In a highly competitive global economy, capital, technology, raw materials and information are not the limiting factors to increasing globalization. The limiting factor is the caliber of the people in an organization. Competitive global economy requires business to have global leaders and an increased internationally skilled workforce to make the best use of all the available resources. Repatriates are the obvious choice of resources to help fulfill both the needs. Repatriates who have completed their international assignment can help establish and expand global company’s international business because they possess the actual information about the international market and understand how the company is perceived internationally. Repatriates have an irreplaceable role in organizational learning, given that they can accelerate the transfer of knowledge from host countries to headquarters, and vice versa. Repatriates also possess first-hand knowledge of particular cultures and can provide detailed information about specific markets. They also have a better understanding of the workings of corporate headquarters and overseas operations. This knowledge enhances their ability to recognize and evaluate global opportunities and threats. By sharing and transferring knowledge with the rest of the organization, repatriates enable companies to learn from their previous international experiences as well as gain new knowledge, which in turn will enhance the knowledge base of the whole MNC (Downes and Thomas, 1999). According to Haanes and Fjeldstad (2000) (52ff.), knowledge can be of specific importance to creating a competitive advantage if not only passively available but actively put into actions within the organization. This thought is also mirrored by Barney and Wright (1998) saying that resources need to be used to generate value (either by increasing sales or decreasing cost) in order to be strategic resources and resources which could possess these characteristics are repatriates; thus repatriates, individuals who have completed a global assignment, can be valuable resources for their organizations. Research has clearly indicated that the repatriation process is important for a company; bad repatriation leads to dissatisfaction and the risk of former repatriates quitting (Kamoche, 1997; Bolino, 2007; Jassawalla and Sashittal, 2009; and Mäkelä and Suutari, 2009). The company may risk losing valuable knowledge that is not turned into a company-wide asset. The learning, which the repatriates return with, is therefore largely wasted because it is not embedded into the organization (Jassawalla and Sashittal, 2009; and Wittig-Berman and Beutell, 2009). Some numbers could illustrate the seriousness of bad repatriation: an estimated 20% to 50% of repatriates are leaving the firm within a year of returning home (Jassawalla and Sashittal, 2009); one-fourth left the firm at the same time in the study of US expatriate managers undertaken by Black et al. (1999). In fact, international assignees often perceive that the jobs where they could best utilize their newly acquired competencies often reside outside their present employer (Mäkelä and Suutari, 2009; and Stahl et al., 2009).
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