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A Review of Cultural Intelligence for Today's Globalised World

Authors:
  • Manipal GlobalNxt University
  • Manipal GloblNxt University
  • Manipal GlobalNxt University

Abstract

Cultural intelligence, in this context, is a tool that enhances the manager's ability to interact effectively with individuals from other cultures. This study explains how cultural intelligence is essential for today's globalised world. In this review article, the researcher employed the documentary method. In the first step, reliable and valid sources were sampled randomly; in the second step, content analysis was performed on the selected papers using purposive sampling. It reveals that cultural intelligence is a relatively new concept that refers to the capacity to interact, relate, and work in diverse cultural contexts. Cultural intelligence includes knowledge of different cultures with unique histories and behaviours, applying this knowledge to one's actions, and the motivation to explore cultural differences productively. Today's workers interact with individuals from backgrounds vastly different from their daily, across various accountability levels, job roles, organisation size, and industry, in home markets and across borders. This reality necessitates a new workplace competency: the capacity to manage multiple sources of cultural diversity simultaneously. As leaders play a crucial role in ensuring that any new policy is implemented effectively and efficiently, it is essential to consider cultural intelligence in any company and not just an exemption for the educational sector. A systematic review has discussed the essentials of cultural intelligence for today's globalised world in this study.
World Journal of English and Linguistic Studies- WJELS Volume 1 (Issue
1) 2023
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A Review of Cultural Intelligence for Today’s Globalised World
Supaprawat Siripipatthanakul1, Tamonwan Sitthipon2, Parichat Jaipong3
1, 2, 3 Manipal GlobalNxt University, Malaysia
*Corresponding author. E-mail: supaprawat.siripipatthanakul@campus.globalnxt.edu.my
ABSTRACT
Cultural intelligence, in this context, is a tool that enhances the manager's ability to interact
effectively with individuals from other cultures. This study explains how cultural intelligence
is essential for today's globalised world. In this review article, the researcher employed the
documentary method. In the first step, reliable and valid sources were sampled randomly; in
the second step, content analysis was performed on the selected papers using purposive
sampling. It reveals that cultural intelligence is a relatively new concept that refers to the
capacity to interact, relate, and work in diverse cultural contexts. Cultural intelligence includes
knowledge of different cultures with unique histories and behaviours, applying this knowledge
to one's actions, and the motivation to explore cultural differences productively. Today's
workers interact with individuals from backgrounds vastly different from their daily, across
various accountability levels, job roles, organisation size, and industry, in home markets and
across borders. This reality necessitates a new workplace competency: the capacity to manage
multiple sources of cultural diversity simultaneously. As leaders play a crucial role in ensuring
that any new policy is implemented effectively and efficiently, it is essential to consider cultural
intelligence in any company and not an exemption for the educational sector. A systematic
review has discussed the essentials of cultural intelligence for today's globalised world in this
study.
Keywords: cultural intelligence (CQ), leadership, cultural management, cross-cultural
interactions, review article
INTRODUCTION
The rapid increase in cross-cultural management (CCM) because of the globalisation of
economies and increased workforce mobility prompts businesses to investigate the impact of
cross-cultural management on cultural intelligence. Cultural intelligence (CQ) refers to an
individual's abilities and skills to manage cross-cultural interactions effectively (Eisenberg et
al., 2013). Underscoring the significance of cross-border effectiveness in today's globalised
world, cultural intelligence is related to the leadership capacity to manage effectively in
culturally diverse contexts. It is a crucial leadership competency for those with cross-border
responsibilities (Rockstuhl et al., 2011). Given the significance of foreign social networks
and the interconnectedness of global business transactions, academics have argued that
entrepreneurs' cultural knowledge and skills are crucial factors in determining the quality of
their relationships with foreign networks. Considering the impact of culture, entrepreneurs'
cultural intelligence (CQ) is a critical factor that improves relationship quality
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(Charoensukmongkol, 2015). Therefore, multinational corporations depend on their teams'
creativity, productivity, etc., to compete in uncertain and cutthroat business environments.
