Realising the Potential of Multicultural Teams – A study on cultural diversity and performance in teams

Abstract

Working in multicultural teams becomes essential nowadays for Multinational Corporations to face globalisation and the growing complexity of today’s world. Individuals from different cultural backgrounds have to understand each other and work efficiently together to achieve good level of performance.

This research aims at realising the potential of multicultural teams in MNCs. The objectives of the study are to better understand the effects of cultural diversity, its benefits and drawbacks, and the necessary conditions to reach high level of performance. The role of previous international experiences among team members is also discussed.

The theoretical framework includes previous findings, theories and concepts on cultural dimensions and diversity in teams, characteristics of multicultural teams, international experiences, team performance and multicultural interactions.

This qualitative research has a deductive approach. Twelve semi-structured interviews were conducted. The interviewees, representing seven different nationalities, have all experienced at least one international team of several months in a MNC. Ten of the interviews were realised face-to-face.

The empirical results show that cultural diversity broadens the perspectives of the team with different points of view and high creativity. Misunderstanding and miscommunication are the major difficulties faced by international teams. To take advantage of the benefits of such teams, cultural differences have to be taken into consideration. A good level of interaction between the team members as well as good relationships is necessary to fully realise their potential.