CULTURAL INTELLIGENCE: EXPLORING THE RELATIONSHIP … · the individual to engage in intercultural...

ELK ASIA PACIFIC JOURNAL OF HUMAN RESOURCE MANAGEMENT AND ORGANISATIONAL

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ISSN 2394-0409; DOI: 10.16962/EAPJHRMOB/issn.2394-0409; Volume 3 Issue 1 (2016)

www.elkjournals.com

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CULTURAL INTELLIGENCE: EXPLORING THE RELATIONSHIP BETWEEN

LEADER CULTURAL INTELLIGENCE, TEAM DIVERSITY AND TEAM

PERFORMANCE

Ms. Aditi Sharma Dogra

Research Scholar

Gautam Buddha University

Greater Noida

[email protected]

Dr. Varsha Dixit

Assistant Professor

Gautam Buddha University

Greater Noida

[email protected]

ABSTRACT:

Leadership today is a challenge due to volatile environment and dynamic workforce. As organizations are becoming

borderless and the workforce are working cross border, it is important to understand why some individuals function

more effectively than others in culturally diverse situations. To date, very few studies have examined the relation

between leader cultural intelligence and team performance. The objective of this research paper is to explore the

relationship between Leader cultural intelligence, team diversity and team performance. This paper tries to build a

conceptual framework establishing a relation between Leader Cultural Intelligence, Team Diversity and Team

Performance. It is not only that the organizations are global nowadays but the people who are global that has resulted

into the origin of Cultural Intelligence. This paper gives a snapshot of various studies that have been done based on

this and hence gives a proposed model which can be undertaken in future.

Keywords: Leader Cultural Intelligence, Globalization, Team Diversity, Team Performance

INTRODUCTION

Managing diverse workforce and steering the

same towards the achievement of global

organizational goals is a challenge faced by

many. Leadership is transforming the

organizations structures and performances.

The blend of a diverse workforce along with

the potential of a Leader enables any

organization to operate globally.

Understanding the need or demands of a

competent workforce and leaders raises a

concern to understand the key factor i.e.

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culture which binds leadership, workforce

diversity and global organization together.

The knowledge of culture can drive the

organizational resources, strategies, plans as

well as products to an international level.

This has led to the rise of the concept of CQ

or Cultural Intelligence developed by Ang

Soon and Van Dyne Linn (2006). Ang, Van

Dyne, & Livermore (2007) describe four CQ

capabilities: meta-cognition (CQ Strategy),

cognition (CQ Knowledge), behavior (CQ

Action) and motivation (CQ Drive).

Cultural Intelligence can be defined as an

individual’s capability to understand, adjust

and adapt in various cultural situations. It is

the mental framework of an individual which

makes him/her more conscious towards the

existing cultural differences and drives

him/her to act accordingly. Cultural

Intelligence helps in better understanding of

the existing cultural differences and allows

the individual to engage in intercultural

interactions. Cultural Intelligence further

helps to bridge gaps that can occur due to

cultural differences present at an individual

level as well as at the team level in an

organization.

Diversity comprises of similarities and

differences in age, gender, opinions,

experience, education, nationality and even

values in an individual. Organizations are

more inclined towards building a

heterogeneous team rather than the

homogeneous ones. The differences in ideas

and exposure leads to creation of ideas to

solve problems of any kind or nature. The

significance of diversity is that an

organization becomes a pride owner of a pool

of diversified ideas which further helps it to

take better decisions and avert risks. Groves

and Feyerhem (2011). Workforce diversity is

divided into three: Informational Diversity,

Social category Diversity and Value

Diversity. Jehn, North craft and Neale (1999)

as illustrated in Figure 1.

Performance has been defined as a method in

which team members are concerned about

accomplishing the expected goals and turn

out the desired outcomes (Salas, Cooke &

Rosen 2008).Team Performance can be

measured in terms of conflicts and

innovation. Following Jehn and Mannix

(2001) three types of conflict are examined:

Task, Process and Relationship conflict.



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Task Conflict: It is an awareness of

differences in viewpoints and opinions

pertaining to a group task. Jehn and

Mannix (2001)

Relationship Conflict: It is an awareness

of interpersonal incompabilities

including affective components such as

feelings, tension and friction. Jehn and

Mannix (2001).

Process Conflict: it is defined as an

awareness of controversies about how tsk

accomplishment would proceed. Jehn

et.al (1999).

West and Farr, (1989) define innovation as

`the intentional introduction and application

within a role, group or organization of

concepts, processes, merchandise or

procedures, unaccustomed to the unit of

adoption, designed to considerably benefit

role performance, the group, the

organization or the broader society' (p. 16).

