Cultural intelligence and job performance: An

CCM

Article

Cultural intelligence and job performance: An empirical investigation of moderating and mediating variables

International Journal of

Cross Cultural Management International Journal of Cross Cultural Management 1–22 ª The Author(s) 2017 Reprints and permissions: sagepub.co.uk/journalsPermissions.nav DOI: 10.1177/1470595817718001 journals.sagepub.com/home/ccm

Jeevan Jyoti and Sumeet Kour University of Jammu, India

Abstract The study generalizes the concept of cultural intelligence (CQ) as a key competency in Indian context due to its diverse cultures. Cultural intelligence is a capability, which increases the manager’s ability to effectively interact with people belonging to other cultures. The purpose of the study is to examine the mediating role of cross-cultural adaptability (CCA) in between CQ and the job performance relationship and the moderating role played by work experience and language proficiency in between CQ and CCA relationship. The data for the study have been collected from 342 managers of nationalized banks in Jammu and Kashmir (India). Exploratory factor analysis and confirmatory factor analysis have been conducted to explore and validate the factor of different constructs. Hypotheses have been tested through structural equation modeling. The study reveals that CCA mediates the relationship between CQ and job performance. Further, previous work experience and language ability act as moderators between the CQ and CCA relationship. Further, moderated mediation analysis also confirmed significant indirect effect. Implications and limitations of the study have also been discussed. Keywords Cross-cultural adaptability, cultural intelligence, Indian culture, job performance, language proficiency, work experience

Introduction Globalization has made business a challenging proposition. Lack of understanding due to cultural differences is one of the main challenges (Triandis, 2006). People encounter problems in adapting to unfamiliar cultural settings as the world is not a unified, interactive platform,

Corresponding author: Sumeet Kour, Department of Commerce, University of Jammu, Jammu and Kashmir 180006, India Email: [email protected]

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International Journal of Cross Cultural Management XX(X)

there are cultural barriers with which expatriates must learn to deal (Ang and Van Dyne, 2008). To successfully sustain the pressure of globalization and diverse work settings, an organization requires managers, who are sensitive to different cultures. They need to focus on the diversity as a diverse workforce is more productive and innovative as it brings new ideas from their cultures, which can generate competitive advantage for the organization. The ability to function successfully in cross-cultural settings has become important for expatriates (Huff, 2013). Expatriate’s failures create significant direct and indirect costs for both companies and employees (Zhang and Dodgson, 2007) due to inability to understand a different culture, which is due to the inappropriate use of language and behavior, which negatively impacts both relationship building and individual as well as organizational performance (Gupta et al., 2013). Black and Gregersen (1999) revealed that 10–20 percent of all US managers sent abroad returned early because of job dissatisfaction or difficulty in adapting to a host country. New global skills are a must to be an effective leader. Cultural intelligence (CQ) is a capability, which increases an individual’s ability to interact with people outside their culture. It refers to the set of skills and traits that allow one to effectively interact with novel cultural settings (MacNab and Worthley, 2012). It is the key competence of the 21st century to manage multicultural workforce. It is the ability to have an effective interaction with people from different cultures. Cultural knowledge improves the opportunity to succeed in a new culture (Ogbe, 2006). Culturally intelligent managers can detect, assimilate reason, and act on cultural cues appropriately in situations characterized by cultural diversity. It is capability, which is developed and learned over a period of time. Culturally intelligent managers are aware of values, beliefs, patterns of behavior, customs, traditions, and languages of different cultures. “Cultural intelligence (CQ) captures a person’s capability to adapt effectively to a new cultural context further; it has both process and content features” (Earley and Ang, 2003: 9). More and more organizations are expressing the need for managers “who quickly adjust to multiple cultures and work well in multinational teams” (Earley and Peterson, 2004: 100). Therefore, CQ is a capability which can help managers to be successful in different cultural contexts.

Relevance of CQ in Indian context Culture is “an historically transmitted pattern of meanings embodied in symbols, a system of inherited conceptions expressed in symbolic form by means of which men communicate, perpetuate, and develop their knowledge about attitudes toward life” (Geertz, 1973). Indian culture is influenced by several cultures and is one of the oldest and unique cultures. India is a culturally diversified (region based) country. Diversity includes cultural factors such as race, gender, age, color, physical ability, and ethnicity (Kundu and Turan, 1999). The north, south, east, west, and central regions of India have their own distinct culture. It is a birthplace of Hinduism, Buddhism, Jainism, and Sikhism. Different religions have different cultures. Employees from different cultures often work together in the same organization, and this cultural diversity brings cultural shocks and misunderstanding because of a cultural gap. It increases the complexity, conflicts, confusion, and ambiguity of communication. There are over 2300 ethnic groups with regard to caste, religion, and culture factors. So, managing workplace diversity as a result of strong differentiation is one of the most challenging jobs for HR managers in India (Vaidya et al., 2013). Therefore, it is important for Indian organizations to manage regional cultural diversity in their organizations. A recent Indian

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study of CQ has revealed that culturally intelligent managers are able to engage employees more effectively (Kodwani, 2012).

