An equilibrium approach to culturally determined mental models for cooperation within multinational corporations

Focusing on international transition of repatriation, this paper contributes to the recent debate on repatriate turnover intention (TI), and in particular, offers a novel approach for the adjustment to the Social Exchange Theory in relation to Perceived Organizational Support (POS). The study demonstrates how the organization creates a cooperative social context by which to foster multiple equilibria and create stable equilibrium within the Multinational Corporations (MNC). The empirical study draws on a sample of recent returnees from international assignments directed (or sponsored) by MNC. The analytical results show: i) social determinants significantly affect employee POS and TI, ii) MNC by fostering multiple equilibria can render repatriate preferences such as a taste for teamwork and cooperation, and iii) social learning and knowledge transfer in creating a multiplier effect help with reducing levels of repatriate TI within the home MNC.