Relatively few studies have centered at the

level-of- analysis of the work group. This

can be a notable disadvantage since it’s often

the case that an innovation is originated and

subsequently developed by a team into

routinized practice within organizations

(West and Farr, 1990; Anderson and King,

1993). For instance, a management team

might initiate changes in organization

procedures; a marketing team might modify

approaches to advertising product lines; and

an assembly team might institute new and

improved ways of product manufacture.

SIGNIFICANCE OF CULTURAL

INTELLIGENCE

Dynamic organizations of today cannot

afford to neglect the benefits delivered by

cultural intelligence and so they insist on

designing and imparting training programs in

international management. The leaders are

well acquainted with the fact that the survival

of a team or an organization solely depends

on synchronizing the benefits derived from

diversity and deep understanding of cultural

differences, cultural intelligence helps to

leverage out of the same.

Though the advantages are countless but

some of them are-

Cultural Intelligence helps to strengthen

the risk taking capability of the

organization across border.

It assists in channelizing the competitive

resources crucial for the performance of

an organization.

It helps in managing and combining the

synergies of the diverse workforce and



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directing the same towards the growth of

an organization.

It enables an organization as well as

leaders to build strategies that further

attracts global partners.

Cultural Intelligence links innovation

with performance and reduction of

conflicts.

Though there are various papers which have

discussed the benefits of workforce diversity

and team performance in the organizations

Jonas F.Puck et.al (2010).Anne Nederveen

Pieterse et. Al(2013) but there has been very

few descriptive as well as empirical papers

which have tried to link Leader CQ with

Team Performance and the role of workforce

diversity in the same. Kevin S. Groves and

Ann E. Feyerherm (2011),Kok-Yee NG and

P.Christopher Earley(2006).Kadri Karma

and Rebekka Vedina(2009). The aim of this

research is to integrate conceptualizations of

Leader CQ and Team diversity into one

model for estimation of their effect on Team

Performance. The topic of research is novice

and yet to be explored more. This research is

to identify how teams are able to benefit from

Leader CQ and enhance team performance.

LITERATURE REVIEW

CULTURAL INTELLIGENCE (CQ)

Cultural Intelligence provides a platform to

an individual to seek answers to the questions

related to cultural differences and further

gives an insight to an individual to think,

understand and behave in a cross cultural

environment. Triandis (2006) argues that CQ

can be achieved by an individual if he/she

avoids being judgmental until enough

information is not gathered.

The foundation of Cultural Intelligence was

laid in the beginning of 1960’s and the

offshoots of the same are cultural variation

theory (Berry, 1974, Sternberg, 1985; cf. Ng,

Earley, 2006) and the concept of cultural

intelligence (Earley, 2002). The cultural

variation theory is knitted around the concept

of culture which means that this approach is

culture bounded whereas cultural intelligence

is said to be free from the concept of culture

and can be applied in context to other

cultures.it is not culture specific concept.

These two concepts are interrelated, as

culturally intelligent individuals need to

understand what intelligent behaviors

constitute in different cultures (Ng, Earley,

2006). In this paper second approach has

been taken, that is cultural intelligence



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approach because of its impact on today’s

global workplace where the ability to adapt

with different people from different cultural

backgrounds is of great importance.

According to Earley and Ang (2003) CQ is

conceptualized to comprise four dimensions:

Meta cognition

Cognition

Motivation

Behavior

Metacognitive is defined as a mental process

in which an individual tries to procure and

understand knowledge related to culture

without having prior education or experience

about the same. Cognitive is defined as

knowledge about the cultural differences and

norms through education and experience.

Motivational is defined as a source of

stimulation fort an individual which further

helps him/her to streamline the knowledge of

cultural differences into right action.

Behavioral refers to how individuals act and

think in these cross cultural situations. It

encompasses various elements of verbal and

nonverbal.

Many renowned scholars and researchers

have made contributions to define the

concept of Cultural Intelligence also known

as CQ. The study done by And et al (2007)

on a sample of executives suggest that the

dimensions of CQ, motivational and

behavioral are closely connected to general

adjustment. Further he found out that the

cognitive and Meta cognitive helps improvise

decision making of individuals in culturally

diverse setting.

Some scholars like Ang, Van Dyne and Koh

(2006) have tried to study the relationship

between Big Five (Costa, Mcgrae 1988) and

CQ. The major finding was that the Big Five

was positively connected to all the four

dimensions of CQ. According to a researcher,

manager’s behaviors were studied on the

basis of task and relationship and the finding

was that the managers who are relationship

centered are able to avoid and counter

problems related to cultural differences.

