International Journal of Intercultural Relations 35 (2011) 49–60

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Cultural distance and expatriate job satisfaction
Fabian Jintae Froese a,∗ , Vesa Peltokorpi b,1 a b

Korea University Business School, Anam-dong, Seongbuk-Gu, Seoul, 136-701, Republic of Korea HEC School of Management, Paris, 78351 Jouy en Josas, France

a r t i c l e

i n f o

a b s t r a c t
Despite its strong impact in domestic settings on job performance, organizational commitment, stress, and turnover intentions, job satisfaction has received little attention in the literature on expatriates. This paper analyzes the predictors of job satisfaction that may arise in an expatriate context. Drawing on the cultural distance perspective, we propose that the national cultural distance, supervisor’s nationality, host-country language proficiency, expatriate type, and company nationality are important determinants of expatriate job satisfaction. Survey results from 148 expatriates in Japan demonstrate that national cultural distance, supervisor’s nationality, and expatriate type have a statistically significant influence on expatriate job satisfaction. Theoretical and practical implications are provided. © 2010 Elsevier Ltd. All rights reserved.

Article history: Accepted 25 October 2010 Keywords: Expatriates Job satisfaction Cultural distance Japan

In an increasingly globalized world, an important component of international human resource management in multinational companies (MNCs) is the expatriation of employees to foreign countries. In line with this global trend, a stream of academic literature has evolved since the 1980s (Mendenhall & Oddou, 1985), making research on expatriates an important area of research in the international business (IB) domain. A bulk of this research has focused on three cross-cultural adjustment facets (i.e., general-, interaction-, and work adjustment), showing that well-adjusted expatriates are both effective and have low turnover intentions (see Bhaskar-Shrinivas, Harrison, Shaffer, & Luk, 2005; Black, Mendenhall & Oddou, 1991; Hechanova, Beehr, & Christiansen, 2003 for literature reviews). Unfortunately, job satisfaction has received little attention in research on expatriates despite its strong, consistent influence in “domestic” settings on job performance, organizational commitment, stress, and turnover intentions (McCaughey & Bruning, 2005). The nascent research in international settings indicates that several task-related factors extrapolated from domestic research also predict expatriate job satisfaction (Birdseye & Hill, 1995; Black & Gregersen, 1990; Li, 1996; Li & Tse, 1998; Naumann, 1993a; Shaffer & Harrison, 1998). However, only a few researchers have taken into account the full complexity of expatriate assignments and examined factors that exist only in international settings, such as regional location (Miller, 1975), cross-cultural training (Naumann, 1993a), and boundary spanning (Au & Fukuda, 2002). These studies show that the phenomenon of expatriate job satisfaction extends beyond task-related factors. The present study contributes to research on expatriates in three ways. First, we test factors that affect job satisfaction and that are emerging in the international expatriate context. Second, we draw on the cultural distance perspective to show that intercultural interactions are important determinants of job satisfaction. We measure the cultural distance by multiple dimensions, including the national cultural distance, supervisor’s nationality, host-country language proficiency, expatriate

∗ Corresponding author. Tel.: +82 2 3290 2802; fax: +82 2 922 7220. E-mail addresses: froese@korea.ac.kr (F.J. Froese), peltokorpi@hec.fr (V. Peltokorpi). 1 Tel.: +33 143 314 905. 0147-1767/$ – see front matter © 2010 Elsevier Ltd. All rights reserved. doi:10.1016/j.ijintrel.2010.10.002

