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St. Petersburg State University
Graduate School of Management
Master in Management Program
DETERMINANTS OF SELF-INITIATED EXPATRIATES’
RELOCATION DECISIONS:
THE CASE OF RUSSIA
Master's Thesis by the 2nd year student
Master in Management – CEMS
Kristina Kim
Research advisor:
Doctor of Economics, Associate Professor
Organizational Behavior and Personnel Management Department
Marina O. Latukha
Saint Petersburg
2021ЗАЯВЛЕНИЕ О САМОСТОЯТЕЛЬНОМ ХАРАКТЕРЕ
ВЫПОЛНЕНИЯ ВЫПУСКНОЙ КВАЛИФИКАЦИОННОЙ РАБОТЫ
Я, Ким Кристина Евгеньевна, студент второго курса магистратуры направления
«Менеджмент», заявляю, что в моей магистерской диссертации на тему «Факторы,
определяющие решение о релокации добровольных экспатриантов: пример России»,
представленной в службу обеспечения программ магистратуры для последующей
передачи в государственную аттестационную комиссию для публичной защиты, не
содержится элементов плагиата.
Все прямые заимствования из печатных и электронных источников, а также из
защищенных ранее выпускных квалификационных работ, кандидатских и докторских
диссертаций имеют соответствующие ссылки.
Мне известно содержание п. 9.7.1 правил обучения по основным образовательным
программам высшего и среднего профессионального образования в СПбГУ о том, что
«ВКР выполняется индивидуально каждым студентом под руководством назначенного
ему научного руководителя», и п. 51 Устава Федерального Государственного Бюджетного
образовательного учреждения высшего образования «Санкт-Петербургский
Государственный Университет» о том, что «студент подлежит отчислению из Санкт-
Петербургского Университета за представление курсовой или выпускной
квалификационной работы, выполненной другим лицом (лицами)».
08.07.2021 (подпись студента)
STATEMENT ON THE INDEPENDENT CHARACTER OF THE
MASTER’S THESIS
I, Kim Kristina Evgenievna, second-year master student of the program «Master in
Management», state that my Master’s thesis on the topic «Determinants of self-initiated
expatriates’ relocation decisions: the case of Russia», which is presented to the Master Office to
be submitted to the Official Defense Committee for the public defense, does not contain any
elements of plagiarism.
All direct borrowings from printed and electronic sources, as well as from master theses,
Ph.D, and doctorate theses which were defended earlier, have appropriate references.
I am aware that according to paragraph 9.7.1. of guidelines for instruction in major
curriculum programs of higher and secondary professional education at St. Petersburg University
«a master’s thesis must be completed by each of the degree candidates individually under the
supervision of his or her advisor», and according to paragraph 51 of the Charter of the Federal
State Institution of Higher Education Saint-Petersburg State University «a student can be
expelled from St. Petersburg University for submitting of the course or graduation qualification
work developed by other person (persons)».
08.07.2021 (student’s signature)
2АННОТАЦИЯ
Автор Ким Кристина Евгеньевна
Факторы, определяющие решение о релокации добровольных
Название ВКР
экспатриантов: пример России
Образовательная
38.04.02 Менеджмент
программа
Направление
Master in Management (MiM)
подготовки
Год 2021
Научный
Латуха Марина Олеговна
руководитель
Целью данного исследования является определение ключевых
факторов, влияющих на решение о релокации добровольных
экспатриантов, а также выявление тех практик управления талантами,
которые смогут воздействовать на возвращение добровольных
экспатриантов обратно в Россию. В результате качественного анализа
Описание цели,
задач и
были выявлены факторы, определяющие решение о релокации из
основных
России добровольных экспатриантов, разделенные на три уровня:
результатов
индивидуальный, организационный и страновой. При этом автор
исследовал роль практик управления талантами на релокационные
намерения добровольных экспатриантов и выявил, какие практики
смогут быть использованы как механизм репатриации.
Международная миграция, добровольные экспатрианты, управление
Ключевые слова
талантами
3ABSTRACT
Master Student's
Kristina Kim
Name
Determinants of self-initiated expatriates’ relocation decisions: the case of
Master Thesis Title
Russia
Educational
38.04.02 Management
Program
Main field of study Master in Management (MiM)
Year 2021
Academic
Marina Latukha
Advisor’s Name
The aim of this study is to identify the key factors influencing the decision
to relocate of self-initiated expatriates (SIEs), as well as to identify those
talent management (TM) practices that may affect the return of the SIEs
back to Russia. As a result of a qualitative analysis, the factors that
Description of the
determine the SIEs’ decisions to relocate from Russia were identified,
goal, tasks and
main results divided into three levels: individual, organizational and country. At the
same time, the author investigated the role of TM practices in the intentions
of SIEs to relocate and identified the specific TM practices that could be
applied as a mechanism for SIEs’ repatriation.
International talent migration, international mobility, talent management,
Keywords
self-initiated expatriates, SIE
4TABLE OF CONTENTS
CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES ........ 6
1. Introduction ............................................................................................................................. 6
1.1. Human Capital theoretical background ............................................................................ 7
1.2. Relocation decisions ....................................................................................................... 13
1.3. The concept of self-initiated expatriates ......................................................................... 16
1.4. Global talent management and SIEs ............................................................................... 28
CHAPTER II. RESEARCH METHODOLOGY .......................................................................... 34
2.1. Data Collection ................................................................................................................... 34
2.2. Respondent selection .......................................................................................................... 37
2.3. Data Analysis ...................................................................................................................... 38
CHAPTER III. EMPIRICAL PART ............................................................................................. 39
3.1. Results of Data Analysis and Discussions .......................................................................... 39
3.1.1. Results for RQ1. What factors determine relocation decisions of SIEs? ........................ 40
3.1.2. Results for RQ2. What TM practices may serve as repatriation mechanisms for Russian
SIEs? .......................................................................................................................................... 45
3.2. Research Findings ............................................................................................................... 49
CHAPTER IV. CONCLUSIONS AND IMPLICATIONS ........................................................... 52
4.1. Conclusions ........................................................................................................................ 52
4.2. Theoretical Contribution ..................................................................................................... 52
4.3. Practical Relevance ............................................................................................................. 53
4.4. Limitations and Recommendations for further research .................................................... 54
REFERENCES .............................................................................................................................. 55
APPENDIX 1. QUESTIONNAIRE .............................................................................................. 60
5CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES
1. Introduction
With the growing importance of qualified human resources for the global knowledge
economy, the ability of an economy to compete for highly skilled migrants is becoming a
fundamental driver of prosperity (Wittek, 2019). In an environment, in which rapid worldwide
economic change is affecting organizations as a whole and human resource management (HRM)
in particular (Sheehan & Sparrow, 2012), this competition is expected to increase in intensity
(Docquier & Machado, 2016). Thus, the increasing importance of international human resources
demands a consideration of how economies compete for available talent.
Employees who show personal initiative are becoming increasingly valuable for
businesses for a variety of reasons. Expatriation represents an interesting case since relocating
abroad independently is likely to require a comparatively high level of personal initiative
(Andresen et al., 2014). By definition, “self-initiated” expatriates (SIEs) are assumed to show
personal initiative when relocating abroad (Andresen et al., 2014; Cerdin & Selmer, 2014;
Tharenou, 2015). Recently there has been a surge of research and business into independent,
internationally mobile professionals (Andresen et al., 2012; Doherty, 2013; Shaffer et al., 2012).
The growing number of SIEs entering the global labor market has one major implication: MNCs
may use these individuals to fill critical roles in subsidiary operations at a lesser cost than
expatriates (Collings et al., 2007).
The majority of the rapidly expanding literature on business expatriates has been on
organizational expatriates who have been sent to a foreign location by their parent firms
(Tharenou, 2013). However, there is far less study on SIEs who themselves have decided to
expatriate to work abroad (Andresen et al., 2012). Moreover, few studies have investigated the
factors that determine SIEs’ decisions to relocate, particularly on emerging markets. Therefore,
this study addresses existing critical research gaps around the factors influencing self-initiated
expatriation from Russia and the role of talent management (TM) in SIEs’ repatriation process.
Research Subject: Factors influencing SIEs’ relocation decisions and TM practices.
Research Object: Self-initiated expatriates (SIEs).
The goal is to define factors that influence SIEs’ relocation from Russia and to
investigate the role of TM practices in repatriation of Russian SIEs.
The key research objectives are defined as follows:
1. To review and analyze academic literature in human capital, talent migration, TM and
concept of SIE;
62. To differentiate critical determinants that encourage Russian SIEs to relocate and study the
influence of TM practices on this process;
3. To conduct semi-structured in-depth interviews with Russian SIEs to explore the
determinants of their relocation and what TM practices can influence their repatriation to
Russia;
4. To provide recommendations for organizations based on extensive data analysis for
successful application of TM practices for SIEs in order to gain competitive advantage as
employer.
Master Thesis Structure
This master thesis is consisted of four chapters. The first chapter is dedicated to the literature
review of the main concepts related to TM and SIE. The methodology applied in this master thesis
along with its relevance to the research is described in the second chapter. The third chapter is
devoted to the empirical part with generalizations, discussion and analysis of the conducted
interviews, conclusions and the development of an empirically grounded model. The fourth chapter
concludes this master thesis and describes the theoretical and practical contribution, limitations and
recommendations for future research as parts of the main results.
1.1. Human Capital theoretical background
A number of scientific works have been written about the reasons why certain high-skilled
employees choose to move. The traditional approach to investigate the relocation phenomenon
views the roots of these reasons as inconsistency of different countries in their economic or
political environment driven by globalization processes (Pasban and Nojedeh, 2016). Some other
researchers suggest that international migration is a way of how such employees react to the
imbalance between different nations (Ployhart and Moliterno, 2011). This approach supports
earlier developed “exit and voice” framework by Hirschman (1970) that claims that decision to
stay in country of origin (COO) signals individual’s eagerness to voice to improve current
situation, while decision to migrate may be seen as the choice to “escape” or avoid the problem.
The most popular research idea, however, was offered by American scholar Sjaastad
(1962) in one of the first studies on migration. As the author suggests, individuals and households
move to enhance their human capital (HC) and, as a result, their capacity to earn more money
throughout their lifetimes.
HC is being widely used in different fields: economics, human resource development, and
national planning with different meanings in different fields.
7HC theory has list of advantages compared to other approaches elucidating migration
phenomenon (Gennaioli et al., 2013; Becker, 2002). It explains differences in perceptions of
migration worth among people of various ages by adding a temporal lag in getting advantages
from migration. Moreover, unlike many other frameworks, this theory does not restrict itself to
explaining simply the economic benefits and costs that migration may bring; it proposes that they
may take a non-monetary shape.
Foundational studies on HC
Based on the comprehensive literature research, there are different views on who was the
founder of the theory of HC. Some researchers (Hewitt-Dundas, 2016; Currie & Almond, 2011)
believe that this concept is rooted in the studies of ancient Asia and Greece, while others (Baron,
2011; Leiva et al., 2014) argue that it bases in the works of Smith, Petty, Marshall, Mill, and Fisher.
Other researchers believe that the first to try to define and measure what now is called
“human capital” was W. Petty (Poteliene & Tamasauskiene, 2014). Petty believed that labor was
the “father of wealth” and that a measure of its value should be included in the estimation of
national wealth. All in all, Petty’s thesis was that factors other than land and population were
important in determining the wealth of a nation.
At the end of the 19th and beginning of 20th centuries, there were formed two directions
of economic thought, which discussed the definition of the HC term. The representative of one
direction scholars (A. Smith, J.St. Mill, W. Rosher, W. Bagehot, N. Senior, H. Sidwick and others)
considered that HC is presented as inherited and possessed by man qualities and abilities, but they
did not explicitly include human beings as capital.
Other direction of scholars (G.M. Clark, H.D. McLeod, T. Witshtane, W. Farr, I. Fisher,
N.W. Senior, H.D. McCleod, J.H. von Thünen, A. Marshal and others) defined the man himself as
capital. Alhough they included human beings as well as their acquired skills and abilities in their
concept and saw investment in people as “a means of increasing productivity”, they did not use
the concept for any specific purpose, nor did they try to estimate the stock of human resources in
a quantitative sense (Son, 2010).
However, the theory of HC was formed as a special field of economics only at the
beginning of the 1960s, when Mincer, Fabricant, Schultz and Becker gave a different point of view
regarding the concept and formation of HC (Currie & Almond, 2011).
So, Mincer (1958) showed that training and skill (HC) considerably affected personal
income dispersions. Solomon Fabricant (1959) studied the productivity in the US from 1889 to
1957 and found that the methods and assumptions underlying productivity figures promoted
underestimation of intangible capital investment eventually overestimating the productivity.
Becker (1960) studied differentials in personal incomes between the college graduates and high
8school graduates in the US. Schultz (1961) predominantly identified the relationship of education
to HC formation. He further synthesized that people’s skills and knowledge is a form of capital
although it is not obvious, and showed that education is an expenditure made to both consumption
and investment to attribute to the increase in stock of education as double as the increase in national
income during 1900-1956.
HC definition
The deep research of the academic literature shows that HC denotes many dimensions and
is quite a complex phenomenon (Blair, 2011). Many scholars emphasize one or another aspect of
HC, taking into account their specific research goals, challenges and context (Gennaioli et al.,
2013; Baron, 2011; King, 2010; Son, 2010). Despite a plenty of HC definitions in the literature, a
number of key elements are common, specifically, knowledge, education, experience, health,
competence, trained skills and endowed abilities.
As many factors influence forming and exploitation of HC, these factors can be classified
according to various scientific descriptors (Crook et al., 2011). These classifying descriptors
include the following: a result of influence (positive/negative); a type of influence (direct and
indirect); a type of influence in the process of renewing (intensive or extensive); a level of
influence (macro/mezzo/microeconomic/ individual).
In more general terms, the factors that influence HC formation can be classified into 6
groups (Becker, 2002): demographic, socio-demographic, social, economic, organization-
economic, and ecological factors. Later Becker (2010) defines HC as "activities that influence
future monetary and psychic income by increasing resources in people".
Alternatively, HC can be defined as a collection of features, life trade, knowledge,
creativity, innovation, and energy, which people invest it in their work (Wright and McMahan,
2011).
