Cultural Intelligence of Host Country Nationals and its Effect on the Cross Cultural Adjustment of Expatriates

Abstract

Purpose - The purpose of the study is to find out if cultural intelligence of host-country nationals is positively related to cross-cultural adjustment of expatriates and to identify which dimension of cross-cultural adjustment does cultural intelligence of host-country nationals has the most impact on. Design/methodology/approach – The empirical part of this study was done using qualitative research method. Semi-structured interviews were carried out among 10 expatriates from ten different countries. Expatriates were relocated to foreign organizational units for international assignment which is not shorter than four months. Findings – The study reveals that multinational corporations as well as expatriates overlook and acknowledge the importance of cultural intelligence of host-country nationals. Results propose cultural intelligence’s facets that to a greater extent affect cross-cultural adjustment of expatriate and thus, advice which facets should be trained and cultivated by multinational corporations. Practical implications – A more thorough understanding on the issue of expatriates’ cross-cultural adjustment and its affecting factors help multinational corporations effectively redistribute investments into training programs among expatriates and employees of host-organization. The results of the study also allow multinational corporations to reform support program mechanism for employees assigned to foreign organizational units. Originality/value - This study covers the gap in expatriates’ cross-cultural adjustment literature. The study recognizes that besides cultural intelligence of expatriates, cultural intelligence of host-country nationals plays a significant role in facilitating expatriate’s adjustment process. This unique findings direct future researcher for developing this topic. Companies can utilize this knowledge when preparing both expatriate and the team for working in multinational environment.