. 109). In view of the positive role that outsiders
may have in separating ownership and control, FELO typologies must take into ac-
count the size of organisations, private or government ownership, and level of politi-
cal patronage.
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 175
German Journal of Research in Human Resource Management, 27(3)
Degree of internationalisation and the ‘global mindset’
Further typologies of organisations can be based on the degree of their internationali-
sation (DOI; see Sullivan, 1994), the mindset of their executive teams, and their levels
of diversity and meritocracy. Various DOI measures have been developed, including
quantitative measures (e.g., the number of foreign subsidiaries; foreign assets as per-
centage of total assets; foreign subsidiaries’ sales as percentage of total sales; foreign
employees as percentage of total employees; export sales as percentage of total sales),
and attitudinal measures of the international experience of organisations’ executive
team (cumulative duration of executives’ international assignments as percentage of
the total years of work experience of the team; geographic dispersion of international
operations across cultural zones) (Sullivan, 1994).
A number of studies have found links between such measures and organisational
performance (e.g. Carpenter & Fredrickson, 2001; Daily, Certo, & Dalton, 2000). This
has lead to the notion of a ‘global mindset’ — the cumulative cognitive abilities and
outlook of an organisation’s executive team (Levy, Beechler, Taylor, & Boyacigiller,
2007). Teams with a global mindset are “more tolerant of other peoples and cultures,
consider cultural diversity an asset, thrive on ambiguity, balance contradictory forces,
and rethink boundaries” (Kedia & Mukherji, 1999, p. 236). Tihanyi, Ellstrand, Daily
and Dalton (2000), for example, find that top management teams (TMTs) with mem-
bers who have international experience are associated with greater organisational lev-
els of international diversification. Their findings further indicate that an education
that provides significant opportunities to interact with students from other countries
may facilitate the appreciation of other cultures, reducing some of the uncertainty as-
sociated with international business ventures. Accordingly, Mobley and Weldon
(2006 p. 297) summarise that the “transformation to a global mindset comes not from
home country leadership challenges but from experience in other cultures”. Finally,
Nummela, Saarenketo and Puumalainen (2004) report a significant positive correlation
between the global mindset of executive teams and financial measures of organisa-
tional performance (including a larger percentage of revenues from foreign markets,
and significantly more foreign business partners and customers). Therefore, to address
RQ2 (What types of local organisations appoint foreign executives?), the organisation-
al typology presented here considers the concepts of DOI and ‘global mindset’. It
takes into account the international work experience and education abroad of execu-
tive teams in local organisations. Large and small organisations, as well as their owner-
ship structure and control are viewed in that context.
Methods
Data from in-depth interviews conducted in and around Kuala Lumpur from 27
th
April to 23
rd
September 2009 with 46 foreign executives and 25 local peers in organi-
sations founded and headquartered in Malaysia are analysed. The two sample groups,
representing individual and organisational perspectives, work for some of the largest
companies listed on the Kuala Lumpur Stock Exchange, GLCs, as well as privately
held small- and medium-sized enterprises (SMEs) in a wide range of manufacturing
and service industries.
176 Frithjof Arp: Typologies
Data collection
Interviews commenced with the collection of socio-biographical data including age,
education, number of years in the organisation and host-country. The interviews then
moved to broad, open-ended questions about the FELO positions and their role in
the organisation. FELO interviewees were invited to elaborate on their careers, em-
ployers, how they came to the host-country and the position that they were working
in, and what they did in that position. Equivalent questions about the foreign execu-
tives and the local organisations were asked of LOCALs, and probing questions were
asked whenever appropriate to extract further explanations. Comparisons to other in-
dividuals and organisations were welcomed. As advocated by Minichiello et al. (2008),
the wording and ordering of interview questions was flexible as the absence of specific
information on the FELO phenomenon in the literature did not permit a rigidly struc-
tured interview instrument (cf. Crabtree & Miller, 1999).
Data analysis
Interview recordings were transcribed, analyzed and coded into themes in NVIVO
(version 8) software. Following the immersion / crystallisation approach described by
Crabtree and Miller (1999), the coding and data analysis process started with free
nodes that referred to differences between individuals and descriptions of local organ-
isations. These free nodes were gradually sorted into a more hierarchical tree node
structure (Richards, 2005). In addition, quasi-Boolean operations were employed on
the coded data to construct intersections of nodes within NVIVO. The Boolean oper-
ations can then be interpreted as a typology category (for examples of node intersec-
tions and results, see Table 1). The data are presented here in the form of tables de-
scribing the categories of individuals and organisations and examples of verbatim
quotes. Nodes in the verbatim quotes are given in
bold italics
to indicate the coding
and sub-coding process.
It became apparent relatively early during the data collection that there are dis-
tinct categories of FELOs and local organisations. Verbatim comments, such as the
following, clearly categorise two types of FELOs, using previous position and mar-
riage to local spouses as distinguishing characteristics:
There is also
that other group
of expatriates [FELOs] who actually worked here [for
MNOs], and a number of them hold very senior positions [..] Most of them are CEOs of
the company. Now, when you reach that level, you’re almost reaching retirement age,
right? [..] They got used to the life here [..], and
when they finish their contract
, they
work for local organisations. Now,
this category
of people
has nothing to do with
that
[FELO] who is . . .
that married a Malaysian
. (LOCAL#9; three coding nodes used for
differentiation; two nodes used to describe these differentiations)
In addition, frequent interview comments describe distinct types of local organi-
sations appointing FELOs, and being successful or less successful in leveraging these
FELO workplaces for business success. These descriptions include references to ‘eth-
nic’ categorisations that often preoccupy Malaysians (ostensibly, Chinese family busi-
nesses vs. Malay or Indian companies), and the frequency of such comments is taken
into account in the organisational typology. Wherever possible, the organisational ty-
pology takes into account extant typologies in the literature, such as stock market-
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 177
German Journal of Research in Human Resource Management, 27(3)
listed vs. privately-held, staff diversity and DOI, or small to medium-sized (SMEs) vs.
government-controlled (GLCs) organisations.