One of the most popular definitions of HC was made by OECD (2001) saying that “it is
the knowledge, skills, competencies and attributes embodied in individuals that facilitate the
creation of personal, social and economic well-being”. In a very general sense, HC is the
knowledge, skill, creativity, and health of the individual (Son, 2010).
HC benefits
Benefits of HC were perceived even by the early economists. The classicalists’ view was
that HC mediated in creating the wealth to a nation. Foundational studies of economies and HC
theory building studies showed the increased personal incomes (Mincer, 1958; Becker, 1960;
Becker, 1964), national productivity (Fabricant, 1959), and national income and economic growth
(Schultz, 1961; Denison, 1962; Schultz, 1963).
9The accumulation of knowledge and HC has a direct effect on efficiency. In advanced
countries, which the growth of gross domestic product has been raised, employees training level
has directly increased their working life (Pasban & Nojedeh, 2016). Most social benefits, derived
from the accumulation of human capital, such as good health, more urban employment,
reduction of crime, and increase in social correlation affect the economic growth in the long term
(King, 2010).
As OECD (2007) mentions: “Human capital, after all, is only one factor – albeit an
important one – influencing growth”.
Blair (2011) also found, in a cross country study of 57 developing countries, that HC
together with socio-political stability is crucial to explain the level of financial development.
Moreover, the social capital of a country promotes the society’s welfare and
directly affects the efficiency of goods and services. For example, the high level of
trusteeship in the society reduces the costs of commercial transactions (Currie and Almond,
2011).
On the other hand, HC is a crucial factor in company performance (Mazura, 2012;
Dahlan, 2014). Muafi (2010) measures HC from three perspectives: level of education, work
experience, and competence. Whereas Cheng et al. (2009) measure HC from the level of
education, work experience, professional quality, and ongoing training. Each component has a
different role in creating a corporate capital that ultimately determines the value of a company
(Mazura, 2012).
The organizations’ emphasis on human capital is based on the view that the market
value of organizations depends more on intangible assets especially HC than on tangible assets
(Wright and McMahan, 2011). Employing and keeping the best employees in the organization is
a part of this deal. Organizations strive to raise the level of organizational learning,
increase the level of employees’ skills and abilities through encouraging them, and
provide an atmosphere where knowledge is created, shared and applied and learning becomes
a habit (Crook et al., 2011).
Furthermore, HC has contributed to the development of intellectual capital. Bontis (1998)
has pointed out by his empirical pilot study that HC is a significant component forming the
intellectual capital in organizations and it interact with other two component of intellectual
capital namely “structural capital” that is the tacit knowledge embodied in organization itself and
the “customer capital” that refers to the knowledge of market channel and customer
relationships. Bontis (1998) also referring to Hudson (1993), has shown how HC is important as
a source of innovation and strategic renewal.
10Importantly, Beine, Docqier, and Rapoport (2001) studied the importance of migration
prospects in making education decisions and HC formation. They found that two effects are
important to HC development in a small, open, and developing economy. First “brain effect” that
says that investment in HC increases as it is fostered by the migration opportunities that offer
higher expected return in abroad when the economy is open. Second is the “drain effect” that
considers the departure of some educated agents that reduces the HC stock. They further explain
about a beneficial brain drain that can occur when the brain effect is dominating.
Consequences of HC loss
The idea of brain drain, which is closely linked to HC theory, is frequently discussed in
the literature on international migration. By its definition, brain drain refers to the worldwide
transfer of human capital, and it mostly relates to the movement of highly educated people from
developing to developed countries (Gennaioli et al., 2013).
The analysis of the various literature resources on the short-term and long-term
consequences of high-skill emigration on countries of origin (COO) shows that the impact of the
brain drain on a country’s welfare and development can be rather beneficial or detrimental
(Baron, 2011). While the brain drain has long been viewed as harmful to poor country’s growth
potential, many economic researches have appeared emphasizing that migration prospects may
foster HC formation at origin (Campbell et al., 2012).
There are a multitude of literature sources on brain drain that covered migration of highly
skilled workers from the less developed countries to the developed countries.
For instance, using an endogenous growth model, it was observed that when a destination
country does not differentiate between the abilities of immigrants, an increase in migration
prospects would improve economic growth in the COO (Wright and McMahan, 2011).
Moreover, the authors argue that when bias towards skills exists, slack restrictions on the
migration of high-skilled workers will damage economic growth in the long run (Chen, 2009).
Similarly, it is further suggested that when the unequal distribution of information about the
skills of highly skilled immigrants exists, the “brain waste” effect might occur when the
expertise of these immigrants is not used adequately in destination countries (Docquier and
Marfouk, 2006). In that regard, the authors claim that only people with skills below average have
a willingness to migrate (Baron, 2011).
Considering the “economies of scale” in advanced education, the authors argue that the
brain drain increased both the education and income levels of the destination countries at the
expense of the COO (Campbell et al., 2012). However, skilled migration will affect mostly other
skilled workers who do not migrate, more than it hurt the remaining unskilled workers (Ployhart
and Moliterno, 2011). This is because these skilled workers used to benefit relatively more from
11the scale externality associated with a large "pre-brain drain" stock of skills. Furthermore, when
labor productivity and wages depend on the average level of HC, voluntary skilled migration
diminishes the average level of HC and productivity in the COO (Gennaioli et al., 2013).
Ployhart and Moliterno (2011) believed that migration is never-ending and always takes
place in a similar direction due to higher wages in the destination country, leading to a
discrepancy in per capita incomes. In that respect, the outflow of highly skilled migrants is
adverse to the COO because the productivity of HC depends on the scale effect in employment.
Moreover, highly skilled migration might impede modernization and make obstacles to structural
change which is a key feature of the development process (Campbell et al., 2012).
On the other hand, there are a significant number of authors who argue that brain drain
may lead to brain gain in migrants’ developing COO. So, Campbell et al. (2012) claimed that
when future migration involves uncertainty, brain drain may increase average productivity in the
source countries. Moreover, when the development of HC is positively affected by international
migration opportunities in the COO, an incidental surge in skilled migration rates can lead a
COO out of the "underdevelopment trap" through brain gain and "inter-generational transfer of
HC" (Campbell et al., 2012).
At the same time, Beine et al. (2001), distinguished two growth effects related to the
migration of skilled workers, namely, the “brain effect” and the “drain effect”. The brain effect is
associated with the potential migration opportunities due to higher expected returns from
investments in education abroad. The drain effect is presumably harmful to the COO due to the
leavingof a valuable skilled workforce. However, the net impact of these effects depends on
which effect is prevailing.
This potential “brain effect” was further confirmed by Hemmi (2004) provided that there
is a fixed cost of migration. He argued, though, that a potential migration might cause
contradictory effects on long-run growth rate and transitional growth rate in developing
countries.
Later Beine et al. (2008) used data on migration by skilled workers gathered by Docquier
and Marfouk (2006) to assess the effect of skilled migration prospects on pre-migration HC
levels. Their analysis of cross-sectional data from 127 developing countries demonstrated that
brain drain led to an increase in the number of skilled workers remaining in developing
countries. Furthermore, estimating the net effect of brain drain for individual countries, they
came to the conclusion that countries that have a relatively low level of HC and low skilled
migration rates are more likely to see a net gain.
Alternatively, several pieces of research have explored brain drain scope focusing on the
welfare effects of non-migrants left behind and potential externalities of education acquired by
12an individual prior to migration which was partly publicly financed in source countries
(Mckenzie and Rapoport, 2010). However, there is little evidence on the possible secondary
effects such as return migration and “brain gain effects” in the skilled migrants’ source countries.
Indeed, to extensively verify such a relationship both likely short and long-run effects should be
considered, as the theoretical literature affirms that high-skilled migration might have both
positive and negative effects in the source country.
On the other hand, brain drain can also have benefits for COO (Docquier, 2014). The
author describes alongside positive feedback effects from remittances, circular migration, and the
participation of high-skilled migrants in business networks, innovation, and transfers of
technology, considering the effect of migration prospects on the formation of HC in home
countries. His new research shows that limited high-skilled emigration can be advantageous for
growth and development, especially for a limited number of large, middle-income developing
countries. But for the vast majority of poor and small developing countries, skilled emigration
rates significantly exceed the optimal rate.
All in all, Doherty (2014) shows rather an argumentative point of view argueing that the
impact of the brain drain on a source country’s welfare and development can be beneficial or
harmful. The evidence suggests, though, that there are more losers than winners among
developing countries. Whether a country gains or loses depends on country-specific factors, such
as the level and composition of migration, the country’s level of development, and such
characteristics as population size, language, and geographic location.
1.2. Relocation decisions
Expatriation for professional reasons is, currently, an increasing phenomenon, which spans
all geographic regions and all socio-economic classes of the population in developing and
developed countries (Xenidis & Gallou, 2014). However, in the scientific literature, there are many
approaches to grouping the factors that determine the relocation decisions of highly skilled
workers.
Thus, in their investigations, Selmer & Lauring (2011) and Carr et al. (2010) identified five
categories of motivations for expatriation: professional advancement, financial incentives, family
reasons, life change/escape, and adventure (traveling). Simultaneously, several other studies
(Richardson & Mallon, 2005; Richardson & McKenna, 2003) are focused only on professionals
and identified similar categories of expatriation motivations.
Dickmann and Mills (2010) argue that the most important factors in deciding skilled
migrants to work abroad are: career, self-development, organizational factors, as well as individual
13motivation, social life considerations, and national factors. Later they propose also the location
factor which determines the capacity of the expatriates to adjust to the different cultures and
different living conditions.
Typical motives for the individual to relocate abroad are mostly related to career
opportunities, a chance to gain new cultural experience and learning possibilities, family and
domestic issues, the location, and the overall assignment offer including the repatriation package
and the financial factor of working abroad (Wright and McMahan, 2011). Furthermore, authors
more often describe the significance of the interaction of individuals and organizations in
expatriation decisions (Vance, 2005; Dickmann & Harris, 2005).
Although there are various approaches to categorizing highly skilled workers' relocation
decisions, the general four groups among them can be divided: career opportunities, personal
factors, location factors, and assignment offer.
Career opportunities
Previously, the expatriation literature was focused mainly on the influence of career
opportunities on the relocation decisions of skilled workers (Yan et al., 2002; Richardson and
Mallon, 2005).
For instance, Ployhart and Moliterno (2011) claimed that career development is the
primary reason for managers in moving abroad. At the same time, other authors (Stahl & Cerdin,
2004) observed that skilled migrants appreciated their international experience as an opportunity
for professional and personal growth and career development, despite dissatisfaction with the lack
of long-term planning in the repatriation practices of their organizations. Stahl et al. (2002) also
attri | [Раздел с обоснованием актуальности исследования:
«With the growing importance of qualified human resources for the global knowledge economy, the ability of an economy to compete for highly skilled migrants is becoming a fundamental driver of prosperity (Wittek, 2019). In an environment, in which rapid worldwide economic change is affecting organizations as a whole and human resource management (HRM) in particular (Sheehan & Sparrow, 2012), this competition is expected to increase in intensity (Docquier & Machado, 2016). Thus, the increasing importance of international human resources demands a consideration of how economies compete for available talent.
Employees who show personal initiative are becoming increasingly valuable for businesses for a variety of reasons. Expatriation represents an interesting case since relocating abroad independently is likely to require a comparatively high level of personal initiative (Andresen et al., 2014). By definition, “self-initiated” expatriates (SIEs) are assumed to show personal initiative when relocating abroad (Andresen et al., 2014; Cerdin & Selmer, 2014; Tharenou, 2015). Recently there has been a surge of research and business into independent, internationally mobile professionals (Andresen et al., 2012; Doherty, 2013; Shaffer et al., 2012).
The growing number of SIEs entering the global labor market has one major implication: MNCs may use these individuals to fill critical roles in subsidiary operations at a lesser cost than expatriates (Collings et al., 2007).
The majority of the rapidly expanding literature on business expatriates has been on organizational expatriates who have been sent to a foreign location by their parent firms (Tharenou, 2013). However, there is far less study on SIEs who themselves have decided to expatriate to work abroad (Andresen et al., 2012). Moreover, few studies have investigated the factors that determine SIEs’ decisions to relocate, particularly on emerging markets. Therefore, this study addresses existing critical research gaps around the factors influencing self-initiated expatriation from Russia and the role of talent management (TM) in SIEs’ repatriation process.»]
[Формулировка исследовательской проблемы:
«Research Subject: Factors influencing SIEs’ relocation decisions and TM practices.
Research Object: Self-initiated expatriates (SIEs).
The goal is to define factors that influence SIEs’ relocation from Russia and to investigate the role of TM practices in repatriation of Russian SIEs.
The key research objectives are defined as follows:
1. To review and analyze academic literature in human capital, talent migration, TM and concept of SIE;
2. To differentiate critical determinants that encourage Russian SIEs to relocate and study the influence of TM practices on this process;
3. To conduct semi-structured in-depth interviews with Russian SIEs to explore the determinants of their relocation and what TM practices can influence their repatriation to Russia;
4. To provide recommendations for organizations based on extensive data analysis for successful application of TM practices for SIEs in order to gain competitive advantage as employer.»]
[Цель исследования:
«The aim of this study is to identify the key factors influencing the decision to relocate of self-initiated expatriates (SIEs), as well as to identify those talent management (TM) practices that may affect the return of the SIEs back to Russia.»] |
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Необходимые данные:
- Полный текст научной статьи:
St. Petersburg State University
Graduate School of Management
Master in Management Program
DETERMINANTS OF SELF-INITIATED EXPATRIATES’
RELOCATION DECISIONS:
THE CASE OF RUSSIA
Master's Thesis by the 2nd year student
Master in Management – CEMS
Kristina Kim
Research advisor:
Doctor of Economics, Associate Professor
Organizational Behavior and Personnel Management Department
Marina O. Latukha
Saint Petersburg
2021ЗАЯВЛЕНИЕ О САМОСТОЯТЕЛЬНОМ ХАРАКТЕРЕ
ВЫПОЛНЕНИЯ ВЫПУСКНОЙ КВАЛИФИКАЦИОННОЙ РАБОТЫ
Я, Ким Кристина Евгеньевна, студент второго курса магистратуры направления
«Менеджмент», заявляю, что в моей магистерской диссертации на тему «Факторы,
определяющие решение о релокации добровольных экспатриантов: пример России»,
представленной в службу обеспечения программ магистратуры для последующей
передачи в государственную аттестационную комиссию для публичной защиты, не
содержится элементов плагиата.
