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2.4.1 Short-term IAs

There is some variation in the literature in terms of how short-term IAs are defined but generally they are referred to as company-specific assignments with a duration shorter than 12 months (Collings et al., 2007). A significant feature of short-term IAs is that the assignee’s family often remain in the home country, while salary, pension and social security benefits are also handled there (PricewaterhouseCoopers, 2005). Short-term assignments are considered the most popular form of non-standard assignments with an increasing utilisation in MNCs (Tahvanainen, Welch, & Worm, 2005). The organisational motivations for using short-term assignments are similar to standard assignments such as problem solving, control purposes and management development, but with advantages such as increased flexibility, simplicity and cost effectiveness. Although the shorter duration may have a positive impact on individual’s willingness to accepting such an IA, there are issues that concern both MNCs and individuals. Family issues are important because being away from partners and children can be stressful for assignees. Careers can be also affected as a short-term stay at the subsidiary may limit the building of effective relationships with local colleagues and customers, while being away from headquarters may cause difficulties in maintaining existing relationships (Tahvanainen et al., 2005).

Short-term assignments have particular relevance in this study as 70% of IAs used by Chinese MNCs are conducted in this form (Shen, 2004). Chinese MNCs are strongly

ethnocentric and withhold control over the administrative processes and politics of subsidiaries (Alon & McIntyre, 2008; Yang & Stoltenberg, 2008). In this form of MNC structure, the objective is to ensure effective and efficient practice transfer between the headquarters and subsidiaries, overshadowing the need for management development and long term assignments. Another influencing factor, relevant to Chinese international assignees, is more pragmatic, as there are limitations on visas or work permits for Chinese citizens in some countries, resulting in assignments having to be less than 12 months (Shen, 2006).

2.4.2 Frequent Flyers, Commuter IAs and Global Virtual Teams

While different forms of IAs such as frequent flyers, commuter IAs and global virtual teams are not specifically included in this study, it is important to discuss them as there is an organisational trend to use more flexible IA options with shorter durations. They also point to a research gap, not least in the Chinese IA literature, and provide implications for future research (see Section 8.7).

A frequent flyer is defined as ‘one for whom business travel is an essential component of their work’ (Welch & Worm, 2006, p. 284), and who travels often but temporarily, to other destinations. Although some researchers argue that frequent flyers do not come under the remit of alternative forms of IA as their travel does not involve physical relocation (Mayerhofer, Hartmann, Michelitsch-Riedl, & Kollinger, 2004), following Fenwick’s (2004) suggestion, this study includes them with the acknowledgment that

frequent flyers represent important alternatives to traditional international assignee assignments for MNCs.

Frequent flying is an effective way to conduct irregular and specialised tasks such as technical problem resolving and annual board meetings. It is cost-effective for MNCs as they can send out specialised staff based on demand without the need to relocate them to individual subsidiaries. It is particularly appropriate in the European and South East Asian contexts, where many countries can be reached with a short flight. This is also relevant to Chinese MNCs as many of their subsidiaries are concentrated in regional locations (Alon & McIntyre, 2008). However, similar to the literature on short-term assignments, there is a dearth of empirical research on why and how Chinese MNCs utilise this type of IA and research on these issues would be timely.

Although frequent flyers offer several benefits to MNCs, they are not without difficulties. The stress and other health concerns that are caused by frequent air travel are well documented in the literature (Welch & Worm, 2006) and again, family issues associated with frequent short trips should not be underestimated (Collings et al., 2007).

Commuter IAs are defined as IA tasks where assignees commute from their home base to another country, generally on a regular or rotational basis (PricewaterhouseCoopers, 2005). Assignees are usually sent on commuter IAs to complete technical tasks in one or more countries and then return to headquarters for technical and managerial briefings. It has been suggested that the geographic proximity of countries in Europe means that Euro-commuting and frequent visiting is a viable alternative to conventional

expatriation, however, research indicates that very few organisations employ this type of IA (Brewster, Mayrhofer, & Morley, 2004). Apart from the complexity of this type of IA, research also indicates the concerns about the build up of stress from intensive travel commitments and the impact on personal relationships (Dowling & Schuler, 2004). Commuter IAs are not commonly used by Chinese MNCs, perhaps due to the distance restrictions between China and many of its foreign direct investment destinations.

Global virtual teams emerged in the late 1990s due to the growth of the internet and other communication technologies (Collings et al., 2007). In global virtual teams, staff can work jointly from different locations without travelling (Dowling & Schuler, 2004). Although cost effective and without the disadvantages that are associated with travelling, their use is limited in MNCs (PricewaterhouseCoopers, 2005), primarily because of the importance of physical interaction for effective management. Further research on the use and effectiveness of virtual assignments in organisations is needed and could focus on the circumstances in which such assignments would be appropriate and the key factors which contribute to their effectiveness (Collings et al., 2007).

These alternative forms of IAs confirm the changing nature of MNCs, their practices and the international environment they are in (Dowling et al., 2009; Meyskens et al., 2009). Challenges and issues from long-term IAs give MNCs pressures to seek more cost effective expatriation management practices. However, this does not mean alternative forms (such as short-term assignments) are without problems. It may be

timely to further investigate the issues relating to both long-term and short-term international assignees.