As mentioned in Chapter 2, a multitude of studies have attempted to identify factors that support success and the difficulties that are experienced by Japanese offshore manufacturers in Thailand (Onishi & Mondejar 2011; Petison & Johri 2008; Brimble &
Urata 2006; Sriussadaporn 2006; Swierczek & Onishi 2003; Katayama et al. 1999) including the areas of culture and conflict. However, these studies were not generally designed to address the types of attributes that are significant for MNC expatriate
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managers to equip themselves to be capable of resolving cultural conflicts on foreign sites. It has been established that excellence in management and leadership is vital for business success (Naquin & Holton 2006; Svensson & Wood 2006). Therefore, the purpose of this research was to add to earlier research in the area by attempting to ascertain the key characteristics and personal attributes required for expatriate managers, especially those attributes that will best enable them to match indigenous employee requirements by exhibiting those factors that local employees identify as influencing expatriate manager abilities to succeed in MNCs.
5.5.1 Key Characteristics for Expatriate Managers’ Success
Bush and Coleman (2001) found that the functions of leadership and management seem to overlap to an extent and to be carried out within the same role. In particular, studies of Bhaskar-Shrinivas et al. (2005), Lii and Wong (2008), and Peterson and Thomas (2007) confirm that when the parent company directs the expatriate manager in the MNC’s Thai operations to take certain actions these contradict culturally acceptable practice the host-country, role conflict may arise as a result of the different expectations of the Thai nationals and corporate headquarters. Moreover, Toor and Ofori (2008) pointed out that vague explanations of ‘leadership’ and ‘management’ can create confusion which in turn can lead to difficulties in developing clear criteria to guide selecting, training and promoting employees in organisations. Consequently, this leads to an increasing interest in building strategic awareness in terms of leadership and management for both the transferring expatriates and the subsidiary's local employees because this can help to avoid role conflict and facilitate adaptation to the new working conditions for both parties.
The purpose of this study was to investigate certain management and leadership attributes and their effects on the ability of Japanese expatriate managers to contribute to effective performance in MNCs in the automotive industry in Thailand. Hence, this raises questions for the host-country’s HR managers and subordinates about what qualities are needed by Japanese expatriate managers to effectively deal with their onsite local challenges in the Thai context.
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The findings of this study led to the following conclusions in relation to Japanese expatriate manager success in the Thai automotive industry as follow:
All groups of respondents viewed both management and leadership attributes as crucial for an expatriate position. In particular, setting a direction, and controlling and problem solving skills are significant positively related with tailored attributes to fit the Thai automotive business environment.
With regard to ‘setting a direction’, both Japanese expatriate and Thai HR managers considered that without a vision and direction, no one could run an organisation effectively. This is because ‘setting a direction’ primarily is an ability to envision the future, and determine a company's destiny. From Kotter’s viewpoint (1990), setting a direction is an important attribute, resulting in developments and changes by creating a pathway for future change. Nevertheless, the process of direction setting is time- consuming, requiring a 3 to 20-year long-term planning schedule. This direction will have been set before the expatriate manager takes up their overseas appointment.
During their time heading up the Thai operations, one to five-year strategy plans will need to be developed to support achievement of the long term vision. In this regard, it is reasonable to infer that the process of direction setting in the subsidiary, is the strongly influenced by the expatriate staff sent from parent companies to run overseas business operations. As a result of the knowledge they gain of local conditions their shorter term (1-5 year) plans feed local information into the head office planning process, though the extent to which this influences the overall direction setting of the MNC is questionable.
Effective expatriation also has become a vital trigger for parent companies to pay more attention to managing employee performance and development in their home country to provide suitable expatriates for assignment in their MNC’s host countries (Dowling &
Welch 2004; Varner & Palmer 2002).
With regard to ‘problem solving skills’, the findings of this study demonstrate that both the Japanese expatriate and Thai HR managers consider problem solving as essential features in order to effectively perform the role of an expatriate manager in an automotive MNC in Thailand. This is because working in different countries can lead to
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misunderstandings and conflicts (Caligiuri 2006). Thus being able to solve the problems immediately can reduce conflicts and stress among Japanese expatriate managers, colleagues and subordinates that may lead to unhappiness and premature return of the expatriate managers. More specifically, one Thai HR manager suggested that opening his/her mind to the new culture and having positive thoughts are a good starting point for solving problems.
The attributes ‘performing in a manner that creates stability’, ‘focusing on people's needs’ and ‘possessing a short-range perspective’, were deemed less important requirements in the Thai business environment. In contrast to the findings from questionnaire data, a short-range perspective was mentioned as a vital attribute for Japanese expatriate managers by Thai HR managers while the results of the questionnaire reveal that it is one of lesser-required skills for the expatriates. This may also be because most participants of the questionnaire survey were operative level employees who are working with Japanese managers on a production line. Therefore, working together on a daily basis may lead them to be more concerned about the attributes and how to cooperate and solve problems, and less concerned on how to adapt plans in the short run. Nevertheless, clearly changes in global demand and unpredictable business environments have greatly affected every country. As a result, to become better and more effective business leaders both locally and internationally, each organisation now needs to create new prospective business opportunities, find more potential resources, bring in cheaper labour forces, and improve the competencies of employees (Gourevitch et al. 2000). At the time of this research, it was apparent that Thailand was facing significant challenges as a result of the aftermath of natural disasters and of current political unrest (Maliwan & Mujtaba 2012). Thus, Thai HR personnel may have been significantly concerned about the ability to be flexible and constantly alert when confronted with unexpected situations that require a short-term change in plans.
