GLOBAL

MINDSET
DEFINED
Expat Success Strategy
 Research from the
Worldwide ERC® Foundation
for Workforce Mobility
and Thunderbird School of
Global Management

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Global Mindset Defined
Expat Success Strategy
BY MANSOUR JAVIDAN
CONTRIBUTING WRITERS: MARY TEAGARDEN,
FEMI BABRINDE, KAREN WALCH,
N A N D A N I LY N T O N , C H R I S T I N E P E A R S O N ,
DAVID BOWEN,
AND ANGEL CABRERA

G
lobal reporter and author John Pomfret once Based on research
observed that “the difference… in an overseas
conducted by the
Worldwide ERC®
assignment [is that] there is an emphasis on the Foundation for
facts, but there’s also a much greater emphasis Workforce Mobility and
on interpretation.”
Thunderbird School of
Global Management,
It takes a special blend of characteristics—a special kind of Javidan offers a
“interpreter,” if you will—to add up to an outstanding expat comprehensive
who can be productive and accepted in an unfamiliar setting.
analysis of the
global mindset as
This combination of characteristics—the global mindset—is an expatriate success
more crucial than ever, and can provide insight to companies strategy.
that wish to hone their selection and assessment processes.

In early 2005, a group of professors at Thunderbird School of

Global Management (which consistently has been ranked

number one in the United States and the world for its expertise

in international business) embarked on a project: a rigorous and

scientific study of the drivers of expat success. There were many

aspects to this issue—for example, the role of the employer or

the role of the family—however,

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we quickly recognized the
importance of focusing exclusively
on the individual expat and
the attributes that led to an
individual either underperforming
or succeeding.
In designing our research
program, our research team first
reviewed all the literature on the
topic to develop a basic founda-
tion, and then interviewed almost
50 Thunderbird professors from
different disciplines to understand The partnership
their views on this subject. forged between
Hundreds of hours of individual
Thunderbird and
and focus group interviews gave
the project further shape, and led
the Worldwide
to our next step: interviews with ERC® Foundation
more than 200 Thunderbird leveraged both
alumni in international positions organizations’
in the United States, Asia, and strengths and focus.
Europe. These individuals, who
have significant experience and In early 2006, we joined
responsibility in various global forces with the Worldwide ERC®
corporations, also are nationals Foundation for Workforce
from many countries of the world. Mobility to expand our global
Their perspectives on the mindset project to the workforce the selection of candidates for
elements of a global mindset gave mobility industry. The partnership overseas assignments.
us additional insight for our study. forged between Thunderbird and
The next phase of our research the Worldwide ERC® Foundation International Assignments:
Competition and Strategy
involved organizing our findings leveraged both organizations’
into a framework to define and strengths and focus. Thunder- International assignments are
explain the drivers of expat bird’s work to develop global hitting the mainstream as an inte-
success. An invitation-only business leaders in the educational gral part of a company’s business
“global mindset” conference arena dovetails with the workforce strategy, and continue to repre-
at Thunderbird allowed us to mobility industry’s need to sent a significant investment, as
bring together nearly four dozen educate and network global well. To make matters more
of the most distinguished scholars human capital professionals. And complex, the assignment that
in global business from all over the Foundation’s ability to brings the employee to work in
the world. At this conference, connect us with senior interna- another culture and country often
we revealed our findings to our tional executives worldwide for brings family members, too… so
guests. We also recorded the in-depth interviews in such major when an assignment is unsuccess-
outcome of discussions that cities as Hong Kong, China; ful, the scale of the “defaulted”
focused on factors leading to Bangalore, India; Brussels, assignment is much deeper and
success in global assignments; Belgium; and San Francisco, CA, more costly than with a home-
an exercise that was integral to broadened our research and country assignment.
the development of our under- extended our reach to individuals Selecting the right individuals for
standing of the unique actions who actually manage international international assignments, those
and thought processes of - assignments. In some cases, these with a higher-than-average likeli-
successful expats. interviewees also participated in hood of outstanding performance,