The robustness and reliability of the typologies is further strengthened by longi-
tudinal data collected during fieldwork in Malaysia in November 2010 and April to
June 2012, as well as comparisons with cases in other countries. The comparisons
suggest the applicability of FELO typologies in other settings and similarities include
the initial reasons for appointments, perceptions about the foreignness and unique in-
sider/outsider status of FELOs, the increased ability of FELOs to manage change and
address neglected issues, as well as their perceived or actual lack of bias as relative out-
siders (Arp, forthcoming 2013).
Findings
Typology of FELOs
Five key characteristics of FELOs are noted most by interviewees, and are utilised to
distinguish between typology categories. These are FELOs’ (a) tenure in the local or-
ganisation (b) income level, (c) nationality of spouses, and (d) the level of host-country
integration. A further element, (e) the ability of FELOs to make use of their unique
insider/outsider status, is extracted from longer interview passages and anecdotes that
require topical and analytical coding, rather than descriptive coding (see Richards,
2005). A non-numeric illustration of the relative likelihood of the five key characteris-
tics for each type of FELO is shown in Figure 1.
Figure 1: Key typology characteristics
a) income
higher than
local peers
b) long
tenure
c) local
spouse
d) "at home"
in host-
country
e)
consciously
utilising
unique
insider /
outsider
status
Type 1, global
executive nomad
FELO
Type 2, innate
identity FELO
Type 3,
entrepreneurial
innovator FELO
Type 4, localised
FELO
178 Frithjof Arp: Typologies
It represents in graphic form the commonalities as well as differences among FELO
categories. For example, the likelihood of Type 1 FELOs having a higher income level
than their local peers is greater than for Type 2, 3 and 4 FELOs. The ability to lever-
age their unique insider/outsider status is likely to be different for each type of FELO.
More nuanced distinctions between the four different types of FELOs are expli-
cated in the following segments.
Type 1: Global executive nomad FELOs
These FELOs get appointed for specific expertise and hard skills, with a view to be
replaced by local successors. Their (a) tenure in the local organisation is therefore lim-
ited from the outset. Frequently, younger Type 1 FELOs without previous work expe-
rience in the host-country are ‘headhunted’ by international executive search firms
while some older ones have been expatriates in their host-country and prefer not to
repatriate to their country-of-origin. These FELOs have (b) higher incomes than their
local peers, sometimes on par with MNO-expatriates but often without the fringe
benefits of the ‘expatriate package’ (e.g. housing and school fee allowances). If mar-
ried, their (c) spouses typically come from the same country-of-origin and their social
support network is usually limited to their foreign family and expatriates or other
FELOs. Local colleagues primarily perceive these FELOs as outsiders (d) and the be-
havioural adaptation of these FELOs (e.g. linguistic variation to host-country norms)
is deliberate, conscious, limited to a specific purpose, and to obtaining a desired out-
come — to ‘get something done’. The ability of Type 1 FELOs to develop, and make
use of, their unique insider/outsider status (e) is limited.
Type 1 FELOs enjoy only a ‘limited welcome’, as local organisations would rather
fill their positions with host-country nationals. FELOs are aware of this and ‘sit on
packed suitcases’ (that is, they do not make a sustained effort to engage with local
people and society). These FELOs mostly bridge foreign vs. host-country boundaries,
rather than boundaries between host-country groups. Some Type 1 FELOs say: “I
don’t even have a bank account here” (FELO#4) and “tomorrow home could be Bei-
jing” (FELO#13), and such comments were used to code low levels of involvement
for label (d) ‘at home’ in the host-country. Local interviewees use the term ‘expat’ (ra-
ther than other descriptions) more frequently for this type than for the remaining
FELOs. Type 1 FELOs are also the most visible in business media reports and ap-
pointments (as well as departures) may produce headlines.
It must be clearly understood that the difference between Type 1 and other types
of FELOs does not lie in their income level, organisational and host-country tenure
alone. Rather, the difference is due to the nature of their appointment. As these
FELOs are aware of their limited welcome and the ‘graduation ceremony’ desired for
their local successor, they are unlikely to contribute more than the expertise for which
they are appointed. Psychologically, their situation does not allow Type 1 FELOs to
integrate socially and develop significant levels of commitment to their host-country
and employer. In a sense, this is the type of FELO produced by organisational and ex-
ternal constraints in many countries. The organisational focus on temporary engage-
ments and succession plans as well as restrictive work permit procedures severely re-
stricts the occurrence of all other types of FELOs. What local organisations obtain
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German Journal of Research in Human Resource Management, 27(3)
from Type 1 FELOs is (at best) the desired expertise for a period of time, but little
else. Latent soft skills may be underutilised. In terms of diversity, some Type 1
FELOs probably may have a small developmental impact, in that one of their attitudi-
nal or personality characteristics might happen to impress and inspire local colleagues.
Other than this miniscule influence, akin to meeting any foreigner with a different per-
spective anywhere, host-country organisations and society do not gain much from such
FELO workplaces. In sum, this type of FELO can be seen as part of a global compe-
tition for international executive expertise, and the primary distinction between them
and traditional expatriates is the local employer. As one participant summarises:
They have been able to negotiate
terms which are pretty much on par with expatri-
ates
. [..] And in fact
that’s what mostly they are:
they are expatriates who are working
for a local company rather than a foreign company. And many of them
behave that way
.