Literature review Previous studies have revealed that CQ significantly influences cross-cultural adjustment (Ang et al., 2007; Huff, 2013; Huff et al., 2014; Kumar et al., 2008; Lee, 2010; Lee and Kartika, 2014; Lee and Sukoco, 2010; Malek and Budhwar, 2013; Ramalu et al., 2010, 2011) and job performance (Ang et al., 2007; Chen et al., 2011; Kumar et al., 2008; Lee, 2010; Lee and Sukoco, 2010; Malek and Budhwar, 2013; Peltokorpi and Froese, 2012; Ramalu et al., 2011, 2012). By being culturally intelligent, expatriates could minimize the uncertainty and anxiety that stem from being in a culturally different environment (Bücker et al., 2014). Expatriates, who are culturally intelligent, effectively interact with people from different cultures and take initiatives for social integration, which enhances their performance as they can easily adapt to cross-cultural situations. Further, culturally intelligent individuals have the ability to adapt themselves easily in unfamiliar environment. Huff et al. (2014) revealed that CQ explains general interaction and work adjustment above and beyond the Big Five personality factors. Previous studies have shown that expatriates, who are unable to adapt to foreign countries, often fail in their overseas assignments (Ramalu et al., 2010; Shaffer et al., 2006), and this, in turn, may also lead to higher costs for their firms, or can even damage a firm’s relationship with the host country, causing lost business opportunities (Mervosh and McClenahen, 1997). Kealey and Ruben (1983) have defined a successful expatriate as a person who has the ability to live and work effectively in an overseas assignment. Further, various studies have revealed the positive impact of work experience on CQ (Crowne, 2008; Lee and Kartika, 2014; Moon, 2010; Moon et al., 2012) and crosscultural adaptability (CCA) (Huff et al., 2014; Lee and Kartika, 2014; Peltokorpi and Froese, 2012). In contrast, researchers have also revealed that tenure and/or experience have an insignificant impact on CQ (Gupta et al., 2013; Lee, 2010; MacNab and Worthley, 2012) and cross-cultural adjustment (Chang et al., 2013). Further, studies have found that the ability to communicate in the local language is the most important factor in successful integration (Bhaska-Shrinivas et al., 2005; Selvarajah, 2004b). People who can speak the local language are better able to adapt to the local culture and perform better on expatriate job assignment (Huff, 2013). Chen et al. (2010) found that language ability and all four dimensions of CQ predict performance. Therefore, it can be concluded that expatriates’ CQ, their adaptability, and their language proficiency play a crucial role in the success of the international assignment. Further, previous international work experience of expatriate helps them to adapt themselves in unfamiliar settings, which enhances their performance. After reviewing the literature on CQ, we found that most of the studies on CQ are conducted in MNCs and focused primarily on expatriates’ CQ. So far, there is a lack of studies about CQ of Indian managers, who have to deal with a diverse regional cultural workforce, which necessitates research in this area in India. So, we have gathered the empirical data from managers of nationalized banks. The employees of nationalized banks in India are posted to different regions from time to time, for example, a person belonging to the northern region may be posted to the southern Indian region or vice versa and a person belonging to the eastern Indian region may be posted to the western Indian region or vice versa, which gives them exposure and experience to interact with people belonging to different regional cultures. Therefore, the purpose of the study is to examine the mediating role of CCA in the relationship between CQ and the job performance and the moderating role played by work experience and language proficiency in relationship between CQ and CCA. Based on this research gap in Figure 1, the conceptual model has been framed.

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Control Variables Gender Age

- Work Experience - Language Proficiency

Cultural Intelligence

Cross-cultural Adaptability

Job Performance

Figure 1. Conceptual framework.

Theoretical framework and hypotheses development CQ, experience, and CCA Earley and Ang (2003) introduced the concept of CQ. It refers to an individual’s capability to function effectively in situations characterized by cultural diversity (Ang and Van Dyne, 2008; Earley and Ang, 2003). CQ is a four-factor construct that includes metacognitive, cognitive, motivational, and behavioral dimensions (Ang et al., 2007; Van Dyne et al., 2010, 2012). Those with higher CQ have the ability to encounter confusing situations, think deeply about what is happening (or not happening), and make appropriate interpretations and adjustments to how they understand, relate, and lead in the context of these different cultures (Crowne, 2013). It is malleable (adaptable) state that can be developed over time. Adaptation is the process of altering one’s behavior to fit within a new environment and circumstances or positive response to social pressure (Ward, 2001). Crossing cultures is a stressful and complicated experience, but once one has lived in that culture, it becomes easy to adapt it next time. Experience is a time component (Goodman et al., 2001). In this research, it refers to the direct observation or participation in culturally related events or the state of being affected by such observation or participation (Takeuchi and Chen, 2013). The experience can be conceptualized as one that has occurred in the past, which is currently occurring (Goodman et al., 2001). The authors have revealed that the impact of CQ on CCA is boosted if the previous cross-cultural experience is positive (Lee and Sukoco, 2010; Takeuchi et al., 2005). In this context, expatriates, who have more experience of working outside their home state, are more likely to develop comprehensive cognitive schemata (Lee and Sukoco, 2010). As a result, expatriates with higher CQ as well as more international experience adapt and perform more effectively in the host country (Lee and Sukoco, 2010). Cross-cultural experience increases the confidence and exposure to effectively interact with people outside their culture which helps them to adapt to their host region (Bhaskar-Shrinivas et al., 2005; cited in Moon et al., 2012). Previous international experience provides an individual with the means of predicting what a foreign assignment involves, increases the probability of realistic expectations, and reduces uncertainty and thereby easing the adjustment (Black et al., 1992). Experience of working outside their home region helps culturally intelligent expatriates to learn appropriate work behaviors and to learn how to interact with local coworkers (Lee, 2010), which help them to adapt to host region. When the culturally intelligent expatriates have more work experience, they tend to adapt more easily during their out of home state assignments. But some of the studies have revealed an insignificant effect of cross-cultural experience on cross-cultural adjustment (Hechanova et al., 2003; Puck et al., 2008; Shaffer et al., 1999 cited in Moon et al., 2012). So there is lack of consensus regarding this relationship. Therefore, to clearly understand the role of previous work experience in