International corporations have the option to share the knowledge of teams from various
countries. They can acquire, utilise, and expand this knowledge. As a result, most workplaces
provide access to mass cultures. Many new challenges, such as managing cultural diversity,
have emerged due to globalisation for individuals and businesses. Sharing one's knowledge
can improve both individual and team performance. Diverse workforces could contribute to
the addition of knowledge resources in dynamic organisations. Very few studies have been
conducted on the new concept of cultural intelligence. Therefore, the new concept of cultural
intelligence in today’s globalised world is essential to review.
LITERATURE REVIEW
Globalisation and Cultural Intelligence (CQ)
Globalisation and the liberalisation of trade and services in many regions of the world have
made it possible for multinational corporations to operate in diverse geographical settings. In
this regard, the effectiveness of international assignments is becoming a significant source of
competitive advantage for many businesses. Establishing new global markets, disseminating,
sustaining corporate culture, facilitating organisational coordination control, and transferring
technology, knowledge, and skills benefit companies that send employees abroad (Rose et
al., 2010). Globalisation has enabled businesses to operate internationally and capitalise on
global talent pools. Effective global leadership is required to manage a culturally diverse
workforce in this new environment. Cultural intelligence (CQ) and openness are essential to
effective global leadership. Global leaders with these characteristics will be more effective in
international organisations (Verghese & D'Netto, 2011). Practitioners of Human Resource
Management (HRM) have long recognised how crucial it is for managers, especially senior
ones, to be able to navigate the national and organisational cultural contexts in which they
operate. Regarding expatriates, for instance, a great deal of focus has been placed on selecting
and training individuals to work in foreign cultures. The commonly held belief that national
cultural differences are becoming less significant due to globalisation, this paper argues that
understanding cultures is becoming increasingly important (Stening, 2006). Globalisation has
made business a problematic endeavour. Additionally, it has resulted in forming multicultural
organisations in which individuals from various cultures work under one roof. Organisations
require a new generation of culturally sensitive managers to manage a diverse workforce. In
this context, cultural intelligence is a tool that enhances the manager's ability to interact
effectively with individuals from other cultures (Jyoti et al., 2015). There is a correlation
between cultural intelligence, expatriate adaptation to the host country's culture, and
expatriate performance on international assignments. The focus is on the direct impact of
expatriates' cultural intelligence on general, social, and occupational adjustments. The
improved adjustments have consequently positive effects on the expatriates' task and
contextual performance. Researchers in international human resource management (IHRM)
managers are impacted by these implications (Malek & Budhwar, 2013). Therefore, cultural
intelligence is essential for human resource management, especially global businesses.
The Essential of Cultural Intelligence (CQ)
Everyone does not possess the ability to interact effectively across multiple cultures; however,
it is becoming increasingly essential in today's global business environment. This skill has
recently been labelled cultural intelligence (CQ) and has attracted the attention of business
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leaders and academics (Crowne, 2008). Cultural intelligence (CQ) is the ability to function
effectively in intercultural settings. It has attracted growing attention from researchers and
practitioners due to its contemporary relevance to globalisation, international management, and
workforce diversity. According to current research, CQ predicts various crucial outcomes in
intercultural contexts, including cultural adaptation, expatriate performance, global leadership,
intercultural negotiation, and multicultural team processes (Van Dyne et al., 2012). Even
though scholars and practitioners have repeatedly emphasised the importance of intercultural
negotiation, surprisingly, little research has examined the factors that predict intercultural
negotiation success. There is the influence of cultural intelligence (CQ) on intercultural
negotiation processes and outcomes while controlling for other types of intelligence (cognitive
ability and emotional intelligence), personality (openness and extraversion), and international
experience (Imai & Gelfand, 2010). Therefore, cultural intelligence (CQ) can refer to an
individual's, a team's, or a company's capabilities. Cultural intelligence is essential for most
individuals and organisations due to the world's diversity and the fact that modern organisations
recognise the importance of bridging cultures for individual and organisational success (Van
Dyne et al., 2019). Cultural intelligence is the ability to interact with culturally diverse
individuals effectively. Cultural intelligence is distinctive due to the ability to generate
appropriate behaviour in a new cultural setting (Thomas, 2006).
