The Study of Inter-group Relations Between Expatriates and Host Country Nationals (HCNs) in Taiwanese Multinational Firms

Conference: The Asian Conference on Psychology & the Behavioral Sciences (ACP2022)
Title: The Study of Inter-group Relations Between Expatriates and Host Country Nationals (HCNs) in Taiwanese Multinational Firms
Stream: Industrial Organization and Organization Theory
Presentation Type: Virtual Presentation
Authors:
Hsin-Pei Wu, Soochow Iniversity, Taiwan
Yu-Mei Wang, Providence University, Taiwan

Abstract:

Cultural differences and group conflicts inevitably take place in the international context. How to diminish unnecessary group antagonism is a difficult challenge for managers. This study proposed that stability of status and permeability of group boundaries would influence intergroup relations (in-group and out-group identification), organizational identification, and social status change individual mobility strategy from the perspective of social identity theory. The structured questionnaires collected data from full-time local employees in Taiwanese multinational films. A total of 392 valid samples were collected, of which 263 were from Vietnam, 75 from Thailand, 39 from the Philippines, and 15 from Myanmar. The results showed that the permeability of group boundaries of HCNs was positively related to in-group identification, out-group identification, and organizational identification. Although permeability of group boundaries cannot directly affect HCNs' individual mobility strategies, it can be achieved indirectly through improving organizational identification. Furthermore, the permeability of group boundaries, in-group identification, and organizational identification had a positive loop. It indicates that it is possible to further achieve organizational identification and personal mobility strategies by consolidating their ethnic consciousness. In addition, status stability was positively related to in-group identification, out-group identification, and individual mobility strategy. The results showed that HCNs recognized and accepted the stability of status and permeability, which united ethnic consciousness to improve organizational identification and promote the adoption of individual mobility strategies. It implies that Taiwanese companies have deliberately downplayed Taiwan's group consciousness and instead emphasized localization to consolidate organizational identification.

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