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Clashes of Interests Versus Clashes of Identities: Theory on Firm–Employee Interactions During International Assignments

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Becoming an International Manager

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

This chapter focuses on the interactions between mezzo and micro levels of analysis: i.e. it discusses the firm–employee relationship in terms of the clashes of interests and identities. The results from my empirical study demonstrate that the clashes in interests within and across levels of analysis and the related multilevel narratives trigger identity work at the level of the individual. I thus first discuss how agency theory, which deals with the principal–agent relationships, conflicts about priorities by different parties to these relationships, and the related power struggles, can inform the impact of multilevel narratives on assignment outcomes for inter-employee, inter-assignee, inter-entity, and firm–employee collaboration (see Sect. 10.1). Since role transitions, social categorisation, and identity work are featured more prominently in the study, these are the focal part of my theorising and, as such, the primary theoretical contribution of the empirical study. In the second part of the chapter (i.e. Sect. 10.2), I therefore discuss how my findings contribute to role (transition), social categorisation, and social identity theories by showing the particularities of role transitions, social categorisation, and identity work for international assignees (and to a limited extent their colleagues and business partners) and their implications for international assignment management in the context of emerging market firms.

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Notes

  1. 1.

    Due to a focus on the firm–individual relationship, I neglect any discrepancies that occur between assignee-sending and receiving countries, between the country and the firm, or between the country and the individual. However, these are implied in my findings and thus present potential for future research.

  2. 2.

    Yan et al.’s (2002) view can be described as consistent with the dynamic view of multilevel relational identity work during international assignments presented in this monograph.

  3. 3.

    The organisation, on the other hand, tends to be more flexible in its relationship with an employee, as it triggers shifts in configurations in response to either internal or external contexts.

  4. 4.

    See Hogg et al. (1995) for delineation of the social identity theory from identity theory.

  5. 5.

    An identity differs from a role in that it centres on the prescriptions for self-understanding rather than on the generalised expectations of typical behaviours conveyed in a specific environment (Kahn et al. 1964; Sveningsson and Alvesson 2003).

  6. 6.

    Ashforth et al. (2011) suggest that within the nested identities, individual differentiation provides people with a sense of exclusiveness, whereas the collective identity furnishes a sense of inclusiveness.

  7. 7.

    Isomorphism of nested identities differs from isomorphism as defined in institutional theory. It namely refers to “the degree to which the constituent components of a phenomenon and the relationships among the components are similar across levels of analysis” (House et al. 1995: 87). In institutional theory, on the other hand, isomorphism refers to the processes of homogenisation through institutionalisation and diffusion of organisational models that cause the organisational structures to grow more and more alike (DiMaggio and Powell 1983).

  8. 8.

    See also McGivern et al. (2015) for a discussion on hybrid manager–professionals’ identity work.

  9. 9.

    The individuals prioritise tasks and relationships in the entity they are physically present in over the tasks related to a disconnected individual (i.e. assignee) and entity, as they can reap the benefits (as well as are likely to suffer the consequences of poor performance) of the former immediately.

  10. 10.

    Past research similarly suggests that socialisation into existing teams with their established unique norms and values (see e.g. Barker 1993) as well as practices, (relational) roles, and identities can be particularly challenging (Reagans et al. 2004).

  11. 11.

    Resourcefulness stemming from drawing on multiple work identities can be developed through an individual experiencing multiple roles in a single context (e.g. in a single firm or market) or in multiple contexts (e.g. by working for multiple employers or in various countries). A similar argument can be made for the development of resourcefulness of an organisation.

  12. 12.

    According to the intersectionality lens on identities, the separate identities are interconnected into a self-system in a way that a change in one identity inevitably results in a need for adjustments in the entire self-system (see e.g. Caza et al. 2018; Ramarajan 2014). The effects of individual identity changes on the self are beyond the scope of this study and present an opportunity for future research.

  13. 13.

    For a detailed typology of intra- (i.e. shifts to a new orientation toward an old role) and inter-role transitions (i.e. shifts to new and different roles) see Louis (1980a, b).

  14. 14.

    Dual organisational identification refers to an individual’s identification with both their sending and receiving entities without having to relinquish their identification with the values of either of the two identities (Smale et al. 2015). For research on the different patterns of assignees’ allegiance and the advantages and disadvantages of each pattern, see Black et al. (1999).

  15. 15.

    Crises, however, also only allow for self-reflection in retrospect and can thus hinder the individual’s identity work.

  16. 16.

    According to Ibarra and Barbulescu (2010), individuals experience emotional discomfort when they are unable to draw a continuous link between their old and new selves (see also Ebaugh 1988; Ibarra 1999). They also describe the occurrence of emotive dissonance arising from discrepancies between what people really feel and the images they feel compelled to convey in social interactions (Ibarra and Barbulescu 2010; Rafaeli and Sutton 1989). This phenomenon is particularly pronounced in managerial roles, as individuals are expected to hide any stress they experience.