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type, and company nationality. Third, reflecting changes in MNCs’ staffing practices (Collings, Scullion, & Morley, 2007), we distinguish organizational expatriates (OEs, i.e. employees that are sent by their companies to foreign countries – Edström & Galbraith, 1977) from self-initiated expatriates (SIEs, i.e. employees who work abroad on their own initiative – Suutari & Brewster, 2000). In line with the cultural distance perspective, we examine whether company nationality and employment type have an impact on expatriate job satisfaction. In line with the above objectives, the rest of this study is organized as follows. The first section reviews the literature on job satisfaction and presents the cultural distance perspective. The second section presents the study hypotheses. The sample, control variables, measures, and statistical procedures are presented in the third section. The subsequent sections discuss the study’s findings, theoretical and practical limitations, and suggestions for future research. 1. Literature review 1.1. Job satisfaction Job satisfaction, “a positive emotional state resulting from the appraisal of one’s job or job experiences” (Locke, 1976, p. 1300), places an emphasis on the task environment where an employee performs his or her duties and the attitudes that are formed through interactions within this environment. From the economic perspective, job satisfaction is a unitary concept that can be explained in monetary terms (Bonache, 2005). Since people are assumed to like rewards but dislike effort, a better salary for an identical level of effort will determine the decision to quit and a higher level of satisfaction. From the psychological perspective, job satisfaction is often described to include task environment, compensation, communication, and social relations at the work place (e.g., Spector, 1997). While having several common predictors (cf. Bhaskar-Shrinivas et al., 2005), job satisfaction is a broader concept than the related cross-cultural facet – work adjustment – that measures only the degree of comfort and adaptation regarding different performance standards and expectations and work values in a new environment (Black, 1988). In domestic settings, employee personality and job-, task- and, organizational characteristics are found to determine job satisfaction, which, in turn, acts as an antecedent of internal motivation, absenteeism, anxiety, stress, organizational citizenship and commitment, turnover, and individual job performance (e.g., Hellman, 1997). Consistent with research in domestic settings, expatriate job satisfaction is linked with lower turnover tendency (Birdseye & Hill, 1995) and withdrawal cognition (Shaffer & Harrison, 1998) and higher motivation to perform and finish expatriate assignments (Downes, Thomas, & Singley, 2002). The extrapolation of various job-, task-, and organizational factors from domestic settings is also found to predict expatriate job satisfaction. In a study of expatriates in US MNCs, job-, task(autonomy, skill variety, role ambiguity, task identity, and significance) and organizational factors (participation and career advancement) predicted both intrinsic and extrinsic job satisfaction (Naumann, 1993a). Further, two studies of expatriate hotel managers in the Asia-Pacific showed that role clarity, participation in decision making, and skill variety were positively related with job satisfaction (Li, 1996; Li & Tse, 1998). In addition, a study of US expatriates in Japan indicated that work-role clarity and surpassed expectations about job discretion (i.e., the ability to do the job as one wishes) had a positive impact on job satisfaction (Black & Gregersen, 1990). Taken together, the above studies show several common denominators of job satisfaction in domestic and expatriate settings. However, conceptual discussions and research findings suggest that the complexity of expatriate assignments necessitates the consideration of additional factors that arise in international settings. For example, expatriate job satisfaction has been described as the successful adjustment to overseas job requirements and the formation of relationships with the host country’s workforce and customers (Black et al., 1991; Hechanova et al., 2003; Shaffer & Harrison, 1998). Research supports these perspectives because boundary-spanning activities are found to have a positive impact on job satisfaction (Au & Fukuda, 2002). Studies further show that prior international work-experience and cross-cultural training have a positive influence on expatriate job satisfaction (Miller, 1975; Naumann, 1993a). The expatriates’ location should also be taken into account because experienced US expatriates have been found to exhibit higher job satisfaction in Western Europe than in Latin America (Miller, 1975). In order to create a more comprehensive understanding of factors that affect expatriate job satisfaction, we draw on the cultural distance perspective. 1.2. The cultural distance perspective Cultural distance has evolved from the psychic distance concept (Johanson & Vahlne, 1977), and describes differences between any two countries with respect to the level of development, education, business and everyday language, cultural values, and the extent of connections between these countries. Psychic distance and cultural distance have often been used synonymously in the IB literature (Shenkar, Luo, & Yeheskel, 2008). However, these constructs can be distinguished, in that cultural distance measures socio-cultural differences between two countries, whereas psychic distance refers to managerial perceptions (Evans & Mavondo, 2002). Kogut and Singh (1988) simplified the multidimensional cultural distance construct into a single index, which is an aggregate measure of Hofstede’s (1980) national culture dimensions of power distance, uncertainty avoidance, individuality, and masculinity. The index has been used at the company- and country-levels to test the influence of culture on international trade patterns, market entry, and joint-venture performance. Notwithstanding the popularity of this measure, research has produced mixed results due to conceptual and measurement-related weaknesses