The Key Elements of Cultural Intelligence (CQ)
In today's globalised economy, success in a particular industry almost necessitates a global
perspective on conducting business. Limiting one's economic activities to the domestic
market will ultimately result in disadvantages compared to multinational corporations capable
of rapid expansion in emerging markets. The digital transformation has become the enabler
to serving global customers and increasing the business's responsiveness in all areas, thereby
expanding the opportunities for companies that operate across national boundaries. At the
same time, this fact increases the pressure on companies that are driving hypercompetition
on a global scale. Companies must internationalise their businesses to survive in this
globalised, hypercompetitive world (Rüth & Netzer, 2020). Over the past few decades, many
professionals have been tasked with rethinking the fundamental paradigms of leadership
styles and how to achieve success in this global era. A culturally competent leader is not
desirable but a requirement in virtually all organisations. The relationship between leadership
styles and four components of cultural intelligence was confirmed to shed light on this
complex leadership adaptation in multi-cultural environments. Aside from the correlation
between democratic leadership style and cultural intelligence motivation, this study found no
other correlations between leadership styles and cultural intelligence (Eken et al., 2014).
Cultural intelligence (CQ) is a multidimensional construct of four fundamental "intelligence":
metacognitive, cognitive, motivational, and behavioural. Meta-cognitive cultural intelligence
reflects a person's cultural awareness during interactions with people from diverse
backgrounds. Cognitive CQ relates to a person's knowledge of specific norms, practices, and
conventions in new cultural settings. Motivational CQ encapsulates a person's desire to learn
and function effectively in diverse cultural contexts. Lastly, Behavioral CQ is conceptualised
as an individual's adaptability in demonstrating culturally appropriate behaviour when
interacting with individuals from various cultural backgrounds (Ward et al., 2011). Thus,
cultural intelligence is a multidimensional construct of intelligence, such as metacognitive,
cognitive, motivational, and behavioural cultural intelligence.
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The Essential of Cultural Intelligence (CQ) in Education
Lack of understanding of the roles of cultural distance and prior international experience in
CQ development may prevent universities and individuals from maximising the educational
and developmental potential of short-term study abroad. As a result of ignoring critical
boundary conditions, incorrect participant selection decisions could be made, less efficient
programmes could be designed, and more remote, more expensive locations could be
selected, resulting in less desirable outcomes (Iskhakova et al., 2022). Cultural intelligence
(CQ) is a tool that can enhance a person's ability to interact with individuals from other
cultures. School leaders’ perceptions regarding the critical influences of cultural intelligence
on their leadership style adaptability are essential (Aldhaheri, 2017). Cross-cultural selling
has become an integral component of sales training. Students who enter the workforce in
frontline customer service positions are expected to perform sales at a higher level in the
current competitive business graduate job market. It has been discovered that undergraduate
students who acquire a sales education have a more realistic view of sales as a profession,
require minimal training, have lower turnover, and need less time to be more productive. This
has been attributed to the success of college-level sales education curricula and sales
education techniques (Delpechitre & Baker, 2017). In addition, there has been an absence of
interdisciplinary exchange between the best science and practices of intercultural competence
from other fields and the field of citizenship education. Cultural intelligence, a theory-based
and empirically rigorous concept, provides the optimal framework for promoting intercultural
competence in character and citizenship education. Therefore, teachers face the opportunity
and challenge of leading and teaching with cultural intelligence. Intercultural competence is
an unavoidable component of nature and citizenship education. There is a relationship
between the theory and practice of cultural intelligence and citizenship education. It provides
examples of how teachers can teach with cultural intelligence and cultivate culturally
intelligent students who will become multiculturally educated and globally engaged citizens
(Goh, 2012). Thus, academic discussions on cultural intelligence (CQ) are now focusing on
their various potential applications. In addition to business administration, the field of study
is expanded to include psychology, education, tourism, communication, and the arts. This
results from the widespread breakdown of global communication competence in multicultural
settings due to globalisation’s intensification (Hong et al., 2021)
METHODOLOGY
Researchers must utilise their knowledge to select the most beneficial sample for their
research. In qualitative research, this method is frequently employed. The purpose is to
acquire comprehensive knowledge. The texts are a typical point of departure for qualitative
content analysis. The objective is to condense a large volume of text into a highly organised
and concise summary of key findings (Limna et al., 2022 Jaipong et al., 2022). In this review,
the researcher employed the documentary method. In the first step, reliable and valid sources
were sampled randomly; in the second step, content analysis was performed on the selected
papers using purposive sampling. This systematic review utilised five databases, including
EBSCO, Google Scholar, Scopus, Web of Science, and ScienceDirect. In addition, the criteria
for inclusion included studies that 1) clearly related to cultural intelligence, 2) were published
in English, and 3) were peer-reviewed. The secondary data were examined between July 15
and August 25, 2022. The articles were searched on the keywords terms to search the database
as follows; Cultural intelligence (CQ), leadership, cultural management, cross-cultural
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interactions, and review article. Twenty-four articles (24) out of 8,320 results were analysed
using content analysis. The research articles were from the year 2006-2022.