But
they are there because of expertise
. (FELO#8; coding nodes describe similarity to
classic expatriates, indicate level of behavioural adaptation and causality of appointment)
Type 2: Innate identity FELOs
FELOs in this small category have innate characteristics that HCNs are — and will
always be — unable to acquire. Type 2 FELOs are found in industries that require
specific expertise inherent in, or generally associated with, a particular national, cultur-
al or educational background. The objective is the replication of products or services
available in other countries. The ability of these FELOs to ‘portray and represent’
their country-of-origin and the goods or services associated with it, or to speak a par-
ticular language and understand all its associated cultural nuances, combines with a
need within local organisations to portray a foreign image or for high-level, nuance-
rich negotiation and interpretation of sensitive issues in a particular language. For ex-
ample, a country’s requirement to provide Islam-compliant versions of goods or ser-
vices that are associated mostly with ‘haram’ (that is, forbidden by Islamic law) ver-
sions of that same product or service creates unique niches for FELOs who can
straddle this particular divide:
I think the main criteria were that I spoke [language deleted] and
I was there at that
time
. (FELO#16; coding node indicates rarity and availability of innate characteristics in-
herent in linguistic, national and cultural background)
The selection is limited; there are not so many [details deleted] around. So
the supply is
limited
. (FELO#20; coding node indicates rarity; causality for appointment are innate
characteristics inherent in national and cultural background)
The (a) tenure of Type 2 FELOs is limited to periods in which these innate character-
istics are required in the local organisation, and their (b) incomes are reported to be in
line with, or only slightly higher than, local peers. Lack of widespread demand for the
specific identity or expertise narrows employment opportunities and gives local organ-
isations a strong negotiation position. FELOs of this type have typically come to the
host-country for coincidental reasons rather than on expatriate assignments. Local
spouses (c) can be part of the coincidental reasons why these FELOs are in the host-
country but do not explain FELO tenure, as Type 2 FELOs depend on their innate
characteristics rather than host-country integration or cross-cultural skills. Host-
country integration (d) is not a relevant element as Type 2 FELOs depend on their
‘different-ness’ rather than on integration. Type 2 FELOs with local spouses and at-
180 Frithjof Arp: Typologies
tendant higher level of host-country integration are likely to develop the ability to lev-
erage their unique insider/outsider status (e) in negotiations and relationships with lo-
cal employers.
Type 3: Entrepreneurial innovator FELOs
These FELOs have typically come to their host-country on expatriate assignments or
were appointed by local organisations on a project, consulting, or temporary contract
basis. During that initial period, Type 3 FELOs have become closely involved with lo-
cal business or social acquaintances, discovering new business opportunities. In con-
trast to Type 2 FELOs, such opportunities do not depend on innate expertise and the
replication of products and services of other countries, but on the ability to translate a
foreign concept into genuine innovation in the host-country context:
Within two or three years I took over, I had to put some money in. So,
I had to risk it
, I
had to . . . (FELO#20; coding node describes entrepreneurial opportunity)
I think it was probably
much easier here
than in [my country-of-origin] [..]. And
to
make it successful
is also much easier here than [in my country-of-origin]. (FELO#24;
coding node indicates opportunity and talent for innovation)
You know,
they came originally for various reasons
; some of them came through, erm,
they were posted here by multinational companies, but then
decided to stay on
[..]. So,
yeah, definitely
there is a commitment, personal commitment
; there’s
often a financial
commitment
because they, you know,
invest in businesses
and . . . property ownership,
family connections
[..] I mean, they, they . . . you know:
they care about Malaysia
[..]
they feel part of the, erm, you know
the social fabric of the nation
. So, definitely
there’s a
huge difference between them and the typical expat
that comes to Malaysia. (LO-
CAL#16; coding nodes indicate differences to other types of FELOs, describe levels and
forms of host-country involvement as well as entrepreneurial innovation)
Their (a) long tenure and host-country experience causes Type 3 FELOs to uncon-
sciously adapt cross-culturally in their private lives. Type 3 FELOs often are — or are
treated as — partners, shareholders or co-owners in the organisations for which they
work. In conglomerates, they are typically CEO of the division they co-founded. Ac-
cordingly, their (b) income level is typically on par with their local peers and depend-
ent on the organisation’s business success. That includes cases where FELO incomes
are lower than that of local executives in comparable organisations. Frequently, local
spouses (c) are part of the reason why these FELOs choose to live and work in their
host-country; they typically were instrumental in these FELOs’ ability to understand
the host-country context, discover entrepreneurial opportunities, and deal with exter-
nal constraints. Often, but not necessarily, local spouses or their families are associat-
ed with the entrepreneurial business venture. Type 3 FELOs may not have become
‘entrepreneurial innovators’ in their country-of-origin; interview comments suggest
that host-country exposure, the opportunity to be different, and to do things differ-
ently, triggers this innovative ability. Their ability to innovate is based on a thorough
understanding of, and integration with, the host-country environment (d). At work,
their innovator role often requires them to consciously and deliberately behave in an
un-adapted manner, and to make use of their (e) unique insider/outsider status.
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 181
German Journal of Research in Human Resource Management, 27(3)
Type 4: Localised FELOs
These FELOs have typically moved from an initial expatriate assignment through sever-
al positions with local organisations, often with advisory or consulting roles as interme-
diate steps. Periods as Type 1, 2 and/or 3 FELOs may be part of their career history. In
addition, Type 4 FELOs are frequently involved with host-country industry associations,
local societies and charities. Their expertise primarily consists of an outsider’s perspec-
tive on international business, combined with an insider’s understanding of the local en-
vironment, soft skills predominantly acquired and honed locally, and the ability to bridge
national boundaries as well as those between host-country groups.
Type 4 FELOs have (a) very long host-country experience and tenure in local or-
ganisations, and are different from migrants or permanent residents primarily due to
restrictive immigration regulations and practices of their host-country. Southeast
Asian countries very rarely grant permanent residence or dual citizenship and in the
case of Malaysia, these restrictions have been acknowledged in a recent report: “The
government and private sector must work together to improve the conditions that are driving Malaysi-
an and expatriate talent to locate abroad.” [..] “There needs to be a build-up of a critical mass of
skilled professionals through simpler work permit and immigration procedures”, and “a key consid-
eration [..] is the offer of permanent residence to these” (NEAC, 2010, p. 125). Type 4 FELOs
have frequently accepted (b) lower levels of income than in their country-of-origin,
other countries, or as expatriates in subsidiaries of foreign multinationals. Their in-
come levels have typically moved through several stages from expatriate assignment
level, via quasi-expatriate pay on a consulting or contract-basis, probably through pe-
riods with less income than local peers, to ultimately be in line with their local execu-
tive peers. Type 4 FELOs are well integrated with local society through (c) local mar-
riages, family and friendship ties. However, these social ties are not necessarily the
causal element for their continued presence in the host-country. Instead, social ties in-
cluding marriage and family appear to be the result and reflection of significant per-
sonal interest of these FELOs in their host-country and its people. Due to this (d) sig-
nificant level of host-country integration, Type 4 FELOs are largely perceived by their
peers to be part of their host-country society encapsulated by the frequently used term
‘localised’. Foreign couples (that is, FELOs with life-partners who are not local) would
not be perceived as ‘localised’, even after many years of host-country presence. Type 4
FELOs make use of their unique insider/outsider status in their private as well as their
work life, and have developed a ‘third-culture-ness’ — a unique supranational stance
on socio-economic issues combined with deep understanding of, and emotional in-
volvement with, their host-country environment. Type 4 FELOs compensate their
frustration, anxiety and anger about negative aspects of their host-country with high
levels of idealistic commitment. As participants summarise:
The others are here to stay
, you know, [..]— some of them are
more Malaysian than
Malaysians
. Yeah, so
there is a difference
. (LOCAL#12; coding nodes describe differ-
ences to other types of FELOs)
It’s not myself; it’s
other people that I meet, they say
: “Ah, you are local” [..] But I
couldn’t tell you what I’ve done to make them say it. (FELO#10; coding node indicates
difference to other types of FELOs)
Table 1 provides a side-by-side comparison of the different types of FELOs.
