Expatriation Process in Indonesian Local Firms

Abstract

This paper attempts to analyze the expatriation process in Indonesian firms. A qualitative approach with multiple case studies was used to analyze the expatriation process in Indonesian firms which employed expatriates with expertise in engineering. Results of the case studies show different patterns of expatriation process, depending on the involvement of external parties. The recruitment and selection process in Indonesian local firms tend to be a closed and semi-formal system. Different selection criteria were found for processes with and without the involvement of external parties. Multi-stage recruitment process emerged when there was involvement of external parties. Another finding reveals that the Human Resource Department (HRD) held a more passive role, while the more active role was held by the expatriate’s co-workers and top-level management. Language and cultural aspects were identified as inhibitors of knowledge transfer (KT). KT success could be achieved in two types of conditions related to KT readiness, either from the expatriate or the co-worker.