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CONFLICT AND COMMUNICATION AMONG

ENGINEERS

Mahshid Tootoonchy Hamedani

MBA (Sharif University of Technology), B.S. Electrical Engineering (University of Tehran)

Submitted in partial fulfilment of the requirements for the degree of

Master of Business (Research)

QUT Business School, Management

Queensland University of Technology

August 2012

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ACKNOWLEDGEMENTS

My journey through QUT was one of the most delightful experiences of my life. This is

not just for the huge amount of knowledge that I gained here, but for the friendly atmosphere

and all the wonderful people who supported me to reach my goals.

First, I offer my gratitude to both my supervisors Dr Robin Price and Dr Sukanlaya

Sawang for their kind support. I do believe that it was their passion and strong background

that supported my research. It was a great honour for me to learn from both of them.

Second, I would love to acknowledge my lovely husband, Mehdi Azimy, because of all

his kind support; my mother Monireh Yousefy as my guardian angel, my father Morteza

Tootooonchy, for his love of education; and my little sister and brother, Mahzaad

Tootoonchy and Fazel Tootoonchy, for the happiness they bring to my life. Thanks to all of

you for your kind care, thoughtfulness and all your emotional support.

Finally, I would like to thank all my friends at QUT, the research support office and all

the other QUT staff for their considerable support.

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ABSTRACT

The trend of cultural diversity is increasing in all organizations, especially engineering

ones, due to globalization, mergers, joint ventures and the movement of the workforce. The

collaborative nature of projects in engineering industries requires long-term teamwork

between local and international engineers. Research confirms a specific culture among

engineering companies that isassumed to have a negative effect on collaboration and

communication among co-workers. Multicultural workplaces have been reported as

challenging environments in the engineering work culture, which calls for more research

among engineering organizations.

An everyday challenge for co-workers, especially in culturally diverse contexts, is

handling interpersonal conflict. This perceived conflict among individuals can happen

because of actual differences in tasks or relationships. Research demonstrates that task

conflict at the group level has some positive effects on decision-making and innovation,

while it has negative effects on employees’ work attitude and performance. However,

relationship conflict at the individual level has only negative effects including frustration,

tension, low job satisfaction, high employee turnover and low productivity. Outcomes of both

task and relationship conflict at individual level can have long-term negative consequences

like damaged organizational commitment. One of the most important sources of differences

between individuals, which results in conflict, is their cultural backgrounds. First, this thesis

suggests that in culturally diverse workplaces, people perceive more relationship conflict than

task conflict. Second, this thesis examines interpersonal communication in culturally diverse

work places. Communicating effectively in culturally diverse workplaces is crucial for

today’s business. Culture has a large effect on the ways that people communicate with each

other. Ineffective communication can escalate interpersonal conflict and cause frustration in

the long term. Communication satisfaction, defined as enjoying the communication and

feeling that the communication was appropriate and effective, has a positive effect on

individuals’ psychological wellbeing. In a culturally diverse workplace, it is assumed that

individuals feel less satisfied with their interpersonal communications because of their lack of

knowledge about other cultures’ communication norms. To manage interpersonal

interactions, many authors suggest that individuals need a specific capability, i.e., cultural

intelligence (some studies use cultural competence, global intelligence or intercultural

competence interchangeably). Some authors argue that cultures are synergic and convergent

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and the postmodernist definition of culture is just our dominant beliefs. However, other

authors suggest that cultural intelligence is the strongest and most comprehensive

competency for managing cross-cultural interactions, because various cultures differ so

greatly at the micro level. This thesis argues that individuals with a high level of cultural

intelligence perceive less interpersonal conflict and more satisfaction with their interpersonal

communication. Third, this thesis also looks at individuals' perception of cultural diversity. It

is suggested that level of cultural diversity plays a moderating role on all of the proposed

relationships (effect of cultural intelligence on perception of relationship conflict/

communication satisfaction)

This thesis examines the relationship among cultural diversity, cultural intelligence,

interpersonal conflict and communication by surveying eleven companies in the oil and gas

industry. The multicultural nature of companies within the oil and gas industry and the

characteristics of engineering culture call for more in-depth research on interpersonal

interactions. A total of 286 invitation emails were sent and 118 respondents replied to the

survey, giving a 41.26 per cent response rate. All the respondents were engineers,

engineering managers or practical technicians. The average age of the participants was 36.93

years and 58.82 per cent were male. Overall, 47.6 per cent of the respondents had at least a

master’s degree. Totally, 42.85 per cent of the respondents were working in a country that

was not their country of birth. The overall findings reveal that cultural diversity and cultural

intelligence significantly influence interpersonal conflict and communication satisfaction.

Further, this thesis also finds that cultural intelligence is an effective competency for dealing

with the perception of interpersonal relationship conflict and communication satisfaction

when the level of cultural diversity is moderate to high.

This thesis suggests that cultural intelligence training is necessary to increase the level

of this competency among employees in order to help them to have better understanding of

other cultures. Human resource management can design these training courses with

consideration for the level of cultural diversity within the organization.

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STATEMENT OF ORIGINALITY

The work contained in this thesis has not been previously submitted for a degree or

diploma at any other higher education institution. To the best of my knowledge and belief,

this thesis contains no material previously published or written by another person except

where due reference is made.

August 2012

QUT Verified Signature

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GLOSSARY

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Conflict: Any clash, collision or struggle between people who have opposing interests,

beliefs, values or goals(Thomas, 1992).

Cultural Intelligence (CQ):The knowledge and the ability to perform correctly, as well as the

positive motives to act properly in a multicultural context (Earley & Ang, 2003).

Diversity: Diversity is associated with the group’s heterogeneity regarding differences

between individuals in any attribute.

Deep level diversity: Deep level diversity regards the differences that are not immediately

apparent, like the differences in values, goals, missions, attitudes and personality.

Interpersonal Communication Satisfaction: Communication satisfaction is associated with

enjoying the conversation and believing that it flowed appropriately.

Relationship Conflict: Relationship conflict happens when there are differences of

personalities or emotions among individuals.

Surface level diversity: Surface level diversity relates to the differences that are easy to detect

like age, gender, ethnicity and race.

Task Conflict: Task conflict relates to a misunderstanding of, or conflict about, goals, key

decisions, distribution of resources or facts.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS��

ABSTRACT��

STATEMENT OF ORIGINALITY��

GLOSSARY��

TABLE OF CONTENTS��

LIST OF TABLES��

LIST OF FIGURES��

CHAPTER 1: INTRODUCTION��

1.1 INTRODUCTION��

1.2 BACKGROUND OF THE RESEARCH��

1.2.1� Engineering Organizations: Highly Multicultural Workplaces��

1.2.2� Diversity and Conflict��

1.2.3� Perspectives on Conflict��

1.2.3.1� Trait Theories��

1.2.3.2� Social Process Theories��

1.2.3.3� Social Structure Theories��

1.2.3.4� Logic Based Theories��

1.2.4� Diversity and Communication Satisfaction��

1.3 SIGNIFICANCE OF THE RESEARCH��

1.4 RESEARCH PROBLEM, PROPOSITION AND CONTRIBUTION��

1.4.1 Contributions��

1.5 METHODOLOGY OVERVIEW��

1.6 OUTLINE OF THE STUDY��

1.7 DELIMITATIONS OF SCOPE AND KEY ASSUMPTIONS��

1.8 CONCLUSION��

CHAPTER 2: LITERATURE REVIEW��

2.1 INTRODUCTION��

2.2 CLASSIFICATION OF CONFLICT��

2.3 OUTCOMES OF CONFLICT��

2.3.1� Functional Conflict��

2.3.2� Dysfunctional Conflict��

2.3.3� Task versus Relationship Conflict��

2.4 CAUSES OF CONFLICT��

2.5 INTERPERSONAL COMMUNICATION AND INTERPERSONAL CONFLICT��

2.6 WORKPLACE DIVERSITY AND CONFLICT��

2.6.1� Different Categories of Workplace Diversity��

2.6.2� Cultural Diversity��

2.6.3� Measuring Diversity��

2.6.4� Perceived Diversity vs. Objective Diversity��

2.7 IMPACT OF WORKPLACE DIVERSITY: PREVIOUS RESEARCH��

2.7.1� Diversity Causes Communication Difficulties��

2.7.2� Diversity Is a Source of Workplace Conflict��

2.8 CROSS CULTURAL COMPETENCY��

2.8.1� Intelligence��

2.8.2� Cultural Intelligence - The Cultural Facet of Intelligence��

2.8.3� Two Concepts of Cultural Intelligence��

2.9 DEVELOPMENT OF CULTURAL INTELLIGENCE DIMENSIONS��

2.9.1� Cognitive Cultural Intelligence/ Quotient (Cog-CQ):��

2.9.2� Meta-Cognitive Cultural Intelligence/ Quotient (Meta-CQ):��

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2.9.3� Motivational Cultural Intelligence/ Quotient (Mot-CQ):��

2.9.4� Behaviouralcultural Intelligence/ Quotient (Beh-CQ):��

2.10 IMPACTS OF CULTURAL INTELLIGENCE: PREVIOUS RESEARCH��

2.11 CRITIQUES OF CULTURAL INTELLIGENCE��

2.12 DIVERSITY AND CULTURAL INTELLIGENCE��

2.13 CONCLUSION��

CHAPTER 3: METHOD��

3.1� INTRODUCTION��

3.2� RESEARCH PARADIGM AND JUSTIFICATION��

3.3� RESEARCH DESIGN AND JUSTIFICATION��

3.4� SAMPLING STRATEGY AND ITS JUSTIFICATION��

3.5� PRE-TEST PROTOCOL SAMPLING��

3.6� SAMPLE AND PROCEDURE��

3.7� MEASURES��

3.7.1� Interpersonal Conflict��

3.7.2� Interpersonal Communication Satisfaction��

3.7.3� Cultural Intelligence��

3.7.4� Cultural Diversity��

3.7.5� Demographic Variables��

3.8� DATA ANALYSIS (PROCEDURAL APPROACH)��

3.8.1� Data Editing and Coding��

3.8.2� Missing Data��

3.8.3� Data Analysis��

3.8.4� Reliability and Validity��

3.9� ETHICAL CONSIDERATIONS��

3.10� CONCLUSION��

CHAPTER 4: RESULTS��


4.2� DESCRIPTIVE STATISTICS��

4.1.1� Data Screening��

4.1.2� Normality Testing��

4.3� ANALYSIS PROCEDURES FOR CONSTRUCT VALIDITY AND RELIABILITY��

4.4� HYPOTHESIS TESTING��

4.4.1� Main Effects (Testing Hypothesis 1a/b/c and Hypothesis 2a/b/c)��

4.4.2� Moderation Effects (Testing Hypothesis 3a/b/c)��

4.5� SUMMARY OF THE RESULTS��

CHAPTER 5: DISCUSSIONS AND CONCLUSIONS��


5.2� INTERPRETATIONS OF RESEARCH FINDINGS��

5.2.1� Cultural Diversity Negatively Influenced Perception Of Communication Satisfaction Between

Co-Workers.��

5.2.2� Cultural Diversity Did Not Influence Perception Of Task Conflict But Significantly And

Negatively Influenced Perception Of Relationship Conflict.��

5.2.3� Cultural Intelligence Positively Influenced Perception Of Communication Satisfaction Between

Co-Workers.��

5.2.4� Cultural Intelligence Did Not Influence Perception Of Task Conflict But Negatively Influenced

Perception Of Relationship Conflict.��

5.2.5� The Level Of Cultural Diversity Moderated The Effects Of Cultural Intelligence On Perception

Of Communication Satisfaction.��

5.2.6� The Level Of Cultural Diversity Did Not Influence The Relationship Between Cultural

Intelligence And Perception Of Task Conflict.��

5.2.7� The Level Of Cultural Diversity Had A Moderating Effect On The Relationship Between Cultural

Intelligence And Perception Of Relationship Conflict.��

5.3� IMPLICATIONS FOR THEORY AND PRACTICE��

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5.3.1� Contribution to Theory��

5.3.2� Contribution to Practice��

5.4� LIMITATIONS AND IMPLICATIONS FOR FURTHER RESEARCH��

5.5� CONCLUSIONS��

REFERENCES��

APPENDIX A: THE ONLINE SURVEY��

APPENDIX B: ETHICS CLEARANCE FORM��

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LIST OF TABLES

Table 2.1 The consequences of unresolved task conflict and relationship .............................. 27�

Table 2.2 Different categories of diversity .............................................................................. 34�

Table 2.3The relationship between Diversity and Conflict ..................................................... 46�

Table 2.4 Trend of cross-cultural needed ability ..................................................................... 50�

Table 3.1 Stages of selecting a proper sample ......................................................................... 68�

Table 4.1 CQ Rotated Factor Matrix ....................................................................................... 80�

Table 4.2 Dependent variable’s Rotated Factor Matrix ........................................................... 81�

Table 4.3 Correlations (Pearson) ............................................................................................. 84�

Table 4.4 Hierarchical multiple regression analyses showing the moderating effect of cultural

diversity.................................................................................................................................... 88�

Table 4.5 Slope Test for the Moderating effect of cultural diversity on the relationship

between CQ-1 and communication satisfaction ...................................................................... 90�


between CQ-1 and relationship conflict .................................................................................. 91�

Table 4.7 Result Summary ....................................................................................................... 93�

LIST OF FIGURES

Figure 2.1 The Cultural Intelligence Concept ..........................................................................52

Figure 2.2 The proposed model for the current thesis..............................................................62

Figure 4.1 Moderating effect of cultural diversity on the relationship between CQ-1 and

communication satisfaction......................................................................................................89


relationship conflict..................................................................................................................91

Figure 5.1 The supported hypotheses....................,................................................................101

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CHAPTER 1: INTRODUCTION

1.1 Introduction

The growth of multinational engineering organizations is not a new concern. One of the

main goals of this growth of multinational firms is utilizing the best expertise or sharing

important resources. Therefore, the increasing trend of workforce cultural diversity is

affecting individual and organizational psychological outcomes. Managing interpersonal

interactions and showing proper behaviours in multicultural environments is a necessary part

of today’s organizational life. This study aims to examine the possible effects of intercultural

competencies on individuals’ interpersonal interactions.

This chapter provides the summary of the thesis. After the introduction section (1.1),

section 1.2 describes the background of the research. Section 1.3 focuses on the significance

of the research area and section 1.4 introduces the research problems. In addition, the

contribution of the research to the existing theory is discussed in section 1.4.1. An overview

of the research methodology and a brief outline of the study are mentioned in sections 1.5 and

1.6 respectively. Key assumptions and delimitations are also stated in section 1.7.

1.2 Background of the Research

The level of demographic diversity in organizational groups is increasing. New

business trends, globalization and movement of the workforce are the most important reasons

for this increasing level of diversity(Knippenberg & Schippers, 2007). Engineering

companies are no exception. Movement of the workforce, growth of globalized engineering

organizations, mergers, acquisitions, establishing international standardization organizations

and utilizing shared resources are some of the key reasons for this increasing trend of

workforce diversity in engineering organizations(Knippenberg & Schippers, 2007).

1.2.1 Engineering Organizations: Highly Multicultural Workplaces

Like countries and organizations, occupations have also their own culture (Van Maanen

& Barley, 1984). Some research suggests that engineers believe that they belong to a distinct

culture (Florman, 1987; Kunda, 1992; McIlwee & Robinson, 1992). McIlwee and Robinson

(1992) state that based on this culture, engineers believe that the organizational power of

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companies is based on engineering success. Research among engineering scholars suggested

that the engineering culture might cause barriers for the collaboration process of workgroups

(Ingram & Parker, 2002). Organizations choose engineers for special projects based on their

technical competence (Perlow & Bailyn, 1997), therefore, the reward systems for engineers

are normally based on individual output rather than group work (Ross, 2000). On the one

hand, these special characteristics of engineering occupation like weak group work (Ross,

2000), or weak collaboration (Ingram & Parker, 2002) call for more research on interpersonal

interaction among engineers. On the other hand, research shows that the trend of

demographic diversity among organizational groups has increased(Jackson, Joshi, & Erhardt,

2003; Williams & O'Reilly, 1998). Mergers, acquisitions and joint ventures affect this

increasing diversity in workgroups (Knippenberg & Schippers, 2007). Cho (2011) discussed

that the trend towards workplace diversity in the United States’ engineering and construction

organizations is increasing very rapidly. This research demonstrated that in scientific and

engineering occupations, only 73 per cent of the whole population are white employees and

the rest are from different ethnicities(Cho, 2011). This research states that one reason behind

this demographic diversity is the need for technical skills, various thoughts and perspectives.

The need to share knowledge and expertise is increasing the level of workforce

diversity in an engineering context. Globalisation and competitiveness of engineering

organizations require a diverse workforce to cope with technological and market changes

(Schäfer, 2006). Jarvenpaa and Keating (2011) stated that complex engineering services have

become very diverse because of globalization and the distribution of engineering teams. This

longitudinal case study was undertaken among cross-cultural teams in United States and

Romania to examine the importance of coordination of knowledge in diverse teams

(Jarvenpaa & Keating, 2011). The research emphasised the importance of cross-cultural

communication, because success of a diverse team relies on strong communication among

members.

Demographic diversity is very problematic among engineering and construction

organizations(Cho, 2011). Many expatriates fail to work successfully in their new cultural

context, which means that organizations face the cost of replacement of the unsuccessful

expatriate worker, the lost opportunities and the damaged relationship(Johnson, Lenartowicz,

& Apud, 2006). It is not just expatriates that have unsuccessful experiences interacting with

co-workers from other countries. Many managers face negative experiences by choosing a

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foreign business partner, managing a merger, acquisition or joint venture(Johnson, et al.,

2006). Due to the culture of engineering organizations as described above, and the increasing

trend towards cultural diversity among the engineering workforce, it is suitable to select

engineering companies as the sample for this thesis.

1.2.2 Diversity and Conflict

One of the most contentious types of demographic diversity is cultural diversity (Blau,

1977). The differences between social cultures are one of the most common causes of

interpersonal conflicts (Hofstede, 1980, 2001; Hofstede, Pedersen, & Hofstede, 2002). First,

research shows that when diversity is about group members’ differences in their goals and

opinions, they perceive task conflict (Jehn, Northcraft, & Neale, 1999); however, when the

difference is about emotions, norms and values, people perceive relationship conflict (Jehn, et

al., 1999). In daily interactions of co-workers, occurrences of interpersonal conflicts are

inevitable. However; homogenous groups are reported to face less relationship conflict in

comparison to heterogeneous groups(Jehn, et al., 1999; Pelled, 1996; Pelled, Eisenhardt, &

Xin, 1999;Williams & O'Reilly, 1998). As a result, this thesis will examine whether

culturally diverse workplaces increase conflict at the level of the individual.

Conflict is not a new phenomenon. Conflict, in general, can be defined as a clash,

collision or struggle between people who have opposing interests, beliefs, values or goals

(Thomas, 1992). When different parties come together, incompatible goals, objectives, shared

resources, exclusive behaviours and different preferences can damage their relationship.

Studying the nature of conflict has been always the philosopher’s concern. The study of

conflict started centuries ago with Aristotle and Plato. They believed in the necessity of

harmony in society to dampen the negative outcomes of conflict (Rahim, 2001). The first

classical conflict theories in the nineteenth century were proposed by Karl Marx. He believed

that social groups are not equal and this inequality of attributes, power differences or class is

the reason for conflict (Rahim, 2010). Deutsch (1990), by reviewing sixty years of conflict

studies, stated that the major theories of conflict were affected by early studies of social

psychologists like Darwin, Freud and Marx. These scholars believed that conflict is

competitive and destructive. Darwin believed that conflict was a competitive and negative

war between different parties who are struggling for more resources or even just existence

(Darwin in Deutsch, 1990).

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After the First World War, a revolution occurred in social psychology. Hawthorne was

one of the first psychologists in the new era who tried to perform empirical research into

interpersonal conflict. Hawthorne looked at conflict as a consequence of human behaviour. In

his view, conflict is just the outcome of daily interactions between people with different

behaviours. Hawthorne mentioned that the best way to reduce the level of conflict in

organizations is training the employees and managers to understand the cause and nature of

conflict (Conbere, 2001). In the 1950s, at the beginning of the Cold War, many scientists

studied the nature of conflict in order to ease friction in international communications and

industrial relations. The main goal was to investigate the reasons for war and to find effective

methods to resolve international conflicts without violence. Researchers tried to understand

the role of national goals, religion, and other causes of conflict that start wars (Webel &

Galtung, 2007). Later, studies of international conflict emerged in social science and

organizational studies. In the 1970s, the trend of conflict studies was focused on inter-

organizational conflicts, negotiations, mediation and social conflicts (Lewicki, Barry, &

Saunders, 2007).