182 Frithjof Arp: Typologies
Table 1: Typology of FELOs
Type 1
Global Executive
Nomad FELO
Type 2
Innate Identity FELO
Type 3
Entrepreneurial
Innovator FELO
Type 4
Localised FELO
Causality FELOs’ expertise ac-
quired abroad; needed
in host-country
FELOs’ innate charac-
teristics inherent in lin-
guistic, national or cul-
tural background
FELOs’ latent talent for
innovation finds nurture
and opportunity in the
host-country
FELOs’ soft skills and
commitment acquired in
the host-country;
coincidence
Aggregated typifying
comments from FELOs
“I know my welcome
here is limited; once
they find a local with my
expertise / once I’ve
trained a successor, I’m
out”
“A local simply cannot
do what I do because
they do not have my
unique background”
“This country gives me
the opportunity to do
what I want to do, and to
be what I want to be”
“I came here due to
happenstance; I will stay
here because I want to
contribute to this coun-
try; my life-partner is
here”
Aggregated typifying
comments from
LOCALs
“This foreigner is an in-
ternationally recognized
expert in this field”
“For this position, you
simply must have a for-
eigner of that nationality”
“That foreigner made it
happen here”
“That foreigner is com-
pletely ‘localised’ and
one of us”
Tenure in the local
organisation;
see characteristic (a)
short medium; on project con-
tract basis for some
Type 2 FELOs
medium very long
Income level;
see characteristic (b)
higher than local peers in line with local peers in line with, sometimes
lower than, local peers
in line with local peers
Remarks made to the
effect that ‘this
country is home’;
see characteristic (d)
No Yes; conditional on de-
mand not changing
fundamentally for the
unmatchable skills or
identity
Yes; but conditional on
business environment
not changing
fundamentally
Yes; conditional, if at all,
on immigration rules and
socio-political
circumstances
Level of host-country
integration; also see
characteristic (d)
similar to expatriates irrelevant medium high
Nature of behavioural
adaptation;
see characteristic (e)
deliberate and con-
scious adaptation
unconscious adaptation privately = unconscious;
at work = conscious;
often deliberately
un-adapted
unconscious; on occa-
sion deliberately
un-adapted; ‘third-
cultureness’
Impact on host-
country
Limited to ‘knowledge
transfer’
Very little; mere ‘service
provider’ role
High economic impact;
limited societal impact
High economic and so-
cietal impact
Local spouse; see
characteristic (c)
No irrelevant Yes; sometimes affiliat-
ed with the business or
in the same organisation
Yes; unlikely to ever be
considered ‘localised’
without local spouse
Exposure to public
scrutiny
High; appointment and
departure often subject
to controversy and
media interest
Medium; due to innate-
ness / inherentness of
role
Medium; uncontroversial
due to obvious
contribution
Low; uncontroversial
due to long tenure and
‘working behind the
scenes’
Constraints on occur-
rence in host-country
No; affiliation matches
immigration policy objec-
tives. Limited tenure typ-
ically causes (a) low
level of integration, and
(b) low effectiveness of
appointments
Yes; organisational and
external constraints
(immigration regulations)
Yes; external (but not
organisational) con-
straints cause difficulties
(primarily a lack of
permanent residence
status)
Yes; initial organisational
and persistent external
constraints including the
lack of permanent
residence status
Frequency in this
study
13 3 17 13
Frequencies result from quasi-Boolean operations on the coded data. Boolean operations employ logic operators such as AND, NAND (not
and), OR and NOR (not or) to combine characteristics. With Boolean searches, constructed intersections of nodes can be created. Examples:
a) FELOs who say that ‘this is home’ AND that their social network primarily consists of their local spouse, family, and local friends
AND that they feel estranged from their country-of-origin AND that they are ‘not here for the money’, AND where these com-
ments are triangulated by comments from LOCALs
b) FELOs who say that they are appointed primarily for their specific knowledge and expertise NAND that they are ‘not here for the
money’ NAND that ‘this is home’ AND where FELOs are referred to by LOCALS as e.g. ‘local expat’ rather than ‘localised’
The Boolean operations can then be interpreted as a typology category, which for the two examples above would be (a) Type 4 Localised
FELO, and (b) Type 1 Global executive nomad FELO respectively.
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German Journal of Research in Human Resource Management, 27(3)
Typology of local organisations
Various interviewee comments, mostly from LOCAL participants, distinguish be-
tween different types of local organisations, assess their relative likelihood of appoint-
ing FELOs, theorise about reasons for such appointments, and attempt predictions of
the likely outcome:
I can’t speak for others, but I think, for those Malaysian companies who are
open to this
type of concept
{i.e. FELOs}, you can see them growing by leaps and bounds.
There’s
a growth
; as against the
Malaysian ‘Chinaman’ companies
who don’t believe in exper-
tise but believe only in themselves.