Все прямые заимствования из печатных и электронных источников, а также из
защищенных ранее выпускных квалификационных работ, кандидатских и докторских
диссертаций имеют соответствующие ссылки.
Мне известно содержание п. 9.7.1 правил обучения по основным образовательным
программам высшего и среднего профессионального образования в СПбГУ о том, что
«ВКР выполняется индивидуально каждым студентом под руководством назначенного
ему научного руководителя», и п. 51 Устава Федерального Государственного Бюджетного
образовательного учреждения высшего образования «Санкт-Петербургский
Государственный Университет» о том, что «студент подлежит отчислению из Санкт-
Петербургского Университета за представление курсовой или выпускной
квалификационной работы, выполненной другим лицом (лицами)».
08.07.2021 (подпись студента)
STATEMENT ON THE INDEPENDENT CHARACTER OF THE
MASTER’S THESIS
I, Kim Kristina Evgenievna, second-year master student of the program «Master in
Management», state that my Master’s thesis on the topic «Determinants of self-initiated
expatriates’ relocation decisions: the case of Russia», which is presented to the Master Office to
be submitted to the Official Defense Committee for the public defense, does not contain any
elements of plagiarism.
All direct borrowings from printed and electronic sources, as well as from master theses,
Ph.D, and doctorate theses which were defended earlier, have appropriate references.
I am aware that according to paragraph 9.7.1. of guidelines for instruction in major
curriculum programs of higher and secondary professional education at St. Petersburg University
«a master’s thesis must be completed by each of the degree candidates individually under the
supervision of his or her advisor», and according to paragraph 51 of the Charter of the Federal
State Institution of Higher Education Saint-Petersburg State University «a student can be
expelled from St. Petersburg University for submitting of the course or graduation qualification
work developed by other person (persons)».
08.07.2021 (student’s signature)
2АННОТАЦИЯ
Автор Ким Кристина Евгеньевна
Факторы, определяющие решение о релокации добровольных
Название ВКР
экспатриантов: пример России
Образовательная
38.04.02 Менеджмент
программа
Направление
Master in Management (MiM)
подготовки
Год 2021
Научный
Латуха Марина Олеговна
руководитель
Целью данного исследования является определение ключевых
факторов, влияющих на решение о релокации добровольных
экспатриантов, а также выявление тех практик управления талантами,
которые смогут воздействовать на возвращение добровольных
экспатриантов обратно в Россию. В результате качественного анализа
Описание цели,
задач и
были выявлены факторы, определяющие решение о релокации из
основных
России добровольных экспатриантов, разделенные на три уровня:
результатов
индивидуальный, организационный и страновой. При этом автор
исследовал роль практик управления талантами на релокационные
намерения добровольных экспатриантов и выявил, какие практики
смогут быть использованы как механизм репатриации.
Международная миграция, добровольные экспатрианты, управление
Ключевые слова
талантами
3ABSTRACT
Master Student's
Kristina Kim
Name
Determinants of self-initiated expatriates’ relocation decisions: the case of
Master Thesis Title
Russia
Educational
38.04.02 Management
Program
Main field of study Master in Management (MiM)
Year 2021
Academic
Marina Latukha
Advisor’s Name
The aim of this study is to identify the key factors influencing the decision
to relocate of self-initiated expatriates (SIEs), as well as to identify those
talent management (TM) practices that may affect the return of the SIEs
back to Russia. As a result of a qualitative analysis, the factors that
Description of the
determine the SIEs’ decisions to relocate from Russia were identified,
goal, tasks and
main results divided into three levels: individual, organizational and country. At the
same time, the author investigated the role of TM practices in the intentions
of SIEs to relocate and identified the specific TM practices that could be
applied as a mechanism for SIEs’ repatriation.
International talent migration, international mobility, talent management,
Keywords
self-initiated expatriates, SIE
4TABLE OF CONTENTS
CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES ........ 6
1. Introduction ............................................................................................................................. 6
1.1. Human Capital theoretical background ............................................................................ 7
1.2. Relocation decisions ....................................................................................................... 13
1.3. The concept of self-initiated expatriates ......................................................................... 16
1.4. Global talent management and SIEs ............................................................................... 28
CHAPTER II. RESEARCH METHODOLOGY .......................................................................... 34
2.1. Data Collection ................................................................................................................... 34
2.2. Respondent selection .......................................................................................................... 37
2.3. Data Analysis ...................................................................................................................... 38
CHAPTER III. EMPIRICAL PART ............................................................................................. 39
3.1. Results of Data Analysis and Discussions .......................................................................... 39
3.1.1. Results for RQ1. What factors determine relocation decisions of SIEs? ........................ 40
3.1.2. Results for RQ2. What TM practices may serve as repatriation mechanisms for Russian
SIEs? .......................................................................................................................................... 45
3.2. Research Findings ............................................................................................................... 49
CHAPTER IV. CONCLUSIONS AND IMPLICATIONS ........................................................... 52
4.1. Conclusions ........................................................................................................................ 52
4.2. Theoretical Contribution ..................................................................................................... 52
4.3. Practical Relevance ............................................................................................................. 53
4.4. Limitations and Recommendations for further research .................................................... 54
REFERENCES .............................................................................................................................. 55
APPENDIX 1. QUESTIONNAIRE .............................................................................................. 60
5CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES
1. Introduction
With the growing importance of qualified human resources for the global knowledge
economy, the ability of an economy to compete for highly skilled migrants is becoming a
fundamental driver of prosperity (Wittek, 2019). In an environment, in which rapid worldwide
economic change is affecting organizations as a whole and human resource management (HRM)
in particular (Sheehan & Sparrow, 2012), this competition is expected to increase in intensity
(Docquier & Machado, 2016). Thus, the increasing importance of international human resources
demands a consideration of how economies compete for available talent.
Employees who show personal initiative are becoming increasingly valuable for
businesses for a variety of reasons. Expatriation represents an interesting case since relocating
abroad independently is likely to require a comparatively high level of personal initiative
(Andresen et al., 2014). By definition, “self-initiated” expatriates (SIEs) are assumed to show
personal initiative when relocating abroad (Andresen et al., 2014; Cerdin & Selmer, 2014;
Tharenou, 2015). Recently there has been a surge of research and business into independent,
internationally mobile professionals (Andresen et al., 2012; Doherty, 2013; Shaffer et al., 2012).
The growing number of SIEs entering the global labor market has one major implication: MNCs
may use these individuals to fill critical roles in subsidiary operations at a lesser cost than
expatriates (Collings et al., 2007).
The majority of the rapidly expanding literature on business expatriates has been on
organizational expatriates who have been sent to a foreign location by their parent firms
(Tharenou, 2013). However, there is far less study on SIEs who themselves have decided to
expatriate to work abroad (Andresen et al., 2012). Moreover, few studies have investigated the
factors that determine SIEs’ decisions to relocate, particularly on emerging markets. Therefore,
this study addresses existing critical research gaps around the factors influencing self-initiated
expatriation from Russia and the role of talent management (TM) in SIEs’ repatriation process.
Research Subject: Factors influencing SIEs’ relocation decisions and TM practices.
Research Object: Self-initiated expatriates (SIEs).
The goal is to define factors that influence SIEs’ relocation from Russia and to
investigate the role of TM practices in repatriation of Russian SIEs.
The key research objectives are defined as follows:
1. To review and analyze academic literature in human capital, talent migration, TM and
concept of SIE;
62. To differentiate critical determinants that encourage Russian SIEs to relocate and study the
influence of TM practices on this process;
3. To conduct semi-structured in-depth interviews with Russian SIEs to explore the
determinants of their relocation and what TM practices can influence their repatriation to
Russia;
4. To provide recommendations for organizations based on extensive data analysis for
successful application of TM practices for SIEs in order to gain competitive advantage as
employer.
Master Thesis Structure
This master thesis is consisted of four chapters. The first chapter is dedicated to the literature
review of the main concepts related to TM and SIE. The methodology applied in this master thesis
along with its relevance to the research is described in the second chapter. The third chapter is
devoted to the empirical part with generalizations, discussion and analysis of the conducted
interviews, conclusions and the development of an empirically grounded model. The fourth chapter
concludes this master thesis and describes the theoretical and practical contribution, limitations and
recommendations for future research as parts of the main results.
1.1. Human Capital theoretical background
A number of scientific works have been written about the reasons why certain high-skilled
employees choose to move. The traditional approach to investigate the relocation phenomenon
views the roots of these reasons as inconsistency of different countries in their economic or
political environment driven by globalization processes (Pasban and Nojedeh, 2016). Some other
researchers suggest that international migration is a way of how such employees react to the
imbalance between different nations (Ployhart and Moliterno, 2011). This approach supports
earlier developed “exit and voice” framework by Hirschman (1970) that claims that decision to
stay in country of origin (COO) signals individual’s eagerness to voice to improve current
situation, while decision to migrate may be seen as the choice to “escape” or avoid the problem.
The most popular research idea, however, was offered by American scholar Sjaastad
(1962) in one of the first studies on migration. As the author suggests, individuals and households
move to enhance their human capital (HC) and, as a result, their capacity to earn more money
throughout their lifetimes.
HC is being widely used in different fields: economics, human resource development, and
national planning with different meanings in different fields.
7HC theory has list of advantages compared to other approaches elucidating migration
phenomenon (Gennaioli et al., 2013; Becker, 2002). It explains differences in perceptions of
migration worth among people of various ages by adding a temporal lag in getting advantages
from migration. Moreover, unlike many other frameworks, this theory does not restrict itself to
explaining simply the economic benefits and costs that migration may bring; it proposes that they
may take a non-monetary shape.
Foundational studies on HC
Based on the comprehensive literature research, there are different views on who was the
founder of the theory of HC. Some researchers (Hewitt-Dundas, 2016; Currie & Almond, 2011)
believe that this concept is rooted in the studies of ancient Asia and Greece, while others (Baron,
2011; Leiva et al., 2014) argue that it bases in the works of Smith, Petty, Marshall, Mill, and Fisher.
Other researchers believe that the first to try to define and measure what now is called
“human capital” was W. Petty (Poteliene & Tamasauskiene, 2014). Petty believed that labor was
the “father of wealth” and that a measure of its value should be included in the estimation of
national wealth. All in all, Petty’s thesis was that factors other than land and population were
important in determining the wealth of a nation.
At the end of the 19th and beginning of 20th centuries, there were formed two directions
of economic thought, which discussed the definition of the HC term. The representative of one
direction scholars (A. Smith, J.St. Mill, W. Rosher, W. Bagehot, N. Senior, H. Sidwick and others)
considered that HC is presented as inherited and possessed by man qualities and abilities, but they
did not explicitly include human beings as capital.
Other direction of scholars (G.M. Clark, H.D. McLeod, T. Witshtane, W. Farr, I. Fisher,
N.W. Senior, H.D. McCleod, J.H. von Thünen, A. Marshal and others) defined the man himself as
capital. Alhough they included human beings as well as their acquired skills and abilities in their
concept and saw investment in people as “a means of increasing productivity”, they did not use
the concept for any specific purpose, nor did they try to estimate the stock of human resources in
a quantitative sense (Son, 2010).
However, the theory of HC was formed as a special field of economics only at the
beginning of the 1960s, when Mincer, Fabricant, Schultz and Becker gave a different point of view
regarding the concept and formation of HC (Currie & Almond, 2011).
So, Mincer (1958) showed that training and skill (HC) considerably affected personal
income dispersions. Solomon Fabricant (1959) studied the productivity in the US from 1889 to
1957 and found that the methods and assumptions underlying productivity figures promoted
underestimation of intangible capital investment eventually overestimating the productivity.
Becker (1960) studied differentials in personal incomes between the college graduates and high
8school graduates in the US. Schultz (1961) predominantly identified the relationship of education
to HC formation. He further synthesized that people’s skills and knowledge is a form of capital
although it is not obvious, and showed that education is an expenditure made to both consumption
and investment to attribute to the increase in stock of education as double as the increase in national
income during 1900-1956.
HC definition
The deep research of the academic literature shows that HC denotes many dimensions and
is quite a complex phenomenon (Blair, 2011). Many scholars emphasize one or another aspect of
HC, taking into account their specific research goals, challenges and context (Gennaioli et al.,
2013; Baron, 2011; King, 2010; Son, 2010). Despite a plenty of HC definitions in the literature, a
number of key elements are common, specifically, knowledge, education, experience, health,
competence, trained skills and endowed abilities.
As many factors influence forming and exploitation of HC, these factors can be classified
according to various scientific descriptors (Crook et al., 2011). These classifying descriptors
include the following: a result of influence (positive/negative); a type of influence (direct and
indirect); a type of influence in the process of renewing (intensive or extensive); a level of
influence (macro/mezzo/microeconomic/ individual).
In more general terms, the factors that influence HC formation can be classified into 6
groups (Becker, 2002): demographic, socio-demographic, social, economic, organization-
economic, and ecological factors. Later Becker (2010) defines HC as "activities that influence
future monetary and psychic income by increasing resources in people".
Alternatively, HC can be defined as a collection of features, life trade, knowledge,
creativity, innovation, and energy, which people invest it in their work (Wright and McMahan,
2011).
One of the most popular definitions of HC was made by OECD (2001) saying that “it is
the knowledge, skills, competencies and attributes embodied in individuals that facilitate the
creation of personal, social and economic well-being”. In a very general sense, HC is the
knowledge, skill, creativity, and health of the individual (Son, 2010).
HC benefits
Benefits of HC were perceived even by the early economists. The classicalists’ view was
that HC mediated in creating the wealth to a nation. Foundational studies of economies and HC
theory building studies showed the increased personal incomes (Mincer, 1958; Becker, 1960;
Becker, 1964), national productivity (Fabricant, 1959), and national income and economic growth
(Schultz, 1961; Denison, 1962; Schultz, 1963).