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National cultural distance Supervisor’s nationality Host country language proficiency Expatriate type

Hypothesis 1

Hypothesis 2

Hypothesis 3

Job Satisfaction

Hypothesis 4

Company nationality

Hypothesis 5
Fig. 1. Hypothesized relationships.

of the cultural distance index (Shenkar, 2001).2 Thus, Shenkar (2001) has advocated the inclusion of various related factors, such as language, to better capture socio-cultural differences. While cultural distance has received considerable attention in the literature on IB-strategy and marketing, systematic research on multiple facets of cultural distance is still scarce in the literature on expatriates. It should be noted, however, that scholars have referred to cultural distance as cultural novelty (Black et al., 1991) and cultural toughness (Mendenhall & Oddou, 1985), and researchers have examined how the differences between the host and home countries directly influence cross-cultural adjustment of the individual expatriate (e.g., Selmer, 2006; Selmer & Lauring, 2009; Waxin, 2004). Instead of following this research by measuring the differences between the host and home countries largely through (perceived) national cultural differences, the present study decomposes cultural distance to various facets and focuses on intercultural interactions. This focus on the intercultural interaction-job satisfaction linkage is assumed to be beneficial because expatriates’ failure has been noted to owe more to the inability of expatriates to adjust to host-country cultures and interact with HCNs than to task-related issues (Paik & Sohn, 2004). Cultural distance can affect expatriate job satisfaction due to the difficulties that expatriates face in gaining insights on social cues and creating a shared understanding with HCNs. Cultural differences that act as markers of social identity also make it more challenging for expatriates to develop social ties with HCNs and establish a position amidst information and influence networks in foreign subsidiaries (Toh & Denisi, 2007). In summary, we argue that the influence of cultural distance on expatriate job satisfaction cannot be fully captured by a single indicator due to the complex nature of national cultures. We thus use several factors to measure cultural distance. Specifically, we decompose cultural distance into national culture distance, host-country language proficiency, supervisor nationality, expatriate type (OE vs. SIE), and company nationality, and treat these components as predictors of expatriate job satisfaction (see Fig. 1). Drawing on Shenkar (2001), we argue that the above indicators act as “closing distance mechanisms” in the expatriate context and that lower cultural distance is positively related with expatriate job satisfaction. We discuss each of these factors in the following section. 2. Hypotheses 2.1. National culture distance Different expectations of work relations reduce expatriate job satisfaction in foreign countries (Maurer & Li, 2006; Paik & Sohn, 2004). Because these different expectations are often country or region specific, Ward, Bochner, and Furnham (2001) suggested that more attention should be paid to the cultural characteristics of the host country. The present study focuses on Japan because of the country’s cultural distance and the challenge it poses to Western expatriates due to differences in cultural values and communication patterns, the need for Japanese-language proficiency, and the difficulty in social integration (Black, 1988; Napier & Taylor, 1995; Peltokorpi, 2008).

2 The conceptual problems are the illusions of symmetry, stability, linearity, causality, and discordance. The methodological problems are the assumptions of corporate and spatial homogeneity, and equivalence (Shenkar, 2001).

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In addition to the limited number of foreigners in culturally, racially, and linguistically homogeneous Japan,3 the cultural values of verticality and collectivism are likely to influence expatriate job satisfaction. Verticality refers to the hierarchical relationships that are determined, for example, by age and tenure (Nakane, 1972). In Japan, verticality is manifest in strict behavioral norms that are founded on the gender-based differentiation of occupations, close reliance on immediate superiors, and long vertical chains of superior-subordinate relationships (Peltokorpi, 2008). Collectivism in Japan is displayed in grouporiented behavior and conformity to group norms (Nakane, 1972). There is a tendency among the Japanese to show the ‘right’ attitudes, behavioral patterns, and values in order to fit into the group. These group identities support a distinction between in-group members, who receive preferential treatment, and out-group members, who are treated indifferently or are even discriminated against (Napier & Taylor, 1995). Due to the above cultural differences, Western expatriates may discover that behaviors that are acceptable in their home countries are not considered appropriate in Japan. For example, people in Western societies perceive that work relations are determined largely by job descriptions and task-related responsibilities (Maurer & Li, 2006). Since these boundaries are less clear in Japan, Western expatriates need to invest time and resources in forming and maintaining social relationships with HCNs to be regarded as effective superiors or subordinates. In the Japanese high context culture, personal relationships are valued higher than formal contracts, communication styles are indirect, and objectives, tasks, regulations, and performance evaluations are ambiguous (Hofstede, 1980; Lincoln & Kalleberg, 1990). Such differences are likely to increase misunderstandings and complicate work relationships, and thereby lower expatriate job satisfaction. Hypothesis 1. National culture distance has a negative impact on expatriate job satisfaction.

