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Garamvölgyi, J.; Rudnák, I. The Relationship between Cultural Intelligence and Management Competencies. Encyclopedia. Available online: https://encyclopedia.pub/entry/54022 (accessed on 21 December 2024).
Garamvölgyi J, Rudnák I. The Relationship between Cultural Intelligence and Management Competencies. Encyclopedia. Available at: https://encyclopedia.pub/entry/54022. Accessed December 21, 2024.
Garamvölgyi, Judit, Ildikó Rudnák. "The Relationship between Cultural Intelligence and Management Competencies" Encyclopedia, https://encyclopedia.pub/entry/54022 (accessed December 21, 2024).
Garamvölgyi, J., & Rudnák, I. (2024, January 18). The Relationship between Cultural Intelligence and Management Competencies. In Encyclopedia. https://encyclopedia.pub/entry/54022
Garamvölgyi, Judit and Ildikó Rudnák. "The Relationship between Cultural Intelligence and Management Competencies." Encyclopedia. Web. 18 January, 2024.
The Relationship between Cultural Intelligence and Management Competencies
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This entry is adapted from the peer-reviewed paper 10.3390/su15075735

Managers with higher Cultural Intelligence (CQ) are more effective in their leadership roles, the CQ of leaders contributes to a more positive perception of leadership performance in teams that are characterized by significant cultural diversity.

cultural intelligence management competencies multicultural management management evaluation

1. Introduction

Cultural Intelligence, a 21st century concept, determines the extent of workers’ success in foreign cultures, but also provide an answer to why dealing with issues that arise from cross-cultural problems can cause failure or success. The name used for this concept is Cultural Intelligence, which was abbreviated by Ang as CQ, “short for cultural intelligence quotient” [1]; both forms (Cultural Intelligence and CQ) are used in research and the literature equally for the cultural intelligence model itself and the measured level of cultural intelligence, which can be confusing.
The individual relationships of a person living in a foreign culture have an impact on their life, their resilience and, of course, their performance in the workplace. The ways in which people can be successfully encouraged to work better vary from nation to nation and culture to culture. For all these reasons, there is a growing need for more and more people—whether managers or subordinates—to excel in their professions and to successfully overcome intercultural barriers, whether at home or in cultures and countries other than their own [2].
Working abroad is no longer surprising, as there is no small community or family that is not affected by the fact that one of its members decides to emigrate permanently or temporarily overnight, but it is by no means certain that they are prepared for the challenges of the new environment [3]. The globalisation of circumstances also poses a challenge for the newcomer, but the development of personal competences, including the elements of integration competence, is necessary to be able not only to cope but also to succeed [4].
In the case of diverse (i.e., multicultural) groups, initial friction arising from cultural differences can hamper success from the moment of entry and can escalate into serious conflicts if not properly addressed and managed in time, with negative financial consequences if workers from different backgrounds are hired.