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the relationship between CQ and CCA, the present study will examine the integrative model wherein positive work experience moderates the impact of CQ on CCA. Therefore, previous work experience strengthens the relationship between CQ and CCA. Hypothesis 1: Work experience of working outside home state moderates the relationship between CQ and CCA in such a way that experience of working outside the home state strengthens the relationship between CQ and CCA.

CQ, language ability, and CCA Language is a set of symbols that are shared by a community to communicate meaning and experience (Jandt, 2010). It becomes the means that promotes the development of culture, and it affects and reflects culture just as culture affects and reflects what is encoded in language (Selmer, 2006). Language is a valuable tool that can facilitate the interaction in communication specifically in an ethnically diverse team, which by nature is multilingual (Farah and Vuniqi, 2012). Language is the major barrier for expatriates assigned to Asian countries (Puck et al., 2008). Host country nationals would not be fluent in the expatriate’s native language and the same will hold true for the expatriate, which can lead to serious problems associated with failure to adapt to the local culture (Wang and Tran, 2012). Previous studies have revealed that CQ significantly affects CCA (Jyoti and Kour, 2015; Lee and Sukoco, 2010; Ramalu et al., 2010, 2011). Culturally intelligent managers have the capability of adapting to a new cultural context (Kumar et al., 2008). Jyoti and Kour (2015) revealed that CQ positively influences cross-cultural adjustment, that is, managers who are culturally intelligent are able to adjust in out of home assignments (posted from home state to other states in India) in a better way. They revealed that Indian managers have to adapt to different languages as India is a multilingual and multi-ethnic country. Huff (2013) revealed that expatriates, who have a high level of CQ and have knowledge of local language, are able to adapt to the host culture environment in a better way, that is, the relationship between CQ and CCA strengthens when the expatriate has the knowledge about the local language in which he/she is posted. When the culturally intelligent expatriates have the ability to communicate in the local language, they are more likely to adjust or adapt themselves in this culturally different context. Culturally intelligent employees often work with colleagues from different countries on a daily basis, so in addition to their own native language, they must also understand and be open to the customs and cultures of their colleagues in the host region (Zielinksi, 2007) which helps them to adapt in the host region. According to Selvarajah (2004a), the ability to communicate in the local language is the most important factor in successful integration. When the expatriates are assigned a job that requires a high level of interaction with local coworkers or customers, CQ will have a more prominent role in determining the success of expatriation, that is, CCA (Lee, 2010). Therefore, the impact of CQ on CCA will be magnified when expatriates have local language proficiency. It will then become easy for them to interact with host region nationals. Therefore, from the above discussion, it can be concluded that language ability will moderate the relationship between CQ and CCA. Hypothesis 2: Language ability moderates the relationship between CQ and CCA in such a way that knowledge of local language strengthens the relationship between CQ and CCA.

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CQ, CCA, and job performance CCA is a multidimensional construct (Kelley and Meyers, 1995b) comprising, emotional resilience, flexibility/openness, perceptual acuity, and personal autonomy. It can be achieved on three levels: individual, team, and organization (Burke et al., 2006). An individual who is culturally adaptable recovers easily when situations go bad, enjoys the opportunity of being exposed to the different behavior of other cultures, and maintains personal identity when exposed to different cultural values. In recent studies, researchers have found a relationship between CQ and cross-cultural adjustment (Jyoti and Kour, 2015; Lee and Sukoco, 2010; Ramalu et. al., 2010, 2011). Shaffer et al. (2006) considered cultural adaptation an affective outcome because it represents subjective assessments with affective implications. Every individual differently perceives the foreign settings in terms of culture, language, and so on. If his/her judgment (which is subjective in nature) about these is positive, then the affective or emotional feelings will also be positive and vice versa. Earlier researchers have found that individuals with high level of CQ are better able to adjust themselves in the host culture environment (Earley and Ang, 2003; Kumar et al., 2008; Ramalu et al., 2011: 63). Further, researchers have also found a positive relationship between CCA and job performance, that is, individuals who can adjust themselves in cross-cultural situations are able to perform the task assigned to them in better way (Kumar et al., 2008: 324). Out of home state assignments bring lots of challenges for managers as they have to deal with people belonging to different cultural backgrounds. CCA is one of the key determinants of expatriate success in their international assignment (Ramalu et al., 2012: 22). It reduces the level of stress and strain which in turn improves their performance (Bhaskar-Shrinivas et al., 2005; Caligiuri, 1997). It is expected that individuals, who adapt themselves to the host culture general environment, perform similar to how they do in their home culture (Lee and Sukoco, 2010: 967). Individuals often perform poor when they are posted outside their home region due to their inability to understand cultural differences in role expectations (Stone-Romero et al., 2003) and a majority of studies explored the same relations, that is, CQ significantly influences job performance (Ang et al., 2007; Lee and Sukoco, 2010; Rose et al., 2010). Ang et al. (2007) demonstrated that individuals who are more aware of their environment (metacognitive CQ) and who are able to adapt their behavior accordingly (behavioral CQ) are better at understanding and enacting role expectations that are culturally appropriate. They have a more accurate understanding of expected role behaviors in situations characterized by cultural diversity (Ang et al., 2007). Similarly, motivational and behavioral CQ are positively related to job performance (Kumar et al., 2008; Ng et al., 2012). A person who is culturally intelligent will be able to understand and interact with people of other cultures and as a result this will increase his/her performance. Intercultural competencies are also expected to reduce the misunderstandings in role expectations and eventually enhance performance. Though various researchers have revealed a direct impact of CQ on job performance but on the other hand, researchers (Kumar et al., 2008; Ramalu et al., 2012) have also explained that managers with higher CQ have failed in their out of home state assignments due to lack of adaptability. Even though the employees have high CQ, their performance is likely to suffer if they are unable to adapt themselves to the new environment (Karaevli and Hall, 2006). A successful adaptation in local culture reduces stress and strain, which in turn may improve their performance (Kraimer et al., 2001; Ramalu et al., 2010, 2011). Individuals who are high on CQ are expected to perform their job better as they are more capable of adapting themselves in a new cultural situation (Ramalu et al., 2012; Tsai and Lawrence, 2011).