2.2. Supervisor’s nationality Supervisors are important sources of information and social support in the host country (Black et al., 1991; Toh & Denisi, 2007). However, cultural differences influence the extent of support and frequency of interaction in superior-subordinate dyads (Caliguiri & Day, 2000). The leader–member exchange (LMX) theory maintains that, due to limitations on time and energy, leaders develop and maintain close relationships with only a few subordinates and share their resources to help these employees perform (Danserau, Graen, & Haga, 1975). Thus, the leader–subordinate relations vary in quality, ranging from in-group to out-group. In-group exchange is characterized by high levels of support, information and communication, informal influence, and trust. In contrast, out-group exchange is characterized by mistrust, lack of support and attention, and formal supervision. Foreign supervisors are more likely to accept and support their fellow foreign subordinates and treat them as in-group members than host-country supervisors. While high-quality LMX with HCN supervisors can enhance expatriates’ job satisfaction, interactions and social support in culturally diverse leader–subordinate dyads are often infrequent due to differences in cultural values (Boyd & Taylor, 1998). For example, Western expatriates can fail to understand indirect performance feedback from their Japanese supervisors (Kurata, 1990). These expatriates may not further understand the importance of developing trustful relationships with their HCN supervisors through on/off-work interactions (Maurer & Li, 2006). For example, while employees in the US get together off the job only a few times each year and seldom socialize with their supervisors, social gatherings are common for the Japanese, reflecting the Japanese value for forming and maintaining strong social bonds at the workplace (Lincoln & Kalleberg, 1990). These cultural differences in work-related values can increase the negative impressions and decrease social interactions in culturally diverse leader–subordinate dyads (Boyd & Taylor, 1998). Hypothesis 2. Expatriates who work for foreign supervisors show higher job satisfaction than those who work for hostcountry national supervisors. 2.3. Host-country language proficiency Proficiency in the host-country language allows expatriates to form social networks, solve workplace problems, and acquire skills that enhance their job satisfaction (Naumann, 1993b). In contrast, expatriates with insufficient proficiency in the host-country language are more likely to be categorized as out-group members (Peltokorpi, 2007; Toh & Denisi, 2007). For example, a young Japanese-speaking male engineer is likely to identify with other Japanese speakers regardless of their age, profession, or gender than with a young, English-speaking, Australian male engineer. Alternatively, expatriates can be excluded from communication networks due to the natural tendency of people to interact in their native languages. In either case, a lack of host-country language skills isolates expatriates at the workplace and leads to lower-quality relationships (Froese, 2010), which is linked with low job satisfaction (Stepina, Perrewe, & Hassell, 1991). Expatriates face language barriers in communicating with the Japanese because expatriates are rarely able to speak Japanese and most Japanese do not have sufficient proficiency in English. For example, in terms of results on the Test of English as a Foreign Language, Japan was ranked 137th out of 147 nations in 2004 (TOEFL, 2005). Although English-language

3 In 2004, registered foreigners accounted for 1.97 million of Japan’s total population of 127.4 million (Tezuka, 2005). Most of these foreigners were special permanent residents (465,619), permanent residents (312,964), and long-term residents mainly from Chinese and Korean families that have lived in Japan for several generations. Only 145,570 foreigners were living in Japan with a work-permit.