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will provide a competitive advan- stakeholders in the host country ences,” an expat with a global
tage for the company that builds to help achieve company goals. mindset ends up “enjoying them
the competency to identify and seeking them out because
“success potential” in their new [they] find them fascinating.”
Understanding Global Mindset
hires and/or current employees. Thunderbird professors,
With an already evident shortage If we recognize that a global
Thunderbird alumni, distin-
of skilled labor, the competition mindset is a mix of individual
guished scholars, and the senior
for talent will grow even tighter in attributes that enable an expat to
global executives we interviewed
coming years. successfully influence those who
through our relationship with the
are different from him/her, it is
Indeed, recent Worldwide ERC® Worldwide ERC® Foundation all
clear that without it, it is most
benchmarking reports cite
expected increases in nearly all
types of international assign-
ments. And most companies
anticipate some difficulty in find-
ing the talent to fill those assign-
ments. In addition, the increasing
difficulty in recruiting global
talent in labor-depleted regions
drives an increasing need for
workers to be mobile.
Worldwide ERC® statistics reveal
that approximately 80 percent of
companies said the available posi-
tions in their organizations
require new hires to be more
mobile now than three years ago.
And with short-term international
assignments on the rise in a
number of companies and loca-
tions, the time frame for assimilat-
ing into a new culture is tighter pointed out some commonalities,
difficult, if not impossible, for an
and the demand for productivity and as we distilled their views, we
expat to succeed in the interna-
in the host country more chal- concluded that global mindset
tional assignment. Experts have
lenging. consists of three major compo-
described global mindset with a
nents (Figure 1): intellectual capi-
The success of every expat is due, range of language. One global
tal, psychological capital, and
to a large extent, to the ability to mobility expert said it means “the
social capital.
influence individuals, groups, and ability to avoid the simplicity of
organizations with a different assuming all cultures are the
cultural perspective in the host same, and at the same time, not Intellectual Capital
country to achieve the company’s being paralyzed by the complexity Intellectual capital refers to
goals. Whether communicating of the differences.” Another knowledge, skills, understanding,
with his or her employees, noted that “someone with a and cognitive complexity. From
colleagues, supply chain partners, global mindset enters a new and our interviews, we know that
or customers; or different types of different situation, with many there is an important body of
organizations in the host country, more questions rather than knowledge—the employee’s
such as government agencies, answers, assumptions, and subject matter expertise that
regulators, or client organizations; presumptions.” Still another said expats must have to be successful
the successful expat has a primary that “rather than being frustrated in their tasks. We also learned that
responsibility: to influence key and intimidated by the differ- successful expats think differently
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 Table 1. Intellectual Capital
1. Understanding of how to build and manage global alliances, partnerships, and value networks 6.15
2. Ability to manage the tension between corporate requirements and local challenge 5.93
3. Ability to handle complex cross-cultural issue 5.87
4. Understanding of global business and industry 5.73
5. Understanding cultural similarities 5.67
6. Understanding other cultures and histories 5.60

