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Adjustment of Third-Country National Expatriates in China

International staffing issues have become more pressing in this era of globalization. Although many companies prefer to select parent country nationals (PCNs) to manage their overseas operations (Harvey, 1995), firms typically face a shortage of such employees with the required international skills and knowledge for international operations (see Caligiuri and Cascio, 1998; Ettorre, 1993). Therefore, it is surprising that the literature on third country nationals (TCNs) mostly have focused on issues of compensation and benefits (see Hait, 1992; Heitzman, 1990: Parker, 2001) of such employees while other aspects have been largely neglected. A few notable published exceptions to this general trend deal with TCNs as expatriates (Zeira, 1975), TCN policies (Chadwick, 1995), and the strategic employment of TCNs (Reynolds, 1997). Surprisingly, since one reason for making use of TCNs is their supposed superior cross-cultural effectiveness (Reynolds, 1997), no study is known to have compared how TCNs and PCNs adjust to a foreign cultural context.