Cultural Intelligence and Leadership Effectiveness in Global Workplaces

Abstract

Dealing with workplace diversity is a major challenge for global leaders. The objective of this study is to study the impact of cultural intelligence on global leadership effectiveness. In this conceptual study, we describe major advances and emerging patterns in the research domain of global leadership and the impact of cultural intelligence on the effectiveness of global leaders in cross-cultural workplaces over the last several years. The finding of the study is that cultural intelligence is a prime factor in deciding the success of global leaders in cross-cultural workplaces.

Full text

Cultural Intelligence and Leadership Effectiveness
in Global Workplaces
Shakeel Ahmad*, Saidalavi K.**
* Professor, Department of Commerce, Maulana Azad National Urdu University, Telecom Nagar, Gachibowli, Hyderabad,
India. Email: shakeel_du@yahoo.com
** Assistant Professor, Department of Management Studies, Maulana Azad National Urdu University, Telecom Nagar,
Gachibowli, Hyderabad, India. Email: saidalavimanuu@gmail.com
Abstract
Dealing with workplace diversity is the major challenge
of global leaders. The objective of this study is to study
the impact of cultural intelligence on global leadership
effectiveness. In this conceptual study, we describe
major advances and emerging patterns in the research
domain of global leadership and impact of cultural
intelligence on the effectiveness of global leaders in
cross-cultural workplaces over the last several years.
The nding of the study is that cultural intelligence is a
prime factor in deciding the success of global leaders
in cross-cultural workplaces.
Keywords: Cultural Intelligence, Global Leadership,
Cross-Cultural Workplace
Global leaders need to master various intelligence like
cognitive intelligence, emotional intelligence and social
intelligence and more importantly cultural intelligence
(Templer, Tay, & Chandrasekar, 2006). Cultural
intelligence is a person’s ability to deal effectively in
cross-cultural contexts including organizational, ethnic,
national, and other cultures (Van Dyne et al., 2012).
Cultural intelligence develops a general perspective
about various cultural norms, practices, and values that
result in more effective leadership. This study synthesizes
the studies on the impact of cultural intelligence in the
success of global managers by analyzing the various
dimension of cultural intelligence and the contribution of
each dimension towards global leadership success.
Leadership Approaches, Global
Leadership and Challenges
Leadership is the ability and capacity to inuence others
and is the exercise of authority and making decisions
(Bass, 1990). The research on leadership has evolved
through several phases from trait theory which focused
the physical traits and characteristics of leaders, then
shifted toward the differences in behavioral approaches
and nally contingent theories which suggests that the
outcome of leadership is contingent on the situation that
the situational variables moderate the effectiveness of the
leadership styles.
From years, the leadership researchers have tried to
identify that what constitutes effective leadership based
on which various leadership theories have been formed.
The traditional ‘the great man’ theory was popularized
International Journal on Leadership
7 (1) 2019, 1-7
http://publishingindia.com/ijl/
Introducon
Globalization demands new leadership competencies
as it is a non-cohesive inuencing process in order
to interact effectively with followers from different
cultural backgrounds. It is to be considered that dealing
with cultural diversity is a key factor when studying the
effectiveness of global leadership in global contexts.
After Hofstede’s framework of cultural dimensions, there
is a signicant progress over the last several years in the
study of cross-cultural leadership research to identify
the relationship between managing cultural differences
and organizational effectiveness. This study synthesizes
the studies on the impact of cultural intelligence and its
various dimensions on global leadership effectiveness in
global workplaces.