2. The Relationship between Cultural Intelligence and Management Competencies

2.1. The Importance, Brief History and Measurability of CQ

CQ is a discipline of the 21st century, a product of globalization. Rockstuhl et al. [5] pointed out that, although leadership is influenced by general intelligence and emotional intelligence, these findings relate to operating at home, in one’s own country, and there was little research examining the impact in transnational contexts [5]. In the 21st century, researchers have turned their attention intensively to the skills and competences needed to integrate into other cultures. Egwuonwu et al. define CQ as human capital that can improve managerial relationship performance [2].
A pioneer in CQ research was Ang [6], who in 1997 noted that experts of different nationalities recruited for the Y2K problem, although skilled at their work and considered the best in their field, were not able to work together effectively. By exploring this new workplace requirement, Ang and Earley created the concept of CQ [7] and published a book on the results of their research, CQ [6]. Thomas and Inkson [8] further elaborated on their two classical theories, and listed knowledge, mindfulness, and intercultural skills as the components of CQ, with knowledge being the knowledge of one’s own and other cultures, mindfulness being the ability to pay attention to context, and intercultural skills being the skills to use the former two. Dogra and Dixit [9] have brought together the most significant published work on CQ beyond classical CQ research (Table 1).
Table 1. CQ research.
Research Topic Researchers
The link between CQ and the performance of foreigners Kim, Kirkman and Chen (2008) [10]
The link between CQ, individual global identity and multicultural groups and group performance Shokef and Erez (2008) [11]
The moderating role of CQ in foreign managers Elenkov and Manev (2009) [12]
An integrated model of experiential learning and CQ Ng, Dyne and Ang (2009) [13]
A conceptual model to investigate the role of CQ in labour diversity and group performance Karma and Vedina (2009) [14]
The impact of CQ on conflict management skills Ramirez (2010) [15]
Linking management CQ to leadership and team performance Groves and Feyerherm (2011) [16]
A conceptual model in which prior intercultural experience influences international leadership potential through CQ Kim and Dyne (2012) [17]
Link between CQ and employee engagement Kodwani (2012) [18]
Impact of short-term international experience on CQ dimensions Engle and Crowne (2013) [19]
The impact of CQ on multicultural negotiation performance Groves and Feyerherm (2014) [20]
The role and impact of CQ on task performance Jyoti and Kour (2015) [21]
CQ, global leadership preparation and communication effectiveness in terms of anxiety and uncertainty management Mukherji, Jain and Sharma (2016) [22]
Factors influencing CQ Garamvölgyi and Rudnák (2017) [23]
Conceptual model: the impact of management CQ on group performance Dogra and Dixit (2017) [9]
Theoretical framework for examining the relationship between management CQ, group CQ and organisational CQ Dogra and Dixit (2017) [9]
Developing CQ Raver and Van Dyne (2017) [24]
Alexander, Ingersoll, Calahan, Miller, Shields, Gipson and Alexander (2021) [25]
CQ and intercultural training Alexandra (2018) [26]
CQ and the way we speak Ng, Van Dyne, and Ang (2019) [27]
CQ and cultural diversity Alexandra, Ehrhart, and Randel (2021) [28]
Source: own editing, based on [9][29].
In recent research, Schlaegel et al. [30] presented the results of seventy studies on CQ.
As indicated above, the volume of research shows that CQ is gaining ground in the palette of studies, and its field of application is constantly expanding, proving that it is indeed an inescapable phenomenon of our time.
The authors Garamvölgyi and Rudnák [31] consider CQ measurement and data to be some of the newest tools in international HR selection. Their complexity make them suitable for assessing the emotional, cognitive, behavioural, and psychological well-being of people considering a move to another culture, and even for predicting the time needed for successful integration and the extent of potential trauma caused by culture shock, which allows trauma to be minimized or even eliminated.
Currently, the best-known measurement tool is the Cultural Intelligence Scale (CQS), which has been developed over several years of work to create, refine, validate and cross-check the instrument. The development of the CQS has involved a wide range of samples with different compositions, including managers, students, expatriates and members of multicultural groups from all over the world [32]. The Cultural Intelligence Scale (CQS) was developed by The Cultural Intelligence Center, led by Van Dyne and Livermore. The Center has the first scientifically validated instrument to measure CQ [32].
CQ consists of four domains of ability, i.e., four factors (motivation, knowledge, strategy, action) which together determine the CQ score. These four factors correspond to the four dimensions of general intelligence [33]. These factors are named Motivational CQ, Cognitive CQ, Metacognitive CQ and Behavioural CQ. Characteristic of individuals with high factor scores on a given CQ dimension are as follows: People with high motivational CQ values have intrinsic interest in cultures, and from that stems their ability and willingness to direct their attention and energy to managing multicultural situations [5]. People with high cognitive CQ values create mental maps of culture and its environments and contexts. They can use these maps to understand cultural systems and rules that are the bases of social interactions in cultures [5]. People with high metacognitive CQ values have knowledge about the cultural norms and preferences of different societies, and they constantly check the validity of their knowledge and adjust it according to their experiences during intercultural interactions [5]. People with high behavioural CQ values are flexible during their intercultural interactions and are able to adapt their behaviours to best suit the situation to achieve the highest efficiency [5].
Several studies report on the results of recent CQ surveys: Stoermer et al. [34] investigated the importance of foreign workers’ CQ levels in relation to the informal and formal openness of the host country, while Hong et al. [35] took a pedagogical perspective to measure the CQ levels of university students. Presbitero [36] analysed the effectiveness of communication between members of virtual groups by measuring CQ. Richter et al. [37] and Mangla [38] investigated social integration and performance in virtual spaces in terms of CQ levels. Chin et al. [39] examined the importance of CQ in the context of a global health emergency. Guang and Charoensukmongkol [40] focused on leadership performance. Setti et al. [41] analysed the relationship between CQ, fit and performance.

