Cultural distance and expatriate adjustment revisited

Purpose - The purpose of this paper is to examine the relationship between cultural distance and cross‐cultural adjustment. The authors address four hypotheses regarding this relationship: the Cultural Distance Hypothesis; the Cultural Distance Paradox; the Null Hypothesis; and the Asymmetry Hypothesis, in an effort to reconcile the disparities found in the literature. Specifically, portions of the extant literature support a positive relationship, while others support the opposite. There is also some evidence that this relationship may vary depending on the direction of expatriate transfer. Finally, some of the research has failed to support any significant relationship between cultural distance and adjustment. Design/methodology/approach - Survey data were collected from 125 expatriates (117 expatriates and eight repatriates), representing 36 nationalities and on assignment in 32 different countries. Multiple regression analyses were used to regress cultural distance on both general and work‐related adjustment. Cultural distance was first operationalized as a composite of the scores on Hofstede's cultural dimensions. Subsequently, distances for each of the dimensions were entered into the regression models. Findings - The authors concur with the Cultural Distance Paradox that greater differences in individualism between home and host cultures facilitates work adjustment. Findings also support the Asymmetry Hypothesis that travel from individualistic societies to more collectivist ones results in greater adjustment than does travel in the opposite direction. Practical implications - Based on the Cultural Distance Paradox, firms may be well‐advised to direct their expatriate training efforts toward those assignments where the home and host cultures are presumably similar, as there may be a tendency to take adjustment for granted and therefore forgo cross‐cultural training. Similar efforts should be made to ease transfers to locations where the culture is more individualistic than that of the parent country. Originality/value - Rather than fixate on one set of findings from the literature, this study considers all four of the possible relationships between cultural distance and adjustment, as found or suggested in previous research. This comprehensive approach should advance our understanding of cultural distance as a complex construct, with a role that cannot be consistently defined across all situations. This represents a departure from the need to assign static roles to variables that may be dynamic in nature.