2 International Journal on Leadership Volume 7 Issue 1 April 2019
by Scottish writer Thomas Carlyle (Wynn, 2004), which
is based on the assumption that ‘the history of the world
is but the biography of great men’, reecting his belief
that heroes shape history through both their personal
attributes and divine inspiration. Later the trait theory was
presented by Stogdill (1974) based on the assumptions that
People are born with inherited traits and some traits are
particularly suited to leadership. The modern behavioral
leadership researchers assumed that to determine what
effective leaders do, how they delegate tasks, how they
communicate with and try to motivate their followers
or employees, so as the leaders can be made, rather
than being born and successful leadership is based
indenable, learnable behavior. Further Blake & Mouton
(1982) developed the Leadership Grid, focusing on the
production and employee orientations based on a leader’s
concern for people (relationships) and production (tasks)
which was identied in the Ohio State and Michigan
University studies. Similarly, role theory of leadership
is a theoretical approach which borrows many concepts
from the sociological role theory and applies these ideas
to leader-follower relations which understands leadership
within a group as a result of a process of differentiation
by which group members achieve group aims faster and
whereby they meet their individual needs (Gibb, 1958).
Lewin, Lippitt, & White (1939) recognized that the need
to make decisions is the key factor that determines a
leader’s choice of leadership style and identied three
styles of leadership decision-making, the autocratic; the
leader takes decisions without consulting with others,
the democratic; the leader involves the people in the
decision-making and the laissez-faire; the leader allows
people to make their own decisions and has minimal
role in decision-making. Likert (1961) identied four
main styles of leadership based upon the degree to which
people are involved in the decision, namely exploitive
authoritative leader who has a low concern for people and
uses such methods as threats and other fear-based methods
to achieve conformance, benevolent authoritative leader
who adds concern for people to an authoritative position,
consultative leader who makes genuine efforts to listen
carefully to ideas of subordinates and participative leader
who makes maximum use of participative methods. The
Contingency Model of leadership was created in the mid-
1960s by Fred Fiedler. The situational contingency theory
holds that group effectiveness depends on an appropriate
match between a leader’s style and the demands of the
situation (Fiedler, 1964). Transactional leadership theory
also known as managerial leadership was rst introduced
by Max Weber in 1947 and then by Bernard Bass in 1981.
Transactional leadership theory focuses on supervision,
organization, and performance; transactional leadership is
a style of leadership in which leaders promote compliance
by followers through both rewards and punishments
(B.M. Bass, 1985). The transformational leadership
which was initially introduced by James V. Downton and
further developed by James MacGregor Burns is a style
of leadership where a leader works with subordinates to
identify needed change, creating a vision to guide the
change through inspiration, and executing the change in
tandem with committed members of a group (B. M Bass,
1985).
Global leadership is the ability to bring signicant
positive change in global workplaces developing teams
which are built on trust and mutual respect and arranging
organizational structures and processes in a context
involving cross-cultural stakeholders, authority, and an
organizational culture inclusive of social, geographical,
and cultural complexities (Caligiuri, 2006) this article
suggests that managers differentially benet from a given
intercultural training or developmental experience -
depending on their individual aptitudes (i.e., knowledge,
skills, abilities, and other personality characteristics.
Global leadership is characterized by a work context with
diversity, more frequent boundary spanning, need for
extensive knowledge management system on functions
and nations, more stakeholders with expectations and
believes to understand and consider in decision-making, a
more challenging range of competing tensions within and
outside the organization, high complexity of decisions
and effects and more challenging ethical dilemmas (Pless,
Maak, & Stahl, 2011).
Mendenhall, Reiche, Bird, & Osland (2012) submitted
that global leadership can be developed through
acquiring certain capabilities and characteristics in
order to be effective and to overcome the challenges of
global workplaces. Mendenhall et al. (2012) observed
that global leadership is a multi-dimensional construct
with six core dimensions of competencies; they are cross-