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Motivational CQ helps in cultural adapting because those with higher motivational CQ have an intrinsic interest in other cultures and expect to be successful in culturally diverse situations (Ang et al., 2007: 342). Individuals who are behaviorally more intelligence are capable of varying their behavior, which helps them to adapt to the culturally different environment and they have the sense of fitting in a particular situation (Ang et al., 2007: 342), which in turn enhances the performance of the managers (Karaevli and Hall, 2006; Paulsson et al., 2005). A study conducted in India revealed that the relationship between CQ and task performance is mediated by cultural adjustment (Jyoti and Kour, 2015). So, from the above discussion, we can conclude that CCA mediates the positive effect of CQ on job performance. Hypothesis 3: CCA mediates the relationship between CQ and job performance.

Methodology Sample The sample for the study consisted of 342 managers working in nationalized banks in Jammu and Kashmir (India). All of them have been contacted for data collection. Structured questionnaire has been used for collecting the data. In order to reduce the problem of common method variance, data have been collected from multiple sources. The data pertaining to CQ, language proficiency, and CCA have been collected from the branch and assistant managers. Information pertaining to the job performance of the managers has been procured from their respective chief managers (n ¼ 27). All the chief managers in the study have the experience of working outside the home state. The performance of more than one manager was procured from chief managers, which can cause the problem of independence of the data (Hofmann, 1997), so in order to check whether the job performance rating of various managers is independent or not, analysis of variance has been applied and the results revealed insignificant differences (F ¼ 1.26, p > 0.05). There were seven respondents, who did not have the experience of working outside their home state, and there was statistically significant difference in their CQ and CQ of managers who have the experience of working outside the home state (t ¼ 6.099, p < 0.001). Further, these managers might not be able to give correct information as they have not experienced adjustment. So, they were not included in the study, and as a result, effective sample used in the study came to 335. The sample (managers) included approximately 70 percent males and 30 percent female managers; 73 percent managers are currently posted outside their home state and 27 percent managers are working within their home state; 62 percent respondents are in the age group 50 years or above and 35 percent managers have 11–15 years of experience of working outside their home state followed by 6–10 years of experience (27 percent). All chief managers are male; 63 percent chief managers are currently posted outside their home state; and 37 percent managers are working within their home state. All of them are in the age group 50 years or above and have more than 10 years of experience of working outside their home state.

Measures. A five-point Likert-type scale has been used for data collection: Cultural intelligence. CQ has been measured with the help of 20 items (Ang et al., 2007). Sample

items include “I am aware of the cultural knowledge I use when interacting with people with different cultural backgrounds,” and “I adjust my cultural knowledge as I interact with people from a culture that is unfamiliar to me.”

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Cross-cultural adaptability. The cultural adaptability scale was self-developed (20 items) on the basis of the dimensions identified from earlier literature (Kelley and Meyers, 1995b; see Appendix 1). Sample items include “I feel comfortable interacting with others who have different values and customs” and “I enjoy learning new culture.”

Job performance. Job performance has been measured with the help of 15 items (Caligiuri, 1997;

Goodman and Svyantek, 1999; Motowidlo and Van 1994). Sample statements included “Your manager complete targets on time” and “He/she volunteers to carry out task activities that are not formally part of the job.”

Work experience. Respondents have been asked “for how many years the respondents have worked/have been working outside their home region.”

Language proficiency. Respondents have been asked whether they can speak the local language of host region or not. Anyone who does not speak the local language has been considered to have no proficiency (Huff, 2013; Peltokorpi, 2010). The language proficiency is a dichotomous variable where “1” stood for “those who have the proficiency of host region” and “2” stood for “those who do not have the proficiency of host region.”

Control variables. Age and gender have been taken as control variables as they may affect the outcome variables, that is, job performance (Ang et al., 2007; Lee and Sukoco, 2010; Ramalu et al., 2011, 2012). Gender is a dichotomous variable where “1” stood for “male” and “2” stood for “female.”