I can see the distinct difference
between the ways
these companies will be able to grow
. (LOCAL#6; coding nodes indicate differences
to other local organisations, provide descriptive details about the type of organisation and
the mindset of their management teams)
Such comments are analysed for the typology detailed below. Key characteristics dis-
tinguished are the (a) form of ownership, control, and management, (b) size and type
of organisation, and (c) motivation for FELO appointments, underlying hiring strate-
gy and prevalent attitude to members of out-groups in these organisations. More
comments are made about organisations least likely to appoint FELOs than com-
ments that describe the specifics of organisations that do appoint FELOs. This may
reflect the rarity of the FELO phenomenon and the survivorship bias in the study’s
sample. Participants probably find it easy to explain the exceptional nature of their
own organisations through comments about the many other organisations that are less
likely to appoint FELOs. Overall, the organisational typology broadly mirrors other
forms of diversity (e.g. gender, ethnicity). As one interviewee explains:
If an organisation recognises
the importance of diversity
, then that often also translates
to
their openness to also hiring an expatriate
[FELO]. Because
if they’re so reclusive
and conservative
— whether it’s just male-dominated or Malay-dominated — then
that
openness is not quite there
. (LOCAL#19)
The typology described by participants also broadly matches the distribution of local
organisations in this study’s sample. Private enterprises form the clear majority of
workplaces, while public-listed companies account for a third, and state-linked organi-
sations constitute less than a tenth of FELO affiliations.
Type A: Nationalistic, nepotistic, ethnocentric local organisations
Type A organisations see little need for FELOs because
“we have sufficient mana-
gerial talent ourselves”
(LOCAL#25; expressing ethnocentric sentiments). The
presence of FELOs is attributed to hard skills and expertise only. Foreign executives
are assumed to be motivated to work for local organisations only by financial rewards;
their ability to contribute anything to local society beyond their expertise is questioned
by representatives of such organisations.
First, single-ethnicity family-controlled-and-managed organisations as well as
government-linked companies (GLCs) are seen as constituting this category. Top
managers of such organisations are described as primarily locally educated, and ex-
posed predominantly to local market and management perspectives. Decision-making
processes are said to be hierarchical and appointments frequently based on nepotism
rather than merit.
184 Frithjof Arp: Typologies
Second, large GLCs may grudgingly admit temporary needs for specific innate
knowledge at the subsidiary level provided by Type 2 FELOs, or even appoint Type 1
FELOs without these individuals becoming part of the inner corporate hierarchy.
Large entities with the word ‘National’, ethnic, or country references as part of their
corporate name are particularly unlikely to openly appoint FELOs for publicly visible
positions, and some FELOs are given designations such as ‘consultant’ or ‘advisor’ in-
stead.
Third, the prevalent stance toward members of out-groups in such organisations
includes simmering resentment against ‘Western’ foreigners, and strong nationalistic
and / or ethnocentric sentiments. Representatives of Type A organisations in the
sample typically do not distinguish between expatriates, FELOs and foreigners in gen-
eral. Comments underline that the FELO phenomenon is rare and will continue to be
so for a long time.
A typical Malaysian company — whether it’s
family-owned or state-owned
— I don’t
think they want that. They would bring him in as a consultant, but not necessarily as a
senior executive.
As a consultant
because then it is
not out in the open
[..].
It’s too ‘in
your face’ to have a . . . a foreign executive
. (LOCAL#10; coding nodes provide de-
scription of TMT mindset prevalent in Type A organisations)
But, if we’re just talking about a normal ‘private limited’ company, no. They won’t bother
bringing any in . . . look at
a ‘Chinaman’-company
, [their attitude is]: “I have my busi-
ness; I have a ‘private limited’. If my people can’t do the job, I just get somebody else to
do the job.
I do not need to bring in any foreign expertise
or executive!” (LO-
CAL#23; coding nodes provide description of TMT mindset prevalent in Type A organi-
sations)
Type B: Pragmatic local organisations (but often short-term in orientation)
The second category of local organisations is reported to see FELOs as a ‘necessary
evil’ that is required to survive and grow in the market. Type B organisations are fo-
cused on the hard skill- and knowledge-based contributions of FELOs.
First, these organisations are owned by one or several closely-linked shareholders,
but not managed exclusively by family-members appointed to their positions in nepo-
tistic fashion. Some professional managers from ethnic groups other than that of the
controlling family may hold senior positions with genuine decision-making power. Di-
versity at the professional management level includes gender, age, and ethnic variation.
Second, this category comprises medium-sized organisations and diversified con-
glomerates, frequently public-listed and exposed to foreign MNOs through competi-
tion or cooperation. In conglomerates, the appointment of FELOs is typically at sub-
sidiary level, not on the board of the holding company. As one participant says:
It’s an ‘old boys’-network, ok?
Who sits on the board has been on the board for the
last twenty years, you know. And I don’t think they would want
somebody interfering
with their judgement
, you know. (LOCAL#12)
Third, the prevalent attitude towards members of out-groups in these organisations
takes the form of expectation and curiosity, mixed with trepidation about ‘the un-
known’. Foreign executives are seen as a way to leapfrog organisational development
steps, and ‘catch up with’ foreign MNOs. Some local top executives are aware that
this catching up involves learning from, and adopting, soft skills and attitudinal char-
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 185
German Journal of Research in Human Resource Management, 27(3)
acteristics often thought of as ‘foreign business culture’. The focus of these organisa-
tions is on temporary FELO appointments with the objective of mentoring a local
successor.
You look at all Malaysian companies; probably 95% or more are all owner-managed busi-
nesses. And it’s all
family-type, tightly-controlled businesses
. So, the example that I
spoke to you about . . . why they hire this American, this former CEO, is because that’s
not an owner-managed business
. That is a public-listed company; and
they need that
expertise, that precise skill in that particular industry
. (LOCAL#9; coding nodes dis-
tinguish between Type A and Type B organisations)
Type C: Local organisations with global mindset / local action
A few local organisations are reported to appoint FELOs for reasons beyond hard
skills, expertise and marketability. Although most local organisations are described as
not very forward-looking, diversity-minded, or multi-culturalist, “
there are excep-
tions
, I think there are some companies that are
much more forward-thinking
but I think
they are the exception” (FELO#15; coding nodes distinguish Type C organisations from
others).
First, Type C organisations are primarily found among organisations exposed to
significant international competition, heavily involved in cross-border interactions, or
in the process of becoming multinationals in their own right. Interestingly, some Type
C organisations are active exclusively in the domestic market. Privately-held or stock
market-listed, diversity of shareholder-ship is common, and decision-makers are typi-
cally well-educated executives exposed to international business, competition and
management theory.