Conflict has been variously defined as:

-‘the process which begins when one party perceives that another has frustrated, or is

about to frustrate, some concern of his’ (Thomas, 1992, p.265);

- ‘an interactive process manifested in incompatibility, disagreement, or dissonance

within or between social entities’ (Rahim, 2001, p.18);

- ‘mixtures of competitive and cooperative processes’ (Deutsch, 1990, p.237);

- ‘a phenomenon that occurs between interdependent parties as they experience

negative emotional reactions to perceived disagreements and interference with the attainment

of their goals’ (Barki&Hartwick, 2001, p.198);

- ‘a particular kind of social interaction process or interaction relationship between

parties who have mutually exclusive or incompatible values’ (Fink, 1968).

This thesis uses the definition of conflict used by Rahim (2010), for defining conflict.

Therefore, conflict is defined as the ‘perceived divergence of interests’ (Rahim, 2010, p.1).

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Rahim’s (2001) definition of conflict is appropriate because of its simple but holistic

meaning.

1.2.3 Perspectives on Conflict

Conflict can be seen from various viewpoints. Authors like Schellenberg(1996) tried to

describe conflict through the lens of various theoretical approaches. Schellenberg(1996)

stated that conflict could be studied through four different perspectives:trait theories, social

process theories, social structure theories and logic based theories. In the following sections,

each of these approaches will be discussed.

1.2.3.1 Trait Theories

Trait theories are one of the major approaches to study the personality of individuals.

This theory focuses on patterns of behaviours, emotions, habits and thoughts. According to

this theory, traits are not dynamic over time but are different among different individuals. For

example, if a person is an introvert they will always be an introvert, but it does not mean that

everyone is an introvert. The important point is that this characteristic of being introverted

influences all of a person’s behaviours (Schellenberg, 1996). So, all behaviours are based on

an individual’s personality. Schellenberg(1996) tried to describe interpersonal conflict

through this theory. Schellenberg(1996) argued that different traits cause conflict, especially

when they clash. Conflict occurs based on the interactions between individuals with different

personalities, behaviours and emotions.

1.2.3.2 Social Process Theories

The main goal of social process theory is to understand the process of socialization and

how the social constraints oblige individuals to commit to acts or neglect acts (Schellenberg,

1996). In the process of social interactions, individuals learn some behaviour. Most of the

behaviours are learned from group members while socializing with them. The group

member’s behaviour can be cooperative or competitive. Therefore, individuals can show

cooperative or competitive behaviours based on their socialization process. When different

individuals (from different social groups) communicate with each other, these differences in

their cooperative (or competitive) behaviour can cause interpersonal conflict.

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1.2.3.3 Social Structure Theories

Social structure theories focus on the socioeconomic structure of organizations. At the

macro level, they refer to the patterns of relationships between social groups or the social

networks between individuals, groups or organizations (Schellenberg, 1996). At the micro

level, they are defined as the way that norms shape the behaviour of individuals in a social

system. These theories assert that, it is the social network that shapes the communication

behaviours. Therefore, when different individuals from different social networks (who have

learned different norms) communicate, conflict is a consequence of different norms of

communication (Schellenberg, 1996).

1.2.3.4 Logic Based Theories

In logic-based theories, like game theory, parties have to choose their actions without

knowing about the other party’s preference (Schellenberg, 1996). If the players of the game

co-operate the result would be win-win for all of them. If the players of the game show non-

cooperative or competitive behaviours, the result will make one player the winner and the

other player the loser. Schellenberg(1996) stated that conflict could be described through the

lens of game theory. Like game theory, mathematics or logical steps can be used to describe

the conflict situations. Parties in conflicting situations have different preferences and all of

them want to be the winner. Although Schellenberg(1996) described conflict through

different theories, all these theories show that the individual’s different behaviours cause

interpersonal conflict.

As can be seen in all the above-mentioned theories, there is a certain difference

between individuals that causes conflict. This difference can be the personality of individuals

(Trait Theories), learnt cooperative or competitive behaviour from the group members (Social

Process Theories), norms that shape the behaviour of individuals (Social Structure Theories)

or the cooperative or competitive behaviours in interpersonal interactions (Logic Based

Theories). The important point is that individuals from different cultural backgrounds

definitely have a different collection of norms and behaviours. Returning to the definition of

conflict as a ‘perceived divergence of interests’ (Rahim, 2010, p. 1), it really does not matter

what the difference is. The important point is that there are some differences (in personalities,

norms, behaviour, etc.) that individuals perceive as diverging from their interests. This

perception is defined as the conflict between individuals.

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To sum up, different theories may define the causes of conflict from different

perspectives, but the results are not very different. It can be implied that this thesis looks at

conflict through trait theory and the lens of social theory. Conflict can occur due to cultural

differences. Individuals from different cultural backgrounds may have a different social

obligation in responding to a situation differently. Further, this thesis argues that the level of

conflict may be due to the individual trait of cultural competency to deal with the differences.

1.2.4 Diversity and Communication Satisfaction

Research shows that interpersonal communication among more homogeneous groups is

more effective(Earley & Mosakowski, 2000). Ineffective communication among co-workers

causes frustration and dysfunctional relationships. Individuals in different cultures have

different communication norms, which makes interpersonal communication in diverse

settings more complicated(Adair, 2003). Individuals’ perception of the effectiveness of their

interpersonal communication is associated with communication satisfaction(Honeycutt &

McCann, 2008). Downs and Adrian (2006)suggest that communication satisfaction plays an

important role in organizational performance, productivity and individual wellbeing. Other

research shows that satisfactory communication contributes to decreased stress levels,

decreased staff turnover and reduced absenteeism (Hargie, Dickson, & Tourish, 1999; Steers,

1977). Pettit, Goris and Vaught (1997) also demonstrate that overall job satisfaction is

positively affected by communication satisfaction. The importance of interpersonal

communication satisfaction on psychological wellbeing requires more extensive research into

interpersonal communication in culturally diverse settings(Hecht, 1978b; Schäfer, 2006;

Ting-Toomey, 1999).

An increased level of cultural diversity in the workplace requires individuals to have

the capability to adapt effectively to new cultural contexts. This requirement encouraged

researchers to develop the concept of cultural intelligence(Earley & Ang, 2003). Cultural

intelligence is defined as a specific type of intelligence that lets culturally intelligent

individuals adapt their behaviours based on the values and beliefs of a given society or

culture(Earley & Ang, 2003).

The positive effects of cultural intelligence have been identified on personal and

organizational outcomes, like organizational innovation (Elenkov & McMahan, 2005), cross-

cultural adjustment (Templer, Tay, & Chandrasekar, 2006), intercultural effectiveness (Ang

et al., 2007), motives to cooperative and intercultural negotiation (Imai & Gelfand, 2010),

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leaders’ and teams’ performance (Groves & Feyerherm, 2011), and greater interpersonal trust

toward culturally different others (Rockstuhl & Ng, 2008). In addition,Ang, vanDyne, and

Koh(2006) demonstrated the association between personality and cultural intelligence. It

seems that no research has yet examined the effects of cultural intelligence on perceived

interpersonal conflict and communication satisfaction.

The purpose of this thesis is to clarify the effects of cultural intelligence on

interpersonal conflict and communication satisfaction in culturally diverse contexts. The

significance of the research will be discussed in the next section.

1.3 Significance of the Research

One of the most problematic issues of individuals’ social interactions arises from their

cultural differences(Blau, 1977). The negative effects of cultural diversity on interpersonal

communication have been identified in previous research(Alexander, Nuchols, Bloom, &

Lee, 1995; Oetzel, 2001; Tsui, Egan, & O’Reilly, 1992; Tsui & O'Reilly, 1989; Zenger &

Lawrence, 1989).Similarly, a number of researchers showed the negative effects of diversity

on perceived interpersonal conflict (Acar, 2010; Brief, Umphress, Dietz, Butz, & Scholten,

2005; Chuang, Church, & Zikic, 2004; Earley & Mosakowski, 2000; Jehn, 1994; Vodosek,

2007). However, none of these studies examined these relationships in the engineering

context. Further, it appears that no research has yet examined conflict and communication

together in a culturally diverse setting. Therefore, the question remains whether culturally

diverse workplaces, such as engineering organisations, have a negative effect on

interpersonal communication satisfaction and interpersonal conflict among engineers. This

thesis has used the engineering context as a case of a highly diversified cultural environment

(Cho, 2011; Jarvenpaa & Keating, 2011).

Cultural intelligence is introduced as a significant competency or capability in cross-

cultural contexts to manage interpersonal interactions (Ang, et al., 2006; Digman, 1990;

Earley & Ang, 2003; Kim, Kirkman, & Chen, 2006; Schellenberg, 1996). The effect of

cultural intelligence on an individual’s psychological and organizational outcomes has been

mentioned in the literature (Ang, et al., 2006; Elenkov & McMahan, 2005; Imai & Gelfand,

2010; Kim, et al., 2006; Templer, et al., 2006); To date, it seems that there are no empirical

studies that examine the possible effect of cultural intelligence on perceived interpersonal

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conflict and communication satisfaction. This thesis, for the first time, will test this

relationship.

An important weakness of most studies about cultural intelligence, is that these studies

did not consider the level of diversity (Ang, et al., 2007; Elenkov & Manev, 2009; Elenkov &

McMahan, 2005; Kim, et al., 2006; Templer, et al., 2006). The question is whether cultural

intelligence is still helpful in contexts with very low levels of cultural diversity. Only two

studies have examined the effect of the level of diversity on the usefulness of cultural

intelligence (Groves & Feyerherm, 2011; Rockstuhl, Seiler, Ang, Van Dyne, & Annen,

2011). This thesis will also examine the effect of the level of cultural diversity on the

relationship between cultural intelligence and the expected outcomes (perceived interpersonal

conflict and communication satisfaction).

1.4 Research Problem, Proposition and Contribution

According to the literature review and the background of the research, the purpose of

this thesis is to address these research questions as following:

Research question 1: Do culturally diverse workplaces increase the perception of

interpersonal conflict and decrease the perception of communication satisfaction among

engineers?

Research questions 2: Does the level of cultural intelligence decrease the perception of

interpersonal conflict and increase the perception of communication satisfaction amongst

engineers?

Research question 3: Are the relationships between cultural intelligence, interpersonal

conflict and communication the same in both low and high culturally diverse workplaces?

1.4.1 Contributions

This thesis contributes to the extension of theory in a few ways. First, relatively few

studies have examined the impact of cultural intelligence. There are a few empirical studies

that examine marketing innovation (Elenkov & McMahan, 2005), cross-cultural adjustment

(Templer, et al., 2006), decision-making, cultural adaptation and task performance (Ang, et

al., 2007), negotiation strategies(Imai & Gelfand, 2010), and leaders’ and team’s performance

(Groves & Feyerherm, 2011). It appears that no empirical research has yet examined the

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effects of cultural intelligence on individual’s perception of interpersonal conflict /

communication satisfaction. Hence, this thesis has the potential to further develop the

theoretical models around interpersonal conflict and communication in culturally diverse

settings.

Second, the level of cultural diversity is very important to consider. Rockstuhl et

al.(2011) state that the association of cultural intelligence with any individual and

organizational outcome shall be considered only when the level of cultural diversity is

moderate to high. In homogeneous groups or groups with low levels of cultural diversity, the

impacts of cultural intelligence are not significant. It appears that only two studies have taken

the level of diversity into account (Groves & Feyerherm, 2011; Rockstuhl, et al., 2011). This

thesis also considers the moderating effect of diversity for testing the proposed model.

Third, the specific engineering culture (Florman, 1987; Kunda, 1992; McIlwee &

Robinson, 1992), which causes ineffective group work (Ross, 2000) and weak collaboration

(Ingram & Parker, 2002),requires more research on interpersonal interactions amongst

members of the engineering occupation. This thesis, for the first time, examines the

interpersonal interaction in relation to cultural intelligence and cultural diversity.

1.5 Methodology Overview

A positivist research paradigm is founded on the objectivity of the social science and

the correlation of facts (Zikmund, 2003). From an ontological perspective, this study is

realist, because it assumes that reality can be known. Realism is linked to an objectivist

epistemology whereby the meaning of objects is independent of human consciousness and

can be known with careful research (Crotty, 1998). This research tries to explain the actual

causes and effects; therefore, the epistemological objectivist and the positivist nature of this

study require quantitative analysis and a survey-based methodology (Philips & Burbules,

2000). As it is clear what variables are being measured and how they are measured, the most

appropriate method of measurement is quantitative (Tashakori & Teddlie, 2003). This

research introduces a theoretical framework drawn from previous empirical research. After

identifying the hypotheses and research questions, the procedures and scales to collect

quantitative data were used. Finally, SPSS 19.0was used for descriptive analysis for

screening the data, skewness measure, correlation matrix to test the multicolinearity. EFA

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analysis was used to check the variables’ factor loading, internal reliability test and multiple

regression analysis to test the moderation model.

Therefore, in order to answer the proposed research questions, a quantitative approach

was adopted to examine the hypotheses. An online survey was used for data collection. The

quantitative approach provides the required infrastructure to collect numerical data. This

approach is the most suitable one for asking questions, which are representative of a

phenomenon. This descriptive research helps the researcher to determine the degree of

variation in the perception of the respondents(Zikmund, 2003).

Further explanation of the research methodology, questionnaire development,

reliability, validity and ethical considerations will be addressed in Chapter 3. The next section

will provide the outline of the study.

1.6 Outline of the Study

This thesis comprises five chapters to develop the knowledge of cultural diversity on

and the effect of cultural intelligence on interpersonal conflict and communication

satisfaction. The chapters are summarized as:

Chapter 1 provides the overall picture of this thesis, the research background, research

question, research hypotheses, and justification for the thesis and a brief overview of the

research methodology.

Chapter 2, by reviewing the relevant literature, develops the research question and

research hypotheses. The research hypotheses are designed to investigate the concept of

cultural intelligence.

Chapter 3 describes and justifies the research methodology for the thesis. This chapter

introduces the research design and research paradigm. Following the research design, an

online survey was designed for a quantitative data collection technique, in accordance with

the research questions.

Chapter 4 shows the analysis of the collected data and reports the results of the analysis

by using SPSS 19.0. SPSS 19.0 was utilized to examine the descriptive, factor and regression

analysis to test the hypotheses.

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Chapter 5 discusses the findings from the analysis of Chapter 4. The hypotheses are

revised and the theoretical and practical contributions of the research are introduced. This

chapter also states the limitations of the study and implications for further research.

1.7 Delimitations of Scope and Key Assumptions

This thesis was conducted within the following parameters. First, only engineering

companies in the oil and gas industries were studied. Even within these companies, the online

survey was sent only to engineers, engineering managers and technicians, but not all the

employees.

Second, the study was a cross-sectional one. The survey was conducted over two

months and only performed once. Finally, this study covers the perceptions of individuals

about their interpersonal conflict and communication satisfaction. The organizational culture,

level of interpersonal conflict within groups and personality of the respondents have not been

measured.

1.8 Conclusion

This chapter provided the overall picture of this thesis. The background of the research

area was introduced in section 1.2. The increasing trend of diversity in engineering

organizations and the need for stronger group work amongst the engineering occupation, call

for more research in multicultural contexts. Finding the proper intercultural competency to

help engineers to perceive less interpersonal conflicts may bring positive psychological

outcomes. Other sections in chapter one (sections 1.3 to 1.7) provide a brief overview of the

research hypotheses, and justification for the research, limitations and methodology. Chapter

2 will review the relevant literature in detail and will present the conceptual framework for

the thesis.

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CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

Chapter 1 introduced the outline of this thesis. The main purpose of chapter 2 is to

establish the required knowledge of culturally diverse workplaces from empirical literature.

Very little empirical research into cultural diversity has been conducted intoday’s

multinational engineering organizations. While the engineering occupation is in high demand

in Australia, there are special characteristics of the engineering occupation, such as high

employee turnover and weak interpersonal relationships among engineers, that call for more

research. Therefore, a selection of prior studies from leading research journals including

Academy of Management Journal, Academy of Management Review, Journal of

Organizational Behaviour, Organization Science, Management and Organization Review,

Group & Organization Management, Journal of Applied Psychology, The International

Journal of Human Resource Management, Journal of International Business Studies, Human

Relations, Administrative Science Quarterly, Research in Organizational Behaviour has been

conducted. In addition, searching has been extended to other journals like IEEE Transactions

on Engineering Management, The Journal of Business Communication, The International

Journal of Conflict Management, and the International Journal of Intercultural Relations,

which couldprovide very specific discussions related to the research topic. The studies

selected range from 1980 to 2012. The main keywords used in the academic search were

“conflict”, “culture”, “diversity”, “communication”, “interpersonal interactions” and

“multicultural organization”. After applying these keywords, more than 600 academic studies

were found. By excluding the irrelevant papers (such as those referring to conflict and

communication at group, organizational and international levels), the total number of papers

reduced to 174 studies.

The aim of this thesis was first finding the most problematic issues in interpersonal

interactions. Second, this thesis aims to find the proper competency to help individuals to

better manage their perceptions and consequences of interpersonal interactions in

multicultural environments. To be consistent with the period of a Master’s thesis, this

research will only undertake a cross-sectional study among the participants.

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This chapter reviews the literature that has formed our current understanding of the

research on cultural diversity in the workplace. This chapter reviews several constructs,

which leads to an adaptation of the construct of cultural intelligence as a means to ease the

navigation of culturally diverse contexts.

First, the literature on interpersonal conflict is investigated. This section covers

definitions, types, causes and consequences of interpersonal conflict. Second, the literature on

interpersonal communication and its close relation with interpersonal conflict is discussed.

Third, the literature on diversity in the workplace and its impact on interpersonal interactions

are reviewed. Fourth, the chapter reviews the literature on the required cultural competencies

in order to manage interpersonal conflict and communication. This section introduces cultural

intelligence as the best measure of the required competency for managing interpersonal

relationships. The differences between this type of intelligence and other types of intelligence

are also discussed. The next section of this chapter reviews the effect of cultural intelligence

on organizational outcomes at an individual level. It is suggested that perceptions of

interpersonal conflict and interpersonal communication satisfaction are likelyto be improved

by a cultural intelligence competency.

Finally, a model is developed that is applicable to evaluate the moderating effect of

cultural diversity on the relationship between cultural intelligence and perception of

interpersonal conflict / communication satisfaction.

2.2 Classification of Conflict

Authors who classify conflict in organizational behaviour and management literature

take two perspectives. One perspective examines conflict as a holistic phenomenon that can

happen at different levels, regardless of the causes or nature of the conflict. This classification

of conflict is based on the organizational level. According to Deutsch(1990)conflict occurs at

different distinct levels: personal (conflict within the person due to contradictory goals or

tasks), interpersonal (conflict between individuals because of their different goals,

behaviours, values and tasks), and intergroup (conflict between different groups).

The other approach to classifying conflict examines the underlying cause of the

conflict. Pinkley’s research (1990) on 161 undergraduate students, designed to find out

people’s interpretation of conflict, showed that conflict has two types: task conflict and

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relationship conflict. Task conflict relates to a misunderstanding of, or conflict about, goals,

key decisions, and distribution of resources or facts. Relationship conflict happens when there

are differences of personalities or emotions among individuals (Pinkley, 1990). Relationship

conflict is also defined as any interpersonal clashes (Pelled, et al., 1999; Simons & Peterson,

2000). The same classification of conflict (task versus relationship) has also been used in

other studies (Jehn, 1995; Jehn & Bendersky, 2003; Jehn, et al., 1999; Pelled, et al., 1999).

Jehn’s study (1995) on 105 workgroups and management teams (633 employees) showed that

this classification of task versus relationship conflict is valid. This study developed an eight-

item measure on a five point Likert scale to evaluate the type and amount of interpersonal

conflict.

This thesis aims to study the capability that helps individuals to manage the conflict

that happens amongst them, because of their various cultural backgrounds, emotions or

values. The focus of the study is interpersonal relationship conflict while controlling the

effects of this required cross-cultural capability on task conflict as well.

2.3 Outcomes of Conflict

Many studies have tried to theorize conflict and examine the emotional and

organizational outcomes of conflict (Costa, Hernandez, Costa-Faidella, & Sebastian-Galles,

2009; Dana, 1999; Friedman, Tidd, Currall, & Tsai, 2000; Jehn & Bendersky, 2003). Jehn

and Bendersky(2003)stated that, before the 1990s, the majority of research on organizational

culture saw conflict as a totally negative term. It can be seen that the trend of studies changed

from looking at conflict as a destructive aspect of human interactions to looking at it as an

unavoidable fact (DeChurch & Marks, 2001; Jehn & Bendersky, 2003; Rahim, 2001).

