Cultural distance and expatriate failure rates: the moderating role of expatriate management practices

This study examines moderators of the relationship between cultural distance and the two critical indicators of expatriate failure - maladjustment and premature return rates. Results based on a sample of 126 Taiwanese multinational corporations indicate that expatriate selection and performance management practices moderate the cultural distance-expatriate maladjustment relationship, and expatriate performance management practices moderate the cultural distance-premature return relationship. Additionally, these relationships were stronger when the use of practices was low. We discuss theoretical and practical implications, and offer suggestions for future research.