Ethnic identity confirmation in knowledge transfer between expatriates and host country employees

Effective knowledge transfer between headquarters and overseas units has been a challenge for MNCs. Expatriates are often expected to facilitate this task. Since there are many challenges in working in foreign countries, people who share the ethnic identity (EHCNs) with host country employees (HCEs) are increasingly seen as ideal candidates for overseas assignments. However, conflicting evidence has been revealed concerning whether or not EHCNs are more effective than non-EHCN expatriates. To address this discrepancy, this article first distinguishes between cultural similarity and ethnic similarity, and points out that in many host countries of MNCs, ethnic similarity with HCEs forms a division between EHCNs and non-EHCNs. With a focus on ethnic similarity, it discusses the differences between surface- and deep-level ethnic similarity. This study then focuses on the divergent views of social categorization between EHCNs and HCEs that derives from this division. These are captured by the concept of ethnic identity confirmation, which is the degree of congruence between how individuals view the importance of their ethnic identity and how others view it. Finally, this study proposes a conceptual modal explaining the connection between ethnic identity confirmation and knowledge transfer. It argues that ethnic identity confirmation relates to knowledge transfer through trust and relationship conflicts. By focusing on ethnic identity confirmation, this study has applied a new mechanism to analyze social interactions between expatriates and HCEs. This focus also makes it possible to incorporate both the views of EHCNs and HCEs on ethnic identity in one study.