CULTURAL INTELLIGENCE AND

TEAM PERFORMANCE

According to some scholars Leaders tend to

greatly impact the outcomes of a team. Ang

and Inkpen (2008). The leaders with high CQ

have the ability to create a climate based on

transparent communication pattern within the

teams and strong trust on each other. The

leaders highlight the importance of change



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management within the team’s further

reducing conflicts that can exist due to pool

of similarities and dissimilarities amongst the

team members. The Leaders with high CQ

help the teams with diversified backgrounds

to work together for organizational goals thus

enabling the team members to have a deeper

sensitivity towards the cross cultural

differences that exist within teams. Groves

and Feyerhem (2011).There have been

various studies theoretical as well as

empirical which have tried to analyze the

relation between cultural diversity on

performance.(Anne, Knippenberg &

Dierendonck , 2013;Rosini, 2015) My

research specifically develops a model or a

framework explaining how team cultural

diversity moderates the relation between

Leader CQ and Team Performance.

RESEARCH GAP & HYPOTHESIS

DEVELOPMENT

Most of the prior research has focused on

individual Cultural Intelligence and

Workforce Diversity, but only a few studies

have tried to study the impact of Cultural

Intelligence on Performance (Kevin S.

Groves and Ann E. Feyerherm (2011),Kok-

Yee NG and P.Christopher

Earley(2006).Kadri Karma and Rebekka

Vedina(2009).For this reason research must

consider how Workforce Diversity

moderates the relationship between Leader

CQ and Team Performance. This need is the

starting point of this study, which looks at the

different constructs of Leader CQ,

Workforce Diversity and Team Performance.

This study explores the relationship between

Leader CQ, Workforce Diversity and Team

Performance. The findings from the previous

research lead to the following hypothesis,

which guides the building of this study.

H1: Workforce Diversity will moderate the

relationship between Leader CQ and Team

Performance. The Leader CQ and Team

Performance will be stronger in teams with

greater diversity.

WORKFORCE DIVERSITY

Mostly research on diversity has been

centered on surface level diversity which is

easily observable such as race, age, gender

and nationality. But many scholars are

working in order to define the concept of

diversity in a better way and further are trying

to study the effects of diversity on other

variables. Further in continuation to this



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suggestion, Jehn, Northcraft and Neale

(1999) differentiate between three types of

workgroup diversity: social category,

informational and value diversity (Refer

Figure 1).

There are a lot of studies linking

demographic diversity and group and

innovation performance. There are a set of

scholars who believe that divergent ideas

tend to cripple group creativity and

innovation. Nahapiet Ghoshal (1998). On the

other side some researchers have proven

through their work that diversity is the source

of creativity and innovation in a group.

Diversity of ideas, views, education and

experience not only generates new ideas but

assists in increasing rate of innovation

adoption within a team. There exists different

approaches for categorization of diversity.

First approach named it surface level and

deeper level (Harrison et al 2002) and the

second approach classifies it into visible and

non-visible differences (Jackson May &

Whitney 1995)Heterogeneity of background

was found to be related to innovation (e.g.

Ancona, Caldwell, 1992, Wiersema, Bantel,

1992; cf. Tsui, Egan, Xin, 1995). The

diversity of knowledge of the team members

helps to understand the importance of

innovation and further enables the group

members to discuss and develop ideas.

Innovation is highly dependent on the

individuals and thus innovation is also a

process comprising of a high degree of

learning and interaction amongst the team

members (Vegt & Janssen 2003). Social

Category Diversity includes differences of

age, gender and ethnicity which can have

positive or negative repercussions at

workplace. If members tend to group

themselves according to this category they

might interact at a higher degrees within the

group but can isolate themselves from people

of other group. Thus the communication

within a group might trigger innovation but

can at the same time hamper due to

disconnection with the other group. Jehn

1999 brought out a proposition in which he

took the positive aspect of social diversity

and conflicts (relationship) in a team.

H2: Social category Diversity will positively

influence Leader CQ and Team Performance.

Informational diversity includes three E’s i.e.

education, experience and expertise.

Diversity of experience and expertise

provides new insight to solve a problem and

helps the teams to work on a better solution.



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Informational diversity is also related to a

task or a job.Teams based on Informational

diversity can be formed through various ways

in an organization like job rotation or cross

functional teams. Study done by Jehn and

Mannix (2001) proved that if the team

members have a diverse educational

background they often disagree with each

other on the performance of a given task.

