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Published by: Allied Business Academies
Originally published in: "Journal of International Business Research", 2015
Revision date: 07-Sep-2018
Length: 19 pages

Abstract

In a globalizing economy, growing numbers of employees work and live away from their home country. However, there are great risks involved with expatriate failure, which can lead to steep costs of lost business and employee relocation. The top reason for failure is the inability of the expat or their family to adapt to the host country. One way that has been used to study the likeliness of success is Cultural Intelligence, which has been linked with cultural adaptability and expatriate performance. International experience has been linked with the development of Cultural Intelligence. There has been little study of the impact of the amount of time spent in another country on developing Cultural Intelligence, and results have been conflicting. Also, differences between home and host culture may be expected to have an impact on the development of Cultural Intelligence; in this study, Cultural Distance is used to compare country cultures. The interaction of time and Cultural Distance also may potentially reflect a relationship with Cultural Intelligence, and has not been used before, to our knowledge. Studies of Cultural Intelligence and Cultural Distance are typically limited to use of an aggregate measure of the multidimensional constructs. This study examined the connection of experience abroad, measured by Cultural Distance between home and host country and time spent there, as an antecedent of Cultural Intelligence. This study is in response to criticism of using an aggregated measure of Cultural Distance, and employed the use of individual dimensions of both Cultural Distance and Cultural Intelligence. The primary objective of this paper is to focus on the degree to which potential additional important insights are contributed by the use of individual versus aggregated construct variables. Using a sample of 185 university students, analysis of the aggregates and individual dimensions showed that important statistically significant insights were overlooked when using aggregated constructs, and that the use of individual dimensions provides more useful information. The introduction of time spent in another country as an antecedent to Cultural Intelligence showed statistical significance with only Cognitive and Behavioral Cultural Intelligence, also providing support for the explanatory power of individual dimensions. Finally, analysis of the time and Cultural Distance variables show varied results, adding significance to a model of Meta-Cognitive Cultural Intelligence.

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Abstract

In a globalizing economy, growing numbers of employees work and live away from their home country. However, there are great risks involved with expatriate failure, which can lead to steep costs of lost business and employee relocation. The top reason for failure is the inability of the expat or their family to adapt to the host country. One way that has been used to study the likeliness of success is Cultural Intelligence, which has been linked with cultural adaptability and expatriate performance. International experience has been linked with the development of Cultural Intelligence. There has been little study of the impact of the amount of time spent in another country on developing Cultural Intelligence, and results have been conflicting. Also, differences between home and host culture may be expected to have an impact on the development of Cultural Intelligence; in this study, Cultural Distance is used to compare country cultures. The interaction of time and Cultural Distance also may potentially reflect a relationship with Cultural Intelligence, and has not been used before, to our knowledge. Studies of Cultural Intelligence and Cultural Distance are typically limited to use of an aggregate measure of the multidimensional constructs. This study examined the connection of experience abroad, measured by Cultural Distance between home and host country and time spent there, as an antecedent of Cultural Intelligence. This study is in response to criticism of using an aggregated measure of Cultural Distance, and employed the use of individual dimensions of both Cultural Distance and Cultural Intelligence. The primary objective of this paper is to focus on the degree to which potential additional important insights are contributed by the use of individual versus aggregated construct variables. Using a sample of 185 university students, analysis of the aggregates and individual dimensions showed that important statistically significant insights were overlooked when using aggregated constructs, and that the use of individual dimensions provides more useful information. The introduction of time spent in another country as an antecedent to Cultural Intelligence showed statistical significance with only Cognitive and Behavioral Cultural Intelligence, also providing support for the explanatory power of individual dimensions. Finally, analysis of the time and Cultural Distance variables show varied results, adding significance to a model of Meta-Cognitive Cultural Intelligence.

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