Results Exploratory factor analysis Exploratory factor analysis (EFA) has been conducted on data of 100 managers to identify the dimensions of different scales used in the present study. The recommended range of respondents for application of EFA is between 5 and 10 per item (Hair et al., 2010: 101; Worthington and Whittaker, 2006); therefore, a sample of 100 respondents has been deemed to be appropriate as maximum number of items in each construct is not more than 20. Principle component analysis with a varimax rotation has been used. The test of appropriateness of a factor analysis has been verified through KMO measure of sampling adequacy (0.60) and average variance extracted (>0.70) established the convergent validity (Table 1). Further, discriminant validity has also been proved by comparing the variance extracted with squared correlations among different constructs (Fornell and Larcker, 1981). The average variance extracted for all the constructs is higher than the squared correlation thereby proving discriminant validity (Table 2). Furthermore, in order to check the multicollinearity between CQ and CCA as the correlation values are high (Table 2), we checked the VIF and tolerance values by applying regression. The value of VIF came to 1.89 which is less than 10 (Kleinbaum et al., 1988 cited in Katou, 2015) and tolerance value came to 0.529 which is greater than 0.10 (Kleinbaumet al., 1988 cited in Katou, 2015) thereby confirming that the two constructs are distinct. Reliability of the constructs has been checked through Cronbach’s a and composite reliability. Alpha values equal to or greater than 0.70 indicate good reliability (Nunually, 1970; O’Leary-Kelly and Vokurka, 1998). In the present study, a and composite reliability values for all constructs are greater than 0.70 (Table 1), which indicate that the scales are quite reliable.

Multigroup invariance test Testing for equivalence of measures is an important issue in recent years (Chen, 2008; Van de Vijver and Fischer, 2009) in cross-cultural research because it allows to check whether respondents of

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Table 2. Correlation analysis. Cultural intelligence

Job performance

Cross-cultural adaptability

1 (0.295) 0.544** (0.285) 0.534**

1 (0.298) 0.546**

1

(0.041) 0.203**

(0.040) 0.201**

(0.042) 0.207**

Constructs Cultural intelligence Job performance Cross-cultural adaptability Work experience

Work experience

1

Note: Values are expressed as (squared correlation) correlation. **p < 0.01.

different groups ascribe the same meanings to scale items or not (Gouveia et al., 2009; Milfont et al., 2006). The analysis includes a two-group comparison to examine the existence or not of difference in structural parameters with regard to language proficiency (Jimenez-Jimenez and Sanz-Valle, 2011). Unstandardized regression weights of both the groups and critical ratio have been used to find the group differences with the help of Excel Stat Tool package (Gaskin, 2012), and inspection of z-score has revealed that only one item of each factor is variant (z score >2.00), rest all the items are invariant. Hence, our sample proved the invariant test.

Common method bias The common method bias for all the constructs in the study has been examined through common latent factor method (Podsakoff et al., 2003). The results revealed that there is no item, whose difference is greater than 0.20. Therefore, common method bias is not the problem in this study.

CQ and job performance: An empirical investigation of moderating and mediating variables SEM has been used to check various relations hypothesized (Byrne, 2010). In this study, we have two moderating variables, that is, work experience (interval variable) and language proficiency (nominal variable). In order to check the moderation of interval variable, interaction effect has been used (Little et al., 2007: 223), and to check the moderation of nominal variable, multigroup analysis has been done (Little et al., 2007: 223). In order to model moderating effect of experience (interval variable), product indicator approach has been used (Chin et al., 1996, 2003). There are four manifest variables of CQ (metacognitive, cognitive, motivational, and behavioral), and experience is interval and observed variable, which resulted into four latent interaction variables (Mog * Exp, Cog * Exp, Mot * Exp, and Beh * Exp). Further, to test the moderating effect of experience, all the conditions described by Baron and Kenny (1986) have been first satisfied. These are as follows: (1) The moderator should not directly relate with dependent variable; (2) the moderator hypothesis is supported if the interaction is significant; and (3) another property of the moderator variable is that, unlike the mediator–predictor relation (where the predictor is causally antecedent to the mediator), moderators and predictors are at the same level in regard to their role as causal variables, antecedent or exogenous to certain criterion effects; that is, moderator variables always function as independent variable. The results revealed that work experience has insignificant impact on CCA (SRW ¼ 0.04, p > 0.05), and the interaction of CQ and work experience is significantly predicting CCA (SRW ¼ 0.12, p < 0.01; Table 3).

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Table 3. Structural equation modeling results for moderation.

CQ ! CCA Work experience ! CCA CQ * Work experience ! CCA (hypothesis 1) R2 Covariance CQ and Experience CQ and CQ * Experience CQ*Experience and experience

Model I

Model II

Model III

0.74***

0.73*** 0.01

0.54

0.53

0.94*** 0.04 0.12** 0.84 0.14** 0.11*** 0.10***

Note: ***p < 0.001; **p < 0.01.

