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Edited by Günter K. Stahl and Ingmar Björkman
Chapter 9: The Compensation of Expatriates: A Review and a Future Research Agenda
Jaime Bonache The academic research on the compensation of expatriates is an underdeveloped area. In a review of recent developments in international management in the 20 top management journals from 1996 to 2000, Werner (2002) has shown that the literature on expatriation has focused recently on a wide number of issues, including assignment acceptance (Aryee et al., 1996), concerns and expectations of dual career expatriates (Harvey, 1997), adjustment (Caligiuri et al., 1998; Shaﬀer et al., 1999), psychological withdrawal (Shaﬀer & Harrison, 1998), pre-departure thoughts (Garonzik et al., 2000), and commitment (Gregersen & Black, 1996). However no study focusing on expatriate compensation can be found in those journals in recent years. Going back further, we ﬁnd this same lack of academic literature on this issue. For example, of 174 references selected in the early 1990s from The International Journal of Human Resource Management (May, 1994) on issues specially related to international HRM, only one of them (Reynolds, 1986) dealt with the compensation of expatriates in MNCs. This is in sharp contrast to the abundant references that exist from that same time on managerial compensation in the domestic human resources literature. In this ﬁeld, according to a study by Gómez-Mejia (1994), more than 300 empirical studies on the determining factors of managers’ compensation could be found. To ﬁnd analyses of this issue, it is necessary to refer to magazines and work more oriented towards practitioners (Becker, 1993; Bishko, 1990; Burns, 2003; Crandall & Phelps, 1991; Freeman & Kane, 1995; Hodgetts & Luthans, 1993; Hymer,...
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