The cyclical effect of expatriate satisfaction on organizational performance: the role of firm international orientation

Abstract

This study explores the role of expatriate satisfaction in organizational performance. It also posits that international transfer of knowledge and corporate learning are determinants in the overall satisfaction of expatriate managers. Moreover, as organizations gain international experience, their expatriate managers contribute to the global learning of the firm. This corporate learning provides the tools (e.g. foreign market experience and know‐how) for future expatriate managers and increases the likelihood of positive overseas experiences. Results from 132 expatriates of Fortune 500 firms indicate that satisfaction is significantly related to the performance of the organization as a whole and, further, that this relationship will vary depending on the international orientation of the organization.