9The accumulation of knowledge and HC has a direct effect on efficiency. In advanced
countries, which the growth of gross domestic product has been raised, employees training level
has directly increased their working life (Pasban & Nojedeh, 2016). Most social benefits, derived
from the accumulation of human capital, such as good health, more urban employment,
reduction of crime, and increase in social correlation affect the economic growth in the long term
(King, 2010).
As OECD (2007) mentions: “Human capital, after all, is only one factor – albeit an
important one – influencing growth”.
Blair (2011) also found, in a cross country study of 57 developing countries, that HC
together with socio-political stability is crucial to explain the level of financial development.
Moreover, the social capital of a country promotes the society’s welfare and
directly affects the efficiency of goods and services. For example, the high level of
trusteeship in the society reduces the costs of commercial transactions (Currie and Almond,
2011).
On the other hand, HC is a crucial factor in company performance (Mazura, 2012;
Dahlan, 2014). Muafi (2010) measures HC from three perspectives: level of education, work
experience, and competence. Whereas Cheng et al. (2009) measure HC from the level of
education, work experience, professional quality, and ongoing training. Each component has a
different role in creating a corporate capital that ultimately determines the value of a company
(Mazura, 2012).
The organizations’ emphasis on human capital is based on the view that the market
value of organizations depends more on intangible assets especially HC than on tangible assets
(Wright and McMahan, 2011). Employing and keeping the best employees in the organization is
a part of this deal. Organizations strive to raise the level of organizational learning,
increase the level of employees’ skills and abilities through encouraging them, and
provide an atmosphere where knowledge is created, shared and applied and learning becomes
a habit (Crook et al., 2011).
Furthermore, HC has contributed to the development of intellectual capital. Bontis (1998)
has pointed out by his empirical pilot study that HC is a significant component forming the
intellectual capital in organizations and it interact with other two component of intellectual
capital namely “structural capital” that is the tacit knowledge embodied in organization itself and
the “customer capital” that refers to the knowledge of market channel and customer
relationships. Bontis (1998) also referring to Hudson (1993), has shown how HC is important as
a source of innovation and strategic renewal.
10Importantly, Beine, Docqier, and Rapoport (2001) studied the importance of migration
prospects in making education decisions and HC formation. They found that two effects are
important to HC development in a small, open, and developing economy. First “brain effect” that
says that investment in HC increases as it is fostered by the migration opportunities that offer
higher expected return in abroad when the economy is open. Second is the “drain effect” that
considers the departure of some educated agents that reduces the HC stock. They further explain
about a beneficial brain drain that can occur when the brain effect is dominating.
Consequences of HC loss
The idea of brain drain, which is closely linked to HC theory, is frequently discussed in
the literature on international migration. By its definition, brain drain refers to the worldwide
transfer of human capital, and it mostly relates to the movement of highly educated people from
developing to developed countries (Gennaioli et al., 2013).
The analysis of the various literature resources on the short-term and long-term
consequences of high-skill emigration on countries of origin (COO) shows that the impact of the
brain drain on a country’s welfare and development can be rather beneficial or detrimental
(Baron, 2011). While the brain drain has long been viewed as harmful to poor country’s growth
potential, many economic researches have appeared emphasizing that migration prospects may
foster HC formation at origin (Campbell et al., 2012).
There are a multitude of literature sources on brain drain that covered migration of highly
skilled workers from the less developed countries to the developed countries.
For instance, using an endogenous growth model, it was observed that when a destination
country does not differentiate between the abilities of immigrants, an increase in migration
prospects would improve economic growth in the COO (Wright and McMahan, 2011).
Moreover, the authors argue that when bias towards skills exists, slack restrictions on the
migration of high-skilled workers will damage economic growth in the long run (Chen, 2009).
Similarly, it is further suggested that when the unequal distribution of information about the
skills of highly skilled immigrants exists, the “brain waste” effect might occur when the
expertise of these immigrants is not used adequately in destination countries (Docquier and
Marfouk, 2006). In that regard, the authors claim that only people with skills below average have
a willingness to migrate (Baron, 2011).
Considering the “economies of scale” in advanced education, the authors argue that the
brain drain increased both the education and income levels of the destination countries at the
expense of the COO (Campbell et al., 2012). However, skilled migration will affect mostly other
skilled workers who do not migrate, more than it hurt the remaining unskilled workers (Ployhart
and Moliterno, 2011). This is because these skilled workers used to benefit relatively more from
11the scale externality associated with a large "pre-brain drain" stock of skills. Furthermore, when
labor productivity and wages depend on the average level of HC, voluntary skilled migration
diminishes the average level of HC and productivity in the COO (Gennaioli et al., 2013).
Ployhart and Moliterno (2011) believed that migration is never-ending and always takes
place in a similar direction due to higher wages in the destination country, leading to a
discrepancy in per capita incomes. In that respect, the outflow of highly skilled migrants is
adverse to the COO because the productivity of HC depends on the scale effect in employment.
Moreover, highly skilled migration might impede modernization and make obstacles to structural
change which is a key feature of the development process (Campbell et al., 2012).
On the other hand, there are a significant number of authors who argue that brain drain
may lead to brain gain in migrants’ developing COO. So, Campbell et al. (2012) claimed that
when future migration involves uncertainty, brain drain may increase average productivity in the
source countries. Moreover, when the development of HC is positively affected by international
migration opportunities in the COO, an incidental surge in skilled migration rates can lead a
COO out of the "underdevelopment trap" through brain gain and "inter-generational transfer of
HC" (Campbell et al., 2012).
At the same time, Beine et al. (2001), distinguished two growth effects related to the
migration of skilled workers, namely, the “brain effect” and the “drain effect”. The brain effect is
associated with the potential migration opportunities due to higher expected returns from
investments in education abroad. The drain effect is presumably harmful to the COO due to the
leavingof a valuable skilled workforce. However, the net impact of these effects depends on
which effect is prevailing.
This potential “brain effect” was further confirmed by Hemmi (2004) provided that there
is a fixed cost of migration. He argued, though, that a potential migration might cause
contradictory effects on long-run growth rate and transitional growth rate in developing
countries.
Later Beine et al. (2008) used data on migration by skilled workers gathered by Docquier
and Marfouk (2006) to assess the effect of skilled migration prospects on pre-migration HC
levels. Their analysis of cross-sectional data from 127 developing countries demonstrated that
brain drain led to an increase in the number of skilled workers remaining in developing
countries. Furthermore, estimating the net effect of brain drain for individual countries, they
came to the conclusion that countries that have a relatively low level of HC and low skilled
migration rates are more likely to see a net gain.
Alternatively, several pieces of research have explored brain drain scope focusing on the
welfare effects of non-migrants left behind and potential externalities of education acquired by
12an individual prior to migration which was partly publicly financed in source countries
(Mckenzie and Rapoport, 2010). However, there is little evidence on the possible secondary
effects such as return migration and “brain gain effects” in the skilled migrants’ source countries.
Indeed, to extensively verify such a relationship both likely short and long-run effects should be
considered, as the theoretical literature affirms that high-skilled migration might have both
positive and negative effects in the source country.
On the other hand, brain drain can also have benefits for COO (Docquier, 2014). The
author describes alongside positive feedback effects from remittances, circular migration, and the
participation of high-skilled migrants in business networks, innovation, and transfers of
technology, considering the effect of migration prospects on the formation of HC in home
countries. His new research shows that limited high-skilled emigration can be advantageous for
growth and development, especially for a limited number of large, middle-income developing
countries. But for the vast majority of poor and small developing countries, skilled emigration
rates significantly exceed the optimal rate.
All in all, Doherty (2014) shows rather an argumentative point of view argueing that the
impact of the brain drain on a source country’s welfare and development can be beneficial or
harmful. The evidence suggests, though, that there are more losers than winners among
developing countries. Whether a country gains or loses depends on country-specific factors, such
as the level and composition of migration, the country’s level of development, and such
characteristics as population size, language, and geographic location.
1.2. Relocation decisions
Expatriation for professional reasons is, currently, an increasing phenomenon, which spans
all geographic regions and all socio-economic classes of the population in developing and
developed countries (Xenidis & Gallou, 2014). However, in the scientific literature, there are many
approaches to grouping the factors that determine the relocation decisions of highly skilled
workers.
Thus, in their investigations, Selmer & Lauring (2011) and Carr et al. (2010) identified five
categories of motivations for expatriation: professional advancement, financial incentives, family
reasons, life change/escape, and adventure (traveling). Simultaneously, several other studies
(Richardson & Mallon, 2005; Richardson & McKenna, 2003) are focused only on professionals
and identified similar categories of expatriation motivations.
Dickmann and Mills (2010) argue that the most important factors in deciding skilled
migrants to work abroad are: career, self-development, organizational factors, as well as individual
13motivation, social life considerations, and national factors. Later they propose also the location
factor which determines the capacity of the expatriates to adjust to the different cultures and
different living conditions.
Typical motives for the individual to relocate abroad are mostly related to career
opportunities, a chance to gain new cultural experience and learning possibilities, family and
domestic issues, the location, and the overall assignment offer including the repatriation package
and the financial factor of working abroad (Wright and McMahan, 2011). Furthermore, authors
more often describe the significance of the interaction of individuals and organizations in
expatriation decisions (Vance, 2005; Dickmann & Harris, 2005).
Although there are various approaches to categorizing highly skilled workers' relocation
decisions, the general four groups among them can be divided: career opportunities, personal
factors, location factors, and assignment offer.
Career opportunities
Previously, the expatriation literature was focused mainly on the influence of career
opportunities on the relocation decisions of skilled workers (Yan et al., 2002; Richardson and
Mallon, 2005).
For instance, Ployhart and Moliterno (2011) claimed that career development is the
primary reason for managers in moving abroad. At the same time, other authors (Stahl & Cerdin,
2004) observed that skilled migrants appreciated their international experience as an opportunity
for professional and personal growth and career development, despite dissatisfaction with the lack
of long-term planning in the repatriation practices | [Обзор литературы в статье:
«CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES
1. Introduction
With the growing importance of qualified human resources for the global knowledge
economy, the ability of an economy to compete for highly skilled migrants is becoming a
fundamental driver of prosperity...»
(раздел включает подробный анализ теоретических подходов к человеческому капиталу, миграции талантов, концепции добровольных экспатриантов (SIEs), а также управление талантами в глобальном контексте, с обширным цитированием отечественных и зарубежных исследований, как классических, так и современных)
Полный текст главы I с пунктами 1.1. Human Capital theoretical background, 1.2. Relocation decisions, 1.3. The concept of self-initiated expatriates и 1.4. Global talent management and SIEs;
Расположение обзора литературы:
[обзор литературы интегрирован в первый раздел статьи под названием "CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES", он не выделен отдельным заголовком "Обзор литературы"]
Общая характеристика обзора:
[объем обзора литературы большой, он занимает всю первую главу статьи (стр. 6-33). Структура обзора четко организована по темам: теория человеческого капитала, факторы решения о релокации, концепция добровольных экспатриантов, глобальное управление талантами и их связь с SIE. В обзоре используются многочисленные ссылки на отечественные и зарубежные источники, включая теоретические работы классиков, современные эмпирические исследования и теоретические модели международной миграции и управления талантами, что свидетельствует о всестороннем и глубокому анализе предметной области.] |
Проанализируйте предоставленную научную статью и выделите описание материалов и методов исследования.
Следуйте следующим шагам (выполняйте все шаги "в уме", не нужно генерировать ваши размышления в ответе на запрос):
Шаг 1. Внимательно изучите структуру статьи, обращая особое внимание на разделы, где могут быть описаны методы исследования (обычно после введения или обзора литературы).
Шаг 2. Определите, существует ли отдельный раздел, посвященный методологии исследования (например, "Материалы и методы", "Методология", "Дизайн исследования" и т.п.).
Шаг 3. Если отдельный раздел отсутствует, найдите фрагменты текста в других частях статьи, где описываются используемые методы, материалы, выборка, процедуры сбора и анализа данных.
Шаг 4. Выделите информацию о:
- Типе исследования (экспериментальное, обсервационное, качественное, количественное и т.д.)
- Использованных материалах и данных
- Методах сбора данных
- Методах анализа данных
- Выборке и ее характеристиках (если применимо)
- Процедурах исследования
- Статистических методах (если применимо)
Шаг 5. Обратите внимание на детальность и полноту описания методологии.
Необходимые данные:
- Полный текст научной статьи:
St. Petersburg State University
Graduate School of Management
Master in Management Program
DETERMINANTS OF SELF-INITIATED EXPATRIATES’
RELOCATION DECISIONS:
THE CASE OF RUSSIA
Master's Thesis by the 2nd year student
Master in Management – CEMS
Kristina Kim
Research advisor:
Doctor of Economics, Associate Professor
Organizational Behavior and Personnel Management Department
Marina O. Latukha
Saint Petersburg
2021ЗАЯВЛЕНИЕ О САМОСТОЯТЕЛЬНОМ ХАРАКТЕРЕ
ВЫПОЛНЕНИЯ ВЫПУСКНОЙ КВАЛИФИКАЦИОННОЙ РАБОТЫ
Я, Ким Кристина Евгеньевна, студент второго курса магистратуры направления
«Менеджмент», заявляю, что в моей магистерской диссертации на тему «Факторы,
определяющие решение о релокации добровольных экспатриантов: пример России»,
представленной в службу обеспечения программ магистратуры для последующей
передачи в государственную аттестационную комиссию для публичной защиты, не
содержится элементов плагиата.
Все прямые заимствования из печатных и электронных источников, а также из
защищенных ранее выпускных квалификационных работ, кандидатских и докторских
диссертаций имеют соответствующие ссылки.
Мне известно содержание п. 9.7.1 правил обучения по основным образовательным
программам высшего и среднего профессионального образования в СПбГУ о том, что
«ВКР выполняется индивидуально каждым студентом под руководством назначенного
ему научного руководителя», и п. 51 Устава Федерального Государственного Бюджетного
образовательного учреждения высшего образования «Санкт-Петербургский
Государственный Университет» о том, что «студент подлежит отчислению из Санкт-
Петербургского Университета за представление курсовой или выпускной
квалификационной работы, выполненной другим лицом (лицами)».
08.07.2021 (подпись студента)
STATEMENT ON THE INDEPENDENT CHARACTER OF THE
MASTER’S THESIS
I, Kim Kristina Evgenievna, second-year master student of the program «Master in
Management», state that my Master’s thesis on the topic «Determinants of self-initiated
expatriates’ relocation decisions: the case of Russia», which is presented to the Master Office to
be submitted to the Official Defense Committee for the public defense, does not contain any
elements of plagiarism.