Thus he proved that heterogeneous teams

suffer from conflicts in comparison to

homogeneous teams with similar

backgrounds who are able to cope up with the

conflicts in a better way. Informational

diversity too has its own pros and cons. The

team members with high CQ will be able to

streamline their differences in a positive way

towards performance whereas teams with

lower CQ will suffer from stress, conflicts

and inability to perform.

H3: Informational Diversity will increase

Leader CQ and Team Performance.

Value diversity comprises of an individual’s

beliefs, attitude and opinion which is hard to

trace. It is a kind of diversity which is rather

hidden and becomes apparent only when you

know a person well. According to Schein,

value diversity can be observed in the day to

day behavior of the individuals and says that

value diversity has a direct impact on cultural

intelligence. Value diversity too has a high

rate of relatedness with the cultural

intelligence it can be easily seen in the

behavior of new members of a group in

comparison to old members who are well

acquainted with the working style and

system. A lot of research is being conducted

to study the advantages and disadvantages of

workforce diversity in an organization.it is

considered to be an opportunity as well as a

challenge for any global organization.

FRAMEWORK OF LEADER CQ,

WORKFORCE DIVERSITY & TEAM

PERFORMANCE

This section of the paper discusses the

framework which consists of three major

constructs labelled as Leader CQ, Workforce

Diversity and Team Performance (Figure

2).The framework is built depicting a

relationship between the various variables.

There has been a lot of research work based

on individual leader cultural intelligence but

the model built here also tries to focus on

workforce diversity playing a moderating

role between the two. (Refer Fig.2)



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The constructs of the model are as follows-

1. Leader CQ

Meta cognition (cognitive strategies

to acquire and develop coping

strategies),

Cognition (knowledge about

different cultures),

Motivation (desire and self-efficacy),

and

Behavior (repertoire of culturally

appropriate behaviors).

2. Team/Workforce Diversity

Social Category Diversity

Informational Diversity and

Value Diversity

3. Team Performance

Innovation

Conflicts

The proposed model consists of Independent

variables (IV) as well as Dependent variables

(DV) with various sub variables. Leader CQ

can be measured with the help of Ang et al.’s

(2007) 20-item self-report scale composed of

the four subscales: Meta-Cognitive,

Cognitive, Motivational and Behavioral.

This 20-item scale has been carefully

designed and developed to be used across

cultures and time. Leaders with a high level

of CQ happen to adjust easily to unfamiliar

cultures which further helps to improvise the

performance of teams. A diverse team

comprises of members holding diversity in

terms of age, gender, experience, education

and expertise which helps them to perform

better in cross cultural setting. Leaders

happen to influence team level outcomes,

such as rate of innovation adoption by

encouraging sharing of new ideas and

knowledge within the diverse teams. Leaders

with high CQ do have the impact of

minimizing conflicts and increase team

performance.

FUTURE SCOPE OF RESEARCH

There have been various theoretical and

empirical research being undertaken to study

Leader CQ and Team Cultural Diversity on

individual basis. Due to relative newness of

the concept of Cultural Intelligence, the

models related to the same are not

empirically tested in different cultural zones.

The current studies been conducted are based

on measuring work team diversity but less

attention has been given to value diversity

which may impact team performance. Future

research is needed to develop team

performance metrics apart from measuring

innovation and conflicts. Another important



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area of future research is the extension of

Cultural intelligence to higher level of

analyses i.e, Team CQ and Organizational

CQ. There are many imperative research

questions related to cultural intelligence

which still remains unanswered.

CONCLUSION

Organizations of today require a wide array

of skill set in its leaders so as to outshine and

have a competitive advantage over others. So

as to perform better the Leaders need to

sharpen their cultural intelligence and

integrate the same with the performance

which further will help them to give right

direction to the diverse teams in the

organization. This paper tries to build a

framework which establishes a relationship

between Leader CQ, Team Diversity and

Team Performance .This paper highlights the

critical role of Cultural Intelligence on Team

Performance and the moderating role of team

diversity upon them.

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LIST OF FIGURES:

Figure 1 A framework of workforce diversity (based on Jehn et al.’s (1999) typology

*Workforce Diversity has been addressed as Workgroup Diversity and same would be taken

for our study.

Workforce

Diversity

Social

Category

Diversity

Informational

Diversity

Value

Diversity

Generic demographic attributes (age,

gender, and ethnicity)

Self categorization (e.g. social,

cultural and ethnic identity

Background Attributes

(education,tenure,experience)



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Figure 2: A Framework of Leader CQ, Workforce Diversity and Team Performance


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