eThesis - Kauppakorkeakoulun sähköiset gradut

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AALTO UNIVERSITY SCHOOL OF ECONOMICS ABSTRACT International Business Master’s Thesis October 23, 2012 Tommi Kuukkanen Committed Expatriates: Psychological Contracts of Expatriate Candidates as Cornerstones of Idiosyncratic Deals Objectives of the study Expatriation is widely used as a global management development tool, despite the challenges in its various stages. Of those expatriates who manage to complete their assignments, many decide to leave their company shortly after return. Previous literature has identified reasons such as deficiencies in expatriate training and support, emergence of boundaryless careers and a poor understanding of the unwritten psychological contracts as the main obstacles to successful developmental expatriation. To answer the drop in commitment the use of idiosyncratic contract arrangements has been proposed and the objective of this study was to determine the key elements of such contracts in the developmental expatriation context. Methodology Four Finnish expatriate candidates were interviewed. Interviews were qualitative and semi-structured. In addition a small survey was conducted measuring the boundaryless career attitude of the interviewees. The interview data was analyzed and contrasted with previous literature. Findings and Conclusions The key phases of expatriation to be included in the negotiations are preparation, work challenge abroad, cultural adjustment, family issues and repatriation. The main goals of the idiosyncratic contract are to build a long-term relationship, foster intrinsic motivation, encourage managerial aspirations and guide post-assignment career advancement. Keywords Expatriation, psychological contract, idiosyncratic deal, organizational commitment, boundaryless career