5.5.2 Key Factors Impacting on Expatriate Managers’ Success
Research in the 1990s and early 2000s (Huang et al. 2005; Guthrie et al. 2003; Caligiuri 2000b; Ones & Viswesvaran 1999; Coverdill & Finlay 1998) suggested that personality
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characteristics are reliable factors in predicting whether or not an expatriate manager candidate would have the potential to effectively accomplish an overseas assignment.
Likewise, having job and country-related knowledge, relational skills, having an appropriate level of motivation to succeed, language skills, experience in facilitating cross-border work, and having family support, can also be used to predict the likelihood of expatriate manager success.
Results of this study have firstly confirmed that cultural differences can lead to working style differences between Japanese expatriate managers and Thai subordinates (Harzing 2003). Under this situation, ‘adaptability skills’ would arguably be required. The results demonstrated that ‘communication skills and language ability’ was the most mentioned attribute by both Japanese expatriate managers and Thai HR managers. Findings of this study, therefore, confirm that ‘communication skills and language ability’ is a very important element for Japanese expatriate managers to succeed in the Thai automotive industry. This study produced results that corroborate that the communication process needs to make use of social signs and etiquette that underline when to talk and how to engage each other in conversation for successful cross cultural communication.
Moreover, messages spoken, especially in public places, might be communicated implicitly without being expressed directly since it could cause ‘loss of face’ and an uncomfortable feeling for Thai people. This is often the case in order to show concern for the other person (Petison & Johri 2008).
Secondly, another interesting point came from one Thai HR manager who commented that sharing a knowledge and understanding of Buddhism might facilitate better comprehension of the Thai culture and business management. Furthermore, Buddhism has a strong positive impact on personnel perspectives and behaviours. One Japanese manager gave a strong affirmation of the perspective expressed by the Thai HR manager. He confirmed that having an understanding of Buddhism led him to gain a better understanding of the nature of Thai people. This meant that he learned to conduct exchanges with Thai people in a polite manner in all interpersonal interactions and to acknowledge their preference to follow orders from those in authority. As a result, for effective functioning in an automotive MNC in Thailand, this Japanese manager
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suggested that avoiding giving conflicting messages was very important. Similarly, providing evidence based on clearly explaining, and encouraging cooperation rather attempting to force compliance by Thai subordinates. By building the confidence of Thai employees, Japanese expatriates can reduce their self-doubt leading to good working relationships between Thai employees and their Japanese manager. Eventually, the better the relationship that is built the more likely that the goals and objectives of the company will be achieved, or exceeded. Indeed, Niffenegger et al. (2006) found that obtaining an understanding of Buddhism can be a highly effective way of approaching cultural challenges that investors in Thailand may be confronted with. This is because possessing knowledge of Buddhism facilitates an understanding of Thai culture that in turn has the potential to have a strong positive impact on business dealings in Thailand.
Thirdly, according to Japanese expatriate managers, ‘social awareness skills’,
‘patience’, ‘listening skills’ and ‘emotional stability’ were considered as crucial in order to effectively perform their roles. As personal conflicts and misunderstandings can happen unexpectedly and unintentionally, Japanese managers believed that these interpersonal attributes were required to succeed in Thailand. In particular, when working under stressful circumstances, it is necessary to maintain emotional balance.
One Japanese manager stated that listening to others’ opinions can lead to developing a good relationship in the workplace, and it can also motivate Thai subordinates to share and contribute their ideas on improving the business operations. Women are generally regarded as exhibiting more of these skills and capabilities required to succeed in international assignments (Guthrie et al. 2003) than do men. Despite this their appointment to expatriate management roles, although improving slowly, remains considerably behind that of men (Tungli & Peiperl 2009). It is not surprising that women excel on international assignments when research has highlighted their positive leadership behaviours in general (Eagly 2007). However, no female expatriate managers were employed in the participant organisations indicating an area for further research in relation to the reluctance of Japanese MNCs in the automotive industry to benefit from the advantages of employing females in expatriate roles as identified by others.
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Next, while personal characteristics have frequently been researched in the field of international relations (Holopainen & Bjửrkman 2005; Selmer & Leung 2003; Judge et al. 2002; Suutari & Brewster 2001; Caligiuri 2000a; Coverdill & Finlay 1998; Hogan &
Shelton 1998; Pucik & Saba 1998; Webb 1996; Arthur & Bennett 1995), Caligiuri (2000b) and Holopainen and Bjửrkman (2005) found that US companies believe that interpersonal skills are significant in the selection of suitable overseas manager candidates. In contrast to earlier findings, personal characteristic testing is not part of the selection process before Japanese expatriates are sent overseas. However, the results demonstrated that all respondents agreed that personal characteristics factors are the most important factor that they believe has the greatest impact on Japanese expatriate ability to succeed in Thai business.
Lastly, with regards to other individual related factors, in particular marital status and gender factors, statistical tests show that head offices/assembly plants do not view these sub-factors as important. However, despite this tendency towards greater gender equality, there are still significant entry barriers to women being selected into senior positions in male dominated work fields, such as senior expatriate roles (Guthrie et al.
2003). Despite possessing many attributes suiting them to work internationally, the majority of female workers have been found to be less likely to gain promotion due to having their career advancement blocked mainly because of traditional cultural and social attitudes towards gender, particularly in Thailand (ILO 2004a; Boon 2003).