The dark side of international talent management: Exploring the negative effect of talent repatriation on multinational enterprises' performance with the meditating role of reverse culture shock

Abstract

This study explores the negative effects of talent repatriation on multinational enterprise (MNE) performance, focusing on the mediating role of reverse culture shock. Even as international assignments are planned and implemented with the idea of building global talent and organizational global knowledge, repatriation presents a couple of key problems that work against such a value addition. The study explores talent repatriation and reverse culture shock with the MNE performance by applying such a methodology as Partial Least Squares Structural Equation Modeling (PLS-SEM). According to the research results, the author concludes that while talent repatriation has had no direct effects on the performance of MNE, reverse culture shock resulting from this practice has detrimental impacts on organizational performance. This implies that reverse culture shock plays a key role in moderating the influence of the repatriation processes in its contribution to the performance of the MNE. It underscores the importance of Multinational Enterprises to develop repatriation policies that respond to logistics, career, psychological and cultural aspects resulting from the relocation. In this way, organizations can limit the effects of reverse culture shock and get the best of their expatriates on their return by increasing organizational performance. Consequently, this study advances the body of knowledge in international talent management by presenting the moderated-mediation model of the repatriation-performance relationship and presenting guidelines for mitigating the negative aspects of talent repatriation.