A Literature Review on the Implementation of Cultural Adaptation to Improve Expatriate Performance

Abstract

This study integrates the three main pillars that determine the success of cultural adaptation and expatriate performance in multinational companies: Cultural Intelligence (CQ), Social Support (SS), and Expatriate Performance Management (EPM). Through a literature review of 13 empirical articles from 2018 to 2025 indexed in Q1–Q2 journals on Scopus and Web of Science, this study identifies two pathways to expatriate success: a full mediation pathway in which CQ and social support influence performance via cultural adaptation first (CQ/SS → cross-cultural adaptation → expatriate performance), and a direct effect pathway in which all three factors can directly influence performance without going through cultural adaptation (CQ/SS/CCA → performance). Key findings indicate that motivational CQ has the strongest influence on work adjustment, while family support—particularly from a spouse—has the greatest impact on overall expatriate adaptation. This study also reveals the principle of equifinality, whereby various combinations of factors can lead to optimal performance depending on boundary conditions such as cultural distance, perceived cultural novelty, and characteristics of the host country. Given that the expatriate failure rate is quite high—reaching 40%—investment in comprehensive cultural adaptation programs is a strategic necessity for multinational organizations. Managerial implications emphasize the need for a holistic approach that includes expatriate selection based on cultural intelligence profiles, multi-domain support programs involving the organization, supervisors, coworkers, and family, as well as a culturally relevant performance management system that involves multiple raters and balances global standards with the local context. This study contributes to the development of IHRM theory by integrating previously separate perspectives into a comprehensive framework, shifting the paradigm from simple cause-and-effect thinking to an understanding of complex systems in which cultural adaptation is viewed as the result of dynamic interactions among various interrelated elements.