Second, Type C organisations range in size from very small niche-market players
and ‘born globals’ to largish but strategically focused organisations. Very large organi-
sations and conglomerates are less likely in this category, due to the socio-political
sensitivity of FELO appointments.
Third, a welcoming attitude to diversity and to members of ‘out groups’ prevails
in these organisations; outsiders, including foreigners, are seen as suppliers of new
ideas, different perspectives and constructive criticism. LOCAL interviewees from
Type C organisations had typically studied overseas, had extensive foreign experience,
and see FELOs as very different from expatriates in the subsidiaries of foreign multi-
nationals. Short comments include:
The
forward-looking companies
. . . in particular when they have experience with for-
eigners, tend to . . . they want to go forward with this {i.e. FELOs}. Whereas for local
Malaysian-domicile companies who
do not deal much with foreigners
, probably will
not — because
they have not seen the value
in it. (LOCAL#6; coding nodes distin-
guish Type C organisations from others)
I think the first thing that we are interested in employing these people [FELOs] is basical-
ly, erm . . . we are evolving the group, eventually, and
hopefully towards the world-
class status
. And, for what it’s worth,
Malaysia is still a developing country
, say what
you like.
And the culture within an organisation is not very different
from the culture
within the country. (LOCAL#6; coding nodes describe a Type B organisations on its way
to becoming a Type C organisation)
186 Frithjof Arp: Typologies
Based on such comments and coding nodes, a typology of local organisations is de-
veloped which is presented in Table 2.
Table 2: Typology of local organisations
Type A
Nationalistic, nepotistic,
ethnocentric
Type B
Pragmatic (but often
short-termist)
Type C
Global mindset / local action
Description in re-
gard to degree of
internationalisation
(DOI, cf. Sullivan,
1994)
Unwilling or unable to see any
need for FELOs; perceived as
‘national icon’ or ‘local local’
organisations by their man-
agement and staff as well as
outside observers (even if
very active in the international
market)
Aware of the need for FELOs
due to their expertise and hard
skills; established or aspiring to
become multinational organisa-
tions (even if predominantly
active in the domestic market)
Aware of the need for FELOs
due to their expertise, soft
skills, and contribution to di-
versity; perceived as ‘interna-
tionalised’ by their manage-
ment and staff (even when
active solely in the domestic
market)
Phase of organisa-
tional development
FELO appointments not contingent on market focus of local organisations. No clear distinction be-
tween a domestic, multi-domestic, multinational and global phase as in Adler & Gundersen (2008).
Hiring strategy (cf.
Caligiuri & Stroh,
1995; Perlmutter,
1969)
ethnocentric
(but FELOs are a sign that key
headquarter positions cannot
always be filled with home-
country nationals)
polycentric
(but FELOs are a sign that key
headquarter positions are some-
times better filled with foreign
nationals)
geocentric
(and FELOs are a sign that
even key headquarter posi-
tions are sometimes best filled
with non-nationals)
Aggregated
typifying com-
ments
‘We don’t need foreigners to
tell us how to run our country;
when there’s a specific skill
we need, we may temporarily
subcontract a foreigner as a
consultant’
‘Foreigners are more advanced
in some fields; we want them to
bring their expertise here to men-
tor a successor; it also looks
good to have a FELO on the
board’
‘We appreciate the different
perspective the FELO contrib-
utes; (s)he has brought for-
eign experience, learnt from
the local environment, and we
have learnt from her/him’
Most commonly
found among . . .
Single ethnicity family con-
trolled and managed compa-
nies, government-linked or-
ganisations
Medium sized professionally
managed companies, and sub-
sidiaries of larger conglomerates;
frequently public-listed
Small to large organisations
very exposed to international
business ideas and manage-
ment style
‘Global Mindset’?
(cf. Kedia & Muk-
herji, 1999, p 236;
Levy et al., 2007;
Tihanyi et al., 2000)
TMT members do not normal-
ly have private contact with
foreigners; may have studied
abroad but often isolated from
host population
TMT members travel frequently
and may have studied abroad.
Limited private contact to for-
eigners outside of work
TMT members typically stud-
ied overseas, had extensive
foreign experience, see them-
selves as global citizens
No frequencies are reported in this table, as this typology results from the analysis of comments about local organisations that
LOCAL and FELO participants work for presently, have worked for in the past, and other organisations referred to in anec-
dotes. Frequencies would therefore be misleading.
Discussion
Typology of FELOs
The findings of the present study illustrate that typologies of traditional expatriates
(e.g. Black & Gregersen, 1992) are not entirely relevant to the rare and specific FELO
phenomenon. Categorisations such as ‘dual allegiance’ or ‘hearts at home’ are inappli-
cable as no type of FELO serves foreign headquarters. There are, however, similarities
of Type 1 FELOs and the ‘Hired Guns’ in the Black and Gregersen (1992) typology,
neither having much allegiance to the organisations for which they work. It must be
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German Journal of Research in Human Resource Management, 27(3)
noted, however, that this lack of allegiance is caused by the nature of Type 1 FELO
appointments, and that those who take people management seriously may reject the
‘gun-slinging’ metaphor in the Black and Gregersen (1992) typology. A minority of
Type 1 FELOs are similar to the sub-category of expatriates that Black & Gregersen
(1992) describe as ‘plateaued-career free agents’ — without opportunities in their
home country and attracted to international assignments by attractive remuneration.
In turn, Type 4 FELOs appear similar to ‘gone natives’ as described by Black and
Gregersen (1992). However, Type 4 FELOs are proud of their long host-country ex-
perience and may find offensive the suggestion of having ‘gone native’ as this meta-
phor was used as a colonial era pejorative. It continues to have negative connotations.
Typologies that focus on the roles and tasks of expatriates (e.g. Hays, 1974) are
useful to elucidate aspects of the FELO phenomenon as the selection and appoint-
ment of FELOs is similarly contingent on roles and tasks. For example, Type 2
FELOs (innately skilled unmatchable experts) are largely ‘structure reproducers’ that
merely assist local organisations to replicate products, services or business processes
that have originated in another country. In contrast, Type 3 FELOs genuinely innovate,
although they generally operate at a lower level and despite their often entrepreneurial
involvement, do not necessarily benefit much financially. The ‘troubleshooter’ and
‘chief executive’ roles (Hays, 1974) are usually reserved for Type 1 and Type 4
FELOs.