Therefore, we can conclude that work experience moderates the relationship between CQ and CCA. Hence, hypothesis 1 stands accepted. Further, in order to test the moderating effects of language proficiency (nominal variable), multigroup analysis of SEM has been used. The sample has been split into two groups. One group consisted of managers with the language proficiency of host region (high group) and the other group consisted of managers, who did not have the language proficiency of the host region (low group) to examine the existence or not of difference in structural parameters (Jimenez-Jimenez and SanzValle, 2011). The first step constrains the parameter for a hypothesized relationship to be equal, and in the second step, the parameter is not constrained. If the difference between the two models is significant (Dw2), that means the variable used for splitting the sample moderates the relationship studied. Table 4 revealed that the relationship between CQ and CCA is significant and positive for both the groups. Thus, language proficiency moderates the relationship between CQ and CCA (Table 4). Although the relationship between CQ and CCA is positive for both the groups, this relationship is stronger and significant for managers having language proficiency of the host region. Further, the w2 difference test revealed that the two models, that is, constrained and unconstrained model, are different in case of high group (Dw2 > 3.84, p < 0.05; Table 4). These results have been supported by simple slope analysis (Figures 2 and 3). Therefore, hypothesis 2 got accepted. Further, in order to test the mediating effect, all the conditions described by Baron and Kenny (1986) have been first satisfied. We first assessed the impact of CQ on CCA which is significant (SRW ¼ 0.74, p < .001). In the second step, we studied the impact of CCA on job performance, which was also significant (SRW ¼ 0.71, p < 0.001). In the next step, we studied the impact of CQ on job performance, which is also significant (SRW ¼ 0.77, p < 0.001). So, the first three conditions of mediation have been satisfied. In the last step, when we added the mediating variable, that is, CCA between CQ and job performance relationship, it has been found that with the introduction of CCA as mediator in CQ and job performance relation, the relationship between CQ and job performance became insignificant (SRW ¼ 0.13, p > 0.05), thereby yielding support for full mediation. Further, the Sobel test also revealed significant indirect effect (Sobel statistics ¼ 2.711, p < 0.001), thereby confirming that CCA fully mediates the relationship between CQ and job performance. Further, control variables were also included in the model, which yielded no change in the previous relationships, so they have not been shown in the diagram (Arnold et al., 2007). Hence, hypothesis 3 got accepted.

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Table 4. Comparison of constrained and unconstrained models. Language proficiency

Cultural intelligence cross-cultural adaptability R2 w2 Constrained model w2 Unconstrained model Dw2

Overall model

High

Low

0.74*** 0.54

0.54*** 0.29 96.1 81.6 14.5**

0.29** 0.08 16.0 15.1 0.9

Note: ***p < 0.001; **p < 0.01.

Figure 2. Moderating effects of work experience.

Moderated mediation analysis Further, we tested the integrated model whereby the strength of the relationship between CQ on job performance through CCA is conditional on the value of a moderator, that is, previous work experience and local language proficiency. To test the significance of the moderated mediation paths, differences in mediation effects at high and low levels of experience and local language proficiency have been calculated (Jensen et al., 2013) and are presented in Table 5. The moderated mediation is demonstrated when the indirect effect of CQ on job performance in the presence of moderating variable is significant. The moderated mediation effect of the interaction of CQ and experience through CCA on performance for both the groups is significant as the indirect relations are significant (Table 5), and similarly, the moderated mediation of language proficiency through CCA for both the groups on job performance is also significant (Table 5). Further, the difference of indirect effects of high and low group for both the moderating variables (experience and language proficiency) is significant too (Table 5).

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Figure 3. Moderating effects of language proficiency.

Table 5. Moderated mediation effect. CQ ! CCA (direct effect) Language proficiency High Low Difference

Work experience High Low Difference

CCA ! JP

Indirect effect

Total effect

0.52 0.48 0.25 (Sobel statistic >1.96) 0.77 0.29 0.40 0.12 (Sobel statistic >1.96) 0.41 0.23* 0.08* 0.13* 0.36** CCA ! JP Indirect effect Total effect CQ*Work experience ! CCA (direct effect) 0.16 0.10 0.06*

0.72 0.55 0.17*

0.12 (Sobel statistic >1.96) 0.05 (Sobel statistic >1.96) 0.06*

0.28 0.15 0.13*

Note: CQ: cultural intelligence; CCA: cross-cultural adaptability; JP: job performance. **p < 0.01; *p < 0.05.

Discussion The study highlights the importance of CQ in enhancing job performance. The study has explored three issues: (i) the moderating role played by previous work experience and language proficiency in between CQ and CCA relationship, (ii) mediating role played by CCA in between CQ and job performance relationship, and (iii) moderated mediation of previous work experience, language proficiency, and CCA between CQ and job performance relationship. The study revealed that CQ is positively related to CCA, that is, managers, who are culturally intelligent, have a better level of CCA. The results are consistent with the previous research (Ramalu et al., 2010, 2011). Managers with greater CQ are able to adapt better with people belonging to other

