Expatriates navigate a unique and often complex professional landscape. They are engaged not only with their host organization but also with their home organization, supervisors, and colleagues. These multi-party psychological contracts, referring to the unwritten expectations and obligations between employees and employers, play a crucial role in shaping their experiences, behaviors, and outcomes during international assignments.

In this blog post, we explore insights from the international research project “What happens abroad stays abroad? Expatriates’ Psychological Contracts during International Assignments”. The following studies examine the dynamics of multi-party psychological contracts of expatriates and touch on how digital communication, remote work, and shifting expectations are reshaping these agreements in today’s globalized workforce. The effects of digitalization on psychological contracts will be further emphasized in this post.

1. When Foreign Waves Hit Home Shores: The Impact of Contract Breaches on Organizational Identification

This study explores how breaches of psychological contracts — when expectations are unmet — between expatriates and their home or host organizations affect their organizational identification. The research shows that breaches involving the home organization tend to have a more significant emotional impact than those with the host organization. This can cause expatriates to feel disconnected and unsupported, which can negatively affect their performance and well-being abroad. This finding is particularly relevant in today’s digital age as the increasing reliance on virtual communication tools can amplify these issues. Miscommunication, lack of face-to-face interaction through regular home trips, and limited support from remote teams can heighten feelings of isolation. Organizations must be proactive in ensuring that expatriates receive clear and consistent communication through digital platforms, both from their home and host organizations.

2. Does What Happens Abroad Stay Abroad? Emotional Regulation and Displaced Aggression in Expatriate Contract Breaches

The second study focuses on the emotional challenges expatriates face when psychological contract breaches occur. When expectations are not met, expatriates may experience frustration and aggression, especially if they lack the skills to regulate their emotions effectively. The study emphasizes the need for strong emotional regulation and social support to help expatriates cope with these challenges and maintain their performance. In the digital age, expatriates may face even more emotional strain due to the virtual nature of many international assignments. The limited face-to-face interaction can make it more difficult for expatriates to manage emotions like frustration and stress, potentially leading to conflicts or disengagement. Organizations must therefore offer tools and resources to help expatriates build emotional intelligence and resilience, particularly in remote settings.

Key Takeaways for Global Mobility Managers and Expatriates

The research findings offer valuable lessons for both expatriates and the organizations managing them, especially as we move further into the digital age:

• Clear Expectations and Communication: To prevent psychological contract breaches, home and host organizations must ensure that expectations are communicated clearly. This includes clarifying roles, responsibilities, and the support expatriates can expect. With the growing reliance on digital tools, organizations need to train both expatriates and managers in effective communication strategies to avoid misunderstandings.
• Support for Emotional Regulation: Organizations should provide expatriates with resources to help them regulate their emotions, especially in high-stress environments. Training in emotional intelligence, as well as creating avenues for emotional support, can help expatriates navigate challenges more effectively. In a world increasingly dependent on virtual communication, companies need to ensure that expatriates are not left isolated without the emotional support they need.
• Managing Multi-party Psychological Contracts: Expatriates are engaged with multiple parties during their assignments, and it’s critical for both home and host organizations to collaborate to ensure that psychological contracts are aligned. This includes maintaining consistency across communication platforms and ensuring expatriates’ expectations are met in both settings.
• Building Social Support Networks: Expats who have strong social and professional networks are better equipped to handle the pressures of living and working abroad. Organizations should support the development of these networks, whether through mentoring, peer groups, or digital connections. As expatriates may be geographically distant, facilitating virtual networks becomes an essential tool for providing ongoing support.

Conclusion

The multi-party psychological contracts of expatriates are inherently complex. Understanding these dynamics is crucial to improving their experiences and outcomes abroad. As highlighted in the described research project, managing expectations, providing emotional support, and adapting to the challenges of the digital era are key factors that influence expatriates’ success. By aligning strategies with the evolving digital landscape, organizations can help expatriates thrive in their international assignments, creating more positive and productive experiences for all parties involved.

Authors:

Tassilo Schuster holds a research professorship in sustainable business models and global value networks at Neu-Ulm University of Applied Sciences. His research interests focus on the circular economy, digital transformation, and managing international business activities. Before this, he served as Chief Scientist at the Fraunhofer Institute for Integrated Circuits (IIS). His research has been published in several leading journals, including Journal of Product Innovation Management, Journal of Organizational Behavior, Business Strategy and the Environment, and Journal of Business Economics.

Lisa Ballas is a research associate in the international research project “What happens abroad stays abroad? Expatriates’ Psychological Contracts during International Assignments”. Her focus lies on studying multi-party psychological contracts and their impact on employees in the digital era. With her expertise in both industry experience and academic research, she provides valuable insights into the dynamic changes in the world of work. The certification as a stress and mental health coach enables her to address the psychological and emotional aspects of employment relationships in an increasingly flexible work environment.

References:

Ballas, L., Schuster, T., & Pflaum, A. (2024). Unravelling psychological contracts in a digital age of work: a systematic literature review. European Journal of Work and Organizational Psychology, 33(5), 614–631. https://doi.org/10.1080/1359432X.2024.2341821

Schuster, T., Bader, A. K., Bader, B., Bader, B., & Rousseau, D. M. (2022). Does what happens abroad stay abroad? Displaced aggression and emotional regulation in expatriate psychological contracts. Journal of Occupational and Organizational Psycholog y, 95, 867–888. https://doi.org/10.1111/joop.12405

Schuster, T., Bader, B., Bader, A. K., & Rousseau, D. M. (2022). When foreign waves hit home shores: Organizational identification in psychological contract breach–violation relationships during international assignments. Journal of Organizational Behavior, 43(3), 369–385. https://doi.org/10.1002/job.2576