than their less successful counter- working together to satisfy the can intuit the cultural underpin-
parts—they have a bigger capacity needs of their global customers. nings of his or her host society,
to take differing viewpoints into Expats must understand the learn about how things are done
consideration to understand and importance of such networks and in different cultures and why, and
address complex issues. how they work; what actions and manage the potential tension
In our Worldwide ERC® Found- processes create success or lead to between his or her culture and
ation interview group, we asked malfunctions in global networks. the host culture in an effective
senior executives to rate the Every expat faces conflicting and sustainable manner. As one
importance of a range of individ- demands from their local stake- executive put it: “We have to
ual attributes that were identified holders and from their corporate understand the culture and the
during our earlier interviews. headquarters, so managing the way of the people in the country
Table 1 shows their ratings on a natural tensions between corpo- we are in. Sometimes, the
seven-point scale for the items rate and local priorities and Western way of doing things
related to intellectual capital (A requirements is also a part of the will not work at all.”
rating of 7 was “Extremely intellectual capital. The corporate
Important.”). headquarters is, obviously, going Psychological Capital
It is clear that successful expats to be most interested in Having a solid base of knowledge
have a high stock of intellectual economies of scale and scope, in and a good understanding of
capital; with a strong set of cogni- maximizing efficiencies, and stan- global issues is just one of the
tive skills and a solid base of dardizing everything across the factors necessary for expat
knowledge. Intellectual capital global enterprise. In contrast, success. The second component
translates into understanding the regional responsiveness requires of global mindset is psychological
global business and industry; understanding and adapting to capital. Psychological capital is a
knowing how competition works unique local needs and demands. set of psychological attributes that
in the global industry and what it The balancing act required in enable the expat to function
means to the expat’s company. As managing these two forces is a successfully in the host country
one executive put it: “Expats are decisive success factor for expats. and leads to the expat having a
chosen because they are supposed Finally, and perhaps most impor- strong willingness and motivation
to bring knowledge and experi- tantly, intellectual capital requires to have the experience in, and to
ence to the company that they the ability to manage complex succeed in, international settings.
don’t have locally… that provides cultural issues and understand In our Worldwide ERC® Found-
a level of respect.” cultural histories and similarities. ation-sponsored interviews, we
Intellectual capital also involves By the nature of their jobs, expats asked senior executives to rate the
the ability to build global are very likely to face such issues importance of several psychologi-
networks, and being cognizant of as they try to influence others cal attributes that we had uncov-
the role that interdependencies toward their company’s goals. It ered in our earlier interviews.
play in global success. Today’s is essential that the individual Two sets of attributes received
global corporations are highly creating the bridge between the very high ratings: cultural sensi-
integrated global networks of corporate culture and the local tivity and psychological fortitude.
supply chain partners who are host country culture is one who Table 2 shows the executives’

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Table 2. Psychological Capital—Cultural Sensitivity
1. Respect for cultural differences 6.73
2. Willingness to adapt, learn, and cope with other cultures 6.43
3. Willingness to accept good ideas no matter where they come from 6.33
4. Acknowledgement of the validity of different views 6.29
5. Openness to cultural diversity 6.27
6. Ability to suspend judgment about those from other cultures 6.20
7. Positive attitude toward those from other cultures and regions 6.20
8. Ability to adjust behavior in a different cultural setting 6.13
9. Willingness to work across time and distance 5.87
10. Desire to learn about other cultures and other parts of the world 5.67

ratings of the significance of

cultural sensitivity—nearly all Table 3. Psychological Capital—Psychological
items received a rating above six Fortitude
on a seven-point scale reflecting 1. Adaptability 6.36
their extreme importance.
2. Self-confidence 6.14
Respecting cultural differences 3. Resiliency 5.86
received the highest score of all
4. Optimism 5.71
the items in the global mindset
survey, at 6.73 out of 7—in fact,
the interviewed executives were ation-sponsored interviews with and don’t try to absorb the things
unanimous on the importance of senior executives also provided us they don’t know. They don’t have
this attribute. As one interviewee with this information: setting that flexibility and adaptability.
stated, “One thing that all openness to cultural diversity into They want everything to be like
successful global executives share action through the willingness to it was at home.”
is a genuine respect for other actually adapt and cope with Another executive pointed out:
cultures… that is the beginning, differing cultures was of extreme “Adaptability and willingness to
the middle, and the end.” importance, 6.43 out of 7. Said change, and not being set in
one executive: “A successful expat your own ways, is a critical
Another executive noted “… the
acts with humility, is an excellent requirement. If you’re very
most successful people are those
listener, is patient, and is structured and expect things to
who put in their mind that they
cognizant of how he is perceived.” go 1-2-3, you’re going to have a
are actually the guests in the
[host] country. They accept that Another interviewee summed it lot of difficulty in an overseas
people are different and have up this way: “A successful expat is environment.”
different values.” open, listens a lot, is interested in Self-confidence is another impor-
how people in different countries tant feature of psychological forti-
Openness to cultural diversity—
approach problems, and is tude. One senior executive made
having a non-judgmental attitude
prepared to learn.” this observation: “Self-confidence
toward those from other
cultures—also was rated very Yet another aspect of psychologi- helps you walk the talk. It ener-
highly, at 6.27 out of 7. This cal capital is psychological forti- gizes other people.” Still another
rating was confirmed when we tude—such qualities as said: “Expats are expected to
asked the interviewees specifically adaptability and flexibility— operate on their own and need to
about the ability to suspend judg- summarized in Table 3. handle unknown circumstances.
ment. As shown in the table, this According to one senior execu- That is very hard to do without
was rated nearly as high in impor- tive: “Expats who fail tend to be self-confidence.”
tance as our “openness” factor. emotionally very tight. They can’t The other important elements
let go of the things they know of psychological fortitude are
The Worldwide ERC® Found-
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 Table 4. Social Capital
1. Ability to generate positive energy in people from a different part of the world 6.50
2. Ability to excite people from a different part of the world 6.30
3. Ability to connect with people from other parts of the world 6.13
4. Collaborativeness 6.00

