The influence of psychological contracts on the adjustment and organisational commitment among expatriates : An empirical study in Taiwan

Purpose – The purpose of this research is to investigate the influence of psychological contracts on the adjustment and organisational commitment of expatriates during international business assignments. The study also aims to investigate the influence of psychological barriers to expatriate adjustment. Design/methodology/approach – A unique survey questionnaire was developed to collect data from 219 Taiwanese business expatriates during the first quarter of 2007. A LISREL analysis is used to test the hypotheses of the research framework. Findings – The study finds that: perceived fulfilment of the psychological contracts of expatriates significantly influences both their adjustment to foreign situations and their organisational commitment; psychological barriers to adjustment have a negative influence on both socio‐cultural adjustment and psychological adjustment; and expatriate psychological adjustment has both a direct and an indirect influence on organisational commitment. Practical implications – International managers should implement appropriate human resource measures to meet expatriates' expectations for their psychological contracts. Managers should ensure that expatriates receive adequate counsel and training to assist them in minimizing any psychological barriers they might have to adjustment in a foreign environment. Originality/value – The study extends concepts from organisational behaviour theory and applies them to the process of international manpower management.