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proficiency is slowly rising in Japan, the use of English in conversations with the Japanese can be problematic because second-language speakers tend to contribute fewer ideas, play less active roles in communicative interactions, and avoid direct interactions due to “face” concerns (Ting-Toomey, 1988). Different cultural and sociolinguistic orientations can further complicate communication with the Japanese in English (Peltokorpi, 2007). If expatriates have sufficient proficiency in Japanese, they are able to overcome some of these cultural obstacles. Hypothesis 3. Expatriates who have greater proficiency in the host-country language show higher job satisfaction.

2.4. Expatriate type Expatriates are presented in the literature on adjustment as a homogeneous population. Despite notable differences between SIEs and OEs, the two types are seldom distinguished. An SIE is defined as any person who is hired on a contractual basis and not transferred overseas by the parent organization (Lee, 2005). In contrast, OEs are sent by MNCs to a related unit in a foreign country to accomplish a specific job or organization-related goal, usually within a pre-designated time-period that ranges from six months to five years (Edström & Galbraith, 1977). SIEs have been distinguished from OEs along several work-related dimensions (Inkson, Arthur, Pringle, & Barry, 1997). First, instead of being assigned to work in a foreign country, SIEs themselves make the decision to move and work abroad. Second, SIEs perceive their overseas experience as a means of self-development or as part of some other personal agenda and thus, do not follow the often structured career path of OEs. In contrast, OEs are motivated to go abroad due to the related financial benefits, increased opportunities for career progression, and/or personal interests in international experience. Third, SIEs fund their own relocation, while OEs receive often generous relocation packages. Several differences between the employment patterns of OEs and SIEs can increase cultural distance and thus, affect expatriate job satisfaction. First, while OEs are evaluated by and feel responsible to the headquarters, SIEs’ career paths are decided in local units. As a consequence, OEs can identify more with people at headquarters, while SIEs need to develop well-functioning work relationships with HCNs. However, the formation of high-quality intercultural relationships is often problematic because HCNs possess values, perceptions, and attributes that differ from those of SIEs (Toh & Denisi, 2007). Overcoming these cultural differences can pose serious challenges for SIEs. In contrast, due to their task roles and temporary assignments, OEs are less likely to depend on social integration and to identify with local units. Second, to alleviate the difficulties of living in foreign countries, MNCs provide OEs with support and the provision of relocation expenses, housing, etc. OEs who receive financial support for maintaining their standards of living are found to be more adjusted to working in foreign countries (Florkowski & Fogel, 1999). In contrast, SIEs who sign a local contract do not receive such benefits. Due to these differences, OEs are less likely to be affected by the cultural distance in host countries and thus, likely to experience more job satisfaction than SIEs. Hypothesis 4. OEs experience higher job satisfaction than SIEs.

2.5. Company nationality SIEs work at either foreign-owned or host-country companies. The company nationality can affect expatriate job satisfaction for two reasons. First, due to a low number of foreign workers, Japanese companies may either not consider cultural diversity or be inexperienced in managing it, with the consequence that SIEs need to learn and accommodate themselves to local work-values. While expatriates are often also minorities in foreign-owned companies, they are more easily integrated into their work environment in such companies. Instead of seeking generalists who are similar to most HCNs, Japanese companies hire foreigners as specialists who perform their tasks on an individual basis under a predetermined contract (Honda, Vonderau, Fukuda, & Elmendorf, 1992; Kurata, 1990). Differences in performance appraisals and compensation are linked with job satisfaction because expatriates in foreign-owned companies are more often granted performance- and individual-based incentives. Individual appraisals are not normally used in Japanese companies (Gregersen, Hite, & Black, 1996). Second, the senior–junior system can give rise to culture-based segregation because often, expatriates who enter Japanese companies with prior work experience and work as specialists do not fit into their respective hierarchical structures (Kurata, 1990). Although initial social interactions with Japanese employees can be positive for expatriates, research has shown that such friendliness does not develop into friendship and that the Japanese tend to have superficial social relations with foreigners (Hsiao-Yuin, 1995). Expatriates who work in Japanese companies are therefore likely to receive less organizational support and acceptance of behavioral differences than expatriates in foreign-owned companies. A lack of support can make it more difficult for the expatriate to successfully perform his or her job. These cultural differences between foreign-owned and domestic companies suggest that expatriates who work for foreign-owned companies show higher job satisfaction. Hypothesis 5. Expatriates who work for foreign companies show higher job satisfaction than those who work for hostcountry companies.