Cultural Intelligence and Leadership Effectiveness in Global Workplaces 3
cultural relationship skills and cultural sensitivity, traits,
values and resilience to stress, cognitive orientation and
cognitive complexity, global business expertise and
global business savvy, global organizing expertise and
ability to build partnerships and visioning and ability to
instill values. Leadership researchers pointed out that
certain qualities for successful global leaders; they are
honesty and integrity (Jokinen, 2005), compromising both
personal and company standards and preferences with a
few notable exceptions (Mendenhall et al., 2012), adopting
a nonlinear process of global leadership development that
involves cognitive aspects like engaging in activities that
build intellectual awareness and knowledge, effective
aspects like enhancing emotional awareness and effective
growth and behavioral aspects like building skills and
changing behavior (Mendenhall et al., 2012). The global
leadership can be developed through individual and
organizational global leadership competencies by hiring
diverse employees and managers, developing social
networks across cultures, and creating cross-border teams
and projects and expatriate assignments (Gu & Tubbs,
2001).
The leadership challenges faced in a cross-cultural
workplace are signicantly more composite and
demanding than those in a domestic workplace because
of the pressures to adapt with incomplete understandings
of the contexts and ethical dilemmas in an increasingly
complex and interconnected world (Pless et al., 2011)
The global leaders have to meet changes, demands, and
expectation of stakeholders and other participants in a
global business environment and have to contribute to the
creation of economic and societal progress in a globally
responsible and sustainable way (Pless et al., 2011). To
deal effectively with wider issues related to cultural,
social, ecological, and ethical issues in the global context
is a real challenge for global leaders ensuring principle
driven and ethically sound behavior both at home and
abroad and being responsive to the legitimate expectations
of a diverse group of stakeholders (Pless et al., 2011)
balancing needs for global incorporation and local
responsiveness like ensuring consistency in managerial
decision-making while being sensitive to local cultural
norms and conditions and developing an organizational
culture featured with cultural empathy, adaptability,
global mind-set, moral judgment, the capacity to balance
contradictions and a sound mutual under- standing of
matters of global justice and fairness (Pless et al., 2011).
Cultural Intelligence
Cultural intelligence (CQ), is an individual’s ability to
deal effectively in culturally diverse settings (Ang et al.,
2007). As emotional intelligence deals with the ability to
work effectively by controlling efciently the emotions
of self and others, general intelligence is ‘the capability
to reason correctly with concepts and solve problems,
Cultural intelligence is to adapt effectively to new cultural
settings’ (Ang et al., 2007).
Cultural intelligence has four components (Ang et al.,
2007; L. Van Dyne et al., 2012) namely Meta-cognitive
CQ which is an individual’s cultural consciousness, deep
information processing and strategies during interactions
across cultural contexts (L. Van Dyne, Ang, & Koh,
2008), Cognitive CQ is an individual’s awareness and
knowledge of cultural norms, expectations, practices,
and knowledge of cultural similarities and differences
in cross-cultural contexts (L. Van Dyne et al., 2008),
Motivational CQ is a person’s ability to direct energy
and attention toward cultural differences to experience
other cultures and interacting with people from different
cultures. Motivational CQ is developed from intrinsic
values desire, drive, efcacy and condence of people to
work, live, and interact with new cultural environments
(L. Van Dyne et al., 2008. Behavioral CQ is an individual’s
ability to manage and regulate cross-cultural behavior and
the intelligence to adopt suitable verbal and non-verbal
actions in cross-cultural contexts to avoid disrespect,
confusion, and neglect which may occur due to lack of
awareness regarding cross-cultural expectations (Ang et
al., 2007).
Conceptual Framework
The authors suggest that Cultural Intelligence (CQ) which
has four dimensions; Motivational CQ, Cognitive CQ,
Meta-Cognitive CQ and Behavioral CQ, has the signicant
impact on global leadership development leadership
development and global leadership effectiveness in cross-
cultural workplaces. We propose that global managers
- who possess a higher level of Cultural Intelligence
have a dynamic skill to lead with desirable leadership
qualities and behave according to the expectation of the