  17. 17.

    See also Yip et al. (2020) for a discussion of organisational support for identity work through narrative coaching, which involves promoting the coexistence of multiple identities through containment [i.e. calming one’s anxiety in relation to identity separation and establishing a sense of appreciation, understanding, and support rather than evaluation or judgement (Kahn 2001)], affirmation [i.e. recognising the value of an individual’s existing identities (Cohen and Sherman 2014)], and enabling (i.e. coaching new managers to make sense of their ongoing experience through reflection, reframing and redesign (see also Argyris 2002) or enabling the possible manager selves).

  18. 18.

    Although roles and identities may have certain prototypical features, my research shows that role transitioning and identity work during international assignments (as well as other employee mobilities that include a contextual change) cannot follow prototypes. Instead, they necessitate adjustments to the organisational structure and culture.

  19. 19.

    The effect of managers’ personality traits on their integration in the new team and assumption of managerial tasks abroad may be context-dependent: i.e. it may differ in emerging markets and emerging market firms compared to developed markets and developed market firms. This is because of the specific aspects of the national cultures of sending and receiving countries, such as power distance, that determine the acceptance of a manager or a managerial approach among local staff. Huang et al. (2005), for instance, propose that introvert individuals may be better accepted in reserved and conservative cultures, whereas Chatman and Barsade (1995) argue that an expatriate’s success depends on their personality traits demonstrating strengths related to the host culture’s most relevant aspects. More research is needed on this issue, however.

  20. 20.

    Firms do employ career development and managerial training, however.

  21. 21.

    The main control mechanism used by the firm is its decision for early assignee repatriation or termination of the employment contract with the assignee in case of their poor performance as reflected in business results of the host entity.

  22. 22.

    Identity granting is defined as “the /verbal or non-verbal/ actions that a person takes to bestow a /specific/ identity onto another person.” (DeRue and Ashford 2010: 631). These actions can either validate or invalidate a specific identity (DeRue et al. 2009).

  23. 23.

    The shift is likely to be similarly challenging for their colleagues—although their tasks remain the same. Future research on this issue is needed, though.

  24. 24.

    My findings support this by highlighting the need for continuous confirmation of the already claimed identities; e.g. through role enactment in practice.

  25. 25.

    Only with long-term expatriation, entity establishment, or crisis resolution and close collaboration with local staff do the assignees also develop an expatriate identity—usually complementing rather than contradicting their managerial identity.

  26. 26.

    Kraimer et al. (2012: 401) define international employee identity as “the degree to which an individual’s role as an expatriate has become central to her/his self-concept.” International employee identity is an individual-level identity, which is also relational, as it is socially derived and defined based on an individual’s definition of the self in terms of a work-related role in an organisation relative to other international and non-international employees (Stryker 1980).

  27. 27.

    Tajfel and Turner (1979) propose that in-group favouritism only occurs if the out-group is perceived as being capable of challenging the status of the in-group [e.g. based on professional similarity (Chattopadhyay et al. 2010)]. See also Turner (1978).

  28. 28.

    Group socialisation introduces a level of homogeneity to the team that can enhance the effectiveness and efficiency of collaboration, on the one hand, but also limit creativity, innovation, and development by generating standardised responses to specific situations and myopia to different problem solving approaches on the other (see e.g. Bouchikhi and Kimberly 2003; Tajfel and Turner 1986; Turner 1982). Employing similar individuals to the team or a specific position, such as introducing an ethnocentric approach to international staffing, can have a similar effect across the MNE (see also Stanley and Davidson 2011).

  29. 29.

    These effects may diminish with time as groups accumulate different responses to them and change their ways thinking (Dahlin et al. 2005).

  30. 30.

    Here, I do not refer only to the language of the sending and receiving country, but also to the jargon developed within the organisation, profession, and a particular team.

  31. 31.

    Networking among managers, in particular, often takes place outside organisational formal structures, yet is work-relevant (see also Manev and Stevenson 2001). Firms could thus facilitate networking with both groups and link them to an individual’s (managerial) identity rather than enhance perceptions of collaboration and operative engagement in tasks as a deviation from an assignee’s identity and role.

  32. 32.

    For research on the role of language in identity work and team or MNE collaboration see, for example, Barner-Rasmussen et al. (2014); Bordia and Bordia (2015), Harzing et al. (2011), Reiche et al. (2015), Shaffer et al. (1999).

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  1. Faculty of Social Sciences, University of Ljubljana, Ljubljana, Slovenia

    Iris Koleša

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Koleša, I. (2021). Clashes of Interests Versus Clashes of Identities: Theory on Firm–Employee Interactions During International Assignments. In: Becoming an International Manager. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-87395-0_10

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