What the study found
The study found that local air pollution is associated with lower expatriate deployment in multinational enterprises (MNEs), meaning firms place fewer expatriates in their foreign subsidiaries when air pollution is higher. The abstract also reports that this negative relationship depends on the MNE’s local experience, local talent supply, and possibly industry pollution levels.
Why the authors say this matters
The authors say the findings matter because they add to research on the microfoundations of internalization theory by including bounded reliability, a concept about limits in how reliably parties fulfill contracts and obligations. They also conclude that the study adds to expatriate management research by showing how local air pollution, as part of the natural environment, can affect expatriates and MNE governance.
What the researchers tested
The researchers used interviews with current and former expatriates to understand how air pollution affects attitudes toward international assignments. They then tested hypotheses with archival data from Japanese MNE subsidiaries in Chinese cities, using a meteorology-based instrumental variable to reduce potential endogeneity problems.
What worked and what didn't
The interviews indicated that expatriates perceive local air pollution as a severe stressor and that this lowers their commitment to international assignments. The quantitative analysis found that local air pollution significantly reduces expatriate deployment. The abstract further reports that the negative relationship is contingent on the MNE’s local experience and local talent supply, and may also be influenced by industry pollution levels.
What to keep in mind
The abstract does not provide detailed limitations beyond noting the use of an instrumental-variable approach to address potential endogeneity. The quantitative evidence described is based on Japanese MNE subsidiaries in Chinese cities, so the stated scope in the abstract is specific to that setting.
Key points
- Local air pollution was found to significantly reduce expatriate deployment.
- Interviews suggested expatriates view air pollution as a severe stressor that lowers commitment to overseas assignments.
- The negative relationship varied with the MNE’s local experience and local talent supply.
- Industry pollution levels may also influence the relationship.
- The study 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
- Image credit:
- Janak Bhatta, Wikimedia Commons, CC BY-SA 4.0
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