All direct borrowings from printed and electronic sources, as well as from master theses,
Ph.D, and doctorate theses which were defended earlier, have appropriate references.
I am aware that according to paragraph 9.7.1. of guidelines for instruction in major
curriculum programs of higher and secondary professional education at St. Petersburg University
«a master’s thesis must be completed by each of the degree candidates individually under the
supervision of his or her advisor», and according to paragraph 51 of the Charter of the Federal
State Institution of Higher Education Saint-Petersburg State University «a student can be
expelled from St. Petersburg University for submitting of the course or graduation qualification
work developed by other person (persons)».
08.07.2021 (student’s signature)
2АННОТАЦИЯ
Автор Ким Кристина Евгеньевна
Факторы, определяющие решение о релокации добровольных
Название ВКР
экспатриантов: пример России
Образовательная
38.04.02 Менеджмент
программа
Направление
Master in Management (MiM)
подготовки
Год 2021
Научный
Латуха Марина Олеговна
руководитель
Целью данного исследования является определение ключевых
факторов, влияющих на решение о релокации добровольных
экспатриантов, а также выявление тех практик управления талантами,
которые смогут воздействовать на возвращение добровольных
экспатриантов обратно в Россию. В результате качественного анализа
Описание цели,
задач и
были выявлены факторы, определяющие решение о релокации из
основных
России добровольных экспатриантов, разделенные на три уровня:
результатов
индивидуальный, организационный и страновой. При этом автор
исследовал роль практик управления талантами на релокационные
намерения добровольных экспатриантов и выявил, какие практики
смогут быть использованы как механизм репатриации.
Международная миграция, добровольные экспатрианты, управление
Ключевые слова
талантами
3ABSTRACT
Master Student's
Kristina Kim
Name
Determinants of self-initiated expatriates’ relocation decisions: the case of
Master Thesis Title
Russia
Educational
38.04.02 Management
Program
Main field of study Master in Management (MiM)
Year 2021
Academic
Marina Latukha
Advisor’s Name
The aim of this study is to identify the key factors influencing the decision
to relocate of self-initiated expatriates (SIEs), as well as to identify those
talent management (TM) practices that may affect the return of the SIEs
back to Russia. As a result of a qualitative analysis, the factors that
Description of the
determine the SIEs’ decisions to relocate from Russia were identified,
goal, tasks and
main results divided into three levels: individual, organizational and country. At the
same time, the author investigated the role of TM practices in the intentions
of SIEs to relocate and identified the specific TM practices that could be
applied as a mechanism for SIEs’ repatriation.
International talent migration, international mobility, talent management,
Keywords
self-initiated expatriates, SIE
4TABLE OF CONTENTS
CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES ........ 6
1. Introduction ............................................................................................................................. 6
1.1. Human Capital theoretical background ............................................................................ 7
1.2. Relocation decisions ....................................................................................................... 13
1.3. The concept of self-initiated expatriates ......................................................................... 16
1.4. Global talent management and SIEs ............................................................................... 28
CHAPTER II. RESEARCH METHODOLOGY .......................................................................... 34
2.1. Data Collection ................................................................................................................... 34
2.2. Respondent selection .......................................................................................................... 37
2.3. Data Analysis ...................................................................................................................... 38
CHAPTER III. EMPIRICAL PART ............................................................................................. 39
3.1. Results of Data Analysis and Discussions .......................................................................... 39
3.1.1. Results for RQ1. What factors determine relocation decisions of SIEs? ........................ 40
3.1.2. Results for RQ2. What TM practices may serve as repatriation mechanisms for Russian
SIEs? .......................................................................................................................................... 45
3.2. Research Findings ............................................................................................................... 49
CHAPTER IV. CONCLUSIONS AND IMPLICATIONS ........................................................... 52
4.1. Conclusions ........................................................................................................................ 52
4.2. Theoretical Contribution ..................................................................................................... 52
4.3. Practical Relevance ............................................................................................................. 53
4.4. Limitations and Recommendations for further research .................................................... 54
REFERENCES .............................................................................................................................. 55
APPENDIX 1. QUESTIONNAIRE .............................................................................................. 60
5CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES
1. Introduction
With the growing importance of qualified human resources for the global knowledge
economy, the ability of an economy to compete for highly skilled migrants is becoming a
fundamental driver of prosperity (Wittek, 2019). In an environment, in which rapid worldwide
economic change is affecting organizations as a whole and human resource management (HRM)
in particular (Sheehan & Sparrow, 2012), this competition is expected to increase in intensity
(Docquier & Machado, 2016). Thus, the increasing importance of international human resources
demands a consideration of how economies compete for available talent.
Employees who show personal initiative are becoming increasingly valuable for
businesses for a variety of reasons. Expatriation represents an interesting case since relocating
abroad independently is likely to require a comparatively high level of personal initiative
(Andresen et al., 2014). By definition, “self-initiated” expatriates (SIEs) are assumed to show
personal initiative when relocating abroad (Andresen et al., 2014; Cerdin & Selmer, 2014;
Tharenou, 2015). Recently there has been a surge of research and business into independent,
internationally mobile professionals (Andresen et al., 2012; Doherty, 2013; Shaffer et al., 2012).
The growing number of SIEs entering the global labor market has one major implication: MNCs
may use these individuals to fill critical roles in subsidiary operations at a lesser cost than
expatriates (Collings et al., 2007).
The majority of the rapidly expanding literature on business expatriates has been on
organizational expatriates who have been sent to a foreign location by their parent firms
(Tharenou, 2013). However, there is far less study on SIEs who themselves have decided to
expatriate to work abroad (Andresen et al., 2012). Moreover, few studies have investigated the
factors that determine SIEs’ decisions to relocate, particularly on emerging markets. Therefore,
this study addresses existing critical research gaps around the factors influencing self-initiated
expatriation from Russia and the role of talent management (TM) in SIEs’ repatriation process.
Research Subject: Factors influencing SIEs’ relocation decisions and TM practices.
Research Object: Self-initiated expatriates (SIEs).
The goal is to define factors that influence SIEs’ relocation from Russia and to
investigate the role of TM practices in repatriation of Russian SIEs.
The key research objectives are defined as follows:
1. To review and analyze academic literature in human capital, talent migration, TM and
concept of SIE;
62. To differentiate critical determinants that encourage Russian SIEs to relocate and study the
influence of TM practices on this process;
3. To conduct semi-structured in-depth interviews with Russian SIEs to explore the
determinants of their relocation and what TM practices can influence their repatriation to
Russia;
4. To provide recommendations for organizations based on extensive data analysis for
successful application of TM practices for SIEs in order to gain competitive advantage as
employer.
Master Thesis Structure
This master thesis is consisted of four chapters. The first chapter is dedicated to the literature
review of the main concepts related to TM and SIE. The methodology applied in this master thesis
along with its relevance to the research is described in the second chapter. The third chapter is
devoted to the empirical part with generalizations, discussion and analysis of the conducted
interviews, conclusions and the development of an empirically grounded model. The fourth chapter
concludes this master thesis and describes the theoretical and practical contribution, limitations and
recommendations for future research as parts of the main results.
1.1. Human Capital theoretical background
A number of scientific works have been written about the reasons why certain high-skilled
employees choose to move. The traditional approach to investigate the relocation phenomenon
views the roots of these reasons as inconsistency of different countries in their economic or
political environment driven by globalization processes (Pasban and Nojedeh, 2016). Some other
researchers suggest that international migration is a way of how such employees react to the
imbalance between different nations (Ployhart and Moliterno, 2011). This approach supports
earlier developed “exit and voice” framework by Hirschman (1970) that claims that decision to
stay in country of origin (COO) signals individual’s eagerness to voice to improve current
situation, while decision to migrate may be seen as the choice to “escape” or avoid the problem.
The most popular research idea, however, was offered by American scholar Sjaastad
(1962) in one of the first studies on migration. As the author suggests, individuals and households
move to enhance their human capital (HC) and, as a result, their capacity to earn more money
throughout their lifetimes.
HC is being widely used in different fields: economics, human resource development, and
national planning with different meanings in different fields.
7HC theory has list of advantages compared to other approaches elucidating migration
phenomenon (Gennaioli et al., 2013; Becker, 2002). It explains differences in perceptions of
migration worth among people of various ages by adding a temporal lag in getting advantages
from migration. Moreover, unlike many other frameworks, this theory does not restrict itself to
explaining simply the economic benefits and costs that migration may bring; it proposes that they
may take a non-monetary shape.
Foundational studies on HC
Based on the comprehensive literature research, there are different views on who was the
founder of the theory of HC. Some researchers (Hewitt-Dundas, 2016; Currie & Almond, 2011)
believe that this concept is rooted in the studies of ancient Asia and Greece, while others (Baron,
2011; Leiva et al., 2014) argue that it bases in the works of Smith, Petty, Marshall, Mill, and Fisher.
Other researchers believe that the first to try to define and measure what now is called
“human capital” was W. Petty (Poteliene & Tamasauskiene, 2014). Petty believed that labor was
the “father of wealth” and that a measure of its value should be included in the estimation of
national wealth. All in all, Petty’s thesis was that factors other than land and population were
important in determining the wealth of a nation.
At the end of the 19th and beginning of 20th centuries, there were formed two directions
of economic thought, which discussed the definition of the HC term. The representative of one
direction scholars (A. Smith, J.St. Mill, W. Rosher, W. Bagehot, N. Senior, H. Sidwick and others)
considered that HC is presented as inherited and possessed by man qualities and abilities, but they
did not explicitly include human beings as capital.
Other direction of scholars (G.M. Clark, H.D. McLeod, T. Witshtane, W. Farr, I. Fisher,
N.W. Senior, H.D. McCleod, J.H. von Thünen, A. Marshal and others) defined the man himself as
capital. Alhough they included human beings as well as their acquired skills and abilities in their
concept and saw investment in people as “a means of increasing productivity”, they did not use
the concept for any specific purpose, nor did they try to estimate the stock of human resources in
a quantitative sense (Son, 2010).
However, the theory of HC was formed as a special field of economics only at the
beginning of the 1960s, when Mincer, Fabricant, Schultz and Becker gave a different point of view
regarding the concept and formation of HC (Currie & Almond, 2011).
So, Mincer (1958) showed that training and skill (HC) considerably affected personal
income dispersions. Solomon Fabricant (1959) studied the productivity in the US from 1889 to
1957 and found that the methods and assumptions underlying productivity figures promoted
underestimation of intangible capital investment eventually overestimating the productivity.
Becker (1960) studied differentials in personal incomes between the college graduates and high
8school graduates in the US. Schultz (1961) predominantly identified the relationship of education
to HC formation. He further synthesized that people’s skills and knowledge is a form of capital
although it is not obvious, and showed that education is an expenditure made to both consumption
and investment to attribute to the increase in stock of education as double as the increase in national
income during 1900-1956.
HC definition
The deep research of the academic literature shows that HC denotes many dimensions and
is quite a complex phenomenon (Blair, 2011). Many scholars emphasize one or another aspect of
HC, taking into account their specific research goals, challenges and context (Gennaioli et al.,
2013; Baron, 2011; King, 2010; Son, 2010). Despite a plenty of HC definitions in the literature, a
number of key elements are common, specifically, knowledge, education, experience, health,
competence, trained skills and endowed abilities.
As many factors influence forming and exploitation of HC, these factors can be classified
according to various scientific descriptors (Crook et al., 2011). These classifying descriptors
include the following: a result of influence (positive/negative); a type of influence (direct and
indirect); a type of influence in the process of renewing (intensive or extensive); a level of
influence (macro/mezzo/microeconomic/ individual).
In more general terms, the factors that influence HC formation can be classified into 6
groups (Becker, 2002): demographic, socio-demographic, social, economic, organization-
economic, and ecological factors. Later Becker (2010) defines HC as "activities that influence
future monetary and psychic income by increasing resources in people".
Alternatively, HC can be defined as a collection of features, life trade, knowledge,
creativity, innovation, and energy, which people invest it in their work (Wright and McMahan,
2011).
One of the most popular definitions of HC was made by OECD (2001) saying that “it is
the knowledge, skills, competencies and attributes embodied in individuals that facilitate the
creation of personal, social and economic well-being”. In a very general sense, HC is the
knowledge, skill, creativity, and health of the individual (Son, 2010).
HC benefits
Benefits of HC were perceived even by the early economists. The classicalists’ view was
that HC mediated in creating the wealth to a nation. Foundational studies of economies and HC
theory building studies showed the increased personal incomes (Mincer, 1958; Becker, 1960;
Becker, 1964), national productivity (Fabricant, 1959), and national income and economic growth
(Schultz, 1961; Denison, 1962; Schultz, 1963).
9The accumulation of knowledge and HC has a direct effect on efficiency. In advanced
countries, which the growth of gross domestic product has been raised, employees training level
has directly increased their working life (Pasban & Nojedeh, 2016). Most social benefits, derived
from the accumulation of human capital, such as good health, more urban employment,
reduction of crime, and increase in social correlation affect the economic growth in the long term
(King, 2010).
As OECD (2007) mentions: “Human capital, after all, is only one factor – albeit an
important one – influencing growth”.
Blair (2011) also found, in a cross country study of 57 developing countries, that HC
together with socio-political stability is crucial to explain the level of financial development.
Moreover, the social capital of a country promotes the society’s welfare and
directly affects the efficiency of goods and services. For example, the high level of
trusteeship in the society reduces the costs of commercial transactions (Currie and Almond,
2011).
On the other hand, HC is a crucial factor in company performance (Mazura, 2012;
Dahlan, 2014). Muafi (2010) measures HC from three perspectives: level of education, work
experience, and competence. Whereas Cheng et al. (2009) measure HC from the level of
education, work experience, professional quality, and ongoing training. Each component has a
different role in creating a corporate capital that ultimately determines the value of a company
(Mazura, 2012).