RESULTS
The rapid growth of cross-cultural management due to the globalisation of economies and the
increased workforce mobility compels businesses to investigate the impact of CCM on
cultural intelligence. Cultural intelligence (CQ) refers to the abilities and skills of an
individual to effectively manage cross-cultural interactions. It is argued that cultural
intelligence is related to the leadership capacity to work effectively in culturally diverse
contexts, highlighting the importance of cross-border effectiveness in today's globalised
world. It is an essential leadership skill for those with international responsibilities. Given the
significance of foreign social networks and the interconnectedness of global business
transactions, academics have asserted that entrepreneurs' cultural knowledge and skills are
crucial determinants of their relationships with foreign networks. Considering the impact of
culture, entrepreneurs' cultural intelligence (CQ) is crucial in enhancing the quality of their
relationships. Therefore, multinational corporations rely on their teams' creativity, efficiency,
etc. to compete in uncertain and cutthroat business environments. Globalisation and the
liberalisation of trade and services in numerous regions have enabled multinational
corporations to operate in various geographical settings. In this regard, the efficacy of
international assignments is becoming an increasingly important source of competitive
advantage for many businesses. Establishing new global markets, disseminating, sustaining
corporate culture, facilitating organisational coordination and control, and transferring
technology, knowledge, and skills are advantages for companies that send workers overseas.
Globalisation has enabled businesses to operate internationally and profit from global talent
pools. Effective global leadership is required to manage a culturally diverse workforce in this
new environment. Cultural intelligence (CQ) and openness are crucial to global leadership
effectiveness. Practitioners of Human Resource Management (HRM) have long
acknowledged how important it is for managers, particularly senior ones, to be able to
navigate the national and organisational cultural contexts in which they operate. A substantial
emphasis has been placed on selecting and preparing individuals to work in foreign cultures.
Contrary to the commonly held belief that globalisation is diminishing the significance of
national cultural differences, understanding cultures is becoming increasingly important.
Globalisation has rendered business problematic. In addition, it has led to the formation of
multicultural organisations in which people from various cultures work together.
Organisations require a new generation of culturally sensitive managers to manage a diverse
workforce. The leaders with these traits will be more effective in international organisations.
CONCLUSIONS
Cultural intelligence (CQ) is a multidimensional concept comprised of four fundamental
"intelligence": metacognitive, cognitive, motivational, and behavioural. Meta-cognitive
cultural intelligence reflects a person's cultural sensitivity during interactions with individuals
from various backgrounds. In contrast, Cognitive CQ refers to a person's familiarity with
norms, practices, and conventions in unfamiliar cultural contexts. Motivational CQ
encapsulates an individual's desire to learn and effectively function in diverse cultural
contexts. Lastly, Behavioral CQ is conceptualised as an individual's adaptability to
demonstrate culturally appropriate behaviour when interacting with people of different
cultures. Thus, cultural intelligence is a multidimensional construct consisting of
World Journal of English and Linguistic Studies- WJELS Volume 1 (Issue
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metacognitive, cognitive, motivational, and behavioural cultural intelligence. Companies
must internationalise their operations to survive today's globalised, hypercompetitive
environment. Many professionals have been tasked with rethinking the fundamental
paradigms of leadership styles and how to achieve success in this global era over the past few
decades. In virtually all organisations, cultural competence is not a desirable trait but rather a
requirement. Three is a relationship between leadership styles and four components of
cultural intelligence to shed light on this complex adaptation of leadership in multi-cultural
environments. This study found no other correlations between leadership styles and cultural
intelligence besides the correlation between democratic leadership style and cultural
intelligence motivation. Cross-cultural selling is now an integral part of sales education. In
the current competitive business graduate job market, it is expected that students who enter
the workforce in customer service positions will perform sales at a higher level. It has been
discovered that undergraduates with a sales education have a more realistic view of sales as
a profession, require minimal training, have lower turnover rates, and need less time to be
more productive. This results from the success of college-level sales education curricula and
sales education techniques. In addition, there has been a lack of inter-disciplinary exchange
between the best intercultural competence science and practices from other fields and the
field of citizenship education. The optimal framework for promoting intercultural
competence in character and citizenship education is cultural intelligence, a concept grounded
in theory and supported by empirical evidence. In addition to business administration, the
field of study now encompasses psychology, education, tourism, communication, and the arts.