Overall, expatriate typologies with the most relevance to FELOs are those that
take into account phases of psychological adjustment over time (Black & Mendenhall,
1991; Shapiro et al., 2008). The ‘localised’ Type 4 FELOs with their significant host-
country experience are able to contribute significantly more to local organisations than
only the hard skills that they were appointed for initially (Arp, forthcoming 2013). Dif-
ferences between FELOs with previous host-country experience and those without
are similarly important, and the influence that previous experiential learning of FELOs
has on knowledge transfer to, and capacity building in, local organisations is signifi-
cant. In addition, local spouses have an important influence on how cultural distance
is bridged (cf. Arp et al., 2011).
Typology of local organisations
Besides providing typologies of the under researched FELO phenomenon, a theoreti-
cal contribution of this research is a clarification and more refined understanding of
the terms ethno-, poly- and geocentric. On first glance, FELO appointments in all
three types of local organisation may be mistaken as indicators of a geocentric ap-
proach (i.e. recruiting and developing the best individuals regardless of their nationali-
ty and ethnicity for key positions everywhere in the world, including corporate head-
quarters). However, as the present research demonstrates, organisations that hire for-
eign executives for headquarter positions do not necessarily have a geocentric or non-
ethnocentric HRM approach. Indeed, the typical initial hiring reasons are far more
mundane (cf. Arp, forthcoming 2013), and appointments do occur in organisations
with strong ethnocentric HRM practices. Even those local organisations that hire
FELOs primarily for expansion into international markets, for the portrayal of inter-
nationalisation (Type B organisations), or for the purpose of replicating products, ser-
188 Frithjof Arp: Typologies
vices or business processes that have originated in another country (by appointing
Type 2 FELOs) arguably follow a polycentric rather than a genuinely geocentric ap-
proach.
Another theoretical contribution, therefore, concerns the mindset of an organisa-
tion’s top management team. Although this research has taken into account well-
established categorisations in the literature, it illustrates that a ‘global mindset’ (Levy et
al., 2007) and non-ethnocentric attitudes in the top management team are more im-
portant than ownership structure, size or industry for the success of FELO workplac-
es — just as they are for economic success (Caligiuri & Stroh, 1995; Nummela et al.,
2004). For example, the family-dominated and government-linked organisations
common in Asia (see e.g. Claessens, Djankov, & Lang, 1999; Claessens et al., 2000) are
least likely to appoint FELOs although they might benefit most from any such ap-
pointments. Somewhat surprisingly, the data also indicates that FELO appointments are
not contingent on the market focus and DOI of local organisations. Instead of a se-
quential progression of organisations from a domestic via multi-domestic and multina-
tional phases to a global phase (as conceptualised in Adler & Gundersen, 2008), a
progression through mindset phases appears to matter most. Conceptually therefore,
market focus, DOI and even the appointment of FELOs are result and reflection of
this progression and FELOs are both objects and subjects, both clay and sculptor.
In addition, Caligiuri and Stroh’s (1995) observation that non-ethnocentric man-
agement is possible only within the economic, social, political and legal constraints of the
country of operation helps explain the rarity or absence of the FELO phenomenon in a
number of countries. Work permit constraints limit the ability of local organisations to
hire foreign talent, and FELOs with long host-country experience are unable to obtain
permanent residence. It is this latter constraint which also distinguishes Type 4 FELOs
from migrants: FELOs will always retain an out-group status in their host-country to a
certain extent. Hence, it is insufficient to look at organisational typologies without
considering the variations in welcome extended to FELOs by host-countries.
Implications of the typologies presented
Beyond comparing and contrasting the typologies resulting from this study to extant
typologies of traditional and self-initiated expatriates, implications for practice need to
be considered. The present study holds important implications for executive search
consultants and TMTs of local organisations.
First, the findings suggest that foreign executives without significant host-country
involvement are unsuitable for positions in local organisations. Some Type 1 FELOs
are appointed through executive search consultants (“headhunters”) without any pre-
vious host-country experience, and little commitment and loyalty to local interests. At
the same time, Type 1 FELO appointments are typically made by organisations with-
out genuine appreciation of national and cultural diversity in management teams
(Types A and B in the organisational typology). Instead, appointments typically follow
the short-term objective of catching up with international competitors while the can-
didate-organisation-context fit that can make FELO workplaces successful in the long
term receives insufficient consideration. That focus on hard skills, marketability and
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German Journal of Research in Human Resource Management, 27(3)
credentials (cf. Arp, 2012; Arp, forthcoming 2013) is encapsulated in comments of re-
search participants:
Many times I was called into a meeting, not because I was going to add any value to what
was ongoing,
except that I was a ‘white face’
. And it was sort of, like: “We’re bona-
fide. We have us a white man”. I was the
token white man
. (FELO#13)
He had all the necessary ingredients to be successful. Why? Because the board was behind
him, he joined at the right time,
he had all the right credentials
bla-bla-bla, experience
and all that, right?
There wasn’t any reason why he should not do well
. But guess
what:
he did fail
. (LOCAL#19)
As these relationships frequently do not last very long, bring high costs of search and
employment, and can have damaging effects on organisational reputations through
adverse international and local media coverage (“Nationalistic Asian company gets rid
of foreign executive” / “Why did they appoint a foreign executive in the first place?”),
they should be avoided. TMTs of Type A and B organisations exclusively focus on the
specific expertise and credentials that they desire, but are unaware of the need for di-
versity of ideas, perspectives, cross-cultural experience and people management skills.
Appointing Type 1 FELOs for short term change management interventions (and
making them scapegoats, cf. Arp, forthcoming 2013) may be effective in a few excep-
tional cases, but more commonly required changes in organisational culture take time.