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3. Methods 3.1. Sample Data were collected from expatriates in the Tokyo area. As in previous studies on expatriates (e.g., Black, 1988), we contacted expatriates in the local context with the support of local agencies and local contact persons, e.g., the HR council of the European Business Council and the president of a European alumni association. Because the data were collected through intermediaries, we are not able to report the exact response rate. However, the intermediaries explained that most contacted expatriates were interested in participating in the present study. We received usable questionnaires from 148 expatriates. On average, the expatriates were 34.1 years old (SD = 8.2) and had worked for 52 months (SD = 57) in Japan and for 22 months in another foreign country (SD = 39). Respondents were well-educated with 55.6% having a master’s or higher degree, 39.6% a bachelor’s degree, and the rest (4.8%) having attended either college for two years or high school. Most expatriates in the sample were male (68%) and not married (70%). 36% of them held managerial positions. In total, the respondents represented 23 different nationalities. Reflecting the importance of US and European companies in Japan (Japan Institute of Labour, 2002), most of the expatriates originated from the US (20.1%), Germany (16.0%), the UK (13.2%), and France (12.5%). Most respondents had some Japanese-language proficiency (mean value of 2.68 on a 4-point scale), and 51% worked under a Japanese supervisor. Around two-thirds of the respondents (67%) who had a local contract were classified as SIEs. 3.2. Measures 3.2.1. Dependent variable Similar to a related study on expatriates (Van Oudenhoven, Mol, & Van der Zee, 2003), expatriate job satisfaction, which was measured by the Job Satisfaction Survey (Spector, 1997), was used as an aggregate measure. The version of the survey used in the present study consists of 16 items, and measures the nature of work, supervision, coworkers, and communication by a five-point Likert scale that ranges from “disagree very much” [1] to “agree very much” [5] (˛ = 0.88). A sample item is “My work is enjoyable.” 3.2.2. Independent variables National culture distance was measured by an aggregate index that was similar to that of Kogut and Singh (1988). This index has been used in previous expatriate studies (Jun & Gentry, 2005; Peltokorpi & Froese, 2009). However, instead of using Hofstede’s scores that were based on data collected in the 1970s (Hofstede, 1980), we computed a cultural distance index on the basis of a recent survey conducted by House, Hanges, Javidan, Dorfman, and Gupta (2004) that incorporated the suggestions of Shenkar (2001) and McSweeney (2002). Supervisor nationality was dummy-coded (0 = Japanese, 1 = Foreigner). Japanese-language proficiency was measured by a four-point scale (1 = none, 2 = basic, 3 = conversational, and 4 = fluent). Company nationality was dummy-coded (0 = Japanese company, 1 = foreign-owned company). Expatriate type was dummycoded (0 = SIE, 1 = OE). 3.2.3. Control variables Consistent with the theoretical assumptions and prior research, six control variables were used to rule out possible alternative explanations for the hypotheses. Age, measured in years, was included because it has been found to affect job satisfaction. For instance, a study showed that due to an attrition effect, older expatriates are more satisfied with their jobs in foreign countries (Van Oudenhoven et al., 2003). Scholars are split into two groups over their views on gender and its impact on expatriate work adjustment and job satisfaction. On the one hand, cultural norms regarding working with women create a challenge for female expatriates in societies with masculine values (Caligiuri & Tung, 1999). On the other hand, women are supposed to be better suited to working in foreign countries due to their interpersonal skills and visibility (Napier & Taylor, 1995). Gender was dummy-coded (0 = female, 1 = male). Job level can influence job satisfaction for two reasons (Stahl & Caligiuri, 2005). First, expatriates at higher levels are able to cope with work-related challenges with a wider variety of resources and thus be more satisfied with their jobs than lower-level managers. Second, HCN subordinates in certain countries, such as Japan, can acknowledge and respect the senior expatriates’ power and be more willing to help these senior managers. Job level was dummy-coded with 0 for staff and 1 for managers. Cross-cultural adjustment to work is a time-consuming process and expatriates need time to become accustomed to new work environments in foreign countries. While this time-adjustment linkage appears evident, empirical evidence is inconsistent because the time that is spent in the host-country has had a positive influence on work adjustment in some studies and no significant effect in others (Bhaskar-Shrinivas et al., 2005). The work experience in Japan and the work experience in other foreign countries were measured in months. Work experience in other foreign countries facilitates cross-cultural adjustment and job satisfaction because it fosters more accurate estimates of future stressors in subsequent expatriate assignments (Black et al., 1991). While seasoned expatriates can be expected to anticipate work-related problems and be more satisfied with their jobs, empirical evi-