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culture. They are flexible and they can handle effectively the cultural shocks and stresses. Indian managers have to make various adaptations relating to different languages, as India is a multilingual and multiethnic country, and also have to make various adaptations regarding food, clothing, shopping conditions, and so on. CQ helps managers to adapt themselves with culturally different situations. Managers, who have the ability to cope with various types of stress associated with crosscultural interactions, are able to adapt better in a new cultural environment. The relationship between CQ and CCA gets strengthened when managers have experience of working outside their home state. When the managers have experience of working outside their home region, the positive effect of CQ on CCA gets boosted. Culturally intelligent managers having the experience of working outside their home region are able to adapt themselves in cross-cultural environment in a better way. They have knowledge from earlier experience about the culture prevailing in host region. This experience boosts confidence to interact in their cross-cultural situations. Experienced managers have the knowledge about the host region environment, which includes culture, language, religion, values, belief, and so on, which magnifies the effect of CQ on CCA. Experienced managers recollect their previous cross-cultural encounters with people from different cultures, which helps them in achieving understanding about host region and adapt themselves in that environment. They have more opportunities to interact and communicate with people of host region and have requisite skills, knowledge that helps them to adapt in a culturally different region (Moon et al., 2012). More experience of working outside their home region does not mean that expatriates have higher levels of CCA, unless they also have higher CQ (Lee and Sukoco, 2010: 978). Therefore, work experience acts as a moderator or catalyst between the CQ and CCA, and the result is consistent with the previous findings (Lee, 2010; Lee and Sukoco, 2010; Takeuchi et al., 2005). Culturally intelligent managers who have previous work experience of working in regions other than their home adapt themselves to culturally diverse settings. Thus, the higher the experience, the stronger will be the relationship between CQ and CCA. Further, the relationship between CQ and CCA gets strengthened when culturally intelligent managers have the language proficiency of the host region where they are posted. When the culturally intelligent managers have the ability to interact in local language of the region, they can adapt themselves easily to that region. Proficiency in local language gives culturally intelligent managers confidence in interacting with local coworkers and people, which helps them to adapt better in the host region. Managers who do not have the knowledge of the local language are stressed, which lowers their confidence and results in expatriation failure. Knowledge of a local language reduces the stress associated with working in a new environment, which yields a positive effect on CCA of managers. Language proficiency is very important when the managers are adjusting in out of home state postings. It motivates them to adapt and perform better. If the culturally intelligent managers have language proficiency of host region, they will be able to cope with new conditions and environment as they will have the feeling of being accepted as a person and accepted by the society in which they are posted, which is important for the success of the out of home state assignment. Language proficiency leverages the effect of CQ on CCA. The finding is consistent with the study of Lee (2010), which says that, if the expatriates can communicate in the local language of the region in which they are posted, the effect of CQ on CCA gets amplified. Therefore, language proficiency strengthens the effect of their CQ on the CCA. Furthermore, CCA mediates the relationship between CQ and job performance. CQ is positively related to CCA, that is, managers who are culturally intelligent adapt themselves to the culturally different settings (Ang et al., 2007). Managers with greater CQ are able to adapt in foreign settings in better way as they are flexible, stress free, and can handle effectively the cultural shocks and

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stresses. These results are consistent with those of previous studies (Ang et al., 2007; Lee and Sukoco, 2010; Lin et al., 2012; Templer et al., 2006). Indian managers have to adapt themselves to various cultural values, beliefs, languages, food, clothing, religions, and so on, as we know India is a multicultural and multilingual country. We can find many types of cultures and religions prevailing in India; therefore, when managers are transferred to regions other than their home, they have to adapt themselves to the new environment. Culturally intelligent managers have the intrinsic interest in other cultures as well as capability to vary their behavior that helps them to adapt to culturally different environment and boosts their performance (Ang et al., 2007). The present study revealed that managers with higher CQ have the ability to adapt to unfamiliar cultural settings which in turn enhances their job performance, as they have better understanding of host region environment in terms of local language (verbal and nonverbal), facial expression, gesture, and so on. Therefore, previous out of home state work experience and local language proficiency are seen as important elements in adaptability of managers in the host country environment because these help managers to overcome cultural shocks. It has been found that CCA mediates the interaction effect of CQ and work experience on job performance. Similarly, CCA also mediates the interaction effect of CQ and language proficiency on job performance. Culturally intelligent managers with experience and local language proficiency more easily adapt themselves in culturally different situations, which enhance their performance in the host region. This study shows that culturally intelligent managers easily adapt or adjust themselves in cross-cultural situations if they have previously worked under the same settings or settings similar to that, furthermore, they can interact in local language of that particular settings in which they are posted with their coworkers or local people, which boost their performance in host region environment. To conclude, the study has empirically developed a model that explains the impact of CQ on job performance through CCA and the role played by language proficiency and work experience. The result revealed that CCA mediates the combined effect of CQ and language proficiency and CQ and work experience on job performance.

Implications The present study shows important implications for the conceptual development of CQ concept. The study cements theoretical development of the CQ concept by Earley and Ang (2003), within a country context. Further, it confirmed the reliability and construct validity of the four-factor model of CQS within a diverse cultural country like India, which increased the generalizability of the CQS. The study enhances the knowledge about CQ as an effective intercultural competency construct by providing a relationship between CQ, CCA, and job performance. It further adds to CQ–CCA literature by evaluating the role of work experience and language proficiency in between this relationship. The present study demonstrates that language proficiency and previous work experience strengthen the relationship between CQ and CCA. The managers who have more experience and knowledge of local language adapt themselves in culturally different settings in a better way. Further, the study provides the integrative model of the relationships between CQ and job performance with mediating role of CCA and moderating role of work experience and language proficiency in Indian settings. The study has also evaluated the moderated mediation of variables (CCA, previous work experience and language proficiency) in CQ and job performance relationship which adds to the CQ literature. The theory presented here will be of interest to organizations. The study has direct managerial implications, which can help managers to attain organizational goals more efficiently. Human