Conflict needs to be well-managed, so it is necessary to find more effective ways of

understanding the nature of human behaviour (DeChurch & Marks, 2001; Jehn & Bendersky,

2003; Rahim, 2001).

Researchers note that, when managed, conflict can have positive outcomes for

organizations as well (DeChurch & Marks, 2001; Jehn, et al., 1999; Rahim, 2001) while

negative outcomes need to be carefully managed. Rahim (2001) suggests that the outcome of

conflict can be divided in two categories: functional and dysfunctional. Task and relationship

conflict may yield different outcomes, which will be discussed in the following sections.

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2.3.1 Functional Conflict

The functional outcomes of conflict can include innovation, creativity, and improved

organizational decision-making by developing synergistic solutions to common problems.

Jehn and Bendersky(2003)reviewed the past typologies of conflict and argued that the

existence of some levels of interpersonal task conflict between groups could have a positive

effect on the relationship between conflict and its organizational outcomes, for example,

decision-making, critical evaluation and problem solving. DeChurch and Marks (2001), by

examining 96 business school project teams of south-eastern universities in the United States,

revealed that well-managed task conflict was associated with higher group member

satisfaction. In addition, when task conflict was actively managed, group performance was

higher.

2.3.2 Dysfunctional Conflict

Rahim (2001) stated that conflict could have dysfunctional organizational outcomes.

Dysfunctional outcomes of conflict include job stress, burnout, task/job dissatisfaction,

reduced communication between individuals and groups, a climate of distrust and suspicion,

damaged organizational commitment and reduced job performance. Other studies have found

negative psychological outcomes of conflict like anxiety, frustration, employee turnover, low

productivity (Dana, 1999), tension (Thomas, 1976), low job satisfaction (Robbins, 1978) and

a climate of distrust and suspicion (Rahim, 2010). Long-term conflict in organizations can

cause increased absenteeism and reduced productivity (Tjosvold, 1991). As mentioned in this

research, unresolved conflict can have large negative effects at individual and organizational

levels.

2.3.3 Task versus Relationship Conflict

Task and relationship conflict are different so they will have different consequences. Jehn and

Bendersky(2003), by reviewing several years of empirical work on interpersonal conflict in

organizations, have categorized the consequences of unresolved task conflict and relationship

conflict at individual and group level. In Jehn and Bendersky’s(2003) study, the previous

empirical research on the conflict-outcome relationship has been reviewed and compared.

The result of this review is in Table 2.1:

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Table 2.1 The consequences of unresolved task conflict and relationship

Type of conflict Individual Level Group Level

Task Conflict

• Increased Effort for Being

Challenged

• Increased Divergent Cognitive

Processes

• Enhanced Task Focus

• Increased Anxiety and Tension

• Increased Divergent Opinions,

Interpretations, Viewpoints and

Group Problem Solving Skill

• Increased Critical Evaluation and

Assessment of Alternatives

• Increased Communication, Shared

Information, Problem Identification

Relationship

Conflict

• Distraction

• Misspent Time

• Misspent Effort

• Limiting Cognitive Process

• Decreased Ability to Assess

New Information

• Decreased Commitment

• Decreased Cooperation and Goodwill

• Decreased Communication and

Understanding

• Decrease Group Focus on Resolving

Or Retaliation

• Decreased Access to New

Information

Adapted from Jehn and Bendersky (2003, p. 203)

The research of Jehn and Bendersky(2003) shows that the outcomes of conflict at an

individual level are always negative and in the long term can damage the employee’s

commitment to the organization. The other very important aspect to note is that relationship

conflict can never have any positive outcomes, and at both individual and group-level has

destructive outcomes. Only at the level of the group can task conflict have some positive

effects on problem solving and communication skills. Research shows that while

uncontrolled conflict has several negative effects, some managed level of conflict can have

positive consequences and some moderate amount of task conflict results in the highest levels

of organizational effectiveness (Rahim, 2001). Tjosvold(1998) also showed that some levels

of interpersonal task conflict have a relation with employee effectiveness when employees

have cooperative goals. If the goals are more competitive in nature, task conflict usually has

negative effects on employees’ relations. As can be seen from Table 2.1, relationship conflict

even at a group level is destructive.

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One study has examined the effects of conflict at individual and organizational levels

through three different investigations (DeDreu, Evers, Beersma, Kluwer, & Nauta, 2001). In

the first study, 308 employees of a food processing company participated in the research, in

the second study 2403 highly educated professionals, and in the third study, 78 psychology

students at the University of Groningen in the Netherlands. All three studies of DeDreu et al.

(2001)demonstrate the negative consequences of conflict on individual wellbeing,

organizational effectiveness and group performance.

A comprehensive research review of 116 empirical studies on interpersonal conflict

published between 1990 and 2010 was done by (DeWit, Greer, & Jehn, 2011). This meta-

analytic paper drew its sample from both Western and Eastern populations, and some cases

were designed as longitudinal studies. The results demonstrate that there was no negative

relationship between task conflict and group performance. This research (DeWit, et al.,

2011)states that the positive relation between task conflict and group performance was found

in the studies where:

- The relation between task conflict and relationship conflict was relatively weak;

- The study had examined top management and not other levels of employees;

- The researcher had measured financial performance or decision quality instead of

employees’ overall performance.

DeWit et al. (2011) conclude that, except for the three above-mentioned conditions, no

positive relationship between task conflict and group performance was found.

As a result, well-managed conflicts may bring some positive outcomes for group

decision-making or critical thinking; however, it is always the negative consequences that

worry the management researchers. To sum up, research has shown that relationship conflict

always has negative effects on individuals and groups (Table 2.1). Task conflict has negative

outcomes at the individual level. Some research has shown that managing task conflict at the

group level can have positive outcomes, while the comprehensive meta-analysis of DeWit et

al. (2011) suggests that in evaluating the effect of task conflict on organizational outcomes,

careful consideration of samples, scales and the correlation between task and relationship

conflict is required.

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By reviewing the previous research, it is suggested that task and relationship conflict

both have negative effects at the individual level. As Deutsch (1990) mentioned,

interpersonal conflict (at the individual level) in organizations is always inevitable and

destructive. The focus of this thesis is on this interpersonal conflict (individual level), which

always has negative effects. Therefore, the goal of the thesis is to investigate a capacity that

helps individuals to manage their interpersonal conflicts.

In the next section, the causes of interpersonal conflict will be reviewed.

2.4 Causes of Conflict

As mentioned before, Schellenberg(1996) tried to describe conflict through various

theoretical approaches and showed that conflict happens because people have different

behaviours. Causes of conflict are not just limited to human behaviour. Considering today’s

organizations with different people with different expertise, goals, nationalities and

personalities, it is not surprising that interpersonal conflict exists. A simple interpersonal

conflict can lead to non-productive results like anxiety, frustration, employee turnover and

low productivity, therefore, it is very important to know the different causes of task or

relationship conflict(Dana, 1999).

Although there is no agreement among academics, studies identify a range of different

causes. The first set of literature emphasises the basic differences between individuals. Wall

and Callister(1995), in a review of conflict literature, demonstrate that the causes of conflict

can be differences in individual characteristics (like personality, values and goals), previous

failed interactions, unfamiliar behaviours or misguided communications. Alter (1990), by

studying 15 community-based delivery companies, noted that there are certain behaviours

and interpersonal relations that cause interpersonal conflict, like when individuals

intentionally or unintentionally block each other’s goals, or when they have mutually

exclusive aspirations.

The second set of literature shows that conflict and its management are greatly affected

by social culture (Hofstede, 2001). Hofstede (2001) stated that the nature of conflict and its

outcomes are based on culture. For example, Taylor’s (1991) observation of American

managers working in Japanese subsidiaries in Japan showed that the causes of interpersonal

conflict between these two cultures are mostly due to different goals, perspectives and

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cultural norms. Lack of experience in working in a multicultural environment was also one of

the most important reasons for interpersonal conflict between American and Japanese

managers in this research.

The third view on causes of conflict was introduced by Tidstrom(2009). In a qualitative

study, Tidstrom (2009), in 36 interviews with 15 respondents and group meetings in 2

different industries in Finland, found that the major causes of organizational conflict are

competition for scarce resources, seeking more autonomy and divergence of goals. This study

also mentioned that the causes of conflict are occasionally related to relationship related

interactions like uncooperativeness or opportunity seeking behaviours.

Finally, much research emphasised the role of communication as the cause of

interpersonal conflict. Pondy(1967) argued that weak communication or low knowledge of

others, which causes more interpersonal clashes, is another important cause of conflict. A

comprehensive analysis by (Lewicki, et al., 2007) reviewed negotiation and conflict

management theories and identified that relationship conflict in cross-cultural

communications is prevalent because people have more problems in understanding each

other’s cultural values. Another study by Dawes and Massey (2005), examining 716

companies in the UK and 325 companies in Australia, indicated that communication

behaviours have a direct effect on perceived conflict among individuals. This research

(Dawes & Massey, 2005) showed that bi-directionality of communication has a negative

effect and frequency of communication has a positive effect on perceived interpersonal

conflict. Deutsch (1990), by reviewing 60 years of conflict and communication studies,

identified that parties feel more cooperative when their communication with the other party

seems to be more satisfactory for them. In this case, the exchange of information between

parties is normally smooth and the possibility of interpersonal conflict is reduced. Deutsch

(1990) believed that lack of communication or a misleading communication ends in a

competitive process, which causes interpersonal conflicts. In this situation, exchange of

information is not done properly and the parties do not feel that they are in an environment of

trust and friendship.

When employees in a workplace have daily interactions, conflict occurrence and

miscommunications are inevitable; in cross-cultural contexts, the situation becomes more

problematic. Even when goals are shared, co-workers with different ethnicities may find their

communications very frustrating. Different behaviours, values and gestures may cause simple

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misunderstandings that are not work related but affect their interpersonal relationships. When

it comes to cross-cultural communication, it is very important for individuals to display a

flexible range of behaviours to develop intercultural relationships (Gudykunst, 1988) and to

be able to adapt themselves to new situations (Bhaskar-Shrinivas, Harrison, Shaffer, & Luk,

2005). For example, a case study shows Americans doing business in Japan, exchanging

business cards in order to adapt to the cultural norm, will be better accepted by Japanese

businessmen than those who ignore this cultural expectation (Brislin, Worthley, & Macnab,

2006). Individuals need to have some knowledge and to show the proper behaviour in order

to avoid conflict. When individuals’ behaviours are not rigid, they seem less aggressive to

others and adapt easily to the new cultural context (Brislin, et al., 2006).

The lack of knowledge and motivation to interact in culturally unfamiliar situations and

the problems that result from clashing behaviours make intercultural communications less

likely to be satisfactory and raise the potential for more relationship conflict. The first

questions that come to mind are how individuals can overcome such obstacles in very

culturally diverse situations; what characteristics might best predict intercultural

communication satisfaction; and how intense is the perceived relationship conflict in a

multicultural environment. In addition, how can individuals overcome the conflict situations?

In the next section, the literature on interpersonal communication, as one of the main causes

of interpersonal conflict will be discussed.

2.5 Interpersonal Communication and Interpersonal Conflict

Cross-cultural communication is a major part of today’s business. Ineffective

communication can cause misunderstanding between parties, which can lead to frustration

and long term dysfunctional relations. Some psychological pressures like project deadlines do

not give colleagues enough time to build a good relationship (Jarvenpaa & Leidner, 1999).

Orlikowski and Yates (2002), by reviewing several years of research in organizations social

practices, emphasise the role of time in shaping social relations. Fast delivery of goods or

services, as is required in today’s business, makes networking and relationship making much

harder (Orlikowski & Yates, 2002). Employees do not have enough time to get to know each

other, so communications are not satisfactory.

On the other hand, it is not just time or project constraints that make relationship

building and communication harder. When parties from different cultural backgrounds have

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daily interactions, their differences in the perception of norms, power distance, gestures and

facial expressions can change a simple conversation to an international debate. In one study,

Adair (2003)surveyed 93 people from Israel, Sweden, USA and Germany (individuals from

low context culture) and 101 people from Japan, Hong Kong, Thailand and Russia

(individuals from high context culture) and demonstrated that culture has a major effect on

the way individuals communicate. For example, in low context cultures (Western) people use

exact words to pass messages directly but in high context cultures (Eastern) people use

indirect phrases to show their intentions. Therefore, the information exchange is also very

different between various cultures and this directly affects interpersonal communication.

Therefore, in a cross-cultural situation, the differences in behaviours, norms, exchange

of information methods and lack of time, make communication harder. Section 2.4 stated that

one of the major causes of conflict is misdirected communication. Wall and Callister(1995)

stated that the relationship between communication and interpersonal conflict is double-

edged because conflict changes the amount and quality of interpersonal communications as

well. A qualitative longitudinal research project on 132 students on interpersonal conflict

showed that individuals’ behaviour in interpersonal conflict directly effects their

communication(Canary, Cupach, & Serpe, 2001). Canary et al. (2001, p.79) stated,

‘[c]onflicts are expressed, recognized and managed through communications’. This research

also showed that in conflicting situations individuals feel less satisfied from their

interpersonal communications.

Communication satisfaction plays an important role in psychological wellbeing(Hecht,

1978a). Interpersonal communication satisfaction is associated with enjoying the

conversation and believing that it flowed smoothly. According to Honeycutt and McCann

(2008), communication is satisfying when it is effective and appropriate. Hecht (1978b) was

one of the pioneers of developing quantitative methods to measure interpersonal

communication satisfaction. He developed this construct based on his experiments on 1000

undergraduate students, in terms of how these students felt about their communications after

it was over.

The communication satisfaction measure, developed by Hecht (1978b), has been used

widely. The empirical study of Johnston, Reed and Onken(2007) found a positive relation

between communication satisfaction and financial performance. This research was a cross-

sectional study, which was conducted among 104 volunteers in a private business college in

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the southern United States. Other research (Honeycutt & McCann, 2008)examined 201

American, 150 Thai and 133 Japanese college students, to try to find a relationship between

cultural variances and interpersonal communication satisfaction. This research also observed

a negative relation between the existence of conflict and interpersonal communication

satisfaction in American students. Although their research is very comprehensive, the main

weakness is that conflict was studied as a general construct. It is not clear in this study

whether it is task or relationship conflict. Hecht’s (1978b) questionnaire has been tested in

different studies to check its validity and reliability. Lin et al. (2004) performed research on

69 nursing and medical student participants in order to find the effect of assertiveness training

programs on the participants’ interpersonal communication satisfaction. This thesis adopts

Hecht’s instrument for measuring interpersonal communication satisfaction. Further details

about measurement can be found in Chapter 3.

In this thesis, interpersonal conflicts (task versus relationship) and communication

satisfaction are treated as dependent variables in the study. This thesis will examine

predictors to these dependent variables. These predictors are cultural intelligence and cultural

diversity.

2.6 Workplace Diversity and Conflict

Research findings show that individuals are attracted to similar co-workers (Earley &

Ang, 2003), and trust and support these similar others. New members need to be aware of the

cultural norms and compare their own behaviours with the group behaviour; they need to

change in order to be an acceptable in-group member (Earley & Ang, 2003). Having different

personal characteristics in mind, like race, religion, ethnicity, educational background and

different work experience, makes establishing new relationships much harder.

On the other hand, organizational groups have become more diverse from a

demographic point-of-view and this trend is continuing (Williams & O'Reilly, 1998).

Mergers, acquisitions and joint ventures are some of the reasons for this increasing diversity

in workgroups (Knippenberg & Schippers, 2007). Workplace diversity can generate creativity

among organizational members, yet diversity can also create relationship conflicts among

team members (Jehn, et al., 1999).This thesis aims to examine the relationship between

diversity and level of conflicts and communication satisfaction among individuals in

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organizations. The next section will review the literature in the area of diversity and discuss

how workplace diversity may influence levels of conflict.

Diversity is associated with the group’s heterogeneity regarding differences between

individuals in any attribute. Diversity can also be any possible perception of differences

between individuals. Studies by Messick and Mackie (1989) showed that, one of the first

characteristics that individuals consider for categorizing themselves into different groups, is

their ethnicity and race. Pelled(1996) suggested that when demographic attributes are the

cause of dissimilarities between group members, the group members start the process of

categorizing themselves into distinct social subgroups. In this case, all individuals prefer to

evaluate their subgroup member more positively than do others. All sub group members start

to perceive themselves superior to others because of their sub group characteristics and feel

more hostile toward other subgroups and gradually feel anxious.

2.6.1 Different Categories of Workplace Diversity

By reviewing the diversity literature, the three most heavily cited studies on

categorizing diversity were found. Table 2.2 shows how the different definitions and

categories of diversity are related to each other:

Table 2.2 Different categories of diversity

Authors (Knippenberg & Schippers, 2007) (Harrison, Price, & Bell, 1998;

Tyran & Gibson, 2008) (Jehn, et al., 1999)

Category 1 Social Surface level Social

Category 2 Information/ Decision Making Deep level Informational

Category 3 Information/ Decision Making Deep level Value

The first set of research by Knippenberg and Schippers(2007), considers some specific

categories for different types of diversity. These categories are:

Social categorization:

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This relates to the differences between co-workers or group members that make them

similar or dissimilar within their group, like race, gender, religion, etc. In addition, this

categorization can make the group members to feel in-group or out-group or divide

themselves into some distinguishable sub groups.

Information/decision-making categorization:

This type of categorization happens when the differences are about the knowledge,

values, goals, expertise, etc.

The second set of literature about diversity divides diversity into two subgroups of

surface level diversity and deep level diversity(Harrison, et al., 1998; Tyran & Gibson, 2008).

Surface level diversity:

Surface level diversity relates to the differences that are easy to detect like age, gender,

ethnicity and race.

Deep level diversity:

Deep level diversity regards the differences that are not immediately apparent, like the

differences in values, goals, missions, attitudes and personality.

The third set of literature was proposed by Jehn et al. (1999). Jehn et al. (1999), by

reviewing the literature on diversity, argue that using the following categories would provide

a better understanding of different types of diversity:

Social category diversity:

Social category diversity refers to any characteristic that divides individuals into

different social groups, as race, gender, and ethnicity.

Informational diversity:

This type of diversity refers to differences in knowledge, educational background,

training, and work experience.

Value diversity:

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Value diversity refers to differences in what individuals think the real task, goal, target,

or mission should be.

Table 2.2 shows the overlaps of the different sets of diversity categorizations. As can be

seen in Table 2.2, social category (Jehn, et al., 1999; Knippenberg & Schippers, 2007) is the

same as surface level category (Harrison, et al., 1998; Tyran & Gibson, 2008). Also,

informational and value diversity (Jehn, et al., 1999) both fall within the deep level (Harrison,

et al., 1998; Tyran & Gibson, 2008) and information/decision-making category (Knippenberg

& Schippers, 2007).

2.6.2 Cultural Diversity

The focus of this thesis is on cultural differences between individuals. Betancourt and

Lopez (1993) stated that the concepts of culture, race, nationality and ethnicity have often

been used interchangeably. Betancourt and Lopez also mentioned that ‘[e]thnicity is used in

reference to groups that are characterized in terms of a common nationality, culture, or

language’ (Betancourt & Lopez, 1993, p.631). This thesis uses the same definition for the

interchangeable concept of ethnicity or culture. Therefore, individuals’ culture is referred to

as their nationality.

Previous research defined surface level diversity as the degree to which a unit is

heterogeneous, based on characteristics such as age, gender, ethnicity, functional background,

and organizational tenure(Harrison, Price, Gavin, & Florey, 2002; Milliken & Martins, 1996;

Mohammed & Angell, 2004; Pelled, 1996; Tsui, et al., 1992; Williams & O'Reilly, 1998).

Ethnicity, in all research, stands for individuals’ nationality, which is a subset of surface level

diversity(Harrison, et al., 2002; Milliken & Martins, 1996; Mohammed & Angell, 2004;

Pelled, 1996; Tsui, et al., 1992; Williams & O'Reilly, 1998).

This thesis uses the Cox’s definition (1994) for cultural diversity. Therefore, cultural

diversity means ‘[t]he representation of people with distinctly different group affiliations of

cultural significance’ (Cox, 1994, p.4). This categorization is only to emphasise that the

characteristic of nationality will be used to measure group diversity. Therefore, the focus of

this thesis will be only on social category diversity or surface level diversity (category 1 in

Table 2.3). According to the previous research, because culture does not fall within categories

2 and 3 in Table 2.3, these two last categories (informational and value diversity) will not be

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further discussed(Harrison, et al., 2002; Milliken & Martins, 1996; Mohammed & Angell,

2004; Pelled, 1996; Tsui, et al., 1992; Williams & O'Reilly, 1998).