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dence has been inconsistent with positive effects (Parker & McEvoy, 1993) and negative effects (Nicholson & Imaizumi, 1993). Expatriate personality has been linked to job satisfaction. Scholars have argued that expatriate job satisfaction is influenced by stable- (Naumann, 1993a) and emotion-related personality traits (Locke, 1976). An expatriate personality trait – flexibility – was also found to be positively related with job satisfaction (Van Oudenhoven et al., 2003). We measured expatriate personality-traits through a short version of the Multicultural Personality Questionnaire (MPQ) (ranging from “totally not applicable” [1] to “completely applicable” [5]) (Van der Zee & Van Oudenhoven, 2000), which comprised 20 items with four Likert-scale items each for the dimensions of cultural empathy, open-mindedness, social initiative, emotional stability, and flexibility. Sample items for the dimensions are “tries to understand other people’s behavior” (cultural empathy), “is interested in other cultures” (open-mindedness), “makes contacts easily” (social initiative), “radiates calm” (emotional stability), and “changes easily from one activity to another” (flexibility). Based on the results of the confirmatory factor analysis and internal reliability analysis, all flexibility items and one item of the open-mindedness dimension were discarded. The final four-factor structure achieved a good model fit ( 2 = 123.30, d.f. = 84, p < 0.01, GFI = 0.91, CFI = 0.94, RMSEA = 0.08) and outperformed a single-factor structure (diff 2 = 134.19, diff d.f. = 6, p < 0.001). The internal reliabilities (Cronbach’s ˛) of the four scales ranged from 0.70 to 0.75. 3.3. Data analyses As a preliminary test, we conducted a correlation analysis. The means, standard deviations, and inter-correlations among the variables are shown in Table 1. Some correlations are worth mentioning. Correlations showing that more expatriates worked under foreign supervisors in foreign-owned companies (r = 0.40; p < 0.001) and that expatriates at local companies were more proficient in Japanese (r = −0.31; p < 0.001) reflect recruitment and staffing policies in foreign-owned and local companies. Given that all inter-correlations were below 0.8, that the lowest tolerance value was 0.39, and that no VIF (variance inflation factor) value exceeded 2.56, there were no concerns that multicollinearity effects distorted the results of the statistical analysis (cf. Kennedy, 1985). The data were analyzed with SPSS statistical software package. To test our hypotheses we conducted hierarchical linear regression analysis. In Step 1, we entered the control variables and in Step 2, we entered the control and independent variables (national culture distance, foreign supervisor, host-country language skills, OE vs. SIE, company nationality). 4. Results Table 2 depicts the results of the regression analysis. Model 1 which includes only the control variables explains 24% of the variance. Cultural empathy (ˇ = 0.34, p < 0.001) and age (ˇ = 0.27, p < 0.05) were significantly associated with job satisfaction, implying that cultural empathic and older expatriates were more satisfied with their jobs. The entry of the independent variables increased the R2 by 0.12 (p < 0.001), which supported the cultural distance assumptions. National culture distance (ˇ = −0.23, p < 0.05), supervisor nationality (ˇ = 0.26, p < 0.01), and expatriate type (ˇ = 0.20, p < 0.05) were associated with expatriate job satisfaction in a statistically significant manner and in the expected direction, confirming Hypotheses 1, 2, and 4. Company nationality and host-country language proficiency had no effect on job satisfaction, providing no support for Hypotheses 3 and 5. The same findings were obtained when the independent variables (in addition to the control variables) were entered separately, one after the other. 5. Discussion This study applied the cultural distance perspective to better understand expatriate job satisfaction. As recommended by Shenkar (2001), we extended the cultural perspective by including additional variables, which go beyond national differences in culture but which have not yet been empirically tested, to determine the cultural distance. In the context of expatriate job satisfaction, not only national culture distance but also homogeneity in terms of supervisor nationality and expatriate type (OEs) were found to reduce cultural distance and positively influence expatriate job satisfaction. As hypothesized, national culture distance had a negative impact on expatriate job satisfaction. In principle, the extent of cultural differences determines the quality and the degree of difficulty that is experienced by people who are engaged in intercultural interactions (Ward et al., 2001). These culture-based differences in work-related values and behavior are likely to increase anxiety and stress among expatriates and decrease their job satisfaction. For example, people in individualistic countries have been indoctrinated to apprehend and experience the world as distinctive, bounded, and separate individuals, whereas in Japan, people have been indoctrinated to perceive the self as a relational part of the greater harmonious whole (Hofstede, 1980). Japanese people can thus become annoyed with the self-oriented and assertive behavior that is exhibited by expatriates from countries with individualistic value orientations, while these expatriates can become annoyed with the endless formalities and tangential response patterns that are exhibited by the Japanese people. The nationality of the expatriate’s supervisor was found to affect job satisfaction. That is, expatriates who worked for foreign supervisors showed higher job satisfaction than those who worked for host-country supervisors. The finding can be due to several factors. First, supervisors are sources of organizational information that expatriates need to learn for becoming effective members of the organization in the host country (Toh & Denisi, 2007). In principle, the more that expatriates interact

