Managing Nationality Diversity: The Interactive Effect of Leaders’ Cultural Intelligence and Task Interdependence

Abstract

In light of the workforce's increasing nationality diversity, our study explores the antecedents for the successful management of nationality diversity as visualized in a favourable diversity climate and enhanced team performance. We propose a doublecontingency model in which we argue that the effects of nationality diversity will be dependent upon task interdependence and leaders' cultural intelligence. We propose that nationality diversity will be more consequential in more interdependent teams, in which team interactions and processes are more salient. Moreover, team leaders with higher cultural intelligence will possess the skills to foster adequate team processes and thereby enhance diversity climate and performance of nationally diverse, more interdependent teams. We collected multi-source data from 63 work teams (N = 410) and their supervisors at a German facility management company. Moderated regression analyses supported the hypothesized three-way interaction between nationality diversity, task interdependence and leaders' cultural intelligence. Additional simple slope analysis showed that nationality diversity is positively related to diversity climate and performance only when both team leaders' cultural intelligence and task interdependence are high. Our study not only provides recommendations for successful nationality diversity management but also yields theoretical implications for diversity and cultural intelligence research.

Hype or hope? A new look at the research on cultural intelligence

“…Insert Table 5 about here CQ has been found to be an important moderator in various contexts, including expatriation (Froese, Kim, & Eng, 2016), business travel (Ramsey, Leonel, Gomes, & Monteiro, 2011), education (Jie & Harms, 2017), export (Magnusson, Westjohn, Semenov, Randrianasolo, & Zdravkovic, 2013), international study (Presbitero, 2016b;Volpone, Marquardt, Casper, & Avery, 2018), intercultural service encounters (Lorenz, Ramsey, Tariq, & Morrell, 2017), and intercultural teamwork (Rosenauer, Homan, Horstmeier, & Voelpel, 2016). In general, CQ strengthens the relationship between intercultural differences and cross-cultural adjustment and performance (Lorenz et al, 2017;Magnusson et al, 2013;Rosenauer et al, 2016) and diminishes the relationship between such differences and adaption problems as strain (Ramsey et al, 2011). For example, Rosenauer et al (2016) found that teams with higher national diversity have a better performance only when team leaders' CQ and task interdependence are high.…”

“…In general, CQ strengthens the relationship between intercultural differences and cross-cultural adjustment and performance (Lorenz et al, 2017;Magnusson et al, 2013;Rosenauer et al, 2016) and diminishes the relationship between such differences and adaption problems as strain (Ramsey et al, 2011). For example, Rosenauer et al (2016) found that teams with higher national diversity have a better performance only when team leaders' CQ and task interdependence are high. Among the four aspects of CQ, metacognitive CQ is the dimension that most frequently shows statistically significant moderating effects, while motivational CQ seems to be the least important moderator.…”

Cultural intelligence, global mindset, and cross-cultural competencies: a systematic review using bibliometric methods

“…These scores can then be used to improve empirical studies, which must determine whether it is the individual CQ or an aggregated score for the group or a dyad that explains business outcomes. Researchers can explore whether and how CQ on different levels moderates the relationships between nationality and diversity effects (Rosenauer et al, 2016).…”

Leaders of Global Virtual Teams:Implications for the Identification and Training of Successful E-leaders

“…CQ can affect multiple facets of virtual work, including team member satisfaction, role clarity, trust, communication, and performance (Henderson, Stackman & Lindekilde, 2018;Moon, 2013;Presbitero, 2016). It is imperative that the leaders of GVTs be high in CQ because they will shape the team's diversity environment perceptions (Rosenauer, Homan, Horstmeier & Voelpel, 2016). Almost one quarter (23%) of respondents in CultureWizards (2016) survey of GVTs, say their virtual teams fail to capitalize on their cultural diversity.…”

“…People that wish to lead a GVT should receive professional training to e-leaders that pays special attention to CQ-motivation could empower leaders to be aware of and supportive towards their team members cultural diversity (Henderson et al, 2018). Studies suggest that for managing culturally diverse teams the leaders are critical for their management and organizations should provide CQ training programs to enhance the leader's capabilities (Rosenauer et al, 2016).…”