2.6.3 Measuring Diversity

In order to measure the social category diversity (or cultural diversity as a subset of

social diversity), most authors have an objective view and use the entropy based index

(Teachman, 1980) or the coefficient of variation (Allison, 1987).

In this kind of measurement, the team diversity measure is based on Blau’s(1977)

definition of heterogeneity. This measure calculates the overall degree of variety between

team members across demographic variables that directly influence diversity. Blau(1977)

argued that for any characteristic, such as ethnicity, race, gender, religion or language, ‘the

larger the number of groups and the more evenly distributed the population is divided among

them, the greater is heterogeneity’ (p. 9). The heterogeneity definition of diversity is based on

the level of variety in any social group. This approach says that the attributes being studied

are the primary criteria for social divisions and that each attribute contributes to team

heterogeneity completely equally. Other studies like the research on demographic studies

(Harrison & Klein, 2007; Tsui, et al., 1992) and cross-cultural studies like Thomas

(1999)show very strong empirical support for this approach to measuring a group’s social

category diversity. The measure is the statistical formula below:

D = 1 - Σ p2

i(for i = 1 to N)

Where:

p = proportion of individuals or objects in a category

N = number of categories.

A completely homogeneous group will have a diversity index of zero. An example is a

group of Chinese employees in China with no other group member from any other country or

a different culture. A perfectly heterogeneous group will have a diversity index of one. An

example is a group of co-workers in Australia where none of these group members is from

the same country or culture. for example five accountants that have the following

nationalities: Australian, Chinese, Iranian, German, and South American. As an example, we

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can imagine that in a company, 85 per cent of a workgroup are Australians and 15 per cent

are Chinese. Therefore, the index of diversity would be:

1- (0.85^2) + (0.15^2) =0.255

If this index for another workgroup is 0.764, we can conclude that the level of diversity

in the first group is relatively much lower, in comparison to the level of diversity in the

second group. So this index can only be used to compare different social or workgroups and

the index itself has no specific meaning.

2.6.4 Perceived Diversity vs. Objective Diversity

The method to measure diversity was explained in the previous section. When

researchers study a sample and identify the different characteristics of individuals in the

sample, they are able to measure the level of diversity based on their own observation or

measurement. This type of measurement of diversity is called objective measurement.

Objective measurement is totally based on the researcher’s view of different categories of

diversity.

Research on 129 Australian public service employees showed that the objective

measurement of what individuals in a group perceive as diversity might not be the same as

what the researcher categorizes as diversity (Hobman, Bordia, & Gallois, 2003).For example,

one researcher may categorize some employees in a group based on their age and gender.

This researcher may think that social group integration in this sample may be based on age

and gender while real social integration in this sample may be based on the individuals’

preferred sport team, their preferred meal or so on.

Culture plays a significant role in in-group composition. Harrison et al. (2002) did a

survey between 144 student teams. Each group had between two to nine MBA students and

graduates. The results of Harrison et al.’s(2002) research showed that there was a relation

between the actual social category diversity and the perceived social category diversity, but it

was not exactly the same. This means that students preferred to join groups in which the

group members, in their perception, were like them from a culture and ethnicity point of

view. Therefore, individuals’ perception of diversity plays a big role in social integration.

Harrison et al. (2002) mention that the trend of studies on the effects of diversity is

changing from actual differences to perceived differences. For example, in a group with a

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very high level of cultural diversity in which the nationalities of individuals are Chinese,

Taiwanese, English, Australian, French, German, Japanese and American, it is not correct to

say that exactly eight social groups in the sample are formed. This is because the Taiwanese

and Chinese may feel more connected and the Germans and French people may feel more

connected, too. This integration may work in reverse as well. Individuals from the north of a

country may not feel very connected to their own fellow citizens of southern parts. Some

authors, like Acar(2010), demonstrated that during the process of social categorizing,

individuals would prefer to join those colleagues who seem to be in their same social

category. This is because individuals feel that they may face less conflict with others group

members because social category diversity is perceived as a very simple source of

relationship conflict. Acar(2010), by doing empirical research among 301 individuals from

81 workgroups, indicated that while the important driver of relationship conflict is an

individual’s social category diversity, it is their perception of diversity that counts, rather than

objective measure of diversity. Acar(2010) also suggested that, in evaluating the effect of

diversity, it is important to specify the perceived diversity between group members rather that

the objective measurement of diversity.

As has been mentioned in the previous paragraphs, because the trend of studies around

diversity is changing from measuring objective diversity to perceived diversity, this thesis

will measure diversity by the perception of the respondents. Perceived surface-level diversity

will be adopted from Harrison et al. (1998), Harrison et al. (2002) and Acar(2010).

Participants will rate, on a five-point scale, how their other co-workers are ‘very similar,’ 1,

to ‘very different,’ 5, in nationality. This question will clearly describe that the survey looks

at nationality to categorize individuals to prevent any misunderstanding. Therefore, an

individual member’s perceptions of surface-level diversity will be captured. In light of this, a

subjective approach to cultural diversity for this thesis is considered appropriate.

2.7 Impact of Workplace Diversity: Previous Research

The trend of globalization and movement of the workforce has led to more

demographic diversity in organizations. One study demonstrated that when group members

feel more similar to others they perceive less interpersonal conflict in their

workplace(Chatman, Polzer, Barsade, & Neale, 1998). The high rate of failure of expatriates

working in other countries has prompted many researchers to investigate the reason for this

failure. The failure rate of expatriates working in other countries was reported at over 40 per

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cent in the 1990s. These failures were reported to be very costly to the organizations (Forster,

1997; Johnson, et al., 2006). The costs included not only the cost of replacement of the

unsuccessful expatriate, but also the cost of the lost opportunities, the damaged relationship,

and the need for training and reduced productivity. The experience of interacting

unsuccessfully with co-workers from other countries is not just limited to expatriates.

Johnson et al. (2006) stated that it is not just expatriates that may face negative experiences

choosing a foreign partner; managing a merger, acquisition or joint venture and also

immigrating to other countries can be disappointing simply due to not knowing the local

socio-cultural environment.

Previous research shows that diversity can cause positive and negative organizational

outcomes. O'Reilly(1989) examined 20 workgroups and concluded that diversity in groups

correlates with levels of group social interactions and higher individual turnover, which is

very costly to organizations. The research of Murnighan and Conlon (1991), which was

conducted by interviews with 20 British string quartet professionals, showed that social

category diversity (only sex and age), has a negative effect on individual performance.

Another study (Jackson et al., 1991) on group diversity among 93 top management teams in

bank holding companies was performed for more than four years. The results showed that

group diversity (measuring age, tenure, education level, curriculum, military service, and

career experiences, which include both surface and deep level diversity), strongly predicts a

group’s turnover rates. Research on 47 teams in computer, photographic, and analytic

instrumentation industries in five high-technology companies showed that value diversity

increases team technical innovation (Ancona & Caldwell, 1992).Other research on 135

undergraduate and graduate students showed that ideas of culturally heterogeneous groups

are more feasible and more effective than the ideas of culturally homogenous groups; but

culturally homogeneous groups have better interpersonal relationships (McLeod, Lobel, &

Cox, 1996). The research of Harrison et al. (2002) among 144 students in different working

teams showed that perceived diversity has a big impact on social group integration. People

prefer to join those groups that are more similar to them. This research also showed that

social group integration influences group performance.

Williams and O'Reilly (1998) suggested that to get the most benefit out of a diverse

group, members need to resolve their conflicting differences. Therefore, human resource

management needs to know how to manage the negative and positive outcomes of

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demographic diversity. In culturally homogeneous groups, individuals prefer to communicate

with each other more and in different ways to share worldviews and perceptions (Earley &

Mosakowski, 2000). Although all these studies are valuable, they do not discuss the solution

to avoiding negative organizational outcomes, and they do not show individuals how to

navigate better in a diverse workplace.

2.7.1 Diversity Causes Communication Difficulties

Previous research showed the differences in the communication preferences of

individualistic and collectivistic cultures (Alexander, et al., 1995; Barker & Gower, 2010;

Chatman, et al., 1998). For example, research by Chatman et al. (1998) among 258 MBA

students showed that in individualistic cultures people have fewer face-to-face interactions

and prefer written communication in comparison to collectivistic cultures. Recent research by

Barker and Gower (2010) showed that not only do communication norms (verbal and non-

verbal) differ in collectivistic and individualistic cultures, but also these norms differ among

individuals with different backgrounds and experiences.

On one hand, the social context affects intergroup relationships which are the focus of

social identity theory(Hornsey, 2008). According to social identity theory, intergroup

relationships are based on cognitive, motivational and socio-historical considerations

(Hornsey, 2008). Tajfel et al (1971), through some experimental studies, argue that

interpersonal interactions show a range from being interpersonal to intergroup which shows

how people see themselves and group members (Tajfel & Billig, 1974). Individuals

categorize themselves into groups, based on their perceived similarities and differences.

Culture is one of first differences that individuals realize in a diverse group (Alexander, et al.,

1995). Therefore, the question is why individuals prefer one group and not other groups.

Tajfel and Turner (1979) argue that individuals have the desire for a positive self-concept. If

individuals believe that other group members have the same positive self-concept, they mark

that group as a good group.

Turner et al. (1987) moved beyond the intergroup behaviours of social identity theory

and studied intra-group process. The authors (Turner, et al., 1987) return to the categorization

process and instead of looking at interpersonal-intergroup range, nominate three levels of

self-categorization which are important to self-concept. These categorizations are:

- Human identity: superordinated category of the self as human being;

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- Social identity: the intermediate level of the self as a member of a social in-group as

defined against other groups of humans;

- Personal identity: the subordinate level of personal self-categorizations based on

interpersonal comparisons.

This theory was called social categorization theory. According to this theory,

categorizations are based on real world differences. Therefore, when a category becomes

important, people do not see themselves as individuals but as a group member (Turner, et al.,

1987). Both these theories indicate our understanding of communication (Hogg & Reid,

2006). Hogg and Reid (2006) argue that it is not just the self-concept that generates the sense

of belonging to a group but the norms and behaviours that shape the group prototype. The

authors (Hogg & Reid, 2006) argue that verbal or non-verbal communications among group

members contextualizes the norms. Therefore, fluent communication could help group

members to exchange group norms and behaviours and to feel attached to the group.

First, group members need to be able to communicate well to exchange the group

norms and to feel connected to other group members (Hogg & Reid, 2006). Second,

individuals understand their similarities and difference and will join those groups that they

feel are more similar to them (Tajfel & Billig, 1974; Tajfel, et al., 1971; Tajfel & Turner,

1979). Therefore, if the level of diversity in a group increases there would be several

subgroups within the main group based on the perceived similarities. As a result, it is

expected that communication within each subgroup would be much easier than

communication among different subgroup members.

On the other hand, research showed that social category diversity reduces interpersonal

liking, psychological commitment and interpersonal communication (Tsui, et al., 1992; Tsui

& O'Reilly, 1989). Research among 19 engineering groups (N=92) in the United States

showed that surface level diversity among engineers led to less frequent technical

communication with other project team members (Zenger & Lawrence, 1989). Therefore, it is

hypothesized that:

Hypothesis 1a: Cultural diversity negatively influences the perception of

communication satisfaction between co-workers.

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Other research among 2038 among individuals in 13 states showed that surface level

diversity (social category diversity) decreased the frequency of interpersonal communication

among group members (Hoffman, 1985). One study, among 398 US nurses in community

hospitals, demonstrated that the existence of subcultures in a workgroup can easily block

interpersonal interactions and an individual’s communications (Alexander, et al., 1995). Cox

(1994) also stated that individuals from different cultural backgrounds have different

communication styles; these different communication styles lead to less effective

communication process. Quantitative research among 200 undergraduate students in the

United States showed that culturally heterogeneous groups have less effective communication

processes than culturally homogeneous groups (Oetzel, 2001).

It is expected that, in cross-cultural contexts, interpersonal communication will not be

as easy as communicating in culturally homogeneous groups.

2.7.2 Diversity Is a Source of Workplace Conflict

The trend of growth in international corporations and the immigration of the workforce

all over the world calls for more studies on diversity in workplaces. Cultural diversity creates

barriers to effective social interactions (Blau, 1977). These barriers occur when group

members are confused by different categories of cultures around them or in-group or out-

group identities (Alexander, et al., 1995). The existence of many race related incidents in

workplaces prompted the National Institute Against Prejudice and Violence in the US to state

that ‘[t]he workplace probably is going to be the major site of ethno-violent conflict

throughout the 1990s’ (Solomon, 1992).

Realistic group conflict theory indicates that aggression and hostility are a result of

competing over limited or symbolic resources (Campbell, 1965). Campbell (1965)asserted

that all dysfunctional results of interpersonal conflicts can be explained by realistic group

conflict theory. According to this theory when employees are competing over a symbolic

resource, like a position, their racial differences affect their in-group and out-group values.

Therefore, this competition results in dysfunctional organizational outcomes and problematic

interpersonal communication (Brief, et al., 2005). As mentioned in section 2.7.1, according to

social integration theory, individuals understand their similarities and differences in the group

integration process (Tajfel & Billig, 1974; Tajfel, et al., 1971; Tajfel & Turner, 1979).

Surface level diversities and especially culture is one of first differences that individuals

realize in a diverse group (Alexander, et al., 1995; Pelled, et al., 1999; Tyran & Gibson,

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2008). Therefore, the realization of diversity in a department could lead to formation of

several sub-groups. Social identity theory (Tajfel & Turner, 1979) was also proposed to be a

complementary to realistic group conflict theory, in order to highlight the importance of

group identification. Research (Hogg & Reid, 2006; Tajfel & Billig, 1974; Tajfel & Turner,

1979; Turner, et al., 1987) supports that in-group identification is almost a great cause of

interpersonal conflict. Therefore, it is suggested that ethnicity as a group identification

mechanism can be a source of interpersonal conflict.

Pelled(1996) suggested that when demographic differences are more visible, group

members usually perceive more relationship conflict. Previous research showed that the level

of cooperation increases among culturally homogenous groups and emotional conflict

decreases (Williams & O'Reilly, 1998). The research of Jehn et al. (1999), among 545

employees in goods moving companies, showed that social category diversity (sex, age, and

ethnicity) increases the perception of relationship conflict in workgroups. One study (Earley

& Mosakowski, 2000) examined five multinational teams from an international company, by

direct observations of their team meetings and open-ended and structured interviews with

team personnel. They also gathered information from the company’s demographic database.

The research of Earley and Mosakowski(2000) showed that the number and size of multiple

subcultures (degree of cultural diversity) in a workgroup affects the potential chance of

relationship conflict among group members. This research showed that diverse groups

perceive more relationship conflict and have deeper communication problems within their

workgroup. These negative outcomes can also result in low performance for an organization.

Pelled et al. (1999) studied 45 teams from three different leading companies in the electronics

industry and demonstrated that, while cultural diversity increases the perception of

relationship conflict, value diversity increases the perception of task conflict, which increases

task performance. The research on 45 teams of students (Mohammed & Angell, 2004)

showed that social category diversity has a large impact on perceptions of relationship

conflict. Another study (Brief, et al., 2005) on undergraduate students in the US showed the

negative relationship between social category diversity and the reported quality of work

relationships, which causes relationship conflict. Other research on 76 culturally diverse

chemistry research groups at 24 universities in the Midwestern United States identifies that

more culturally diverse groups perceive more relationship conflict (Vodosek, 2007). In this

research, the diversity measure was the horizontal and vertical individualism and collectivism

as a cultural dimension.

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The research of Jehn et al. (1999) among 545 employees showed that differences in

educational background (major, level of education) lead to task conflict. Other research also

showed that in many cases, educational differences can cause task conflict and consequently

disagreements among co-workers (Jehn, 1994). Chuang et al. (2004) reviewed several years

of literature on conflict and diversity and presented a conceptual analysis, that demonstrated

that value diversity is negatively related to the perception of task and relationship conflict and

cultural diversity negatively correlates with the perception of relationship conflict.

While some research shows a positive correlation between task and relationship conflict

(Friedman, et al., 2000; Jehn, 1995), it is expected that in a culturally diverse setting

relationship conflict is more problematic. As explained in section2.6.1, there are three types

of diversity: information (individual differences are about knowledge, educational

background, training, and work experience), value (individual differences are about goal,

target, or mission) and social category (individual differences are about social characteristics

like race, gender, and ethnicity). Both information and value diversity are deep level

diversities. Social category diversity is a surface level diversity (see Table 2.2 for different

types of diversity). Table 2.3 shows the relationship between categories of diversity and

different types of perception of conflict in the mentioned studies.

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Table 2.3The relationship between Diversity and Conflict

Study

Diversity Type Conflict Type

Information/Value Social Category Relationship Task

Deep Level Surface Level

Williams and O'Reilly (1998) X X

Jehn (1994) X X

Pelled (1996) X X

Pelled et al. (1999) X X

Jehn et al. (1999) X X

Jehn et al. (1999) X X

Earley and Mosakowski (2000) X X

Mohammed and Angell (2004) X X

Chuang et al. (2004) X X X

Chuang et al. (2004) X X

Brief et al. (2005) X X

Vodosek (2007) X X

Acar (2010) X X

Table 2.3 clearly shows the different studies from 1998 to 2010. In all of this research,

social category diversity (and especially cultural diversity) has a great influence on

perception of relationship conflict only. Social category diversity directly influences the

perception of task conflict in none of the above-mentioned studies. In addition, it can be seen

that value and information category diversity only influences the perception of task conflict.

By reviewing all the studies of diversity and conflict, it can be concluded that cultural

diversity has a positive relation with perceived relationship conflict between co-workers and

does not affect task conflict. Therefore, the next two hypotheses are:

Hypothesis 1b: Cultural diversity does not influence perception of task conflict.

Hypothesis 1c: Cultural diversity positively influences perception of relationship

conflict.

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2.8 Cross Cultural Competency

People in different countries behave differently and have different values and norms

(Hofstede, 1980). Mergers, acquisitions, and cross national business calls for more attention

to cultural differences and the effect of these differences on business effectiveness. We need

to understand why some people have difficulties adjusting to new cultural contexts.

Individuals in multicultural contexts need to adapt to new multicultural settings. This

adaptation requires skills and capabilities quite different from those used by a person within

his or her own cultural context (Earley & Ang, 2003).

There are benefits of cultural adaptation while interacting in culturally diverse work places

(Earley & Ang, 2003). Adaptation can help individuals to avoid the negative consequences of

interactions in unfamiliar environments. It can also increase the possibility of fitting in a

group, being accepted, being respected, being trusted and creating positive interpersonal

communication. Therefore, there should be some abilities that some of us have, which help us

to be better colleagues in different assignments. Research showed bilingual individuals have

a stronger ability to ignore distractions and are able to solve problems faster than

monolinguals when dealing with their daily issues (Costa, et al., 2009). This research

concluded that knowledge could be an effective instrument for better adoption. Other

research (Erez & Earley, 1993) shows without sufficient efficacy, a person will not engage in

their environment and may fail to adapt to the new context. Overall, this research shows that

individuals working in diverse workgroups need to have basic information about the norms

and values of other cultures; to be able to understand and criticize those norms and values; to

have the motivation to navigate effectively in different situations; and, to be able to adapt to

the new cultural values. Therefore, successful individuals in multicultural contexts have a

specific characteristic that helps them to navigate more successfully. This characteristic will

be explored in the next section.

2.8.1 Intelligence

Sternberg (1985) argued that individuals need a specific capability to navigate in cross-

cultural contexts and that this capability is a type of intelligence that helps individuals to

understand, communicate, control their emotions and learn in different groups. Sternberg’s

study (1997)showed many differences in the definition of intelligence in different cultures.

For example, the traditional Western definition is the speed of mental processing. The

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Confucian perspective defines intelligence as the ability of doing what is right(Sternberg &

Grigorenko, 2006). A Taiwanese-Chinese conception of intelligence is more based on general

cognitive and social competences (Sternberg & Grigorenko, 2006). In Africa, intelligence is

defined by having skills that help to maintain stable in intergroup relations. Therefore,

intelligence should not be studied outside its cultural context (Sternberg & Grigorenko,

2006). By reviewing the whole history of intelligence, Sternberg and Grigorenko(2006)

described intelligence itself as the general ability to adapt and adjust to the environment.

Sternberg (1985) defines human intelligence as ‘a mental activity directed toward purposive

adaptation to selection and shaping of real-world environments relevant to one’s life’ (p.45).

This means we are intelligent when we manage our acts by re-correction of our behaviours

with the help of the feedback that we receive from our environment. Sternberg (1985, 1997)

suggests three core dimensions of intelligence, required in international assignments, namely:

direction (knowing what is to be done), adaptation (monitoring a strategy for a given task),

and criticism (analysing one’s own approach).

