What the study found
The study found that local air pollution is associated with lower expatriate deployment in multinational enterprises (MNEs), meaning fewer employees sent from the home firm to work in foreign subsidiaries. The authors also report that this negative relationship depends on the MNE’s local experience and local talent supply, and may be influenced by industry pollution levels.
Why the authors say this matters
The authors conclude that the findings add to research on the microfoundations of internalization theory by including bounded reliability, a concept describing limits in how reliably contractual partners act, in the analysis of expatriate–MNE interactions. They also say the study contributes to expatriate management research by showing how local air pollution, as part of the natural environment, affects expatriates and MNE governance.
What the researchers tested
The researchers first interviewed current and former expatriates to understand how they viewed local air pollution and how that related to their attitudes toward international assignments. They then developed hypotheses and tested them using archival data from Japanese MNE subsidiaries in Chinese cities. Their quantitative analysis used a meteorology-based instrumental variable to help address potential endogeneity problems.
What worked and what didn't
The interviews indicated that expatriates saw local air pollution as a severe stressor and that this reduced their commitment to international assignments. In the archival analysis, local air pollution significantly reduced expatriate deployment. The negative relationship was contingent on local experience and local talent supply, and may also have been influenced by industry pollution levels.
What to keep in mind
The abstract does not describe detailed limitations beyond noting the use of an instrumental-variable approach to mitigate endogeneity concerns. The study’s archival analysis focused on Japanese MNE subsidiaries in Chinese cities, so the reported results are tied to that setting.
Key points
- Local air pollution was linked to lower expatriate deployment in international subsidiaries.
- Interviews suggested expatriates viewed air pollution as a severe stressor.
- The stressor was described as reducing commitment to international assignments.
- The negative link varied with the MNE’s local experience and local talent supply.
- The authors used archival data from Japanese MNE subsidiaries in Chinese cities.
Disclosure
- Research title:
- Local air pollution reduces expatriate deployment
- Authors:
- Jae C. Jung, Duckjung Shin, Guoliang Frank Jiang, Maoliang Bu
- Institutions:
- Carleton University, Nanjing University, Thompson Rivers University, University of Missouri–Kansas City
- Publication date:
- 2026-03-10
- OpenAlex record:
- View
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