Abstract
The increasing globalization of the world economy challenges multinational as well as small and medium-sized local organizations to attract and retain global talent. Academic researchers have lately turned their attention from organizational expatriate assignments to various new types of global careers, including self-initiated expatriation in geographically and culturally distant countries. Among these new global careers, foreign executives in local organizations (FELOs) are a very specific phenomenon. Highly visible and often controversial, FELOs are appointed to help organizations compete with—and even leapfrog–international competitors. Research shows that a dichotomy exists between the initial reason for an FELO appointment and the reasons that actually make a cross-cultural workplace successful in the long term. Local organizations that appoint foreign executives without regard for contextual influences, people management skills, and capacity development do so at their peril.
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