It is very hard to describe one unique notion of intelligence that can describe the

different facets of intelligence that apply to human beings. Sternberg (1997) defined

successful intelligence as: ‘the ability to achieve what one seeks in life, within one’s socio

cultural context, through a combination of adapting to, shaping, and selecting environments,

by a mix of analytical, creative, and practical abilities’ (p. 5). This new term shows that

individuals in different cultural environments have to figure out how they can adapt, shape

and act successfully. This is why the common definition of intelligence is not a good

predictor of success in different situations and in all geographic or political areas.

Instead of the broad term of intelligence, more specific ideas intelligence have been

developed; for instance, intelligence quotient (known as IQ), emotional intelligence and

social intelligence(Sternberg, 2004; Sternberg & Grigorenko, 2004, 2006). These types of

intelligence are valuable, despite the differences in the nature of the abilities that the

intelligence type brings to individuals. The traditional definition of the Western intelligence

quotient (IQ) is not specific to culturally diverse situations, and does not include behavioural

or motivational aspects of intelligence.

Emotional intelligence (EQ) is the ability that helps individuals to manage their

personal emotions (Sternberg, 2004). EQ goes far beyond the general ability of mental

processing. It concentrates on the perception and management of emotions; however, EQ

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does not consider the cultural context. The weak point of the EQ construct is that being able

to encode and decode emotions in the home culture does not necessary help individuals to

understand a new and unfamiliar culture (Earley & Ang, 2003). As a result, an individual

with a high level of EQ in one cultural setting may not seem emotionally intelligent in other

cultural settings.

Social intelligence refers to the individual’s collection of knowledge about different

social groups that they may face (Sternberg &Grigorenko, 2004). Social intelligence involves

a set of abilities and skills that helps individuals to ‘get along with’ the people around them.

The important point is that we can easily argue that this type of intelligence always has some

taste of the context culture. Therefore, in a multicultural situation it may not be the best

solution. For example, empathy (the ability to read other people’s emotions) and social

deftness (knowing how to respond to other group member’s emotions in an appropriate

manner) are influenced by culture (Earley&Ang, 2003). We need a new definition that is not

based on a specific culture and refers to a general set of abilities with relevance to cultural

diversity. Both social intelligence and emotional intelligence requires individuals to have

cognition and correct behaviours, but these two definitions are limited by cultural

borders(Thomas, 2006). The behaviours should be a function of situation to be proper in a

multicultural environment. Therefore, there is a need for explaining a cross-cultural facet of

intelligence, which helps us to predict individual’s knowledge and professional behaviour for

navigating successfully in very culturally diverse business environments.

2.8.2 Cultural Intelligence - The Cultural Facet of Intelligence

As mentioned in the previous paragraphs, the required competency to function

successfully in a cross-cultural contexts is assumed to be a type of intelligence(Sternberg,

1985; Sternberg, 2004; Sternberg & Grigorenko, 2006). These studies are not the only ones.

In the next paragraph, other definitions of this capability will be defined.

Thomas et al. (2008)demonstrated that the capability of being effective in a

multicultural environment can be defined by good personal adjustment, developing

interpersonal relationships with co-workers, and completing task related goals. This research

mentioned that an effective individual should have self, relational and task effectiveness

outcomes, which is positively related to expatriate adjustment, task completion in a culturally

diverse group, effective decision-making in a multicultural setting and so many other

literatures. What all this literature says is that individuals need a capability to help them to

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maintain their goals, to communicate and exchange information easily and to be able to finish

their job related tasks effectively. This capability in general has had several names in

different studies. Table 2.4 shows the trend of these studies in different papers.

Table 2.4 Trend of cross-cultural needed ability

Published

Year

Definition Description Authors

1989 Cultural competence Personal attributes, knowledge

and skills

Cross et al.

1990 Effective cross-

cultural interactions

Skills, development, adjustment

and performance

Black and Mendenhall

1990 Cross-cultural

competence

Abilities Gertsen

1992 Global Competence Knowledge, skills and abilities Adler and

Bartholomew

1993 Intercultural

communications

Appropriation and effectiveness Redmond and Bunyi

1999 Cross Cultural

Competency

Knowledge and skill Leiba-O’Sullivan

2001 Intercultural

communication

Awareness, knowledge, skill and

personality

Hofstede

Sourced from Johnson et al. (2006)

Table 2.4 shows that different authors have used different names for the same principle.

For example, some research only emphasises personality, skills and knowledge (Adler &

Bartholomew, 1992; Cross, et al., 1989; Hofstede, 2001; Leiba-O'Sullivan, 1999). Other

authors, like Gertsen(1990), only talk about a general ability and do not go far beyond the

required skills. Only Black and Mendenhall (1990) and Redmond and Bunyi(1993) have

gone further and suggested that performing correctly and being effective is important in a

cross-cultural situation. Overall, it seems that successful individuals in a multicultural setting

need to have enough knowledge and skills to be aware of their environment and their co-

workers, adjust themselves to the new environment, function effectively and communicate

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easily. Despite the very slow changes in the required abilities for individuals in cross-cultural

situations, it seems that all authors have the same point of view, in that having some specific

knowledge and abilities and being effective is a type of intelligence or a competency.

It is important for individuals in a diverse workplace to have the knowledge and the

ability to perform correctly, as well as the positive motives to act properly in a multicultural

context (Earley & Ang, 2003). Therefore, there is a distinct link between being intelligent and

behaving intelligently. Earley and Ang (2003) developed the construct of cultural

intelligence. This social skill, cultural intelligence, is a multi-dimensional construct, which

was defined after observing the possible clashes of different individuals when they differ in

race, ethnicity and nationality. It is defined as ‘a form of situated intelligence where

intelligently adaptive behaviours are culturally bound to the values and beliefs of a given

society or culture’ (Earley&Ang, 2003, p.26).In other words, it is an individual’s capability to

function and manage effectively in culturally diverse settings. Ng and Earley(2006) also

mentioned that this ability is independent to culture. Therefore, individuals with higher

cultural intelligence can more easily navigate and understand unfamiliar cultures and they are

expected to be more successful while working in multicultural contexts. For example in

American culture, a middle manager uses the same voice tone and vocabulary to talk to the

CEO of the company and his subordinates, but in Japan the middle manager should be careful

about his tone while talking to the upper levels. Therefore, a Japanese person going to the US

or an American going to Japan for business should know these basic norms to avoid

misunderstandings. Brislin et al. (2006) suggested that it is hard to predict specific

behaviours, but with a general cognition about the new culture at least the behaviours can be

generalized and will lead to self-guidance.

This thesis adopts the concept of cultural intelligence and examines if this ability is an

effective tool for a culturally diverse setting. In the next section, the concept of cultural

intelligence will be introduced and hypotheses will be developed.

2.8.3 Two Concepts of Cultural Intelligence

As mentioned before, globalization in the workplace calls for finding the required

capability for individuals to adapt effectively to the new cultural context. This requirement

was the basis for Earley and Ang’s (2003)concept of cultural intelligence, which has been

extensively used in many studies (see section2.10). Based on Earley and Ang’s (2003) study,

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there are four major components to cultural intelligence, namely: cognitive, behavioural,

motivational and meta-cognitive (Figure 2.1).

Figure 2.1 The Cultural Intelligence Concept

��

��

��

��

Thomas (2006) also defined cultural intelligence as a capability for adaptation and

ultimately shaping the interaction context. Thomas (2006) suggested that, cultural

intelligence has three components of Knowledge, Mindfulness and Behaviour. First, this

knowledge includes the content knowledge (recognizing the existence of other cultures),

process knowledge (recognizing the similarities and differences between cultures), cognitive

influence (shaping a framework to understand the different sets of values and norms) and

motivational influence (building a positive self-image to be able to align one’s cultural values

to the context cultural values). Second, Thomas (2006) mentions that culturally intelligent

individuals need to be mindful of their own and others’ ideas, emotions and perceptions,

empathize and understand the situation. Third, Thomas (2006) defines the behavioural

dimension of cultural intelligence as the ability to generate proper behaviour in a diverse

setting.

All the three components that Thomas (2006) mentioned in his research (Knowledge,

Mindfulness and Behaviour) fall within the four dimensions (Meta-cognitive, Cognitive,

Behavioural, Motivational) conceptualized by Earley and Ang (2003). In addition, there is no

specific instrument for Thomas’ (2006) approach to measure an individual’s cultural

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intelligence level. The cultural intelligence concept, introduced by Earley and Ang (2003),

can be measured by a 20-item scale, which was introduced by Ang, van Dyne, Koh, and Ng

(2004). This study (Ang, et al., 2004) designed the four-factor scale structure of the construct

on a 7-point Likert scale. Because Earley and Ang’s (2003) concept has been used several

times in other research (section2.10), this thesis will adopt this concept.

2.9 Development of Cultural Intelligence Dimensions

From previous research it can be concluded that the first step for individuals is

achieving enough knowledge and skills to work effectively in a multicultural context(Adler &

Bartholomew, 1992; Cross, et al., 1989; Hofstede, 2001; Leiba-O'Sullivan, 1999). The

information processing, filtering the received information and using the knowledge of self

and the social environment is called the cognitive part of cultural intelligence (Earley & Ang,

2003).

2.9.1 Cognitive Cultural Intelligence/ Quotient (Cog-CQ):

The cognitive cultural intelligence quotient refers to a person’s cognitive ability to

understand expectations that are suitable in different cultural situations. It refers to cultural

knowledge about economic, legal, and social aspects of different cultures that can be gained

by education and experience. This dimension is the closest one to the traditional notion of

intelligence. It consists of knowledge of self, knowledge of social environment and

knowledge of information handling. In cultural intelligence, the emphasis is on the

interpersonal skills and the capabilities that are related to understanding an unfamiliar

environment. The first issue that we have to deal with is to understand how individuals

process social information and how they interact with others within their culture.

Earley and Ang (2003) have demonstrated that learning and gaining knowledge is not

enough, and individuals need to create new mental frameworks for them to understand the

new knowledge. This research mentioned that in the traditional model of social or cognitive

intelligence, individuals only use their existing frameworks, while people in multicultural

contexts need to update their framework by receiving new data.

It is very important to understand the differences between cultural norms and values.

For example, a young Middle Eastern engineer was employed in a construction company in

Australia. This young engineer used to stand up in front of the project manager of the

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company, whenever the project manager came to see the engineer. In the Middle East, it is

very rude to sit down when someone who is older comes to have a chat. However, the project

manager thought that the young engineer was not confident and was even afraid of him

because of the engineer's lack of knowledge or experience. Therefore, the project manager

asked the human resource manager to see if there was need for any technical training courses

for the engineer to improve the engineer's technical skills (researcher’s experience).

Therefore, people need to find their co-worker’s motives and go beyond the simple

interactions.

Earley and Ang (2003) go beyond the simple learning and processing of knowledge and

mention that being aware of a new context does not guarantee that the individual will be

flexible enough to play his role effectively. People need to reshape and adapt themselves to

new settings regularly. Individuals also need reasoning. This ability helps individuals to

understand a new context, without being limited by their experiences or concepts. This type

of capability is called meta-cognition(Ang, et al., 2007; Earley & Ang, 2003).

2.9.2 Meta-Cognitive Cultural Intelligence/ Quotient (Meta-CQ):

The meta-cognitive cultural intelligence quotient shows the mental processes that

people need to understand other cultures’ knowledge and thinking processes(Flavell, 1979). It

includes other capabilities like planning, monitoring and understanding the mental models

and cultural norms of other ethnicities. People with higher meta-cognitive cultural

intelligence are expected to be aware of others’ cultural preferences. This meta-cognition can

happen before, during interactions, or by simple communication. Higher meta-cognition can

be achieved by asking questions about cultural assumptions of the host culture and

consequently adjusting the mental models(Brislin, et al., 2006; Triandis, 2006).

On the other hand, any one in a multicultural setting needs to have a motive to respond

correctly to any new situation. Someone who has enough knowledge and cognition but

refuses to respond properly is considered incompatible (Ang, et al., 2007). This dimension is

defined as a proactive engagement to the new cultural situation.

2.9.3 Motivational Cultural Intelligence/ Quotient (Mot-CQ):

The motivational cultural intelligence quotient refers to an individual’s intrinsic ability

to learn and adapt to different cultural situations. It shows the ability to focus toward learning

and managing in culturally different situations. Individuals with higher levels of motivational

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cultural intelligence have deep interests in other cultures. They are also expected to be more

successful in culturally diverse environments (Earley & Ang, 2003).

The last dimension is the behavioural aspect of cultural intelligence. It has been

mentioned that having the knowledge about other cultures, understanding the mental process

of other co-workers, and having the motivation to play a proper role is crucial. The last

important dimension is action. The ability to behave correctly by the set of skills that one has

gained is the last part. Therefore, not only does a person in a diverse workplace need to learn

the ways that others behave, they also need to create a framework based on their cognition

and experience and use this framework to generate proper responses. An individual might

understand the situation but may prefer to ignore it or show an incompatible reaction.

Therefore, this person needs intention and proper behaviour as well.

2.9.4 Behaviouralcultural Intelligence/ Quotient (Beh-CQ):

The behavioural cultural intelligence quotient reflects the ability to utilize culturally

sensitive communication and behaviour when interacting with people from cultures different

from individual’s own culture. While communicating with people from different culture,

individuals with high levels of behavioural CQ represent their competency to show suitable

verbal and non-verbal reactions. Those with higher behavioural cultural intelligence are

expected to demonstrate better situational behaviours, based on their vast range of verbal and

nonverbal knowledge, such as using appropriate phrases, tone, gestures and facial

expressions. The four mentioned dimensions of CQ represent the appropriate competency for

effectively managing the interpersonal relationships in diverse cultural contexts(Earley &

Ang, 2003).

2.10 Impacts of Cultural Intelligence: Previous Research

Cultural Intelligence/Quotient (CQ) has various meanings depending on the different

situations in which it is being used. According to Brislin et al.’s (2006), research into cultural

intelligence has two directions. Firstly, one research direction using CQ examines individuals

when they are assigned to overseas jobs, normally known as expatriate assignments. In this

case, CQ is normally interpreted as an individual’s success or effectiveness in their assigned

tasks. Secondly, CQ studies are interpreted as behavioural aspects that help individuals to be

wise enough to understand and contribute properly toward a multicultural society (like

globalized corporate or companies in countries like Canada, USA, and Australia). Brislin et

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al. (2006)conclude that although these views may be somehow different, both these views

require cross-cultural adjustments.

When people are assigned to overseas experiences, they may feel stress and anxiety

because the environment is unfamiliar for them. Research shows that cultural intelligence

explains why some individuals are more effective than others in culturally diverse situations

(Ang, et al., 2007). In theory, individuals with higher CQ are expected to interact and

navigate better in a new cultural environment. They are also expected to be more successful

while working in other countries. It is suggested that individuals get more emotional and

informational support from the host people because they get along with the local people

easily (Kim, et al., 2006). This research argues that CQ influences expatriate adjustment and

performance. CQ can also help international students speak up in class in new unfamiliar

situations and assist in promoting good contributions with classmates and teachers.

Even though CQ is still a nascent construct, it has been used in several empirical

studies. These studies provide enough evidence for validity and construction of the

dimensions of cultural intelligence in different samples in several countries. Elenkov and

McMahan (2005) in their research in 237 companies in Switzerland (composed of French,

Italian and German staff), examined CQ to find out its effect on marketing innovation. This

research suggested that CQ is a highly reliable measure of intercultural capabilities in a

multicultural context. In other research (Elenkov & Manev, 2009)also tested the moderating

effect of CQ on the relationship between senior expatriates’ leadership on organizational

innovation. This research was done among 153 senior managers and 695 subordinates from

different companies in 27 countries of the European Union. This research also showed that

CQ is a very good predictor of cross-cultural competence.

To evaluate the relationship between personality and CQ, Ang et al. (2006)

surveyed1,465 business undergraduates in a Singapore university where 23.1 per cent of all

students were from foreign countries. The goal of this research was finding the relationship

between CQ dimensions and the Big Five personality dimensions (Ang, et al., 2006). The

results of this survey showed a significant relation between conscientiousness with meta-

cognitive CQ; agreeableness and emotional stability with behavioural CQ; extraversion with

cognitive, motivational and behavioural CQ; and openness with all four dimensions of CQ.

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Templer et al. (2006) reviewed 185 questionnaires through snowball sampling between

global professionals of different companies in Singapore in order to study the effect of

motivational CQ on cross-cultural adjustment. A positive correlation between motivational

CQ and cross-cultural adjustment was reported in their survey. By cross-cultural adjustment

they examined work adjustment (adaptation to new job tasks, responsibilities and the new

environment in the new cultural context), general adjustment (adaptation to living in the

foreign country), and interaction adjustment (ease of interacting with other cultural members

in work and non-work environment). Ang et al. (2007) surveyed on CQ in a sample of 1,360

students at different times and in different countries in order to cross-validate the

multidimensional CQ scale. In addition, this research (Ang, et al., 2007) examined 794

employees in educational settings in Singapore and United States in order to find the possible

effects of the dimensions of CQ on intercultural effectiveness outcomes. Intercultural

effectiveness outcomes were defined as cultural judgment, decision-making, cultural

adaptation and task performance in this study (Ang, et al., 2007). The results of their study

demonstrate that meta-cognitive and cognitive CQ are good predictors of cultural judgment

and decision-making; motivational and behavioural CQ affects cultural adaptation; and meta-

cognitive and behavioural CQ predicts task performance.

In order to examine the effect of CQ on negotiation outcomes, Imai and Gelfand(2010)

examined 124 American and East Asians in one study and 236 other participants (with

different ethnicities but all were US residents) in another study in United States. The results

show that individuals with higher CQ have higher motives to cooperative and can more easily

overcome the complications of intercultural negotiation contexts. These individuals adopt

integrative negotiation strategies and try more to understand the culturally unfamiliar

situations. This study shows that CQ is not only useful for expatriates but also helpful for

residents of the same country from different cultural backgrounds, because their culture is

affected by both their ethnicity and the host culture. Groves and Feyerherm(2011) examined

99 different organizations with multicultural settings. Ninety-nine leaders, one from each

company, and 321 numbers of their followers participated in the survey. The results

demonstrated that leaders’ CQ was a good predictor of the follower perceptions of the leaders

and teams performance.

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2.11 Critiques of Cultural Intelligence

Since 2003 when the theory of cultural intelligence was shaped, many studies have

taken different approaches to this construct. Thomas et al. (2008)reviewed several studies and

suggested that there should be some effective outcomes for the culturally intelligent

behaviours, such as good personal adjustment (feeling well while interacting in a culturally

different situation), development and maintenance of good interpersonal relationships with

culturally different others and the effective completion of task-related goals (individual

performance). Since CQ is a new concept, there is limited research that has criticized the

concept of cultural intelligence. Hampden-Turner and Trompenaars(2006) mentioned three of

the most common criticisms against CQ. According to Hampden-Turner and

Trompenaars(2006)these three objections are:

(a) Cultures are said to be entirely relative in their values, so holding one culture

to be more intelligent than another is discriminatory;

(b) Cultural studies are said to be a form of postmodernism, whereas to have one

central definition of culture is modernist—an imposition of our own dominant beliefs;

(c) Attempts to categorize cultures are said to be crude stereotypes lacking

subject. (Hampden-Turner and Trompenaars, 2006, p. 56,57)

Elenkov and Manev(2009) have criticised Hampden-Turner and Trompenaars’ (2006)

point of view. Hampden-Turner and Trompenaars(2006)stated that although cultures are

different and values are relative, at a macro level, cultures are synergic and convergent.

Elenkov and Manev(2009)criticised this perspective and argued that although cultures at

macro level are convergent, they still have many differences. These differences, in norms and

values, result in different behaviours, which is the cause of conflict and misleading

communications. CQ is not a cultural factor, or a common value. CQ is a capability for

understanding other cultures and coping with unfamiliar situations. Therefore, the criticisms

against CQ do not seem relevant and the literature of CQ needs to be studied more carefully.

Ang et al. (2007) examined the cross-validation of the CQ construct using the Ang et al.

(2004) designed four-factor scale of the construct. The research was done on 1,360 students

at different times and in different countries. The results showed that this scale is valid and

reliable. Although evidence for the predictive validity of CQ in organizational settings has

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been done (Ang, et al., 2007), it seems that there is no empirical research on the effect of CQ

on individuals’ perceived interpersonal conflict and interpersonal communication

satisfaction. This thesis will examine the relationship among CQ, conflict and communication

(see section��for hypotheses development).

