Cultural adaptation of expatriate managers in foreign banks in London

Banai, Moshe (1985) Cultural adaptation of expatriate managers in foreign banks in London. Doctoral thesis, University of London: London Business School.

Abstract

The research attempts to answer the question whether bank managers who are transferred from HQ in their parent countries to subsidiaries in foreign countries change their managerial behaviour. Four dimensions of managerial behaviour were analysed; Power Distance, Uncertainty Avoidance, Individualism and Masculinity (Hofstede 1980). Three general theories were used in order to describe, explain and predict changes in behaviour of expatriate managers. They were Socialisation Theory (Pfeffer 1982), Role Theory (Katz and Kahn 1978) and Power Theory (McClelland 1957, Mulder 1977). The managerial behaviour of HQ executives in multinational banks in New York, Amsterdam and Tel Aviv was compared with the behaviour of their colleague expatriates and British managers in the subsidiaries of the same banks in London. 256 questionnaires were detained, and a statistical analysis was conducted in order to reveal similarities and differences between the three groups of managers. The findings suggest that expatriate managers decrease their scores on Power Distance, Uncertainty Avoidance, Individualism and Masculinity upon international transfer from the United States, Holland and Israel to Great Britain. In addition, they change some of their attitudes towards their task environment. However, they do nct change their general values. The role of the managers (expatriate managers or HQ officials) can best predict their managerial behaviour. Socialisation in the parent country - which was measured through the variable of Nationality, or socialisation in the host country - which was measured through the variable of Length of Service in the host country - were found to he less predictive than the role of the manager. The 'power Fositicn' was found to be the least predictive factor in analysing the change in managerial behaviour of expatriate managers.