The organizations’ emphasis on human capital is based on the view that the market
value of organizations depends more on intangible assets especially HC than on tangible assets
(Wright and McMahan, 2011). Employing and keeping the best employees in the organization is
a part of this deal. Organizations strive to raise the level of organizational learning,
increase the level of employees’ skills and abilities through encouraging them, and
provide an atmosphere where knowledge is created, shared and applied and learning becomes
a habit (Crook et al., 2011).
Furthermore, HC has contributed to the development of intellectual capital. Bontis (1998)
has pointed out by his empirical pilot study that HC is a significant component forming the
intellectual capital in organizations and it interact with other two component of intellectual
capital namely “structural capital” that is the tacit knowledge embodied in organization itself and
the “customer capital” that refers to the knowledge of market channel and customer
relationships. Bontis (1998) also referring to Hudson (1993), has shown how HC is important as
a source of innovation and strategic renewal.
10Importantly, Beine, Docqier, and Rapoport (2001) studied the importance of migration
prospects in making education decisions and HC formation. They found that two effects are
important to HC development in a small, open, and developing economy. First “brain effect” that
says that investment in HC increases as it is fostered by the migration opportunities that offer
higher expected return in abroad when the economy is open. Second is the “drain effect” that
considers the departure of some educated agents that reduces the HC stock. They further explain
about a beneficial brain drain that can occur when the brain effect is dominating.
Consequences of HC loss
The idea of brain drain, which is closely linked to HC theory, is frequently discussed in
the literature on international migration. By its definition, brain drain refers to the worldwide
transfer of human capital, and it mostly relates to the movement of highly educated people from
developing to developed countries (Gennaioli et al., 2013).
The analysis of the various literature resources on the short-term and long-term
consequences of high-skill emigration on countries of origin (COO) shows that the impact of the
brain drain on a country’s welfare and development can be rather beneficial or detrimental
(Baron, 2011). While the brain drain has long been viewed as harmful to poor country’s growth
potential, many economic researches have appeared emphasizing that migration prospects may
foster HC formation at origin (Campbell et al., 2012).
There are a multitude of literature sources on brain drain that covered migration of highly
skilled workers from the less developed countries to the developed countries.
For instance, using an endogenous growth model, it was observed that when a destination
country does not differentiate between the abilities of immigrants, an increase in migration
prospects would improve economic growth in the COO (Wright and McMahan, 2011).
Moreover, the authors argue that when bias towards skills exists, slack restrictions on the
migration of high-skilled workers will damage economic growth in the long run (Chen, 2009).
Similarly, it is further suggested that when the unequal distribution of information about the
skills of highly skilled immigrants exists, the “brain waste” effect might occur when the
expertise of these immigrants is not used adequately in destination countries (Docquier and
Marfouk, 2006). In that regard, the authors claim that only people with skills below average have
a willingness to migrate (Baron, 2011).
Considering the “economies of scale” in advanced education, the authors argue that the
brain drain increased both the education and income levels of the destination countries at the
expense of the COO (Campbell et al., 2012). However, skilled migration will affect mostly other
skilled workers who do not migrate, more than it hurt the remaining unskilled workers (Ployhart
and Moliterno, 2011). This is because these skilled workers used to benefit relatively more from
11the scale externality associated with a large "pre-brain drain" stock of skills. Furthermore, when
labor productivity and wages depend on the average level of HC, voluntary skilled migration
diminishes the average level of HC and productivity in the COO (Gennaioli et al., 2013).
Ployhart and Moliterno (2011) believed that migration is never-ending and always takes
place in a similar direction due to higher wages in the destination country, leading to a
discrepancy in per capita incomes. In that respect, the outflow of highly skilled migrants is
adverse to the COO because the productivity of HC depends on the scale effect in employment.
Moreover, highly skilled migration might impede modernization and make obstacles to structural
change which is a key feature of the development process (Campbell et al., 2012).
On the other hand, there are a significant number of authors who argue that brain drain
may lead to brain gain in migrants’ developing COO. So, Campbell et al. (2012) claimed that
when future migration involves uncertainty, brain drain may increase average productivity in the
source countries. Moreover, when the development of HC is positively affected by international
migration opportunities in the COO, an incidental surge in skilled migration rates can lead a
COO out of the "underdevelopment trap" through brain gain and "inter-generational transfer of
HC" (Campbell et al., 2012).
At the same time, Beine et al. (2001), distinguished two growth effects related to the
migration of skilled workers, namely, the “brain effect” and the “drain effect”. The brain effect is
associated with the potential migration opportunities due to higher expected returns from
investments in education abroad. The drain effect is presumably harmful to the COO due to the
leavingof a valuable skilled workforce. However, the net impact of these effects depends on
which effect is prevailing.
This potential “brain effect” was further confirmed by Hemmi (2004) provided that there
is a fixed cost of migration. He argued, though, that a potential migration might cause
contradictory effects on long-run growth rate and transitional growth rate in developing
countries.
Later Beine et al. (2008) used data on migration by skilled workers gathered by Docquier
and Marfouk (2006) to assess the effect of skilled migration prospects on pre-migration HC
levels. Their analysis of cross-sectional data from 127 developing countries demonstrated that
brain drain led to an increase in the number of skilled workers remaining in developing
countries. Furthermore, estimating the net effect of brain drain for individual countries, they
came to the conclusion that countries that have a relatively low level of HC and low skilled
migration rates are more likely to see a net gain.
Alternatively, several pieces of research have explored brain drain scope focusing on the
welfare effects of non-migrants left behind and potential externalities of education acquired by
12an individual prior to migration which was partly publicly financed in source countries
(Mckenzie and Rapoport, 2010). However, there is little evidence on the possible secondary
effects such as return migration and “brain gain effects” in the skilled migrants’ source countries.
Indeed, to extensively verify such a relationship both likely short and long-run effects should be
considered, as the theoretical literature affirms that high-skilled migration might have both
positive and negative effects in the source country.
On the other hand, brain drain can also have benefits for COO (Docquier, 2014). The
author describes alongside positive feedback effects from remittances, circular migration, and the
participation of high-skilled migrants in business networks, innovation, and transfers of
technology, considering the effect of migration prospects on the formation of HC in home
countries. His new research shows that limited high-skilled emigration can be advantageous for
growth and development, especially for a limited number of large, middle-income developing
countries. But for the vast majority of poor and small developing countries, skilled emigration
rates significantly exceed the optimal rate.
All in all, Doherty (2014) shows rather an argumentative point of view argueing that the
impact of the brain drain on a source country’s welfare and development can be beneficial or
harmful. The evidence suggests, though, that there are more losers than winners among
developing countries. Whether a country gains or loses depends on country-specific factors, such
as the level and composition of migration, the country’s level of development, and such
characteristics as population size, language, and geographic location.
1.2. Relocation decisions
Expatriation for professional reasons is, currently, an increasing phenomenon, which spans
all geographic regions and all socio-economic classes of the population in developing and
developed countries (Xenidis & Gallou, 2014). However, in the scientific literature, there are many
approaches to grouping the factors that determine the relocation decisions of highly skilled
workers.
Thus, in their investigations, Selmer & Lauring (2011) and Carr et al. (2010) identified five
categories of motivations for expatriation: professional advancement, financial incentives, family
reasons, life change/escape, and adventure (traveling). Simultaneously, several other studies
(Richardson & Mallon, 2005; Richardson & McKenna, 2003) are focused only on professionals
and identified similar categories of expatriation motivations.
Dickmann and Mills (2010) argue that the most important factors in deciding skilled
migrants to work abroad are: career, self-development, organizational factors, as well as individual
13motivation, social life considerations, and national factors. Later they propose also the location
factor which determines the capacity of the expatriates to adjust to the different cultures and
different living conditions.
Typical motives for the individual to relocate abroad are mostly related to career
opportunities, a chance to gain new cultural experience and learning possibilities, family and
domestic issues, the location, and the overall assignment offer including the repatriation package
and the financial factor of working abroad (Wright and McMahan, 2011). Furthermore, authors
more often describe the significance of the interaction of individuals and organizations in
expatriation decisions (Vance, 2005; Dickmann & Harris, 2005).
Although there are various approaches to categorizing highly skilled workers' relocation
decisions, the general four groups among them can be divided: career opportunities, personal
factors, location factors, and assignment offer.
Career opportunities
Previously, the expatriation literature was focused mainly on the influence of career
opportunities on the relocation decisions of skilled workers (Yan et al., 2002; Richardson and
Mallon, 2005).
For instance, Ployhart and Moliterno (2011) claimed | [Описание методов исследования в статье:
1. Наличие раздела, посвящённого методам и материалам исследования: [да, раздел «CHAPTER II. RESEARCH METHODOLOGY»]
2. Расположение раздела, посвящённого методам и материалам исследования: [вторая глава статьи, страницы с 34 по 38]
3. Выделенный раздел, посвящённый методам и материалам исследования:
«CHAPTER II. RESEARCH METHODOLOGY
The methodology used in this master thesis is described in the second chapter. The
research approach used in this study is qualitative. The explanations and justifications regarding
the utilized method will be described. Data collection tools, as well as the general methodology
approach and respondent profile, will be discussed. The goal of this chapter is to give the reader
enough information to be able to precisely understand the data collection process and analysis
procedure in order to ensure that the progress is transparent.
2.1. Data Collection
The data collecting process was exploratory in nature and included four stages. This
method led to a deeper study of the researched phenomena.
[...]
The fourth stage of the study was the main one, specifically, conducting in-depth semi-
structured interviews with respondents and analysis of the transcripts with interview responses.
In-depth semi-structured interviews were selected because they are an effective tool in
identifying the intrinsic needs and motivations of people. Researching relocation decisions is a
sensitive topic because it includes private information about people's backgrounds, their personal
stories and perspectives. As a result, in-depth interviews were able to establish a trusting
environment for responders. Furthermore, the open-ended questions gave us significant
information about respondents' perspectives without restraining us to a limited range of replies.
Such data collecting method enabled us to obtain valuable and insightful research
information with relatively small sample of respondents. However, face-to-face personal
interviews have been limited this year due to the Covid-19 pandemic. Therefore, all interviews
were conducted one-to-one online using modern video communication tools such as Zoom and
MS Teams, which also created a confidential and private atmosphere for the respondents.
[...]
All interviews were audio recorded with the participants’ permission for transcription and
subsequent study. All data was organized and evaluated, including interview transcripts, notes,
and documents.
2.2. Respondent selection
In this research, the author applied the purposive sampling method, since the sample was
selected according to the relevance of the study (Elo et al., 2014). The selection criteria for
respondents were as follows: Russia is a country of origin, live and work abroad now, higher
education, period of stay in another country from one year, have qualified work, and lack of
organizational assistance during expatriation.
[...]
Thus, after a thorough examination of the respondent's backgrounds, only 14 people met
the stated criteria and were suitable for further research.
[...]
Data saturation was achieved after interviewing Respondent # 10.
2.3. Data Analysis
Opposed to quantitative research, analyzing data in qualitative research might take a long
time because this form of study involves gaining deeper insights. As a result, the data from the
interviews had to be analyzed in phases. We began by using content analysis to categorize and
arrange the data by heading the study's main subjects and how they connect to the research
objectives. These are the variables that influence Russian SIEs' relocation decisions, as well as
TM practices that might serve as repatriation mechanisms for SIEs to return to their home
country.
[...]
The verification technique used in this study is in line with Morse et al. (2002) and Elo et
al. (2014), who claimed that adequate sampling and methodological consistency may assure the
validity and reliability of the results. Sufficiency of the sample can be confirmed by saturation
and replication.
[...]
We used content analysis to examine the replies of the respondents and identify the most prominent
issues linked to the process of deciding to relocate.
[...]
After this stage was finished, the data from secondary sources was combined to ensure that the
analysis was accurate and that the findings were legitimate.»
4. Компоненты методологии:
- Тип исследования: [качественное исследование, в частности, качественный исследовательский подход использован в этом исследовании]
- Материалы и данные: [данные интервью с 14 респондентами — российскими самоназначенными экспатриантами, дополненные вторичными данными, включая отчёты ведущих международных консалтинговых компаний и статистику Росстата]
- Методы сбора данных: [пошаговый процесс сбора данных, включающий анализ вторичных данных, пилотное интервью и исправление гайдлайна для интервью, последующий выбор респондентов методом целенаправленной (purposive) выборки, проведение 14 глубинных полуструктурированных интервью онлайн (Zoom, MS Teams), аудиозапись с согласия участников]
- Методы анализа данных: [контент-анализ интервью для категоризации и организации данных по основным темам исследования, аналитическая репликация, триангуляция данных, включая сведения из разных источников (интервью, вторичные данные)]
- Выборка: [целенаправленная выборка из 14 участников, соответствующих критериям: Россия — страна происхождения, проживают и работают за рубежом по крайней мере год, имеют высшее образование, квалифицированная работа, отсутствие поддержки организации при релокации; средний возраст около 25 лет; половина мужчин и женщин; разные отрасли и уровни управления]
- Процедуры исследования: [четырёхэтапный процесс: анализ вторичных данных и разработка гайдлайна для интервью; пилотное интервью и корректировка гайдлайна; отбор респондентов из определённой сети (алумни ГСОМ СПбГУ и конференция Management of the Future); проведение глубинных полуструктурированных интервью с регистрацией для расшифровки, с использованием онлайн-платформ; последующий контент-анализ]
- Статистические методы: [отсутствуют; вместо этого применена качественная методика анализа, включая контент-анализ и анализ шаблонов] ] |
Проанализируйте предоставленную научную статью и выделите раздел, содержащий результаты исследования.
Следуйте следующим шагам (выполняйте все шаги "в уме", не нужно генерировать ваши размышления в ответе на запрос):
Шаг 1. Внимательно изучите структуру статьи, обращая особое внимание на разделы, где могут быть представлены результаты исследования (обычно после методологии).
Шаг 2. Определите, существует ли отдельный раздел, посвященный результатам исследования (например, "Результаты", "Результаты исследования", "Полученные данные" и т.п.).
Шаг 3. Если отдельный раздел отсутствует, найдите фрагменты текста в других частях статьи, где описываются полученные результаты.
Шаг 4. Выделите информацию о:
- Основных полученных результатах
- Представленных данных (таблицы, графики, диаграммы)
- Статистических показателях (если применимо)
- Интерпретации полученных результатов
- Утверждениях автора о новизне полученных результатов
Шаг 5. Обратите внимание на то, как автор формулирует и подчеркивает новизну своих результатов.