optimism and resiliency. One of expats generate positive prepared before they arrive.
our senior executives energy and excite- Therefore, it is essential to ensure
expressed it this way: ment among their that the screening process for
“You need a very posi- local stakehold- expats includes an assessment
tive attitude. [The ers and connect of their global mindset.
expat gets] into situa- with them on a Traditionally, companies have
tions that may look personal level. relied on technical skills as the
like they will never Stated one main criteria for choosing expat
resolve. Without opti- executive: “It is assignments, but we now know
mism and resiliency, you about bringing that assessing global mindset is
can’t survive. You need to the best out of at least as important.
look at every challenge as a everyone… the ability Such an assessment will help to
learning opportunity.” to draw out each indi- select and assign the right individ-
vidual and build on their strength uals to international assignments.
Social Capital to move the process forward.” Or, in the case of a company that
Social capital is the third and final Collaborativeness is also an must assign an employee with a
piece of the global mindset, and important part of social capital— low “global mindset stock,” there
refers to the expat’s ability to having the flexibility to address will be more awareness of the
build trusting relationships with needs not only for yourself, but need to develop and prepare him
local stakeholders, whether they for other people. It was noted or her for the assignment.
are his/her employees, supply that the ability to be collaborative Cognizance of the significance
chain partners, or customers. leads to a team environment in of the elements of global mindset
In our various interviews, trust which trust flourishes. will continue to shape an organi-
emerged as a significant issue. Expats who generate positive zation’s leadership pipeline—
Many interviewees told us that energy, collaborate, and connect from hiring profiles to incentive
building trusting relationships with other people are more likely structures. As Worldwide ERC®
with those who are different from to build sustainable trusting Foundation Chairman Jill Silvas,
them is essential to the expat’s relationships. SCRP, notes, “This research is a
sustainable success. As shown in compelling and significant busi-
Table 4, the senior executives Global Mindset as a Business Tool ness tool for our global workforce
from the Worldwide ERC® A global mindset and its three industry as the world’s talent base
Foundation-sponsored interviews crucial components—intellectual continues to diminish. Companies
rated this particular dimension capital, psychological capital, and that are armed with the tools to
very highly—the average score on social capital—is critical informa- identify the best candidates for
each item is more than 6 on a tion for both expats and their global positions will be most
7-point scale. companies. The Worldwide ERC® successful in an increasingly
Referring back to the need to Foundation-sponsored interviews open workplace.”
effectively influence those around with senior executives revealed Mansour Javidan is professor and director
them, senior executives pointed that in the compressed “climate” for the Garvin Center for Cultures and
Languages of International Management
out that the expat cannot influ- of a short-term assignment, for Thunderbird School of Global
ence unless he or she builds trust- expats have less of a chance to Management, Glendale, AZ. He can
be reached at +1 602 978 7013 or
ing relationships. Successful learn as they go and need to be e-mail javidanm@t-bird.edu.

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 The Global Mindset Project research,conducted jointly by the
Worldwide ERC® Foundation for Workforce Mobility and Thunderbird
School of Global Management,has appeared or is scheduled
to appear in these publications and presentations.