2.12 Diversity and Cultural Intelligence

In section ��, CQ was identified as a required capability in a diverse cultural setting. In

a culturally diverse setting, we expect cultural intelligence to provide individuals with the

capability to overcome the psychological and behavioural challenges that affect their

interactions. Individuals with higher cultural intelligence focus on building more positive

relationships and avoiding conflict or any negative emotions (Earley & Ang, 2003). The

support for this argument has been examined in many empirical studies. For example,

individuals with higher cultural intelligence report greater interpersonal trust toward

culturally different others compared to individuals with lower cultural intelligence (Rockstuhl

& Ng, 2008). Furthermore, individuals with higher cultural intelligence also tend to be more

agreeable (Ang, et al., 2006; Kim, et al., 2006), where agreeable individuals are

conceptualized to deal with conflict cooperatively, strive for common understanding, and

maintain social affiliations (Digman, 1990). In addition, in sections 2.7.1and2.7.2 of this

research, it was concluded that cultural diversity causes interpersonal relationship conflict

and communication dissatisfaction but does not affect task conflict.

In culturally diverse workgroups, individuals with higher levels of cultural intelligence

are expected to build more positive relationships (Earley & Ang, 2003), and to show

themselves to be more agreeable, cooperative and understanding(Digman, 1990; Kim, et al.,

2006). Individuals with higher levels of cultural intelligence will be more satisfied with their

interpersonal communications because of their cooperative behaviours (Ang, et al., 2006).

Therefore, in such a context, it is anticipated that CQ will let individuals feel more satisfied

from their daily communications. The resulting hypothesis will be:

Hypothesis 2a: Cultural intelligence positively influences perception of communication

satisfaction between co-workers.

According to Schellenberg(1996), by categorizing interpersonal conflict through social

process theory, individuals with more cooperative behaviours encounter less interpersonal

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conflict. It is expected that in a culturally diverse setting, cultural intelligence can be an

effective capability to manage interpersonal relationship conflict because individuals with

higher levels of CQ show more cooperative behaviours (Digman, 1990; Kim, et al., 2006).

The argument is that, in highly diverse workgroups, individuals with higher levels of cultural

intelligence perceive less relationship conflict in comparison to those individuals with lower

level of cultural intelligence. Because the effect of cultural intelligence is on the individual’s

behaviour and motives to deal with others and not on the individual’s goals, it is expected

that CQ will have no effect on task conflict. In addition, it appears that no study has

examined the relation between cultural intelligence and perceived interpersonal conflict.

Therefore, the next two hypotheses will be:

Hypothesis 2b: Cultural intelligence does not influence perception of task conflict.

Hypothesis 2c: Cultural intelligence negatively influences perception of relationship

conflict.

As mentioned above, cultural intelligence is an effective capability for individuals to

reduce their perceived relationship conflict because CQ competency goes beyond the

nationalities. In more homogenous contexts, what individuals need is other types of

intelligence like EQ to manage their emotions and relationships with their co-workers (Jordan

& Troth, 2004). Rockstuhl et al. (2011) in their study of the Swiss military army mentions

that ‘past research has consistently found that CQ predicts outcomes in culturally different

settings but not in culturally homogeneous contexts where no cultural boundaries need to be

bridged’ (p. 7). Furthermore, Rockstuhl et al. (2011)found that CQ only predicted cross

border leadership effectiveness, not effectiveness in a homogenous context. In addition,

research on 231 followers and 99 leaders in 99 US organizations shows the relationship

between leader cultural intelligence and follower ratings of team and leader performance only

in teams with strong cultural diversity(Groves & Feyerherm, 2011).

The research of Ward, Fischer, Lam, and Hall (2009) failed to show the validity of CQ

as a predictor of socio-cultural adaption. The research was done on 346 international

students. The largest group was 38.6 per cent of the sample - a total of 134 students. The

research mentioned that 94per cent of these 134 students were Caucasian and the rest of them

(N=8) were African American, Asian American, or Mexican Americans. If we consider that

the remaining eight students are from different backgrounds, the level of diversity in this

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sample of 134 students in USA is 12 per cent, which is very low. Therefore, according to the

research of Groves and Feyerherm(2011), because of very low level of diversity in the

sample group the effect of CQ in any outcome will not be significant. Also, in the rest of the

sample of the research, 16 per cent were Malaysian (N=55), 15.4 per cent were Chinese

(N=53) and the rest (N=104) were form other 130 countries (Ward, et al., 2009). Not only has

the level of diversity in the research not been considered, but also the Malaysian and Chinese

sample (considering a certain level of diversity in China or Malaysia) is very small. So the

results of this research shows that, on one hand CQ has not failed to show incremental

validity, and on the other hand the level of diversity has to be considered in any research

about cultural intelligence.

Rockstuhl et al. (2011)showed that CQ can be associated with any organizational

outcome only when the level of cultural diversity is moderate to high. Therefore, it can be

hypothesised that:

Hypothesis 3a: The level of cultural diversity moderates the effects of cultural

intelligence on perception of communication satisfaction.

Overall, the argument is that CQ should only be associated with conflict (as an outcome

of individual’s interactions) in relatively moderate to high culturally diverse groups and

organizations. Research in cultural intelligence does not take the level of diversity into

account (besides Rockstuhl et al., (2011) and Groves and Feyerherm(2011)). The important

point is that in higher levels of diversity, high cultural intelligence can be an effective

capability but in relatively low levels of diversity, cultural intelligence cannot play such a

significant role. As we expect to see the effect of CQ and diversity only on relationship

conflict and not task conflict, the next two hypotheses are:

Hypothesis 3b: Due to the lack of relationship between cultural intelligence and task

conflict (H2c), there will be no moderating effect of cultural diversity on cultural

intelligence and task conflict.

Hypothesis 3c: The level of cultural diversity moderates the relationship between

cultural intelligence and relationship conflict.

Figure 2.2 shows the proposed model for this thesis. This model shows the expected

relationship between individual’s cultural intelligence and perceived relationship conflict and

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the relationship between individual’s cultural intelligence and perceived communication

satisfaction. In addition, the moderating effect of cultural diversity is also shown on the

mentioned relationships.

Figure 2.2The proposed model for the current thesis

Individual’s

Cultural

Intelligence

(CQ)

Outcomes:

•Communication Satisfaction

•Relationship Conflict

•Task Conflict

Cultural Diversity

2.13 Conclusion

First, this chapter reviewed the literature on interpersonal conflict. Different types and

levels of conflict and also conflict causes and outcomes were covered. Second, the literature

on interpersonal communication was reviewed. Third, cultural intelligence as a capability to

navigate successfully in multicultural contexts was introduced.

In the next section different categories of diversity were reviewed. It was suggested that

in a culturally diverse context, cultural intelligence would have a negative effect on

interpersonal relationship conflict and a positive effect on perceived communication

satisfaction.

By reviewing the effect of level of diversity on interpersonal conflict and

communication, the moderating effects of level of cultural diversity on the relationship

between cultural intelligence on its mentioned outcomes (relationship conflict, task conflict

and interpersonal communication satisfaction) was hypothesised.

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In the next chapter, the research methodology for examining the research hypothesis

will be introduced.

��

�

CHAPTER 3: METHOD

3.1 Introduction

The literature review and the research hypothesis were discussed in Chapter 2. As

mentioned, this research was conducted in order to determine whether cultural intelligence

could play a significant role in multicultural contexts. This chapter describes the

methodology adopted by this research to gain the objectives, which were described in

Chapter 2. The methodology for this study is obtained with regard to similar studies in the

area of research. Therefore, the study was conducted using quantitative design. This chapter

presents the descriptive and measurement component of the research. The dependent and

independent variables will be introduced. The quantitative method in this study used

questionnaires with validated and reliable measures to investigate the impact of cultural

intelligence on perceived interpersonal conflict and communication satisfaction while

controlling for some demographic variables like age, gender, level of education and

organizational size. The adopted steps to design the methodology chapter are justification of

the research paradigm, justification of research design, data collection, validity and reliability

and ethical considerations.

3.2 Research Paradigm and Justification

A paradigm provides a conceptual framework for social beliefs, values and techniques

(Kuhn, 1970). This means that the methods and techniques will be reflected in the paradigm.

Therefore, this section will explainthe proper selection of techniques and the research

method.

When a research paradigm principle is based on objectivity of the social sciences and

the correlation of facts is the basis of the research, the research paradigm is defined as

positivist(Schultz & Hatch, 1996). In addition, positivist paradigms focus on quantitative

methods. When questionnaires that measure the dependent and independent variables are

used for data collection, the paradigm is positivist(Philips & Burbules, 2000).The purpose of

this research is to investigate the effect of cultural intelligence on an individual’s perception

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of interpersonal conflict and communication satisfaction. All dimensions of cultural

intelligence will be examined to check their possible relationship with the dependent

variables by using quantitative questionnaire as the data collection method. Therefore, this

thesis employs a positivist paradigm to examine the phenomena.

The purpose of this research paradigm is to ensure that the causal relationship exists

between cultural intelligence and the dependent variables (interpersonal relationship conflict

and interpersonal communication satisfaction). Because it is clear what variables are being

measured and how the variables are measured, the most appropriate method of measurement

is quantitative (Tashakori & Teddlie, 2003).

As mentioned in Chapter 2, Earley and Ang(2003) developed the construct of cultural

intelligence. Cultural intelligence is a social skill, which is a multi-dimensional construct.

Overall, CQ is a competency, which helps individuals to function and manage successfully in

culturally diverse environments (Earley&Ang, 2003). Although this research field has been

started a few years ago, researchers still examine this construct to see its possible effects on

individuals’ capabilities and behavioural outcomes.

This research introduced the theoretical framework and previous empirical research.

The hypotheses and research questions were identified. The procedures and scales to collect

quantitative data were used and finally SPSS 19.0 was employed for analysis of data. The

steps taken in this research are based on a positivist paradigm, which is based on the

assumption that there are some causal relationships between variables.

3.3 Research Design and Justification

Bryman and Bell (2003) argued that quantitative research is oriented for testing the

theory while qualitative research is oriented for generation of the theory. It is important to

note that the theory has been well-established as discussed in Chapter 2. In order to examine

the variation between different items, a well-established method for gauging the variations

shall be employed. Quantitative methods provide a very consistent benchmark for research.

The goal of this thesis is to examine the objective reality of the generated theory. In

order to answer the proposed research questions, a quantitative approach to examine the

proposed hypotheses was adopted. An online survey for data collection was used.

Quantitative approaches provide the required infrastructure to collect numerical data. This

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approach is the most suitable one for asking questions that are representative of a

phenomenon. Quantitative research is descriptive in nature. Descriptive research helps the

researcher to determine the degree of variation in the perception of the respondents

(Zikmund, 2003). The main goal of descriptive research is to describe the attributes of a

phenomenon. In this type of research, the researcher knows the problem and the relationships

between different variables. This method does not answer ‘why’ questions but instead

answers ‘what, who, when and where’ questions (Zikmund, 2003). Quantitative research

approaches involve a collection of numerical data, which shows a relationship between

theory and data and emphasizes the importance of quantifying the collection and analysis of

data (Bryman & Cramer, 2009). Against the descriptive research, explanatory research is

conducted when the problem is not clear. The results of explanatory research are not useful

for decision-making. In comparison to exploratory research, descriptive studies are accurate

and factual but cannot state what causal situation exists (Zikmund, 2003). Descriptive

research can be generalized to the population but explanatory research is not typically

generalizable.

As the literature in relation to this thesis is well-established, the appropriate design for

this research is descriptive rather than explanatory. This thesis does not require the researcher

to provide conclusive evidence, so a descriptive design has been selected (Zikmund, 2003).

The quantitative approach relies on the numerical evidence to test hypotheses or to draw

conclusions. This method uses a relatively large numbers of respondents and computer (for

analysis) to have reliable results (Veal, 2005). This approach will enable this study to test the

cultural intelligence, interpersonal conflict and interpersonal communication satisfaction

constructs effectively and to infer generalizations about the effect of cultural intelligence.

This thesis employs a cross-sectional design. Cross-sectional study involves the

observation of various segments of a population at a single point in time. In such a study, the

relationship among the variables in the sample is investigated (Zikmund, 2003). The cross-

sectional study lets the researcher examine the relationship between variables when there is

no time ordering among the variables. The problem is that, in the cross-sectional design, the

direction of causal influence is not certain because the features of experimental design are not

available (Bryman & Bell, 2003). Therefore, cross-sectional designs do not have the internal

validity that can be found in experimental research. In contrast to cross-sectional study,

longitudinal study is a correlational study, which involves the survey of responses over time

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repeatedly. Longitudinal study allows the analysis of the responses to change over time

(Zikmund, 2003). As the purpose of longitudinal studies is to examine continuity of response

and observe the changes that occur over time, due to the time limitations of this thesis, it was

not possible to achieve a longitudinal design for this study.

This thesis employs a structured questionnaire assessing the correlational effects

between independent and dependent variables. A survey instrument is appropriate for a

questionnaire methodology because it helps the researcher to gather information about

individuals’ characteristics and perceptions. This information is highly generalizable in

particular populations at a particular point of time (Marshall, 2005).

The survey was utilized to examine the relationship between cultural intelligence and

individual’s perception of interpersonal conflict, cultural diversity and communication

satisfaction.

3.4 Sampling Strategy and Its Justification

In order to present the population data, a subset of the population is always selected.

When sampling is done randomly, which means that every member of the population has a

non-zero and known probability to be selected, the sampling strategy is called probability

sampling. In contrast, when units of the sample are selected (which can be based on

convenience or some specific conditions) the probability of a member of the population to be

chosen is unknown. This sampling strategy is called non-probability sampling (Zikmund,

2003).

In order to invite engineers to participate in the survey, 27 invitation letters were sent to

HR managers of multinational accessible engineering firms in the oil and gas industry based

on the author's network contacts. These company contacts were derived from the author’s

personal work connections. The HR managers were requested to send the survey link to their

employees in engineering departments. The HR manager made the decision to accept or

reject this request. Only 11 HR managers agreed to conduct the research. Because the online

survey link was not sent to the whole population of the engineers in the selected industries,

all the population members did not have a non-zero chance of taking the survey. Therefore,

non-probability sampling technique has been chosen and the used sampling strategy in this

thesis is convenience sampling.

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According to Zikmund(2003), there are seven stages for selecting a suitable sample.

These stages and their effect on this thesis have been demonstrated in Table 3.1. This thesis

has followed Zikmund’s(2003)framework for selection of the proper sample.

Table 3.1 Stages of selecting a proper sample

Stages in selection of a sample (Zikmund, 2003) This thesis selection of the sample

The target population Engineers in oil and gas industry

Sampling frame The accessible engineering companies

Probability / non-probability sampling Probability sampling

Planning the procedure for selecting sampling units Discussed in section 3.6

Sample size 286 engineers / technicians

Actual sample units 107 engineers / technicians

Conducting the field work -

The sample size (N=107) for this thesis is justified, because Hair, Black, Babin, and

Anderson (2010) indicate that for multiple regression analyses, when there are two

independent variables, to have a significance level of p< 0.01 on R2 values of 13 per cent and

above (with the probability of over 80 per cent), the sample size should be over 100

observations.

3.5 Pre-Test Protocol Sampling

Although the scales were validated by the previous research, the adopted scales were

pre-tested to ensure their validity in the targeted population. As suggested by sampling the

survey was pre-tested after the design(Zikmund, 2003). A pre-test is a ‘trial run with a group

of respondents used to screen out problems in the instructions or design of a questionnaire’

(Zikmund, 2003, p.229). The online survey link was sent to a small group of seven experts in

management and engineering to ensure that the survey content was ideal for the study. In

addition, the required time for average respondents was measured. Pre-tested results were all

excluded from the final database.

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In addition, the pre-test questionnaire was exactly the same as the main survey and

ethics clearance was sought prior to the pre-test and actual data collection. Appendix B

provides the ethics clearance form.

3.6 Sample and Procedure

All data for this study was collected from full-time engineers employed in various

design, consulting and construction companies in Australia, New Zealand, United States and

Iran. In order to test our hypotheses, the participants were invited to fill out an online survey.

In the first step, invitation letters were sent to HR Managers of 27 firms. These HR managers’

contacts were selected from the author’s personal network. Only 11 HR managers from

Australia, New Zealand, United States and Iran accepted to forward the survey link to the

engineering departments in their organization. These 11 HR managers sent 16, 21, 8, 18, 54,

21, 9, 35, 19, 27, 58 invitation letters respectively. Totally 286 engineers, engineering

managers or practical technicians received the invitation letters and the survey link. A total of

118 respondents participated in the survey with a total response rate of41.26 per cent. From

118 surveys a total of eleven surveys were not fully completed and therefore were excluded

from the database. The analyses were conducted on the remaining 107 surveys. The average

age of the participants was 36.93 and 41.18 per cent were female. Overall, 47.6 per cent of

respondents had a masters-level or higher degree, 39 per cent of respondents had a bachelor-

level degree and 13.4 per cent were practical technicians. In total, 42.85 per cent of all

respondents were working in a country that was different to their country of birth. All

companies were globalized ones from the oil and gas industry.

The reason for selecting only engineering departments was that the exchanging of

knowledge and techniques and being connected to the other engineers all over the world is a

part of the nature of an engineering job. Therefore, it would be expected that all the

participants have faced multicultural settings. This characteristic (engineering in globalized

companies) ensured that all the participants have experienced the nature of diverse cultural

settings, which makes the survey items easier for them to deal with. Therefore, the self-

reported individual level data were collected through an online survey on QUT’s website. To

ensure that the sampling method was probability sampling, the questionnaire was sent to an

HR or work unit manager to send the link to all their staff in engineering departments. Before

sending the survey to the participants, the engineering department manager or the HR

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manager in non-English language countries were asked to first check if all the respondents

had a good level of understanding the English language.

3.7 Measures

The online questionnaire was divided into two main sections: the instruments and some

demographic questions. The demographic part contained socio-demographic characteristics

of the respondents such as age, gender, ethnicity and their parents’ ethnicity. The survey

explored the perceptions of participants on cultural intelligence, communication satisfaction

and interpersonal conflict questionnaires. The question structure was Likert format. The

choices represented the degree of agreement each respondent had on the given question. By

using this research instrument and using statistics for data interpretation, the quantitative

approach was carried out effectively. The construct validity for all variables was established

by explanatory factors analysis. A full list of measures can be found in Appendix A.

3.7.1 Interpersonal Conflict

Type of conflict was assessed by eight questions from the 8-item scale of Jehn(1995)

on a 5-point Likert scale (0= None; 1= Little; 2=Somewhat; 3= Much; 4=A lot). Four

questions were for relationship conflict. The sample questions were, ‘How much friction is

there among members in your work unit?’ and,‘How much are personality conflicts evident

in your work unit?’ Four other questions were for task conflict. The sample questions

were,‘How often do people in your work unit disagree about opinions regarding the work

being done?’ and,‘To what extend there are differences of opinion in your work unit?’ The

whole questionnaire can be found in Appendix A. The questionnaire captures the amount of

perceived relationship and task conflict among co-workers. Higher scores show more

perceived conflict among individuals. The Cronbach Alpha value of the scale was α = .921

for relationship conflict and α�= .883 for task conflict. Several studies have used this

instrument to show the construct validity and reliability of the items (Acar, 2010; DeWit, et

al., 2011; Jehn, et al., 1999; Mohammed & Angell, 2004).

3.7.2 Interpersonal Communication Satisfaction

Interpersonal Communication Satisfaction was measured by 16-item scale version of

Hecht (1978a, 1978b) to reflect the recent imagined interaction on a 7-point Likert scale (0=

Strongly Disagree; 1= Disagree; 2= Slightly Disagree; 3= Neutral; 4= Slightly Agree; 5=

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Agree; 6= Strongly Agree). Higher scores show higher interpersonal communication

satisfaction. The construct captures the perceived feeling of the participants about their recent

conversations to see if they feel that the conversation was effective and satisfactory. The

statements are like,‘The other party did not provide support for what he / she were saying’

and,‘The conversation flowed smoothly’. The validity and reliability of the construct has

been discussed in section 2.5. The Cronbach Alpha value of the scale for positive questions

was α = .950 and for negative questions was α = .789. The purpose of this questionnaire was

to investigate individual’s satisfaction from their recent conversations.

3.7.3 Cultural Intelligence

Cultural-intelligence was measured by 20-item scale, which was introduced by Ang et

al. (2004) who designed the four-factor scale structure of the construct on a 7-point Likert

scale (0= Strongly Disagree; 1= Disagree; 2= Slightly Disagree;3= Neutral; 4= Slightly

Agree; 5= Agree; 6= Strongly Agree). In order to cross-validate the 20-item scale, Ang et al.