Необходимые данные:
- Полный текст научной статьи:
St. Petersburg State University
Graduate School of Management
Master in Management Program
DETERMINANTS OF SELF-INITIATED EXPATRIATES’
RELOCATION DECISIONS:
THE CASE OF RUSSIA
Master's Thesis by the 2nd year student
Master in Management – CEMS
Kristina Kim
Research advisor:
Doctor of Economics, Associate Professor
Organizational Behavior and Personnel Management Department
Marina O. Latukha
Saint Petersburg
2021ЗАЯВЛЕНИЕ О САМОСТОЯТЕЛЬНОМ ХАРАКТЕРЕ
ВЫПОЛНЕНИЯ ВЫПУСКНОЙ КВАЛИФИКАЦИОННОЙ РАБОТЫ
Я, Ким Кристина Евгеньевна, студент второго курса магистратуры направления
«Менеджмент», заявляю, что в моей магистерской диссертации на тему «Факторы,
определяющие решение о релокации добровольных экспатриантов: пример России»,
представленной в службу обеспечения программ магистратуры для последующей
передачи в государственную аттестационную комиссию для публичной защиты, не
содержится элементов плагиата.
Все прямые заимствования из печатных и электронных источников, а также из
защищенных ранее выпускных квалификационных работ, кандидатских и докторских
диссертаций имеют соответствующие ссылки.
Мне известно содержание п. 9.7.1 правил обучения по основным образовательным
программам высшего и среднего профессионального образования в СПбГУ о том, что
«ВКР выполняется индивидуально каждым студентом под руководством назначенного
ему научного руководителя», и п. 51 Устава Федерального Государственного Бюджетного
образовательного учреждения высшего образования «Санкт-Петербургский
Государственный Университет» о том, что «студент подлежит отчислению из Санкт-
Петербургского Университета за представление курсовой или выпускной
квалификационной работы, выполненной другим лицом (лицами)».
08.07.2021 (подпись студента)
STATEMENT ON THE INDEPENDENT CHARACTER OF THE
MASTER’S THESIS
I, Kim Kristina Evgenievna, second-year master student of the program «Master in
Management», state that my Master’s thesis on the topic «Determinants of self-initiated
expatriates’ relocation decisions: the case of Russia», which is presented to the Master Office to
be submitted to the Official Defense Committee for the public defense, does not contain any
elements of plagiarism.
All direct borrowings from printed and electronic sources, as well as from master theses,
Ph.D, and doctorate theses which were defended earlier, have appropriate references.
I am aware that according to paragraph 9.7.1. of guidelines for instruction in major
curriculum programs of higher and secondary professional education at St. Petersburg University
«a master’s thesis must be completed by each of the degree candidates individually under the
supervision of his or her advisor», and according to paragraph 51 of the Charter of the Federal
State Institution of Higher Education Saint-Petersburg State University «a student can be
expelled from St. Petersburg University for submitting of the course or graduation qualification
work developed by other person (persons)».
08.07.2021 (student’s signature)
2АННОТАЦИЯ
Автор Ким Кристина Евгеньевна
Факторы, определяющие решение о релокации добровольных
Название ВКР
экспатриантов: пример России
Образовательная
38.04.02 Менеджмент
программа
Направление
Master in Management (MiM)
подготовки
Год 2021
Научный
Латуха Марина Олеговна
руководитель
Целью данного исследования является определение ключевых
факторов, влияющих на решение о релокации добровольных
экспатриантов, а также выявление тех практик управления талантами,
которые смогут воздействовать на возвращение добровольных
экспатриантов обратно в Россию. В результате качественного анализа
Описание цели,
задач и
были выявлены факторы, определяющие решение о релокации из
основных
России добровольных экспатриантов, разделенные на три уровня:
результатов
индивидуальный, организационный и страновой. При этом автор
исследовал роль практик управления талантами на релокационные
намерения добровольных экспатриантов и выявил, какие практики
смогут быть использованы как механизм репатриации.
Международная миграция, добровольные экспатрианты, управление
Ключевые слова
талантами
3ABSTRACT
Master Student's
Kristina Kim
Name
Determinants of self-initiated expatriates’ relocation decisions: the case of
Master Thesis Title
Russia
Educational
38.04.02 Management
Program
Main field of study Master in Management (MiM)
Year 2021
Academic
Marina Latukha
Advisor’s Name
The aim of this study is to identify the key factors influencing the decision
to relocate of self-initiated expatriates (SIEs), as well as to identify those
talent management (TM) practices that may affect the return of the SIEs
back to Russia. As a result of a qualitative analysis, the factors that
Description of the
determine the SIEs’ decisions to relocate from Russia were identified,
goal, tasks and
main results divided into three levels: individual, organizational and country. At the
same time, the author investigated the role of TM practices in the intentions
of SIEs to relocate and identified the specific TM practices that could be
applied as a mechanism for SIEs’ repatriation.
International talent migration, international mobility, talent management,
Keywords
self-initiated expatriates, SIE
4TABLE OF CONTENTS
CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES ........ 6
1. Introduction ............................................................................................................................. 6
1.1. Human Capital theoretical background ............................................................................ 7
1.2. Relocation decisions ....................................................................................................... 13
1.3. The concept of self-initiated expatriates ......................................................................... 16
1.4. Global talent management and SIEs ............................................................................... 28
CHAPTER II. RESEARCH METHODOLOGY .......................................................................... 34
2.1. Data Collection ................................................................................................................... 34
2.2. Respondent selection .......................................................................................................... 37
2.3. Data Analysis ...................................................................................................................... 38
CHAPTER III. EMPIRICAL PART ............................................................................................. 39
3.1. Results of Data Analysis and Discussions .......................................................................... 39
3.1.1. Results for RQ1. What factors determine relocation decisions of SIEs? ........................ 40
3.1.2. Results for RQ2. What TM practices may serve as repatriation mechanisms for Russian
SIEs? .......................................................................................................................................... 45
3.2. Research Findings ............................................................................................................... 49
CHAPTER IV. CONCLUSIONS AND IMPLICATIONS ........................................................... 52
4.1. Conclusions ........................................................................................................................ 52
4.2. Theoretical Contribution ..................................................................................................... 52
4.3. Practical Relevance ............................................................................................................. 53
4.4. Limitations and Recommendations for further research .................................................... 54
REFERENCES .............................................................................................................................. 55
APPENDIX 1. QUESTIONNAIRE .............................................................................................. 60
5CHAPTER I. THEORETICAL FOUNDATIONS OF SELF-INITIATED EXPATRIATES
1. Introduction
With the growing importance of qualified human resources for the global knowledge
economy, the ability of an economy to compete for highly skilled migrants is becoming a
fundamental driver of prosperity (Wittek, 2019). In an environment, in which rapid worldwide
economic change is affecting organizations as a whole and human resource management (HRM)
in particular (Sheehan & Sparrow, 2012), this competition is expected to increase in intensity
(Docquier & Machado, 2016). Thus, the increasing importance of international human resources
demands a consideration of how economies compete for available talent.
Employees who show personal initiative are becoming increasingly valuable for
businesses for a variety of reasons. Expatriation represents an interesting case since relocating
abroad independently is likely to require a comparatively high level of personal initiative
(Andresen et al., 2014). By definition, “self-initiated” expatriates (SIEs) are assumed to show
personal initiative when relocating abroad (Andresen et al., 2014; Cerdin & Selmer, 2014;
Tharenou, 2015). Recently there has been a surge of research and business into independent,
internationally mobile professionals (Andresen et al., 2012; Doherty, 2013; Shaffer et al., 2012).
The growing number of SIEs entering the global labor market has one major implication: MNCs
may use these individuals to fill critical roles in subsidiary operations at a lesser cost than
expatriates (Collings et al., 2007).
The majority of the rapidly expanding literature on business expatriates has been on
organizational expatriates who have been sent to a foreign location by their parent firms
(Tharenou, 2013). However, there is far less study on SIEs who themselves have decided to
expatriate to work abroad (Andresen et al., 2012). Moreover, few studies have investigated the
factors that determine SIEs’ decisions to relocate, particularly on emerging markets. Therefore,
this study addresses existing critical research gaps around the factors influencing self-initiated
expatriation from Russia and the role of talent management (TM) in SIEs’ repatriation process.
Research Subject: Factors influencing SIEs’ relocation decisions and TM practices.
Research Object: Self-initiated expatriates (SIEs).
The goal is to define factors that influence SIEs’ relocation from Russia and to
investigate the role of TM practices in repatriation of Russian SIEs.
The key research objectives are defined as follows:
1. To review and analyze academic literature in human capital, talent migration, TM and
concept of SIE;
62. To differentiate critical determinants that encourage Russian SIEs to relocate and study the
influence of TM practices on this process;
3. To conduct semi-structured in-depth interviews with Russian SIEs to explore the
determinants of their relocation and what TM practices can influence their repatriation to
Russia;
4. To provide recommendations for organizations based on extensive data analysis for
successful application of TM practices for SIEs in order to gain competitive advantage as
employer.
Master Thesis Structure
This master thesis is consisted of four chapters. The first chapter is dedicated to the literature
review of the main concepts related to TM and SIE. The methodology applied in this master thesis
along with its relevance to the research is described in the second chapter. The third chapter is
devoted to the empirical part with generalizations, discussion and analysis of the conducted
interviews, conclusions and the development of an empirically grounded model. The fourth chapter
concludes this master thesis and describes the theoretical and practical contribution, limitations and
recommendations for future research as parts of the main results.
1.1. Human Capital theoretical background
A number of scientific works have been written about the reasons why certain high-skilled
employees choose to move. The traditional approach to investigate the relocation phenomenon
views the roots of these reasons as inconsistency of different countries in their economic or
political environment driven by globalization processes (Pasban and Nojedeh, 2016). Some other
researchers suggest that international migration is a way of how such employees react to the
imbalance between different nations (Ployhart and Moliterno, 2011). This approach supports
earlier developed “exit and voice” framework by Hirschman (1970) that claims that decision to
stay in country of origin (COO) signals individual’s eagerness to voice to improve current
situation, while decision to migrate may be seen as the choice to “escape” or avoid the problem.
The most popular research idea, however, was offered by American scholar Sjaastad
(1962) in one of the first studies on migration. As the author suggests, individuals and households
move to enhance their human capital (HC) and, as a result, their capacity to earn more money
throughout their lifetimes.
HC is being widely used in different fields: economics, human resource development, and
national planning with different meanings in different fields.
7HC theory has list of advantages compared to other approaches elucidating migration
phenomenon (Gennaioli et al., 2013; Becker, 2002). It explains differences in perceptions of
migration worth among people of various ages by adding a temporal lag in getting advantages
from migration. Moreover, unlike many other frameworks, this theory does not restrict itself to
explaining simply the economic benefits and costs that migration may bring; it proposes that they
may take a non-monetary shape.
Foundational studies on HC
Based on the comprehensive literature research, there are different views on who was the
founder of the theory of HC. Some researchers (Hewitt-Dundas, 2016; Currie & Almond, 2011)
believe that this concept is rooted in the studies of ancient Asia and Greece, while others (Baron,
2011; Leiva et al., 2014) argue that it bases in the works of Smith, Petty, Marshall, Mill, and Fisher.
Other researchers believe that the first to try to define and measure what now is called
“human capital” was W. Petty (Poteliene & Tamasauskiene, 2014). Petty believed that labor was
the “father of wealth” and that a measure of its value should be included in the estimation of
national wealth. All in all, Petty’s thesis was that factors other than land and population were
important in determining the wealth of a nation.
At the end of the 19th and beginning of 20th centuries, there were formed two directions
of economic thought, which discussed the definition of the HC term. The representative of one
direction scholars (A. Smith, J.St. Mill, W. Rosher, W. Bagehot, N. Senior, H. Sidwick and others)
considered that HC is presented as inherited and possessed by man qualities and abilities, but they
did not explicitly include human beings as capital.
Other direction of scholars (G.M. Clark, H.D. McLeod, T. Witshtane, W. Farr, I. Fisher,
N.W. Senior, H.D. McCleod, J.H. von Thünen, A. Marshal and others) defined the man himself as
capital. Alhough they included human beings as well as their acquired skills and abilities in their
concept and saw investment in people as “a means of increasing productivity”, they did not use
the concept for any specific purpose, nor did they try to estimate the stock of human resources in
a quantitative sense (Son, 2010).
However, the theory of HC was formed as a special field of economics only at the
beginning of the 1960s, when Mincer, Fabricant, Schultz and Becker gave a different point of view
regarding the concept and formation of HC (Currie & Almond, 2011).
So, Mincer (1958) showed that training and skill (HC) considerably affected personal
income dispersions. Solomon Fabricant (1959) studied the productivity in the US from 1889 to
1957 and found that the methods and assumptions underlying productivity figures promoted
underestimation of intangible capital investment eventually overestimating the productivity.
Becker (1960) studied differentials in personal incomes between the college graduates and high
8school graduates in the US. Schultz (1961) predominantly identified the relationship of education
to HC formation. He further synthesized that people’s skills and knowledge is a form of capital
although it is not obvious, and showed that education is an expenditure made to both consumption
and investment to attribute to the increase in stock of education as double as the increase in national
income during 1900-1956.
HC definition
The deep research of the academic literature shows that HC denotes many dimensions and
is quite a complex phenomenon (Blair, 2011). Many scholars emphasize one or another aspect of
HC, taking into account their specific research goals, challenges and context (Gennaioli et al.,
2013; Baron, 2011; King, 2010; Son, 2010). Despite a plenty of HC definitions in the literature, a
number of key elements are common, specifically, knowledge, education, experience, health,
competence, trained skills and endowed abilities.
As many factors influence forming and exploitation of HC, these factors can be classified
according to various scientific descriptors (Crook et al., 2011). These classifying descriptors
include the following: a result of influence (positive/negative); a type of influence (direct and
indirect); a type of influence in the process of renewing (intensive or extensive); a level of
influence (macro/mezzo/microeconomic/ individual).
In more general terms, the factors that influence HC formation can be classified into 6
groups (Becker, 2002): demographic, socio-demographic, social, economic, organization-
economic, and ecological factors. Later Becker (2010) defines HC as "activities that influence
future monetary and psychic income by increasing resources in people".
