A Conceptual Model of Expatriate Turnover
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JOURNAL OF INTERNATIONALBUSINESS STUDIES, THIRD QUARTER 1992
twenty-four studies involving 7,717 individuals were cited. Externalturnover rates varied from 3% to 106% annually with a median of 22%. However, the subjects in the studies were drawn from nineteen rather generic job categories includingaerospaceemployees, pharmaceuticalscientists, engineers, navy enlisted personnel, nurses, bank tellers, and small business new hires, for example. None of the subjects are directly comparable to expatriate managers. If the assumption can be made that expatriate managers are more similar to individuals such as engineers, scientists, and exempt electronic employees than to individuals such as nurses, enlisted personnel, or small business new hires, the "normal domestic" turnover rate is more likely to approximate 10% annually [McEvoy and Cascio 1987]. This figure is consistent with the average of 12% for 303 firms reported by Mercer [1988]. Further, turnover rates typically decline at higher organizational levels so managerial turnoverrates are likely to be less than the overall average figure. Thus, while no empirical researchexists that directly compares turnover,the expatriate turnover rate appears to be at least twice the domestic rate. The extreme expatriate turnoverrate results in high direct and indirect costs to U.S. MNCs. The direct costs associated with each expatriate turnoverare estimated to be between $55,000 and $150,000 [Copeland and Griggs 1985; Harvey 1985; Mendenhall, Dunbar and Oddou 1987; Misa and Fabricatore 1979; Zeira and Banai 1985]. Therefore, the aggregate direct costs for expatriate turnover for U.S. MNCs are quite high [Copeland and Griggs 1985]. Additionally, the indirect costs associated with expatriate turnover are estimated to be even greater [Harvey 1985]. The indirect costs include items such as reduced productivity and efficiencies, lost sales, market share, competitive position, unstable corporate image, and tarnished corporate reputation. While turnover is costly in domestic operations, turnover is apparently even more costly and troublesome in overseas operations. Due to the relatively high frequency of expatriateturnoverand the associated costs, the international business literaturehas been punctuated with efforts to isolate the factors causing difficulty in cross-cultural-adjustment. The threeareasreceiving the greatestinteresthave been the selection of the "ideal" expatriate manager [Abe and Wiseman 1983; Church 1982; Mendenhall and Oddou 1985; Mendenhall, Dunbarand Oddou 1987; Tung 1982, 1988; Zeira and Banai 1985], the underdeveloped state of expatriation and cross-cultural training programs [Black 1988; Black and Mendenhall 1990; Brislin 1979; Mendenhall and Oddou 1985; Kohls 1985; Schwind 1985; Torbiorn 1982; Tung 1982, 1984], and the difficulties encountered by the expatriate's spouse and/or family [Black 1988; Blac
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