(2007) did a substantive survey of1,360 participants in US and Singapore. Cross-validation,

analysis provided strong support for the reliability and validity of this scale across time and

countries. This measure captures four dimensions of cultural intelligence. Four items for

meta-cognitive (α�= .931), six items for cognitive (α = .927), five items for behavioral (α�=

.936) and five items for motivational (α�= .928). The overall reliability of this construct is α =

.965. Some sample questions that were asked from respondents were as follows: for meta-

cognitive,‘I adjust my cultural knowledge as I interact with people from a culture that is

unfamiliar to me’, for cognitive dimension,‘I know the legal and economic systems of other

cultures’, for behavioral,‘I am sure I can deal with the stresses of adjusting to a culture that is

new to me’ and for motivational,‘I alter my facial expressions when a cross-cultural

interaction requires it.’

3.7.4 Cultural Diversity

Perceived cultural diversity was adopted from Harrison et al. (1998; 2002) and Acar

(2010). Participants rated on a five point scale, how they see cultural diversity within their

work unit (0= None; 1= A few; 2= Some; 3= A lot; 4= Too much).

3.7.5 Demographic Variables

A number of demographic questions (as control variables) were also asked. These

demographic variables were measured to help the thesis to categorize the responses. In

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addition, these demographic data may provide external validity of the findings for possible

other samples. Mean expatriate experience was 10.29 years with a standard deviation of

13.72 years. Gender of the respondents was 41.18 per cent females. The represented industry

was oil and gas. Company size was measured in terms of number of employees. Education

was indicated by the latest degree that each individual possessed.

3.8 Data Analysis (Procedural Approach)

When the data are collected for analysis, data processing generally begins with the

editing and coding of the data. The data preparation is discussed below.

3.8.1 Data Editing and Coding

After checking the data for possible errors and pair-wise exclusion of missing data, the

following editing and coding was performed.

First, control variables were selected, namely: age, gender, educational level, expatriate

experience and company size. Gender (0 = male, 1 = female) and educational level (0 =

Bachelors and above, 1 = Technicians and under Bachelor degrees) were dummy coded.

CQ was subjected to explanatory factor analysis for investigation of loaded factors.

Explanatory factor analysis was subjected to dependent variables (communication

satisfaction, relationship conflict and task conflict) as well. All the items in the resulting

factors (including independent and dependent variables) were meaned to be ready for further

analysis.

Independent variables (CQ-1, CQ-2, CQ-3 and Diversity) were centered to be ready for

testing the moderation analysis.

3.8.2 Missing Data

All the variables were collected from individuals to evaluate individual perceptions of

the measured variables. Responses were automatically entered to SPSS by the online survey

tool of the university website. Missing data results when respondents fail to reply some

questions. It can be ether accidental or intentional (Bryman & Bell, 2003). Pair-wise

exclusion of missing data was subjected to the database. Frequency test was also subjected to

all items to check the possible errors.

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3.8.3 Data Analysis

This thesis employs Exploratory Factor Analysis (EFA) to examine the factor loadings

of each item in the questionnaires. Factor analysis is a set of methods for examining the

correlations among variables. The EFA is a statistical method for examining common but

unobserved sources of relationships between different items. This method specifies related

and unrelated items to the factors that shape a variable. The major application of this method

is to investigate the constructs of the variables (Hair, et al., 2010). Therefore, this thesis

employs EFA to test the construct of the different factors, in order to define the independent

and dependent variables.

Next, this thesis employed multiple hierarchical regression analysis using SPSS 19.0.

This technique is a statistical one that allows the researcher to predict a causal relationship

between several variables. Testing for moderation effect is necessary when the strength of a

relationship between independent and dependent variables is affected by a third variable,

which is called the moderator(Baron & Kenny, 1986).This research evaluates the effect of

cultural diversity level on the relationship between CQ and interpersonal

conflict/communication satisfaction. Therefore, using multiple regression analysis is

justifiable for this thesis. Regarding to the literature review in Chapter 2, the moderating

effect of cultural diversity will be tested in this research. For preparing the data for

Hierarchical Moderated Regression Analyses, the following steps were taken:

• Creating the scales (averaging after factor analyses);

• Centering the variables due to Aiken and West (1991) recommendations; and

• Creating the interaction terms for the independent variables and the Moderator (the

product of the two variables after being centred).

3.8.4 Reliability and Validity

It is important to establish the statistical reliability and validity of any research.

Zikmund(2003) emphasizes evaluating a questionnaire via goodness of measure reliability

and validity criteria. The extent which the results of a measure will produce consistent results

is known as reliability; if the research measures what it is expected to, the measures are

valid(Zikmund, 2003).

Four common types of validity are face, content, criterion and construct validity to test

the goodness of measure, appropriateness of items, alignment with other predictors and

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goodness of fit respectively (Marshall, 2005). As mentioned in section 3.7, all the adopted

scales were validated by the previous empirical research(Ang, et al., 2007; Ang, et al., 2006;

Ang, et al., 2004; Earley & Peterson, 2004; Elenkov & Manev, 2009; Elenkov & McMahan,

2005; Harrison & Klein, 2007; Hecht, 1978b; Hobman, Bordia, & Gallois, 2004; Imai &

Gelfand, 2010; Jehn, 1995; Pelled, et al., 1999); however, a few weeks before running the

main online survey, all the adopted scales were pre-tested by the author of this thesis. Factor

analysis and expert feedback showed the alignment of the measures with other predictors to

ensure the validity of the measures in the targeted population.

Internal consistency reliability is one of the major reliability tests that shows how well

the individual measures are converted into a composite measure (Marshall, 2005).

Cronbach’s coefficient measures this internal reliability (Cronbach, 1951). The Cronbach’s

coefficient has been applied to all of the measures to check the internal reliability.

3.9 Ethical Considerations

Ethical clearance was obtained from the QUT ethics body. It was necessary to consider

the ethical issues in order to ensure the safety and privacy of the participants. Consent and

confidentiality of all the gathered information was one of the significant ethical issues that

was considered in the research process. All participants were advised that they could

withdraw from the survey during the process. To ensure the confidentiality of the

participants, their names and personal information were not asked in the survey. Only

relevant details that helped in answering the research questions were requested.

Initially the Brisbane refinery plant of British Petroleum (BP) was the target sample.

The ethical clearance form was adopted for BP. However, the insufficient number of

responses because of the small size of the engineering department (around 50 employees)

meant that the initial sample of respondents was expanded to outside BP.

3.10 Conclusion

In summary, Chapter 3 identified the appropriate methodology for testing the

hypotheses. The proposed research methodology, research paradigm, research design and

data collection technique was discussed and justified. The decision to quantitatively test this

study was justified followed by justification of sampling strategy.

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Five and seven point Likert scales were employed to measure participants’ perception

on interpersonal conflict, communication satisfaction, level of cultural diversity and their

level of cultural intelligence. All these scales were adapted from previous research with high

validity and reliability.

The data collection instrument employed in this thesis was a structured online survey.

The online survey was on the QUT server. All the issues of ethics and privacy of information

were described in the first page. After the introductory page, the questionnaire was divided in

to two pages. One page was assigned for the scales and one page for the demographic

questions. After clicking the submit button, a message of gratitude was also posted to the

screen.

In the next chapter, the collected data will be analyzed.

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CHAPTER 4: RESULTS

4.1 Introduction

In Chapter 3, the research methodology was reviewed and justified. The purpose of

chapter 4 is analyzing the survey data and testing the proposed hypotheses in order to answer

the research questions. As explained before, all data was collected at the individual level.

Cultural diversity was measured in terms of individuals’ perception of diversity within their

work unit. Individual data for relationship and task conflict, communication satisfaction and

CQ was collected through an online survey.

First, the process by which the data were cleaned is described. Second, the process for

testing reliability and validity of each construct is outlined. Third, the process of factor

analysis to all the variables in order to examine factor loadings will be explained. Fourth, in

order to test the proposed hypotheses, the correlation matrix and hierarchical regression

method is applied to the data. A list of supported, partially supported or unsupported

hypotheses is provided as well.

In the following sections, descriptive data analysis will be reviewed. SPSS 19.0 has

been used to conduct the explanatory factor analysis on the combined data (N= 107).

4.2 Descriptive Statistics

This section presents how the data was screened. In addition, the test of normality and

correlation among the variables at bivariate level has been conducted.

4.1.1 Data Screening

Data from the completed questionnaires were automatically loaded to SPSS 19.0 and

were checked for possible errors. Separate analyses were conducted on different data sets.

Pair-wise exclusion was used for managing possible missing values. Descriptive statistics

were calculated for each of the variables to identify accuracy of data entry and outliers.

Scatter plots were generated to check the linearity of each independent variable with each of

the dependent variables to check the level of homoscedasticity.

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4.1.2 Normality Testing

To test the symmetry of data distribution, a skewness measure was used. To see if the

data had a normal distribution, a kurtosis measure was used. A high kurtosis means the

distribution has a distinct peak near the mean and a low kurtosis means that the distribution

has a flat top near the mean. Checking the numerical values for skewness or kurtosis is a

regular way of checking if skewness and kurtosis are significantly non-normal. If the value

all fall within the range of (+/-) twice of the standard error, it is assumed that the normality is

not violated (Field, 2005). The result of skewness test showed that, most of the skewness and

kurtosis values fell within the mentioned range.

Histograms are effective graphical techniques for visual inspection of skewness and

kurtosis of the data set. Inspection of univariate normality histogram for all variables showed

that the distributions were all normal.

In addition, research suggested that to test multicollinearity, the correlation values

should not be more than 0.85(Tabachnick & Fidell, 2001). The correlation matrix for all

variables was checked and none of the values was more than0.85, meaning that

multicollinearity was not a serious threat.

4.3 Analysis Procedures for Construct Validity and Reliability

All the variables of cultural intelligence, task conflict, relationship conflict, and

communication satisfaction were subjected to Exploratory Factor Analysis (EFA) using

SPSS. Cultural diversity was a single item, measuring in terms of individuals’ perception of

diversity within their work unit, thus excluded from EFA. Separate explanatory factor

analyses were conducted to ensure that all variables used in the survey were loaded into

separate factors and the higher order categories were statistically appropriate (Tabachnick &

Fidell, 2001). The varimax rotation by using principal axis factoring extraction was applied to

the data. Greater loadings show that the variables are a more pure measure of the factor.

Therefore, loadings greater than 0.71 are considered excellent, more than 0.63 are considered

very good, more than 0.55 are good, more than 0.45 fair and more than 0.32 but less than

0,45 is considered to be poor (Comrey & Lee, 1992).

First, CQ was subjected to exploratory factor analysis using SPSS. The original study

by Earley and Ang(2003) was based on the four-factor model of CQ. Following studies

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adopted CQ framework (Ang, et al., 2007; Ang, et al., 2006; Elenkov & Manev, 2009;

Elenkov & McMahan, 2005; Groves & Feyerherm, 2011; Imai & Gelfand, 2010; Templer, et

al., 2006).Ang et al.(2006) investigated the relationship between the four-factor model of CQ

and Big Five personality characteristics. Ang et al. (2006) examined confirmatory factor

analysis (CFA) and reported a good fit of the data to the four-factor model of CQ. Ang et

al.(2007) also examined the relationships between the four-factor model of CQ and three

intercultural effectiveness outcomes in culturally diverse environments. Ang et al. (2007)

examined CFA and reported good fit of the four-factor model of CQ. Imai and Gelfand(2010)

also reported sufficient fit of the four-factor model. Other studies did not report the

examination of CFA for the four-factor model and have simply aggregated the score of the

four dimensions without performing construct validity (e.g., factor analysis).This thesis has

also examined CFA to check the construct validity of the four-factor model of CQ, but results

showed that the items fell within three factors. Investigation of the rotated factor matrix

showed that the items were loaded into three factors. None of the items demonstrated the

cross loading between factors. Therefore, no item has been removed from the structure

pattern.

The results showed that the correlation matrix was not an identity one. All factor

loadings were above 0.55, which means that the loadings are good to excellent. After initial

analysis the items were found to be highly inter-correlated, but also having some unique

contributions (KMO=0.93), which is above the recommended threshold of 0.60 (Tabachnick

& Fidell, 2001).Furthermore, Bartlett’s Test of Sphericity indicated that the correlations

between items were adequate (X2 =1814.24, p< .001). Whilst three factors emerged with an

eigenvalue over one, explaining 71% of the total variance, the first factor accounted for a

larger portion of variance than the remaining two factors. This factor accounted for 60% of

the total variance. Varimax rotation was used to determine the most suitable solution and

when compared, the three-factor structure was regarded to be the most meaningful and was

therefore taken as the final factor structure. The rotated factor matrix showed that all items

were loaded to three factors while it was expected to be loaded to four factors, as suggested in

the original study (Earley & Ang, 2003). Meta-cognitive and motivational dimension of CQ

fell within one factor that will be named CQ_meta_motive (CQ-1) from now on. Cognitive

and behavioral dimensions are separate factors which will be called CQ_cognitive (CQ-2)

and CQ_behavioral (CQ-3) respectively. Table 4.1 shows this result.

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In the next step, all dependent variables (task conflict, relationship conflict, and

communication satisfaction) were loaded to EFA. Table 4.2 shows the results. Investigation

of the rotated factor matrix showed that the variables were loaded into four factors at a level

above 0.5, with the removal of cross loading items above 0.3. Task and relationship conflict

fell into two separate factors. Only one question (Question 2) in the communication

satisfaction scale was out of the main factor that was deleted from the construct for rest of the

analysis. Therefore, communication satisfaction construct had 15 questions. Because the

minimum requirement of five cases per item was also met, the deletion of one question from

communication satisfaction construct was not an issue(Tabachnick & Fidell, 2001). After

excluding Question 2of communication satisfaction, the rest of the data was reloaded to EFA

to recheck this result. Table 4.2 shows the same result.

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Table 4.1 CQ Rotated Factor Matrix

Factor

1 2 3

I am sure I can deal with the stresses of adjusting to a culture that is new to me. 0.79

I enjoy interacting with people from different cultures. 0.77

I check the accuracy of my cultural knowledge as I interact with people from different

cultures.

0.74

I am confident that I can socialize with locals in a culture that is unfamiliar to me. 0.74

I am conscious of the cultural knowledge I use when interacting with people with different

cultural backgrounds.

0.72

I enjoy living in cultures that are unfamiliar to me. 0.70

I am confident that I can get used to the shopping conditions in a different culture. 0.69

I am conscious of the cultural knowledge I apply to cross-cultural interactions. 0.68

I adjust my cultural knowledge as I interact with people from a culture that is unfamiliar to

me.

0.66

I know the rules for expressing non-verbal behaviours in other cultures. 0.78

I know the arts and crafts of other cultures. 0.75

I know the legal and economic systems of other cultures. 0.72

I know the marriage systems of other cultures. 0.69

I know the rules (e.g., vocabulary, grammar) of other languages. 0.68

I know the cultural values and religious beliefs of other cultures. 0.64

I change my non-verbal behaviour when a cross-cultural situation 0.75

I change my verbal behaviour, when a cross-cultural interaction requires it. 0.73

I alter my facial expressions when a cross-cultural interaction requires it. 0.67

I use pause and silence differently to suit different cross-cultural situations. 0.66

I vary the rate of my speaking when a cross-cultural situation requires it. 0.57

Note: Factor 1: includes items of CQ dimensions of meta-cognitive and motivational (CQ-1).

Factor 2: includes items of CQ dimension of cognitive (CQ-2).

Factor 3: includes items of CQ dimension of behavioural (CQ-3).

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Table 4.2 Dependent variable’s Rotated Factor Matrix

Factor

1 2 3

I did NOT enjoy the conversation. 0.81

The conversation flowed smoothly. 0.81

I would like to have another conversation like this one. 0.80

I felt that we could laugh easily together. 0.80

I was very dissatisfied with the conversation. 0.79

I was very satisfied with the conversation. 0.76

The other person expressed a lot of interest in what I had to say. 0.75

The other party did not provide support for what he / she were saying. 0.74

We both got to say what we wanted. 0.69

The other person genuinely wanted to know me. 0.67

I felt that during the conversation I was able to present myself as I wanted the other person

to view me. 0.67

I felt I could talk about anything with the other person. 0.63

We talked about something I was NOT interested in. 0.58

The other person let me know that I was communicating effectively. 0.56

The other person frequently said things, which added little to the conversation. 0.53

How much emotional conflict is there among members in your work unit?

0.74

How much friction is there among members in your work unit?

0.74

How much are personality conflicts evident in your work unit?

0.73

How much tension is there among members of your work unit?

0.73

To what extent there are differences of opinion in your work unit?

0.85

How often do people in your work unit disagree about opinions regarding the work being

done?

0.79

How much conflict about the work you do is there in your work unit?

0.77

How frequently are there conflicts about ideas in your work unit?

0.62

Note: Factor 1: includes items of interpersonal communication satisfaction.

Factor 2: includes items of relationship conflict.

Factor 3: includes items of task conflict.

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After initial analysis, the items were found to be highly inter-correlated, but also having

some unique contributions (KMO=0.94), which is above the recommended threshold of

0.60.Furthermore, Bartlett’s Test of Sphericity indicated that the correlations between items

were adequate (X2 =1983.87, p< .001). Whilst three factors emerged with an eigenvalue over

one, explaining 66.9% of the total variance, the first factor accounted for a larger portion of

variance than the remaining two factors. This factor (communication satisfaction) accounted

for 54% of the total variance. Varimax rotation was used to determine the most suitable

solution and when compared, the three-factor structure was regarded to be the most

meaningful and was therefore taken as the final factor structure. The rotated Factor matrix

showed that all items were loaded to three factors of communication satisfaction, task conflict

and relationship conflict. Therefore, the mean value of all items in each construct was

calculated and assigned to the new variable. The minimum requirement of five cases per item

was also met except for task and relationship conflict, that each one had only four items in

total (Tabachnick & Fidell, 2001).

Then, the internal reliability and consistency of the items in each construct was tested.

Cronbach’s alpha coefficient is the common method of checking the internal reliability of

items in a construct (Cronbach, 1951). Cronbach’s alpha is widely used to indirectly show the

degree to which a set of items measures the same construct. As shown in Table 4.3, internal

reliabilities of all constructs were satisfactory (greater than 0.75). The results of internal

reliabilities of different constructs demonstrated that the following variables could be used for

the research: task conflict, relationship conflict, communication satisfaction, CQ-cognitive

(CQ-2), CQ-behavioral (CQ-3) and CQ-meta-motive (CQ-1).

In the next step, correlations of all control, independent and dependent variables were

checked to see possible relationships between different variables. Pearson correlation

coefficients were computed using SPSS 19.0. As Tabachnick and Fidell(2001) have

suggested, the descriptions of correlations for consistency reasons were as following: values

less than 0.3 (classified as weak), values between 0.3 and 0.7(classified as moderate) and

values greater than 0.7 (classified as strong). Table 4.3 shows the descriptive statistics of all

control, independent and dependent variables. As can be seen in Table 4.3, CQ-1 and CQ-2

have a moderate correlation of r = 0.65, CQ-1 and CQ-3 have a high correlation of r = 0.81

and finally CQ-2 and CQ-3 have a moderate correlation (r = 0.67), all of which are highly

significant (p < 0.01). There is a highly significant moderate correlation between task and

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relationship conflict (r = 0.51, p<0.01), a highly significant moderate correlation between

task conflict and communication satisfaction conflict (r = 0.50, p<0.01). In addition, a high

correlation between relationship conflict and communication satisfaction can be seen, which

is very significant (r = 0.74, p<0.01). Overall, all of the other variables have low correlations

which means that participants have considered them as distinct variables and which shows

that multi-co-linearity was not a threat to the analyses (Tabachnick & Fidell, 2001).

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Table 4.3 Correlations (Pearson)

Variables Mean Std.

Deviation

1 2 3 4 5 6 7 8 9 10 11

1 Age 36.93 11.6 - -0.30** -0.25* 0.33** 0.14 0.28** 0.28** 0.31** -0.10 -0.14 0.21*

2 Gender 0.41 0.49

- -0.10 -0.12 -0.03 -0.20 -0.16 -0.12 -0.06 0.07 0.3

3 Education 0.87 0.34

- -0.04 -0.15 0.08 -0.01 -0.05 0.08 0.10 -0.19

4 Expatriate Experience 10.29 13.72

- 0.48** 0.26* 0.17 0.19 -0.11 0.01 0.13

5 Company Size 0.26 0.44

- 0.07 0.10 0.16 -0.09 0.14 0.08

6 CQ-1 5.3 1.12

(0.95) 0.65** 0.81** -0.19 -0.27** 0.36**

7 CQ-2 4.65 1.31

(0.93) 0.67** -0.16 -0.15 0.20

8 CQ-3 4.94 1.22

(0.94) -0.17 -0.26** 0.35**

9 Task Conflict 2.64 0.89

(0.88) 0.51** 0.50**

10 Relationship Conflict 2.47 1.02

(0.92) -0.74**

11 Communication

Satisfaction 4.85 1.33 (0.96)

Note: ** p<.01; *p<.05; Gender (0 = male, 1 = female), education (0 = Bachelors and above, 1 = Technicians and under Bachelor degrees) are dummy coded.

