Solidbasics International Expats In The Orient Vrije University Amsterdam V1
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EXPATRIATE LIVING LIVING LIKE A PEARL IN THE ORIENT The Research has done by the “VrijeUniversity Amsterdam”, The Netherlands with Solidbasics International
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A study preformed by the Faculty of Economics, Vrij University Amsterdam, commissioned by Solidbasics International. Into the living of Expats. The Study showed that many problems Expats are universal, but also revealed that Employers have difficulty keeping there Expats and their knowledge.
Transcript of Solidbasics International Expats In The Orient Vrije University Amsterdam V1
EXPATRIATE LIVINGLIVING LIKE A PEARL IN THE ORIENT
The Research has done by the “VrijeUniversity Amsterdam”, The Netherlands with Solidbasics International
Different Expatriate Processes
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Distinctions on how to arrange:
• Internal: HRM department or an expat coordinator
• External: specialized relocation company
• Others: Arranged by expatriates themselves
Different Expatriate Processes
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Distinction between the expatriate program in MNC and SME:
1. Cheng & Lin (2009)
MNC SME
Reasons for expat 1
Expending business overseas
Conferring organizational recognition1
2Controlling oversea operations
Expanding company1
3 Enlarging market share and developing leader skills
Learning skills
Expatriate process
Integrate and standardize
No system of expatriate selection No integrated strategies and rules
Expatriate in Malaysia
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Expat country for beginners ------ Malaysia
Merit(s) Drawback(s)
Friendly and international atmosphere
Expensive commodity prices
English language environment
Stable and mature economy
General adaption time: around three months
Expatriate in Indonesia
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Difficult to adapt, difficult to repatriate ------ Indonesia
Merit(s) Drawback(s)
Low commodity prices Dangerous road conditions
Amazing tourist attractions Inconvenient language environment
Great variety of food and fresh fruits
Low level of average individual sanitation
Serious water pollution
General adaption time: around six months
Comparison between Indonesia and Malaysia
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Malaysia Indonesia
Easy to adapt to the living environment
Difficult to adapt to the living environment
Effortless to move back to expatriate’s own country( no serious culture shock)
Hard to move back to expatriate’s own country( If adaption has been achieved)
Influential Factors for Higher Failure Rates of Expatriation
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Insufficient condition preparation in:
• Accommodation• Education• Healthcare • Security and safety • Cultural difference
Business culture decides success or failure Cultural shock in daily life for whole family
• Language
Influential Factors for Higher Failure Rates of Expatriation
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Inadequate mental preparation:
• Unrealistic image before expatriation
• Family privacy Infringement
Influential Factors for Higher Failure Rates of Expatriation
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
• Graph 1: Main factors of expatriation failure rate
Repatriation Problems
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Longer Sojourn:• Expatriates find new jobs in foreign country
Repatriation problems:• Materials application and preparation: • More difficult than initial move to abroad• Readaptation to expatriate’s own countries
Job-hopping:• About two-thirds of expatriates leave their
company after return
Results of Failing Repatriation
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Leaving the company after return:Major loss of investment for company
• Average expatriate cost: 1.5 times usual employee cost
• Additional skill training Costs: Discourages other expatriates’ development
Conclusion of the expatriate situation
Different Processes
- Arrangement distinction
- MNC & SME
Expatriate in Malaysia
Expatriate in Indonesia
Comparison
Influential factors
Repatriation problems
Result
Conclusion
Most organizations invest a lot in their international adventures and expatriates, but they do not manage these investments well. Mostly, they let exist unsatisfactorily but solvable situations.
The result is that expatriation becomes unnecessary expensive, so that investments in expats are underutilized. About 70% of the assignments for expats fail, they have not achieved their intended targets or are not able to achieve intended returns on investments.
This underutilization can be prevented, and an increase in returns of investments can be easily achieved.
Contact details:Location:VU University Amsterdam De Boelelaan 1105 1081 HV Amsterdam The Netherlands
Phone:+31 20 59 89898
Fax: +31 20 59 89899
E-mail General and study information:
Contact details:Location:Solidbasics InternationalNeutronstraat 2B9743AM GroningenThe Netherlands
Mailing Address:Solidbasics InternationalNeutronstraat 2B9743AM GroningenThe NetherlandsPhone:0031-(0)50-2103695
Fax:0031 (0)50 210 3501
For general inquiries, contact Solidbasics International Public Affairs:[email protected]
The Dutch Chambers of commerce (KvK):NL-02096460