4 International Journal on Leadership Volume 7 Issue 1 April 2019
participants in a cross-cultural context. The theoretical
model presents that the coupling of Cultural Intelligence
with even conceptually distinct the leadership styles can
create most desirable result favorable results in global
workplaces.
Cultural Intelligence and Global
Leadership Eecveness
CQ is a set of individual capabilities that allows global
leaders to learn from their experiences and facilitates the
transformation of experience into experiential learning.
Leadership researchers (Ang et al., 2007) have conrmed
Cultural Intelligence signicantly inuences cross-
cultural and global leadership effectiveness. In a study to
explore the importance of rm-level cultural intelligence
in the context of international business ventures such
as offshoring, Ang & Inkpen (2008) emphasized the
importance of the cultural intelligence of top management
teams as well as those of the project managers directly
responsible for offshoring ventures and the importance of
developing culturally intelligent structural norms which
govern the inter-organizational interface. Ng (2018)
submitted that global leaders having high level of CQ
transform their international experiences into positive
learning outcomes that improve their global leadership
effectiveness and positioned CQ and experiential learning
as key factors that affect global leader learning outcomes
and is vital reason why some global leaders succeed in
their roles and others fail in global workplaces. Crowne
(2008) observed that global leadership skills have become
increasingly important in the dynamic work environment
and cultural intelligence can lead to developing global
leadership success. The organizations should not only
train the executives for global assignments, but also
send them on foreign assignments to be exposed to other
cultures to develop CQ skills during internships, training,
and expatriation, then successful global leaders should
ultimately be developed (Crowne, 2008). High levels of
CQ are mandatory for the success of global leadership,
so rms should recruit the candidates with multiple
global assignments (Crowne, 2008). Elenkov & Manev
(2009) submitted high level of cultural intelligence
clearly magnies the positive effect of expatriate
leadership on that kind of innovation and the managers
with higher CQ are expected to encourage, motivate, and
guide subordinates more successfully, overcome intra
organizational challenges, and stimulate organizational
innovation. Tuleja (2014) suggested some strategies for
developing global leaders such as to understand the way
of functioning of organizations in relation to cultural
and societal inuences, to move from simply having
the knowledge to developing mindfulness that affects
behavior in cross-cultural workplaces and to stay mindful
while working in cross-cultural contexts. Groves &
Feyerherm (2011)highlighted the relevance of leader CQ
as a competency for leaders of culturally diverse work
teams and observed that leader CQ contributes to team
member perceptions of both leader performance and team
performance on work teams in cross-cultural contexts
and the leader CQ explains unique variance in leader
performance and team performance beyond leader EQ
(Ang et al., 2007). Deng & Gibson (2008) observed that
the Cultural Intelligence level of in foreign countries plays
a signicant role in enhancing cross-cultural leadership
effectiveness and in dealing with cultural differences
whose absence may lead to conict of interests, decreased
morale and low productivity in workplaces. Ng (2018)
recommended that those with higher CQ are more capable
to exploit all phases of the experiential learning process
and CQ should be used to select people for overseas
assignment when organization focus developmental aims
as part of the assignment. V. Dyne et al. (2012) found that
CQ has a clear effect on individual-level outcomes such
as general job performance; comprising task and adaptive
performance and performance in specic domains such as
negotiation and leadership. Kim & Dyne (2012) observed
that prior intercultural contact was positively related to
both self- and observer-ratings of CQ and established the
mediating role of CQ in linking prior intercultural contact
with international leadership potential. Zekânın, Liderlik,
Üzerindeki, İşletmelerinde, & Bir (2014) proposed that
the leader’s higher cultural intelligence level affect cross-
cultural leadership effectiveness positively, the effective
cross-cultural communication is an important way to
understand and adapt to the host culture consequently,
the difculties in the adaptation process begin from the
lack of knowing foreign language and appropriate body
language which is most important challenge in the process
of cultural adaptation is the language.