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resources are the main assets of the companies to respond to the changing competitive business environment (Bartlett and Ghoshal, 2002). CQ serves as an important selection tool. Culturally intelligent managers are able to give their best performance and these people can be sent for foreign/ overseas assignments as they are able to interact effectively with people belonging to different cultural backgrounds. During the selection process, the human resource department can make use of psychological tests for managers. The CQ scale is a good example of an instrument that may be used to measure the ability of an expatriate to effectively adapt to new cultural environments. Secondly, organizations can develop training programs, which increase the manager’s CQ capability. In training programs, the managers should be made familiar with the basic knowledge about the country and company’s culture, which is important to develop interpersonal skills. These programs will prepare managers to deal with unfamiliar cross-cultural situations. Further, training programs could include a module on motivational and behavioral component of CQ rather than focusing primarily on knowledge or cognitive training (Earley and Peterson, 2004). Thirdly, before sending the managers to out of home state assignment, organizations should give predeparture language training to managers, which helps them to interact with locals of that region, which in turn will help to improve their adaptation process. India being a diverse country has different languages spoken in different regions. The north, south, east, west, and central regions have their own distinct cultures. For instance, the way of greeting differs across different states and religions, for example, in northern region, we have Namaste (Hindi) and “Sat Shri Akal” (Punjabi, used by followers of Sikhism); in southern region, we have Namaskar (Marathi), Namaskara (Kannada), Namaskaram (Telugu, Malayalam), Vanakkam (Tamil), and Nomoskar (Assamese); in western region, we have Nomoshkaar (Bengali), “Jai Shri Krishna,” “Ram Ram,” and “Jai Jinendra” a common greeting used across Jain community. Language proficiency will help managers to learn appropriate cultural and work values, which in turn enables them to behave appropriately in the workplace. Fourthly, organizations should encourage their managers to interact with people from different cultures and should motivate managers’ desire to learn about diverse cultures. The misunderstandings, or stress, created by a different culture can be reduced. Fifthly, previous out of home state assignment work experience for selecting managers for expatriation will be beneficial to acquire expatriates, who have high levels of CQ and the potential to adapt well in a host region. Selecting linguistically proficient managers, with the positive experience of the host region, helps the managers to adapt in culturally diverse settings. The inclusion of previous international work experience of selecting candidates for expatriation will be beneficial to acquire managers, who have a high level of CQ and the potential to adjust well in a foreign country, since the results of the present study highlight that the managers who have more work experience are more culturally adaptable. Lastly, organizations should also arrange informal gatherings that increase intercultural interactions. This supportive environment will also contribute in terms of helping managers to adjust themselves better to the local culture. Organizations should encourage and motivate their employees to learn different languages as language proficiency helps them to adapt themselves in host region environment. Further, organizations should introduce online certification courses in different languages, which help them to have mastery over various languages resulting in effective cross-cultural interactions. Developing culturally intelligent managers will help organizations have sustainable competitive advantage. Culturally intelligent managers help organizations to complete out of home state assignments, which enhance the organizational performance. This helps organizations to establish their business in different parts of the country successfully. Managers who have more previous work experience of working on an out of home state assignment and have language proficiency

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should be given incentives and bonuses for such assignments, which motivate them to opt more of such assignments. The finding of this study has also social implications. CQ as a skill is not just limited to manager or employees but also people, in general, who are involved in cross-cultural situations. CQ provides insight into cross-cultural interaction and adaptation and thus increases the ability of individuals to perform effectively in different cultures. Moving managers out of their home state is of business or national interests, to generate synergistic groups through the country that will ensure the benefit and prosperity of society and the environment. Culturally intelligent managers or people in general are able to interact with people belonging to different regions and religions; they have the proficiency and experience of interacting with them, which helps in relationship building and trust among the people toward each other as they understand each other’s culture, beliefs, action, words, gestures, rules of language, and so on. It creates the feeling of unity in society as there will be no conflicts among people, which results in national peace. This study has certain limitations, which shall be kept in mind in the future. Firstly, the study is cross sectional in nature; in the future, a longitudinal study can be conducted for better causal relationship analysis. Secondly, more outcomes of CQ can be taken into consideration in the future for better understanding of the concept. Thirdly, the study has been conducted in Indian cultural context, which can be extended to other Asian and Western countries to generalize the findings. Further, the role of other variables like perceived social support and organizational commitment can be explored between CQ and job performance. Declaration of Conflicting Interests The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding The author(s) received no financial support for the research, authorship, and/or publication of this article.

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Appendix 1 The various items retained under each dimension of cross-cultural adaptability are as follows: Emotional resilience 1. 2. 3. 4.

When I am around people, I often feel I will make fool of myself (R). It is difficult for me to understand why people feel the way they do (R). I can solve the problems in adverse situations too. I can deal with the stress of handling new situations.

Openness/Flexibility 1. 2. 3. 4. 5.

I am imaginative and creative person. I like the new and latest methods of work. When I meet new people I am interested in learning more from them. I believe that people should be open-minded. I respect traditional as well as modern value system.

Perceptual acuity 1. I usually acquire the knowledge of culture when I have to interact with people from different cultural backgrounds. 2. I am comfortable interacting with others, who have different values and customs. 3. I understand others’ feelings while interacting with them even if they are from different culture. 4. I can easily adapt the accent or tone wherever required. Personal autonomy 1. I maintain my sense of identity while entering new situations and meeting new people. 2. I maintain my personal identity in a new culture, even if I get negative reaction for my unique identity due to cultural difference. 3. I believe that all people are equally important irrespective of race, religion, culture, and so on. 4. I maintain my personal identity and am respectful when exposed to different cultural values.