Due to the intensification of globalisation, this is the result of extensive research into global
communication proficiency in multicultural settings.
LIMITATIONS AND RECOMMENDATIONS
It would be deceptive to ignore the limitations of scoping studies. They do not evaluate the
quality of evidence in primary research reports, for instance, formally. The amount of data
generated can be substantial. It can lead to difficult decisions regarding how breadth (covering
all available material) trumps depth. The scoping study does not address the synthesis issue
or the relative weight of evidence supporting the efficacy of any intervention. Consequently,
scoping studies provide a narrative or descriptive summary of the available research. Most of
these challenges are addressed by systematic review methods that require quality assessment,
thereby reducing the number of studies included in the review and emphasising data
synthesis. However, the systematic review process can be very time-consuming, which is a
disadvantage when policymakers need information about existing research evidence quickly.
The recommendation for further study is to consider quantitative for relationship explanation
or qualitative research such as interviews and focus group discussions for insight results.
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... Employees can discuss what went well and what challenges they faced. This continuous feedback loop can aid in refining CQ training programs over time [13]. ...
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Over the last few decades, increasing number of professionals have been challenged to rethink the basic paradigms of leadership styles and how to be successful in this global era. Being a culturally competent leader is not a preferred skill but a required skill within almost any organization. In order to shed light on this complex leadership adaptation in multi-cultural environments, this study explored whether there was a relationship between the leadership styles and four elements of cultural intelligence. Other than the correlation between the democratic style leadership and cultural intelligence motivation, this study has not confirmed a significant correlation between leadership styles and cultural intelligence.
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Globalisation has made business a challenging proposition. Further, it has led to multicultural organisations where, people belonging to different cultures work under one roof. To manage diverse workforce, organisations need a new generation of managers, who are culturally sensitive. In this context, cultural intelligence is a tool, which increases the manager’s ability to effectively interact with people belonging to other cultures. The purpose of this paper is to analyse the impact of cultural intelligence on job performance and explore the role played by cross-cultural adaptability. The data for the study have been collected from 342 managers of Nationalised banks in JandK (India). Exploratory factor analysis and confirmatory factor analysis have been conducted to explore and validate the factors of different constructs. Hypotheses have been tested through structural equation modeling. The study reveals that cultural intelligence significantly affects job performance and. cross-cultural adaptability mediates the relationship between cultural intelligence and job performance. Implications and limitations of the study have also been discussed.
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Academic discussions on cultural intelligence (CQ) are now paying attention to their potential utilization from various angles. The field of study is expanded not only in business administration but also in psychology, education, tourism, communication, and arts. This is due to the widespread study of global communication competence in multicultural situations because of the deepening of globalization. In this paper, we try to find a way to utilize cultural intelligence model proposed by David Livermore. The aim is to develop education contents for the improvement of cultural intelligence of university students. The target is limited to university students and aims to develop education contents to enhance their cultural intelligence. The main purpose of the study was to measure and analyze the cultural intelligence of university students. For that, the level of cultural intelligence of Korean university freshmen was measured and analyzed. The individual level of the four areas constituting the cultural intelligence was identified, and the difference between the male and female was examined. At the same time, the differences in cultural intelligence were analyzed according to the duration of multicultural contact and experience in the case of foreign language lectures taught by foreigners. Finally, we analyzed how the correlation between the four areas that comprise cultural intelligence is occurring, and as a result, the content and results of this study are expected to be an important foundation for the direction of future development of education contents in universities.
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