Alternatively, HC can be defined as a collection of features, life trade, knowledge,
creativity, innovation, and energy, which people invest it in their work (Wright and McMahan,
2011).
One of the most popular definitions of HC was made by OECD (2001) saying that “it is
the knowledge, skills, competencies and attributes embodied in individuals that facilitate the
creation of personal, social and economic well-being”. In a very general sense, HC is the
knowledge, skill, creativity, and health of the individual (Son, 2010).
HC benefits
Benefits of HC were perceived even by the early economists. The classicalists’ view was
that HC mediated in creating the wealth to a nation. Foundational studies of economies and HC
theory building studies showed the increased personal incomes (Mincer, 1958; Becker, 1960;
Becker, 1964), national productivity (Fabricant, 1959), and national income and economic growth
(Schultz, 1961; Denison, 1962; Schultz, 1963).
9The accumulation of knowledge and HC has a direct effect on efficiency. In advanced
countries, which the growth of gross domestic product has been raised, employees training level
has directly increased their working life (Pasban & Nojedeh, 2016). Most social benefits, derived
from the accumulation of human capital, such as good health, more urban employment,
reduction of crime, and increase in social correlation affect the economic growth in the long term
(King, 2010).
As OECD (2007) mentions: “Human capital, after all, is only one factor – albeit an
important one – influencing growth”.
Blair (2011) also found, in a cross country study of 57 developing countries, that HC
together with socio-political stability is crucial to explain the level of financial development.
Moreover, the social capital of a country promotes the society’s welfare and
directly affects the efficiency of goods and services. For example, the high level of
trusteeship in the society reduces the costs of commercial transactions (Currie and Almond,
2011).
On the other hand, HC is a crucial factor in company performance (Mazura, 2012;
Dahlan, 2014). Muafi (2010) measures HC from three perspectives: level of education, work
experience, and competence. Whereas Cheng et al. (2009) measure HC from the level of
education, work experience, professional quality, and ongoing training. Each component has a
different role in creating a corporate capital that ultimately determines the value of a company
(Mazura, 2012).
The organizations’ emphasis on human capital is based on the view that the market
value of organizations depends more on intangible assets especially HC than on tangible assets
(Wright and McMahan, 2011). Employing and keeping the best employees in the organization is
a part of this deal. Organizations strive to raise the level of organizational learning,
increase the level of employees’ skills and abilities through encouraging them, and
provide an atmosphere where knowledge is created, shared and applied and learning becomes
a habit (Crook et al., 2011).
Furthermore, HC has contributed to the development of intellectual capital. Bontis (1998)
has pointed out by his empirical pilot study that HC is a significant component forming the
intellectual capital in organizations and it interact with other two component of intellectual
capital namely “structural capital” that is the tacit knowledge embodied in organization itself and
the “customer capital” that refers to the knowledge of market channel and customer
relationships. Bontis (1998) also referring to Hudson (1993), has shown how HC is important as
a source of innovation and strategic renewal.
10Importantly, Beine, Docqier, and Rapoport (2001) studied the importance of migration
prospects in making education decisions and HC formation. They found that two effects are
important to HC development in a small, open, and developing economy. First “brain effect” that
says that investment in HC increases as it is fostered by the migration opportunities that offer
higher expected return in abroad when the economy is open. Second is the “drain effect” that
considers the departure of some educated agents that reduces the HC stock. They further explain
about a beneficial brain drain that can occur when the brain effect is dominating.
Consequences of HC loss
The idea of brain drain, which is closely linked to HC theory, is frequently discussed in
the literature on international migration. By its definition, brain drain refers to the worldwide
transfer of human capital, and it mostly relates to the movement of highly educated people from
developing to developed countries (Gennaioli et al., 2013).
The analysis of the various literature resources on the short-term and long-term
consequences of high-skill emigration on countries of origin (COO) shows that the impact of the
brain drain on a country’s welfare and development can be rather beneficial or detrimental
(Baron, 2011). While the brain drain has long been viewed as harmful to poor country’s growth
potential, many economic researches have appeared emphasizing that migration prospects may
foster HC formation at origin (Campbell et al., 2012).
There are a multitude of literature sources on brain drain that covered migration of highly
skilled workers from the less developed countries to the developed countries.
For instance, using an endogenous growth model, it was observed that when a destination
country does not differentiate between the abilities of immigrants, an increase in migration
prospects would improve economic growth in the COO (Wright and McMahan, 2011).
Moreover, the authors argue that when bias towards skills exists, slack restrictions on the
migration of high-skilled workers will damage economic growth in the long run (Chen, 2009).
Similarly, it is further suggested that when the unequal distribution of information about the
skills of highly skilled immigrants exists, the “brain waste” effect might occur when the
expertise of these immigrants is not used adequately in destination countries (Docquier and
Marfouk, 2006). In that regard, the authors claim that only people with skills below average have
a willingness to migrate (Baron, 2011).
Considering the “economies of scale” in advanced education, the authors argue that the
brain drain increased both the education and income levels of the destination countries at the
expense of the COO (Campbell et al., 2012). However, skilled migration will affect mostly other
skilled workers who do not migrate, more than it hurt the remaining unskilled workers (Ployhart
and Moliterno, 2011). This is because these skilled workers used to benefit relatively more from
11the scale externality associated with a large "pre-brain drain" stock of skills. Furthermore, when
labor productivity and wages depend on the average level of HC, voluntary skilled migration
diminishes the average level of HC and productivity in the COO (Gennaioli et al., 2013).
Ployhart and Moliterno (2011) believed that migration is never-ending and always takes
place in a similar direction due to higher wages in the destination country, leading to a
discrepancy in per capita incomes. In that respect, the outflow of highly skilled migrants is
adverse to the COO because the productivity of HC depends on the scale effect in employment.
Moreover, highly skilled migration might impede modernization and make obstacles to structural
change which is a key feature of the development process (Campbell et al., 2012).
On the other hand, there are a significant number of authors who argue that brain drain
may lead to brain gain in migrants’ developing COO. So, Campbell et al. (2012) claimed that
when future migration involves uncertainty, brain drain may increase average productivity in the
source countries. Moreover, when the development of HC is positively affected by international
migration opportunities in the COO, an incidental surge in skilled migration rates can lead a
COO out of the "underdevelopment trap" through brain gain and "inter-generational transfer of
HC" (Campbell et al., 2012).
At the same time, Beine et al. (2001), distinguished two growth effects related to the
migration of skilled workers, namely, the “brain effect” and the “drain effect”. The brain effect is
associated with the potential migration opportunities due to higher expected returns from
investments in education abroad. The drain effect is presumably harmful to the COO due to the
leavingof a valuable skilled workforce. However, the net impact of these effects depends on
which effect is prevailing.
This potential “brain effect” was further confirmed by Hemmi (2004) provided that there
is a fixed cost of migration. He argued, though, that a potential migration might cause
contradictory effects on long-run growth rate and transitional growth rate in developing
countries.
Later Beine et al. (2008) used data on migration by skilled workers gathered by Docquier
and Marfouk (2006) to assess the effect of skilled migration prospects on pre-migration HC
levels. Their analysis of cross-sectional data from 127 developing countries demonstrated that
brain drain led to an increase in the number of skilled workers remaining in developing
countries. Furthermore, estimating the net effect of brain drain for individual countries, they
came to the conclusion that countries that have a relatively low level of HC and low skilled
migration rates are more likely to see a net gain.
Alternatively, several pieces of research have explored brain drain scope focusing on the
welfare effects of non-migrants left behind and potential externalities of education acquired by
12an individual prior to migration which was partly publicly financed in source countries
(Mckenzie and Rapoport, 2010). However, there is little evidence on the possible secondary
effects such as return migration and “brain gain effects” in the skilled migrants’ source countries.
Indeed, to extensively verify such a relationship both likely short and long-run effects should be
considered, as the theoretical literature affirms that high-skilled migration might have both
positive and negative effects in the source country.
On the other hand, brain drain can also have benefits for COO (Docquier, 2014). The
author describes alongside positive feedback effects from remittances, circular migration, and the
participation of high-skilled migrants in business networks, innovation, and transfers of
technology, considering the effect of migration prospects on the formation of HC in home
countries. His new research shows that limited high-skilled emigration can be advantageous for
growth and development, especially for a limited number of large, middle-income developing
countries. But for the vast majority of poor and small developing countries, skilled emigration
rates significantly exceed the optimal rate.
All in all, Doherty (2014) shows rather an argumentative point of view argueing that the
impact of the brain drain on a source country’s welfare and development can be beneficial or
harmful. The evidence suggests, though, that there are more losers than winners among
developing countries. Whether a country gains or loses depends on country-specific factors, such
as the level and composition of migration, the country’s level of development, and such
characteristics as population size, language, and geographic location.
1.2. Relocation decisions
Expatriation for professional reasons is, currently, an increasing phenomenon, which spans
all geographic regions and all socio-economic classes of the population in developing and
developed countries (Xenidis & Gallou, 2014). However, in the scientific literature, there are many
approaches to grouping the factors that determine the relocation decisions of highly skilled
workers.
Thus, in their investigations, Selmer & Lauring (2011) and Carr et al. (2010) identified five
categories of motivations for expatriation: professional advancement, financial incentives, family
reasons, life change/escape, and adventure (traveling). Simultaneously, several other studies
(Richardson & Mallon, 2005; Richardson & McKenna, 2003) are focused only on professionals
and identified similar categories of expatriation motivations.
Dickmann and Mills (2010) argue that the most important factors in deciding skilled
migrants to work abroad are: career, self-development, organizational factors, as well as individual
13motivation, social life considerations, and national factors. Later they propose also the location
factor which determines the capacity of the expatriates to adjust to the different cultures and
different living conditions.
Typical motives for the individual to relocate abroad are mostly related to career
opportunities, a chance to gain new cultural experience and learning possibilities, family and
domestic issues, the location, and the overall assignment offer including the repatriation package
and the financial factor of working abroad (Wright and McMahan, 2011). Furthermore, authors
more often describe the significance of the interaction of individuals and organizations in
expatriation decisions (Vance, 2005; Dickmann & Harris, 2005).
Although there are various approaches to categorizing highly skilled workers' relocation
decisions, the general four groups among them can be divided: career opportunities, personal
factors, location factors, and assignment offer.
Career opportunities
Previously, the expatriation literature was focused mainly on the influence of career
opportunities on the relocation decisions of skilled workers (Yan et al., 2002; Richardson and
Mallon, 2005).
For instance, Ployhart and Moliterno (2011) claimed that career development is the
primary reason for managers in moving abroad. At the same time, other authors | [Результаты исследования в статье:
1. Наличие специального раздела: [да, «CHAPTER III. EMPIRICAL PART»]
2. Расположение описания результатов: [в разделе «3.1. Results of Data Analysis and Discussions» и подразделах «3.1.1. Results for RQ1. What factors determine relocation decisions of SIEs?» и «3.1.2. Results for RQ2. What TM practices may serve as repatriation mechanisms for Russian SIEs?»; также в разделе «3.2. Research Findings»]
3. Выделенное описание результатов:
[«Thus, our explorative study revealed that Russian SIEs pay the most attention to the following factors:
a) individual level: self-realization and international experience,
b) organizational level: career growth opportunities and salary and bonuses,
c) country level: economic and political development of the country and country’s perceived standard of living.»;
«As a result of our research, we found out which practices are the most important of these TM categories and why. The results of analysis of Chart 4 below depicts that among the most important TM practices that SIEs emphasized are training and education opportunities and fast career growth. Flexible work, feedback sessions with anonymous surveys, and team building activities are also should be paid attention to as they are important as well.»;
«In our qualitative research, we concluded that the categories of TM practices that we identified as the most important for the SIEs in the previous part of study could serve as a repatriation mechanism for the Russian SIEs, since for SIEs they are key determinants underlying decision-making about relocation and selection of a company to work.»;
«Therefore, Russian companies and the government should pay close attention and influence these factors if they intend to reduce the brain drain and retain the country's most talented population in Russia and, in particular, in Russian companies.»;
«Thus, we can offer the integrated empirical framework based on the empirical data analysis... by decreasing brain drain and retaining the talented people in Russia.»]
4. Компоненты представления результатов:
- Основные полученные результаты: [«Russian SIEs consider self-realization and international experience most important at individual level; career growth opportunities and salary and bonuses at organizational level; economic and political development and standard of living at country level as key factors influencing relocation decisions.»; «Key TM practices valued by SIEs and potential repatriation mechanisms include training and education opportunities, fast career growth, flexible work processes, feedback sessions with anonymous surveys, and team building activities.»]
- Представленные данные (таблицы, графики): [упоминаются графики (Chart 1, Chart 2, Chart 3, Chart 4), содержащие взвешенные оценки факторов и практик TM; таблицы с текстом как итог анализа — присутствуют внутри раздела результатов]
- Статистические показатели: [используются взвешенные средние на основе шкалы Лайкерта для оценки значимости факторов, но точные числовые статистические показатели либо тесты (p-значения, доверительные интервалы) не приведены]
- Интерпретация результатов: [да, присутствует: «Self-realization во время зарубежного опыта – самый важный фактор, так как SIE имеют высокие амбиции и карьерные устремления», «TM практики в иностранных компаниях значительно опережают российские по уровню и являются привлекательными для SIE», «развитие гибкой и прозрачной системы продвижения способствует привлекательности работы»]
- Утверждения автора о новизне полученных результатов: [«This master thesis contributes to an important gap in current research about the drivers of self-initiated expatriation in context of Russia.»; «This master thesis proved empirically that TM practices can serve as repatriation mechanism for Russian SIEs and revealed major factors that are crucial for SIEs in terms of expatriation and potential repatriation.»]] |
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"\nПроанализируйте предоставленную научную статью и вы(...TRUNCATED) | "[Описание методов исследования в статье:\n\n1. Наличие р(...TRUNCATED) |
"Проанализируйте предоставленную научную статью и выд(...TRUNCATED) | "[\"Результаты исследования в статье:\n\n1. Наличие специа(...TRUNCATED) |
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"Проанализируйте предоставленную научную статью и выд(...TRUNCATED) | "Обзор литературы в статье: \n[«1.3. Обзор литературы \nЗа(...TRUNCATED) |
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