Cultural Intelligence and Leadership Effectiveness in Global Workplaces 5
Dimensions of CQ and Leadership
Eecveness
Stokes (2013) and Ang et al. (2007) examined the
relationship between the dimensions of cultural
intelligence; meta-cognitive CQ, cognitive CQ,
motivational CQ, and behavioral CQ and transformational
leadership and found meta-cognitive CQ was the most
signicant predictor of transformational leadership and
Meta-Cognitive CQ along with cognitive CQ are the
mental components of the cultural intelligence model.
Elenkov & Manev (2009) proved that behavioral and
cognitive cultural intelligence is positively related to
increased innovation and multicultural team effectiveness
and (Ang et al., 2007) observed that behavioral cultural
intelligence has been linked to increased intercultural
negotiation effectiveness and task performance and
Cognitive cultural intelligence has a positive relationship
with cultural judgment and decision-making. (Earley
& Mosakowski, 2004 developed a global competency
model which conceptualizes the stages of development
of cultural intelligence from the sequential development
process from Ignorance, Awareness, Understanding,
Appreciation, Acceptance, Internalization, and Adaptation
and submitted that Cognitive CA, motivational CQ
and behavioral CQ manifest themselves at all levels
of the global leadership competency model in varying
degrees. Managers in foreign countries with high
motivational CQ show desire, ambition, and ability to
generate strategies to deal with working and living in
the new cultural environment and the effective cross-
cultural communication between the expatriate leader
and followers from different cultures is a vital means to
adapt to the host culture, thus communication becomes
a signicant element of expatriate leaders’ CQ (Deng &
Gibson, 2008). Ang et al. (2007)submitted that global
leaders with higher meta-cognitive CQ and behavioral
CQ are more effective to fulll performance expectations
at work.
Discussion
This study which synthesizes global leadership
development research observes that Cultural Intelligence
is signicantly related to global leadership effectiveness
and highlights the signicance of all dimensions of
cultural intelligence; Meta-Cognitive CQ, Cognitive CQ,
Motivation CQ and Behavioral CQ in predicting global
leadership effectiveness in cross-cultural workplaces. To
be effective, global leaders need high levels of motivation,
knowledge, cross-cultural strategies and appropriate
behavioral adjustments in dealing, working and living in
global contexts. This nding also validates the conceptual
model on the impact of CQ on global leadership
effectiveness. This nding shows that individuals with high
level of Cultural Intelligence are able to meet the challenges
of working in a complex global environment and are
more likely to meet needs and expectations of the people
from the different cultural background and the higher the
likelihood of dealing effectively with global challenges.
As cross-border leaders work simultaneously with
systems, processes, and people from multiple cultures;
cultural intelligence is a critical competency of effective
global leaders and cultural intelligence is a signicant
predictor of leadership effectiveness, over and above
previous experience, personality, and general intelligence.
This study also observes the positive relationship between
cultural intelligence and transformational leadership style
which has been claimed that charismatic/transformational
leadership behavior would facilitate leaders in different
cultures to lead effectively by inspiring shared vision
and creating exceptional performance (Bernard M. Bass
& Avolio, 1990; Earley & Peterson, 2018). Cultural
intelligence is a basic factor of transformational leadership
and the transformational leaders with high level of
Cultural Intelligence can manage conicts, adjust mental
plans, identify legal and economic systems, recognize the
norms and ethics in social interactions, identify religious
beliefs, values and other cultural expectations, and select
appropriate verbal and non-verbal behaviors (Earley &
Peterson, 2018). Cultural Intelligence also moderates the
relationship between transformational leadership and the
level of innovation adoption in the organizations. Thus,
Cultural intelligence should be an important consideration
in the selection, training of global leaders (Rockinson-
szapkiw, 2013).
The leaders with higher level of Cultural Intelligence
are assured to meet the qualities of a global leader for
effectiveness such as increased level of conict resolution
ability which is essential for the 21st-century leaders when
considering the increased interaction with individuals
from different cultural backgrounds (Ramirez, 2010) Tay,
& Chandrasekar, 2006, the ability to interact effectively

6 International Journal on Leadership Volume 7 Issue 1 April 2019
with culturally distinct individuals and to generate
appropriate behavior in a new cultural setting and to
more fully comprehend the differences between the host
culture values and his or her own deeply held beliefs and
strengthening the positive relationship between authentic
leadership and morally grounded cultural adaptation
(Lester, Palmer, & Clapp-smith, 2009). This study
recommends that managers differentially benet from a
given intercultural training and offering the right people
the right developmental opportunities will produce leaders
who can effectively perform global leadership tasks and
activities. Cultural Intelligence capabilities are drivers
of job performance among global leaders. The analytical
intelligence (IQ), the emotional intelligence (EQ),
and leadership approaches are moderated by cultural
intelligence (CQ) in the formation of global leadership
success and increasing globalization will make CQ
skills more relevant throughout entire organizations, and
virtually everyone in management and global business
situations will need to focus on possessing the CQ skills.
The managerial implications of this study focus to prioritize
the organizations for developing global high potential
programme to identify people who show the potential
towards cross-cultural learning, to facilitate expatriate
training facilities, to implement effective succession
planning, to provide cross-cultural education and feedback
and nally to conrm that each higher level manager
of the organization personally accepted responsibility
for developing culturally intelligent workplaces and
global leaders. The senior executives needed to identify
and understand cross-cultural challenges and global
leadership development issues that might potentially
enhance or be barriers to the company’s growth such as
the global experiences that will best prepare people for
senior management positions, cross-cultural skills and
behaviors that are needed to be successful in a global
company and trending cross-cultural training practices of
global leadership development.
Conclusion
This study contributes to the global leadership and cultural
intelligence literature by synthesizing academic reviews
on the effect of cultural intelligence on global leadership
effectiveness. It is concluded that the global leadership
development strategy had to be a strategy that would
t the company’s global culture and would require the
involvement and commitment of senior management by
developing the cultural intelligence level of the employees
through various mechanism such as cross-cultural
education and training, expatriate work experience,
being exposed to different bosses with different styles.
Further research is suggested towards the moderation
effect of cultural intelligence on the relationship between
various leadership styles and leadership effectiveness and
on empirical validation of the impact of cross-cultural
training programmes on global leadership effectiveness
and specic guidance for developing effective global
leadership training programmes.
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