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Table 1 Matrix of inter-correlations between the variables. Mean 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Job satisfaction Age Gender Job level Japan work experience Abroad work experience Open-mindedness Social initiative Cultural empathy Emotional stability National culture distance Company nationality Supervisor nationality Expatriate type Japanese proficiency 3.75 34.10 0.71 0.37 52.67 22.38 4.17 3.88 3.95 3.63 4.42 0.57 0.49 0.33 2.68 S.D. 0.64 8.20 0.46 0.48 57.33 39.36 0.56 0.63 0.56 0.66 0.82 0.50 0.50 0.47 0.93 1 0.22 0.01 0.05 0.10 0.01 0.26 0.21 0.40 0.25 −0.17 0.12 0.26 0.20 −0.09 2 3 4 5 6 7 8 9 10 11 12 13 14

0.15 0.26 0.60 0.43 0.11 0.01 0.12 0.15 0.17 0.06 0.05 0.03 −0.05

0.27 0.11 0.14 −0.01 0.12 0.01 0.32 0.22 0.13 0.04 0.05 −0.13

0.15 0.19 0.12 0.10 0.02 0.19 −0.12 0.33 0.29 0.24 −0.05

0.11 0.01 −0.12 0.04 −0.04 0.15 −0.12 0.01 −0.23 0.25

0.14 0.06 0.08 0.13 −0.04 0.19 0.15 0.21 −0.16

0.40 0.57 0.33 0.03 0.02 0.07 −0.01 −0.03

0.43 0.53 −0.13 0.13 0.01 0.13 −0.13

0.31 0.02 0.11 0.14 0.04 −0.06

0.15 −0.21 −0.05 −0.10 −0.24

0.31 0.07 0.14 0.03

0.40 0.19 −0.09

0.14 −0.09

−0.31

Note: Correlations of 0.17 and higher are significant at the p < 0.05 level.

F.J. Froese, V. Peltokorpi / International Journal of Intercultural Relations 35 (2011) 49–60 Table 2 Multiple hierarchical regression results of job satisfaction. Model 1 Step 1 Age Gender Job level Japan experience Abroad experience Open-mindedness Social initiative Cultural empathy Emotional stability Step 2 National culture distance Company nationality Supervisor nationality Expatriate type Language proficiency R2 Adjusted R2 F 0.27* −0.06 0.02 −0.06 −0.09 −0.01 0.01 0.34*** 0.11 Model 2 0.22* −0.08 −0.15 0.07 −0.15 0.03 0.04 0.29** 0.15 −0.23* −0.08 0.26** 0.20* −0.06 0.24 0.17 3.22*** 0.36 0.27 3.90***

57

Note: n = 148. d.f. = 147. Values are standardized coefficients. *