In Type B organisations, having a foreign face in the TMT may be desirable for the
portrayal of internationalisation. In those cases, the pragmatic but short-term focus on
hard skills and marketability leads to FELO appointments in spite of rather than because
of cultural distance. Genuine appreciation for the contribution of cultural diversity is
lacking (or may only grow with time) and few executive search consultants seem to be
prepared to advise local organisations appropriately. To an extent, this disregard for
contextual factors is understandable. Credentials and hard skills are typically easy to
document, quantify or measure as they are reflected in paper qualifications, degrees, or
records of career accomplishment. Nevertheless, the typologies presented here may
assist executive search consultants and their clients in their selection of suitable candi-
dates. All FELOs described in a Korn/Ferry Institute (2009) publication, for example,
appear to fall into the Type 1 category (‘global executive nomad’) of the present study.
Although all FELOs are described as ‘highly visible’ in that publication, it is unlikely
that current Type 2, 3 and 4 FELOs can be found through international executive
search firms as many keep a low profile or work ‘behind the scenes’. It is particularly
unlikely that the most experienced Type 4 FELOs wish to be as highly visible as the
more recent Type 1 FELOs appointed directly from abroad into Type A or B organi-
sations typically are. Executive search firms should therefore scout for talent locally
(that is, among long-term expatriates with significant host-country involvement) or
among specific groups internationally (that is, among individuals who have been
FELOs previously). Indeed, it may be a fruitful strategy for international executive
search firms to develop databases of these two specific groups.
Second, in contrast to Type 1 FELOs, Type 3 and 4 often have very significant
host-country involvement and appointments tend to last for many years. While Type 1
FELOs typically lack the cross-cultural skills to make use of their unique insid-
er/outsider status, FELOs with significant host-country involvement (possibly includ-
190 Frithjof Arp: Typologies
ing marriage to a local spouse) are able to leverage this status to the advantage of the
organisation. The findings suggest that the most important contribution of FELOs is
their role in long-term capacity building (Arp, forthcoming 2013). Their role as both
external and internal bridge-builders, made possible by their unique insider/outsider
status, does not come to bear during short-term appointments. While Type C organi-
sations welcome the positive contribution that cultural distance, different perspectives,
personal experiences, and broader horizons can make to their management team,
Type A and B organisations are unlikely to consider these aspects among initial rea-
sons for FELO appointments. If they would, they should consider candidates with
significant host-country involvement and experience from previous FELO workplaces
or expatriate assignments, and not living in ‘expat ghettos’.
Third, Type 2 FELOs are likely to always have a place in international business
and are a convenient choice for local organisations to replicate products or services
available in other countries. However, Type 2 FELOs are quite aware that their pres-
ence is primarily due to their specific national or cultural background and not because
of an appreciation of their hard or soft skills. Even without significant host-country
involvement they may always find workplaces to ‘portray and represent’ their country-
of-origin, assist in understanding nuances of a particular culture, or assist with nuance-
rich negotiations, but may never have the significant ‘diversity of ideas and perspec-
tives’-impact on local peers, colleagues and organisations that Type 3 and 4 FELOs
can have.
Limitations
Among the limitations of typologies is their indicative nature. Typologies can never be
absolutely definitive for all cases, nor are they sufficiently dynamic to capture all as-
pects of the FELO phenomenon. They do, however, provide an adequate framework
to conceptualise the breadth of the FELO phenomenon, and help to identify which
types of FELO workplaces produce successful outcomes and those that are likely to
fail. Overlaps across categories exist, as well as progression of cases through typology
categories over time. For example, a FELO with a local spouse is not automatically a
Type 4 FELO. Similarly, an ethnocentric ‘national icon’ or a GLC may well be suffi-
ciently non-political and free from partisan interference to appoint FELOs, and pro-
gress through less ethnocentric categories. Indeed, the perception that foreign execu-
tives may stand above sectarian preoccupations in their host-country can be the pre-
cise reason for appointments in such organisations. Further research should therefore
include longitudinal case studies that can elucidate the progression through FELO
workplace categories over time.
In addition, there are combinations from the organisational and individual typol-
ogies that are more frequent than others in the Malaysian study. These frequencies
may be different in other economies, such as leading industrialised countries. Further,
the cross-sectional nature of this study must be emphasised. The FELO sample of this
study has a clear survivorship bias in that longitudinal data collected in any given
country context may show a significantly larger cohort of current and previous Type 1
FELOs. In addition, the assessments of FELOs made by local research participants
are likely a product of this survivorship bias towards Type 3 and 4 FELOs who in
Zeitschrift für Personalforschung, 27(3), 167-194 DOI 10.1688/1862-0000_ZfP_2013_03_Arp 191
German Journal of Research in Human Resource Management, 27(3)
longitudinal studies are probably a much smaller cohort. The FELO phenomenon
remains rare, after all, and longitudinal studies should be conducted, as mentioned
above. Further research should also determine, probably through quantitative meth-
ods, the most frequent combinations in various countries — that is, through linkage
of the above typologies, what types of FELOs are most commonly appointed by what
type of local organisations and which of these combinations last.
A further limitation of the present study could be a lack of generalisability. Are
the findings very specific to developing countries? Could FELOs and the types of or-
ganisations that appoint them be different in leading economies? Preliminary compar-
ative work conducted on a small number of cases in Australia, China, Germany, Japan,
Korea, Singapore and Vietnam suggests multiple similarities. For example, the reasons
for Australian, German and Korean airline, engineering, finance, electronics and tele-
communications companies to appoint foreign executives appear to be quite similar to
the reasons for Malaysian, Chinese and Vietnamese companies to do the same. The
reasons why some of these positions remain unfilled with local executives also appear
to be similar, and the types of FELOs appointed appear to fall neatly into the typolo-
gies presented above. However, until systematic and rigorous research has been con-
ducted in other countries, conclusions about generalisability (or a lack thereof) may be
premature.
The purpose of this paper has been to advance clarification of the FELO phe-
nomenon through typologies of the individuals and organisations involved. Despite
frequently controversial media coverage, foreign executives and local organisations
that appoint them remain under researched. Attention is drawn to findings that illus-
trate differences between FELO and other expatriate typologies. In detailing what
types of foreign executives are appointed by local organisations and what types of or-
ganisations appoint them, this article contributes to the understanding of this remark-
able cross-cultural management phenomenon.
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