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The Opportunity Cost of Saving Money

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  • Elise Tait
  • Helen De Cieri
  • Yvonne McNulty

Abstract

In this exploratory study we draw on interviews with 12 expatriate staff, seven of whom are permanent transfers to a Singapore-based subsidiary of a global knowledge-based firm. Using goal congruence theory as an extension of agency theory, we compare the motivation, adjustment, retention, and careers of permanent transferees who subsequently localize in the host location to those of traditional expatriates in the same location. Our findings show that expatriates who are expected to work as "locals" in a host country not only receive less compensation, but also receive less preparation and support than traditional expatriates despite the fact that both groups of employees work under similar conditions and face similar challenges. Our study has important implications for research and practice in the planning and management of global mobility programs.

Suggested Citation

  • Elise Tait & Helen De Cieri & Yvonne McNulty, 2014. "The Opportunity Cost of Saving Money," International Studies of Management & Organization, Taylor & Francis Journals, vol. 44(3), pages 80-95, January.
    • Handle: RePEc:taf:mimoxx:v:44:y:2014:i:3:p:80-95
    DOI: 10.2753/IMO0020-8825440305
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    Cited by:

    1. Maley, Jane F. & Moeller, Miriam & Ting, Alina F., 2020. "Sustainable expatriate compensation in an uncertain environment," Journal of International Management, Elsevier, vol. 26(3).

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