As more companies enter the international market, the need for skilled expatriate managers will continue to grow. This demand for skilled expatriate managers is particularly evident when high international standards of service are desired for serving guests from disparate locations. Although expatriates perform an important role with the success of the home company heavily dependent on them, limited research has been conducted to examine organizational-level factors regarding expatriate adjustment.

This research provides a contribution to the existing literature by investigating the relationship between perceived organizational climate and adjustment. Four dimensions of perceived organizational climate of the open system model were derived from the literature: commitment to learning, shared vision, open-mindedness, and innovativeness. To measure expatriate adjustment, three facets of adjustment [(i) general, (ii) interactional, and (iii) work adjustment,] are utilized to test the influence of the perceived organizational climate. A self-administrated online survey was distributed to expatriate hotel managers via email and 71 usable responses were received. Results were analyzed using multiple regression analysis and Baron and Kenny's (1986) procedure.

The results found in this study indicate that the overall perceived organizational climate of the open system model significantly influences the adjustment of expatriate hotel managers. The perceived organizational climate dimension of open-mindedness, however, is the only significant predictor of the general, interactional, and work adjustment of expatriate hotel managers. This study also reveals that the perceived organizational climate mediates the relationship between expatriate training and the adjustment of expatriate hotel managers.