2.2. Brief Description and Measurability of Management Competencies

Management Competencies are the key to successful leadership, and therefore the leader has influence not only on his or her own performance, but also on the effectiveness of their subordinates [42].
One of the classic theorists of competence theory, McClelland [43], summarised the characteristics of high performers as competencies. In his formulation, competence is defined as ‘the intrinsic characteristic of a person or group that predicts outstanding performance’; the attributes of an individual that are needed to perform effectively in his or her job or role in life. He looked at how performance could be measured, and what characteristics could be used to describe high performers and successful people. Competences can be grouped in several ways, one of which is the five types of competency characteristics individuated by Klemp and McClelland [44]: drivers, which motivate individuals to behave appropriately; general or specific knowledge/knowledge that is useful for their occupation; physical or intellectual ability; self-image, which shows the role people see themselves in; and personality traits. Knowledge and skills can be taught, and self-image, personality traits and drive can be developed.
The essence of Management Competencies is how one is able and willing to make an impact, which manifests itself in motivating others, leading by example, organizing, communicating, and in myriad other areas [45]. In recent decades, there has been an increasing focus on the development of key competences related to and necessary for leadership (Adler [46]; Hite and Mcdonald [47]; Kakabadse, Bank, and Vinnicombe [48]; Leblanc [49]; Margerison [50]; Margerison [51]). A number of researchers have attempted to identify the competences required for successful leadership, with a view to ensuring that leaders can be trained and developed on an ongoing basis (Analoui [52]; Cockerill, Hunt, and Schroder [53]; Education Review Office [54]; Katz [55]; Mann and Staudenmier [56]; Mintzberg [57]; Peter [58]; International-Profiles-Inc [59]; SHL [60]; Williamson [61]) [62].
A growing number of researchers have agreed on the importance of certain competencies, which were also promoted by senior management firms as SHL [63], Schroder [64] and Vincent [65]. This indicates that it is possible to create a universal competency model for assessing managers. There are three main types of Management Competencies: task management, people management and self-management [62]. Management Competencies are needed when carrying out a wide range of leadership tasks. Different competences are needed by employees and managers in different organisational hierarchies [42].
A comparison of Mintzberg’s leadership roles, general Management Competencies and IMC Management Competencies was done by Coetzee et al. where IMC’s personality trait and leadership skills factors were matched to Mintzberg’s interpersonal roles, IMC professional skills factors were matched to Mintzberg’s informational roles and IMC entrepreneurial skills factors were matched to Mintzberg’s decisional roles. Mintzberg considered information transfer and verbal communication to be very important in leadership. He considered leadership to be more of an art than a science [66].
SHL’s Inventory of Management Competencies (IMC) tool provides a 360-degree assessment of managers based on sixteen generic management competency models for measuring outstanding management performance/effectiveness [62], which leads the field in personal assessments. Since its publication it has been used in numerous research studies, but its validity has been tested under rigorous conditions. In a meta-study of 33 studies (22 empirical studies), it was found that the IMC instrument was used in the majority [67]. Today, more than 5500 organisations use the SHL tool and techniques [66].
For even more detailed competency assessments, the Perspectives on Management Competencies (PMC) model can be used, which examines 36 key Management Competencies from six perspectives [62].
The best possible organisation and use of human resources is a key factor in the market [42]. More and more researchers believe that competency-based organisations are the most efficient [68]. Good leadership requires leaders with the most developed Management Competencies. Competencies, or “attributes that can be described by behavioural characteristics”, describe how an employee or leader can achieve the stated goals [42]. They are expressed in “observable behaviour”. Competence is a combination of personality, ability, motivation and knowledge.

2.3. The Relationship between CQ and Management Competencies

Since the role of leaders, whether senior or middle managers, in corporate effectiveness and success is undeniable, the exploration, understanding and development of Management Competencies is essential. In a multicultural environment, however, the study of these competences and leadership skills is still in its infancy: the advantages and disadvantages of cross-cultural differences are not yet widely understood, which is why it is important to measure and develop CQ among managers. Rudnák [4] confirms this in her research: “managers are not yet aware of the challenges of a multicultural environment. The competencies that the profession considers almost indispensable have not yet become clear or conscious in the minds of Hungarian or foreign managers. Although their attitudes are inclusive, they are not adequately prepared and trained”.
Groves and Feyerherm [16] point out that academic research on the cultural intelligence (CQ) of managers is rather scarce, despite the growing demand for a better understanding of cross-cultural managerial competences in the marketplace. In their study, they found that the CQ of leaders in culturally diverse work teams predicted both the leader’s emotional intelligence and other leadership competencies, in addition to the impact of the leader’s CQ on both the leader’s and the team’s perceptions of performance. Tuleja [69] found that, through a holistic conceptualisation of intercultural competence, the conscious use of the cultural competence model increased the level of awareness and could lead to a more culturally sensitive intercultural immersion activity. Ahmad and Saidalavi [70] examine the impact of CQ on global leadership effectiveness and found that CQ is a primary factor in the success of global leaders in multicultural environments. Egwuonwu et al. [2] investigated the impact of import managers’ cultural intelligence (CQ) on their relationship performance with their partners. They assessed managers’ metacognitive and motivational CQ and found that metacognitive CQ reduces the effect of psychological distance in buyer-seller exchanges, and that low levels of psychological distance result in increased relationship performance. Guang and Charoensukmongkol [40] examined the impact of Chinese expatriates’ cultural intelligence (CQ) on supervisor support, perceptions of managerial effectiveness, and subordinates’ commitment to the supervisor in the practices of Chinese companies in Thailand. The results suggest that Thai subordinates rate Chinese expatriates as having high CQ and perceive them more favourably in terms of supervisor support. Furthermore, they find that expatriates’ CQ also has a positive effect on managerial effectiveness and subordinates’ commitment. Livermore [7] states in his 2011 book that a leader with higher CQ is more likely to build trust and effectively lead multicultural groups and projects, whether in a domestic or foreign environment.

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