Inter-Cultural Competency in International Locals and their Performance

Abstract

This paper examines the relationship between intercultural competencies and performance in “international locals”, defined as employees who, albeit not formally appointed to any international position, are regularly exposed to different types of intercultural interactions. From a sample of 258 employees of a multinational company, we selected a sub-group of 94 international locals, and examined the effect of ethnocentrism (ET), cultural intelligence (CQ) and emotional intelligence (EQ) on their performance, utilizing multiple regression analysis. The results show that the higher levels of CQ and/or EQ, the better the performance of international locals. Evidence also indicates that EQ interacts with CQ, triggering or enhancing the effect on performance. Finally, ET does not have any effect on the performance of international locals. The research implies that EQ and CQ are essential for performance in international business situations, and that international locals, who are continually exposed to regular intercultural interactions, need to focus on developing these two competencies. By assessing and helping international locals to develop higher EQ and CQ, organizations can ensure that they have enthusiastic and perseverant employees, who enjoy intercultural interactions, and can contribute to develop competitive advantages and capabilities.