Doing business overseas is now becoming increasingly important as a means to generate more sales revenue. Businesses have been sending their management teams as well to overseas locations to incorporate their home country management styles. Studies have recently shown, however, that the use of expatriates is on the rapid decline with a failure rate of 40% (managers terminating their stay early).
Instead of looking to impose your host country's methods on the new culture, it is much more important to adapt your business to the foreign country's culture. Companies that have chosen to utilize local nationals have largely been successful for the following reasons: the local national is extremely aware of the culture, management techniques that are most effective, the geographical locations, local policies and other nuances that an outsider would not have access to. In addition, many governments look very favorably on the use of their local workers in foreign direct investment. The knowledge that a local national can bring to the table is invaluable to your company and should be taken very seriously. It is possible that if you do not have local nationals in upper management, your company will not succeed overseas.
Another option in choosing management teams is the use of virtual expatriates. Virtual expatriates commute for weeks or months at a time to the foreign country, but never actually take up residence. The primary reason why expatriates terminate their stay in the foreign country early is due to family/spouse culture shock. By using virtual expatriates, it makes the transition much easier on the family; however, time apart from each other is more extensive.