Publications:
Javidan, M., Hitt, M.A., and Steers, R.M. (eds) 2007. The Global Mindset. Elsevier. In press.
Hitt, M.A., Javidan, M., and Steers, R.M. 2007. Global Mindset: An Introduction. In Javidan, M., Hitt, M.A., and
Steers, R.M. (eds) 2007. The Global Mindset. Elsevier. In press.
Beechler, S. and Javidan, M. 2007. Leading with a global Mindset. In Javidan, M., Hitt, M.A., and Steers, R.M.
(eds) 2007. The Global Mindset. Elsevier. In press.
Javidan, M., Hitt, M.A., and Steers, R.M. 2007. So What is Global Mindset and why is it Important? In Javidan,
M., Hitt, M.A., and Steers, R.M. (eds) 2007. The Global Mindset. Elsevier. In press.
Javidan, M., Mary Teagarden, Femi Babrinde, Karen Walch, Nandani Lynton, Christine Pearson, David Bowen,
and Angel Cabrera, 2007, June. Global Mindset Defined: Expat Success Strategy, MOBILITY.

Presentations:
Global Mindset: What is it and why is it important? A Professional Development Workshop At the 2007 Academy
of Management annual conference, Philadelphia, Aug. 4–6.
Global Mindset: What is it and why is it important to your company? Presentation to Wal Mart executive group,
Dec. 19, 2006.
Cross cultural Understanding: the need for a global mindset: Presentation to the senior management group at
National Business Travel Association, Washington, D.C., Dec. 14, 2006.
Global Mindset: What is it and why is it important to your company? Presentation to EDS management group,
Detroit, Dec. 12, 2006.
Global Mindset: What is it and why is it important? Presentation at the University of Victoria, British Columbia,
Canada, Nov. 16, 2006.
Global Mindset and Expatriate Success. Worldwide ERC Conference, Dallas, Oct. 11–13, 2006.
Global Mindset: What is it and why is it important to your company? Presentation to EDS senior HR group, Dallas,
Oct.10. 2006.
Global Mindset: What is it and why is it important to your company? Presentation to EDS management group,
Dallas, Oct.9. 2006.
What is Global Mindset and Why is it Important? The Second Biennial Gallup Leadership Institute Summit,
Washington D.C., Oct. 7–9, 2006.
Javidan, M., P. Dorfman, and M. sully de Luque, “Culture and Leadership: An Overview of the Findings of the
GLOBE Project.” Showcase Symposium, 2006 Academy of Management annual Meeting, Atlanta, August 14–16.
Javidan, M., P. Dorfman, and P. Hanges, “Understanding the link between culture and leadership: Findings from
the GLOBE Project.” Symposium, 2006 meeting of the International congress of Applied Psychology (ICAP),
Athens, Greece, July 16–21.
 Worldwide ERC ®
Founded in 1964, Worldwide ERC® is a membership association
that networks and educates workforce mobility professionals and
HR innovators. Worldwide ERC® addresses issues, trends, and best
practices for the movement of employees within the United States
and around the globe, and is the recognized authority for workforce
mobility issues.

Worldwide ERC ® Foundation for Workforce Mobility

The Foundation for Workforce Mobility was established in 2004
to study, educate, and report on issues of interest to business leaders
who must maintain a mobile workforce to thrive in today’s world
markets. It widens the outreach from the relocation and workforce
mobility industry to a broader business community, both in the
United States and around the world. Through its research partnerships
with institutions like Thunderbird School of Global Management, the
Foundation develops information to help business leaders strategically
and knowledgably address global workforce mobility issues.

Thunderbird School of Global Management

Since its founding in 1946, Thunderbird School of Global
Management has been synonymous with global leadership in business
education, and was the first graduate management school focused
exclusively on global business. Regarded as the world’s leading
institution in the education of global managers, Thunderbird offers
a unique educational experience that teaches real-world skills for a
dynamic global marketplace. Thunderbird produces graduates who are
distinguished by a global mindset that allows them to work successfully
with individuals from diverse cultures and to manage effectively in
different social, economic, and political environments. Thunderbird is
consistently named among the top MBA programs by newspapers and
magazines around the world in their rankings of the best graduate
programs, and not only is sought out by students worldwide, but also
by companies seeking to gain the management skills they need to
succeed in today’s global economy.

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 Worldwide ERC®
1717 Pennsylvania Avenue NW, Suite 800
Washington, DC 20006
+1 202 857 0857
www.erc.org