Fostering organizational commitment can be more complex in multinational corporations,
for two primary reasons. First, multinational corporations provide two distinct
foci of commitment. Employees can be committed to the local subsidiary in which
they work, or they can be committed to the global organization. Research on commitment
in multinational corporations suggests that employees draw a distinction between
those two foci when judging their commitment.93 Specifically, employees distinguish
between the prestige of their local subsidiary and the reputation of the larger organization.
They also distinguish between the support provided by their local supervisor and
the support provided by the global organization’s top management. Such results reveal
that it is possible to be committed to the local office but not the overall organization or
vice versa.
Second, multinational corporations require many employees to serve as expatriates for
significant periods of time. Research suggests that the organizational commitment of expatriates
depends, in part, on how well they adjust to their foreign assignments.94 Research
further suggests that expatriates’ adjustment comes in three distinct forms:95
Work adjustment. The degree of comfort with specific job responsibilities and performance
expectations.
Cultural adjustment. The degree of comfort with the general living conditions, climate,
cost of living, transportation, and housing offered by the host culture.
Interaction adjustment. The degree of comfort when socializing and interacting
with members of the host culture.
A study of American multinational corporations in the transportation, service, manufacturing,
chemical, and pharmaceutical industries showed that all three forms of adjustment
relate significantly to affective commitment.96 If expatriates cannot feel comfortable
in their assignment, it’s difficult for them to develop an emotional bond to their organization.
Instead, they are likely to withdraw from the assignment, both psychologically and
physically.
What factors contribute to an expatriate’s adjustment levels? It turns out that work
adjustment depends on many of the same things that drive domestic employees’ job satisfaction
and motivation.97 Cultural and interactional adjustment, in contrast, are very dependent
on spousal and family comfort. If an expatriate’s spouse or children are unhappy in
their new environment, it becomes very difficult for the expatriate to remain committed.
Fortunately, research suggests that cultural and interactional adjustment can increase with
time, as experiences in the host nation gradually increase expatriates’ sense of comfort
and, ultimately, their commitment to the work assignment.