East Asian Journal of Business Economics (EAJBE) (동아시아경상학회지)

East Asia Business Economics Association (동아시아경상학회)
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Interaction Effects of the Host Country Image and Cultural Intelligence on Organizational Attractiveness in Emerging Economies

  • KIM, Eunmi (Graduate School of International Studies, Pusan, Pusan National University) ;
  • HONG, Gahye (Korea University Business School, Seoul, Korea University)
  • Received : 2020.02.15
  • Accepted : 2020.03.13
  • Published : 2020.03.30
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Abstract

Purpose - The purpose of this paper is to advance the understanding of the relationship between host country image and cultural intelligence (CQ) on the attractiveness of expatriate destinations. Specifically, this study compares the different impacts of CQ on the relationship between host country image and subsidiary attractiveness by comparing a US-based subsidiary and a Vietnam-based one. Research design and methodology - A total of 445 Korean full-time workers responded through an online survey. The survey randomly showed the participants one of two conditions for a potential expatriate location. The participants were asked to answer a series of questions on the organizational attractiveness of the subsidiaries from the perspective of an expatriate candidate and respond to a series of questions on individual CQ. Results - Through a two-way ANOVA test, the results reveal that Korean expatriate candidates perceive that a Vietnam-based subsidiary is a less attractive destination for international assignment when compared to a US-based subsidiary. In addition, the positive moderating effect of cultural intelligence on the relationship between the host location and the subsidiary's attractiveness is stronger when Vietnam, rather than the US, is the assignment location. Conclusions - Drawing upon AUM theory, this study confirmed that unfavorable country image affects subsidiaries' attractiveness for expatriate candidates, due to anxiety. However, this study showed the role of employees' CQ to mitigate these challenges. This study suggests providing information on positive conditions of expatriate locations and building systematic process for enhancing individual CQ for organizations.

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