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4.4 Hypothesis Testing

In the following paragraphs the proposed hypotheses, which were introduced in

Chapter 2, have been tested. The results of the research questions and hypotheses in the

descriptive components are presented in the following sections.

In order to test the moderating effect of level of cultural diversity on the relationship

between CQ-relationship conflict and CQ-interpersonal communication satisfaction, a series

of hierarchical multiple regression analysis were conducted on the data. All independent

variables were mean-centred to prevent the problem of multi-co-linearity between the two-

way interactions and the main effects.

In the following lines, the moderating effect of all the three dimensions of CQ on

relationship conflict and interpersonal communication satisfaction have been examined. It

was predicted that CQ would have a negative effect on perceived relationship conflict and a

positive effect on interpersonal communication satisfaction. All independent variables were

centred before examining the interaction effects. Then hierarchical multiple regressions were

conducted to evaluate the moderating effect of cultural diversity on the relationship between

CQ dimensions and relationship conflict/ interpersonal communication satisfaction. In each

of the multiple regression analyses, the control variables were entered in the first step (Age,

Gender, Education level (dummy), Expatriate Experience and Company Size (dummy)). In

the second step, the CQ dimension and the moderating variable were entered to see the main

effect on the dependent variable. Finally, the combined effect of the independent variable and

the moderator was entered to examine the moderation hypothesis.

4.4.1 Main Effects (Testing Hypothesis 1a/b/c and Hypothesis 2a/b/c)

According to Table 4.4, the initial three steps in the regression equations explained 54%

of the variance in relationship conflict (F (3, 76) = 17.98, p < 0.01), 21% of the variance in

interpersonal task conflict (F (3, 76) = 4.58, p < 0.05) and 49% of the variance in

communication satisfaction conflict (F (3, 76) = 11. 20, p < 0.01).

The result of the analysis to evaluate the main effect of the independent variables on

communication satisfaction showed that, the hypothesized negative relationship between

cultural diversity and communication satisfaction was supported (� = -0.33, t = -2.69, p <

0.05).Table 4.4 also shows that the effect of cultural diversity on task conflict (� = -0.07, t =

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0.49, ns) was not significant. In addition, Table 4.4 shows that the effect of cultural diversity

on relationship conflict (� = -0.20, t = 1.54, p < 0.10) was significant. Therefore, Hypothesis

1a, Hypothesis 1b and Hypothesis 1c were all supported.

The result of the analysis to evaluate the main effect of independent variables on

communication satisfaction showed that the hypothesized positive relationship between CQ

and communication satisfaction, CQ-1 (� = 0.31, t = 1.72, p < 0.10), CQ-2 (� = -0.15, t = -

1.10, ns and CQ-3 (� = 0.10, t = 0.55, ns), was supported for CQ-1 only, thus Hypothesis 2a

was partially supported.

By comparing the effects of CQ dimensions on task conflict, CQ-1 (� = -0.17, t = -0.80,

ns), CQ-2 (� = -0.05, t = -0.32, ns) and CQ-3 (� = 0.03, t = 0.13, ns) have non-significant

influence on task conflict as well. Therefore, Hypothesis 2b was supported for all CQ

dimensions.

Table 4.4 also shows that the effect of CQ dimensions on relationship conflict has been

examined. CQ-1 (� = -0.20, t = -1.01, p < 0.10), CQ-2 (� = 0.11, t = 0.75, ns) and CQ-3 (� = -

0.13, t = -0.67, ns) shows that only CQ-1 has a significant effect on relationship conflict so

Hypothesis 2c for CQ-1 was partially supported.

4.4.2 Moderation Effects (Testing Hypothesis 3a/b/c)

The interaction effects of CQ dimensions and diversity (CQ-1 x diversity, CQ-2 x

diversity, CQ-3 x diversity) were assessed after controlling for main effects (Table 4.4). The

regression showed 54% of the variance in relationship conflict (F (3, 76) = 17.98, p < 0.01),

21% of the variance in interpersonal task conflict (F (3, 76) = 4.58, p < 0.05) and 49% of the

variance in communication satisfaction conflict (F (3, 76) = 11. 20, p < 0.01).

Entry of the two-way interaction terms at Step 3 revealed a significant two-way

interaction between CQ-1 x diversity on communication satisfaction (� = 0.61, t = 3.43, p <

0.01), and relationship conflict (� = -0.36, t = -2.03, p < 0.05), but not on task conflict (� = -

0.05, t = -0.21, ns).

A significant two-way interaction between CQ-2 x diversity on communication

satisfaction (� = -0.23, t = -1.70, p <0.10) was found. Also, the two-way interaction between

CQ-2 x diversity on relationship conflict (� = 0.01, t = 0.08, ns), and task conflict (� = -0.03, t

= -0.18, ns) was non-significant.

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Similarly, the two-way interaction between CQ-3 x diversity on communication

satisfaction (� = 0.03, t = 0.14, ns) and task conflict (� = -0.34, t = -1.50, ns) was non-

significant. Only the two-way interaction between CQ-3 x diversity on relationship conflict

(� = -0.30, t = -1.67, p <0.10), was significant.

Therefore, these findings indicated that Hypothesis 3b was supported and Hypotheses

3a and 3c were partially supported only for the interaction effect of CQ-1 x diversity on

communication satisfaction and relationship conflict.

��

�

Table 4.4 Hierarchical multiple regression analyses showing the moderating effect of cultural diversity

Relationship Conflict (�) Task Conflict (�) Communication Satisfaction (�)

Step 1

Age -0.12 -0.05 -0.07 -0.08 -0.04 -0.08 0.17 0.09 0.03

Gender 0.04 0.02 -0.03 -0.09 -0.11 -0.15 0.08 0.11 0.09

Education 0.10 0.10 0.08 0.05 0.06 0.05 -0.14 -0.14 -0.14

Expatriate Experience -0.30 -0.07 0.03 -0.08 -0.07 0.01 0.08 0.16 0.14

Company Size 0.18 0.13 0.10 -0.03 -0.06 -0.06 0.00 0.10 0.16

Step 2

CQ-1

-0.20* -0.14

-0.17 -0.09

0.31* 0.33**

CQ-2

0.11 0.07

-0.05 -0.07

-0.15 -0.10

CQ-3

-0.13 -0.04

0.03 0.04

0.10 -0.06

Diversity

0.20* 0.12

0.07 -0.01

-0.33** -0.32**

Step 3

CQ-1 x Diversity

-0.36**

-0.05

0.61***

CQ-2 x Diversity

0.01

-0.03

-0.23*

CQ-3 x Diversity

-0.30*

-0.34

0.30

R2 0.05 0.15* 0.54*** 0.03 0.06 0.21** 0.07 0.27*** 0.49***

R2 change 0.05 0.10* 0.35*** 0.03 0.03 0.14** 0.07 0.19*** 0.23***

Note: *** p<0.01; **p<0.05; *p<0.10 CQ 1 = CQ-Meta-cognitive and CQ-Motivational, CQ 2 = CQ-Cognitive and CQ 3 = CQ-Behavioural

��

�

Due to the significant interaction among CQ-1 x diversity on communication

satisfaction and relationship conflict, visual inspection of Figure 4.1 shows that perception of

high cultural diversity was associated with the positive relationship between CQ-1 and

communication satisfaction. This means that when perception of cultural diversity is high,

individuals with a higher level of CQ-1 feel more satisfied from their communication, while

individuals with a lower level of CQ-1 feel less satisfied from their interpersonal

communication. Figure 4.1 also reveals that when perception of cultural diversity is low, CQ-

1 and perceived communication satisfaction have a weak negative relationship.


communication satisfaction

In order to check the effect of low cultural diversity on the relationship between CQ-1

and communication satisfaction, a slope test was performed. In order to run this test, the

Dawson and Richter (2006) method was employed. Dawson and Richter (2006) stated that

slope tests can be used for testing the significance level for specifying different values of the

moderator (cultural diversity), and where possible, meaningful values should be chosen. The

results of this test are shown in Table 4.5.

0

1

2

3

4

5

6

Low CQ-1 High CQ-1

Com

mu

nic

ati

on

Sati

sfact

ion

Low Cultural

Diversity

High Cultural

Diversity

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between CQ-1 and communication satisfaction

Slope Low CQ-1 High CQ-1 t value Slope

Low Diversity 5.35 4.70 -0.86 -0.30

High Diversity 2.97 5.38 3.33 1.08***

Note: *** p<0.01; **p<0.05; *p<0.10

The results of the slope test for the moderating effect of cultural diversity on the

relationship between CQ-1 and communication satisfaction showed that when cultural

diversity is low, the moderating effect is not significant (t= -0.86, ns) and when cultural

diversity is high, this moderating effect is significant (t= 3.33, p < 0.001). In addition, the

high and low value of CQ-1 when diversity was low are only 12 per cent different, but in

high cultural diversity this difference is 81%. Therefore, the negative slope of low cultural

diversity is not significant.

Visual inspection of Figure 4.2 shows that perception of high cultural diversity was

associated with the negative relationship between CQ-1 and relationship conflict. This means

that when perception of cultural diversity is high, individuals with higher levels of CQ-1

perceive less relationship conflict and individuals with lower level of CQ-1 feel more

relationship conflict. Figure 4.2 also reveals that when perception of cultural diversity is low,

CQ-1 and perceived relationship conflict has a positive relationship. Therefore, with higher

levels of CQ-1 individuals perceive more relationship conflict.

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relationship conflict

In order to check the effect of low cultural diversity on the relationship between CQ-1

and relationship conflict, slope test was conducted.


between CQ-1 and relationship conflict

Slope Low CQ-1 High CQ-1 t value Slope

Low Diversity 2.13 2.53 1.62 0.18

High Diversity 3.06 2.08 -4.97 -0.44***

Note: *** p<0.01; **p<0.05; *p<0.10

The results of slope test for the moderating effect of cultural diversity on the

relationship between CQ-1 and relationship conflict showed that when cultural diversity is

low, this moderating effect is not significant (t= 1.62,ns) and when cultural diversity is high,

this moderating effect is significant (t= -4.97,p < 0.001). In addition, the high and low value

of CQ-1 when diversity was low are only 16% different, but in high cultural diversity this

difference is 47%. Therefore, the negative slope of low cultural diversity is not significant.

1

1.5

2

2.5

3

3.5

4

4.5

5

Low CQ-1 High CQ-1

Rel

ati

on

ship

Con

flic

t

Low Cultural

Diversity

High Cultural

Diversity

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4.5 Summary of the Results

The analyses of the survey data showed several significant results. First, the analysis of

the data showed that CQ had three dimensions, which was contradictory to the literature. Two

dimensions of CQ (meta-cognitive and motivational) did not fall within two separate factors.

Second, there is a moderate negative correlation between CQ-1 and perceived relationship

conflict. Third, there is a moderate positive relationship between CQ-1 and perceived

communication satisfaction. Fourth, the relationship between perceived level of diversity and

communication satisfaction/relationship conflict was significant. Fifth, the moderating effect

of perceived level of cultural diversity on the relationship between CQ-1 and relationship

conflict/communication satisfaction is very significant. All other dimensions of CQ

(cognitive and behavioral), did not support the moderation hypothesis. In addition, the effect

of CQ dimensions and diversity on task conflict was not significant. Finally, the moderating

effect of diversity on the relationship between CQ dimensions and task conflict was not

significant, which supported the regarding hypotheses. Table 4.7 summarizes the results from

this chapter. In the next chapter, the findings derived from this research will be discussed.

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Table 4.7 Result Summary

Hypotheses Results

H1a: Cultural diversity negatively influences perception of

communication satisfaction between co-workers. Supported

H1b: Cultural diversity does not influence perception of

task conflict. Supported

H1c: Cultural diversity positively influences perception of

relationship conflict. Supported

H2a: Cultural intelligence positively influences perception

of communication satisfaction between co-workers.

Partially supported (Only CQ1

influenced on communication

satisfaction)

H2b: Cultural intelligence does not influence perception of

task conflict. Supported

H2c: Cultural intelligence negatively influences perception

of relationship conflict.

Partially supported (Only CQ1

influenced relationship conflict)

H3a: The level of cultural diversity moderates the effects

of cultural intelligence on perception of communication

satisfaction.

Partially supported (Only for the

interaction between diversity x CQ1

and diversity x CQ2)

H3b: Due to the lack of relationship among cultural

intelligence and task conflict (H2c), there will be no

moderating effect of culture diversity on cultural

Supported

H3c: The level of cultural diversity moderates relationship

between cultural intelligence and relationship conflict.

Partially supported (Only for the

interaction between diversity x CQ1

and diversity x CQ3)

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CHAPTER 5: DISCUSSIONS AND CONCLUSIONS

5.1 Introduction

As discussed in Chapter 2, cultural intelligence was introduced as the capability for

individuals to manage their interpersonal relationships with co-workers in multicultural

contexts. By reviewing the relevant literature, it was suggested that the effect of cultural

intelligence on perceived interpersonal conflict and communication satisfaction was not

addressed in previous research. In addition, it was hypothesized that in considering these

causal relationships (cultural intelligence and interpersonal conflict/communication

satisfaction) the moderating effect of level of cultural diversity shall be considered.

Chapter 3 introduced the suitable methodology for data collection. In the previous

chapter (Chapter 4), the collected data was analyzed. This final chapter will address the

results, conclusions, implications and limitations of the findings of the thesis.

First, in section 5.2the conclusions of the research hypotheses and research findings

will be discussed. Second, in section 5.3 the implication of the research findings for theory

and practice will be summarized. Finally, in section 5.4, the limitations of the research and

the areas for further research based on this thesis will be acknowledged.

5.2 Interpretations of Research Findings

This section will discuss the results of the proposed hypotheses as mentioned in

Chapter 2. Prior to hypothesis testing, the constructs under study were validated to ensure

their validity and reliability. According to factor analysis results, the items of CQ construct

for this research fell into three factors (as opposed to the originally proposed four factors).

Earley and Ang(2003) proposed four dimensions of CQ:(1) Meta-cognitive, (2) Cognitive,

(3) Behavioral and (4) Motivational dimensions. My results showed that meta-cognitive and

motivational dimensions fall within one factor. This phenomenon could be explained by the

cultural background of the respondents. The data shows that 64.5 per cent of the respondents

were from one country (Iran), which raises the issue of representativeness of the sample in

regards to the population. The cultural values or beliefs of this big group of respondents may

not consider a distinguishable difference between meta-cognitive dimension (the ability to

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monitor and understand the mental models and cultural norms of other ethnicities) and

motivational dimension (the ability to focus toward learning and manage the relationships in

culturally different situations). Therefore, among Iranians the ability to understand the norms

and the ability to manage relationships in a culturally diverse setting has a very close

meaning.

As mentioned in section 4.3, this thesis has also examined the construct validity of the

four-factor model of CQ, but results showed that the items fell within three factors.

Therefore, this thesis defines CQ-1 as the combination of meta-cognitive and motivational

dimensions, CQ-2 the cognitive dimension and CQ-3 the behavioral dimension. The rest of

the analysis was conducted based on the new three-dimensional model of the cultural

intelligence.

5.2.1 Cultural Diversity Negatively Influenced Perception of Communication

Satisfaction Between Co-Workers.

This study found that engineers with low levels of CQ (who perceived high levels of

cultural diversity in their workplaces) reported a low level of communication satisfaction

between co-workers. This finding is supported by previous research stating that

communication norms differ between individuals with various cultural backgrounds (Barker

& Gower, 2010; Earley & Mosakowski, 2000). It is expected that these differences cause

interpersonal communication difficulties. Therefore, in diverse groups, individuals feel less

satisfied from their communications with their co-workers.

The research of Ingram and Parker (2002) among engineering students showed that the

engineering culture within groups is problematic for interpersonal communication and

collaboration process. Communication is a vital characteristic of engineering work (Darling

& Dannels, 2003). The importance of oral communication in technical jobs, specifically

engineering, has been highlighted in previous research (Beaufait, 1991; Bjorklund &

Colbeck, 2001; Denton, 1998; Yu & Liaw, 1998).Because engineering projects need to be

done by groups of engineers, organizations normally choose engineers with specific technical

competencies for special projects (Perlow & Bailyn, 1997); which means a group of

engineers with specific skills are selected to work together on a project for a period of time.

Although group work and communication is very important for this occupation, cultural

diversity decreases communication satisfaction among coworkers (see section 2.7.1). This

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thesis's findings show a significant causal relationship between diversity and interpersonal

communication satisfaction. These findings support the previous literature.

5.2.2 Cultural Diversity Did Not Influence Perception of Task Conflict but

Significantly and Negatively Influenced Perception of Relationship

Conflict.

The research of Blau(1977) showed that cultural diversity has negative effects on

interpersonal interactions. In-group or out-group identities in a team can be very confusing

for group members when they face different categories of cultures (Alexander, et al., 1995).

In very diverse groups, the level of cooperation decreases but relationship conflict increases

significantly (Williams & O'Reilly, 1998). Empirical research shows that diversity within

workgroups increases relationship conflict (Acar, 2010; Brief, et al., 2005; Chuang, et al.,

2004; Earley & Mosakowski, 2000; Jehn, 1994; Jehn, et al., 1999; Mohammed & Angell,

2004; Pelled, 1996; Pelled, et al., 1999; Vodosek, 2007; Williams & O'Reilly, 1998).

Research showed that other categories of diversity like educational background,

knowledge, goals, values or missions cause task conflict (Chuang, et al., 2004; Jehn, 1994;

Jehn, et al., 1999).Empirical research among software engineers also shows that differences

in educational background, information and knowledge causes task conflict but not

relationship conflict (Liang, Jiang, Klein, & Liu, 2010). This research also demonstrated that

demographic diversity only affects relationship conflict (Liang, Jiang, Klein, & Liu, 2010).

A significant causal relationship was found between diversity and relationship conflict

and a non-significant relationship between cultural diversity and task conflict. The findings

support the previous literature.

5.2.3 Cultural Intelligence Positively Influenced Perception of Communication

Satisfaction Between Co-Workers.

Regarding the discussion in Chapter 2 (section 2.12), individuals with higher levels of

cultural intelligence are expected to have more positive relationships with other individuals in

a multicultural setting (Earley & Ang, 2003). In addition, more culturally intelligent

individuals show themselves to be more agreeable, cooperative and understanding (Digman,

1990; Kim, et al., 2006). Therefore, it was hypothesized that because individuals with higher

level of cultural intelligence show more cooperative behaviors they should be more satisfied

with their interpersonal communications (Ang, et al., 2006).

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The result of the analysis in Chapter 4 (section 4.4) showed that the hypothesized

positive relationship between cultural intelligence and communication satisfaction was

significantly supported only for CQ-1 (meta-cognitive and motivational dimension). The

results of the analysis showed no causal relationship between CQ-2 (cognitive) / CQ-3

(behavioral) and communication satisfaction. As Ang et al. (2007) suggest, specific

dimensions of CQ have specific effects on different outcomes.

For example, one empirical study shows that only meta-cognitive CQ and behavioural

CQ affect task performance (Ang, et al., 2007). In addition, research demonstrated that only

motivational CQ affects work adjustment(Chen, Kirkman, Kim, Farh, & Tangirala, 2010),

cross-cultural adjustment/ intercultural communication(Templer, et al., 2006) and

intercultural interactions(Deci & Ryan, 2008),but not for other dimensions of CQ.

Although the four dimensions of CQ demonstrate the total characteristic of this

competency, each dimension shows its specific capabilities. Meta-cognitive CQ is a special

mental capability that helps individuals to better understand the cultural preferences of others;

it also helps individuals to adjust their mental models during and after their intercultural

interactions(Earley & Ang, 2003). Therefore, it is expected that meta-cognitive CQ affect

interpersonal communication. Meta-cognition is acknowledging but going beyond cultural

stereotypes and making better decisions (Ang, et al., 2007).

On the other hand, cognitive CQ is about having the knowledge of social aspects of

different cultures and behavioral CQ is about demonstrating better situational behaviors. We

do not predict the relationships for cognitive CQ and behavioural CQ with communication

satisfaction because the logical processes involved in reasoning about communication

satisfaction do not need the basic knowledge (cognitive CQ) or displaying appropriate

behaviours (behavioural CQ) while individuals need only to enjoy the interpersonal

interaction(Hecht, 1978a).

5.2.4 Cultural Intelligence Did Not Influence Perception of Task Conflict but

Negatively Influenced Perception of Relationship Conflict.

The results of the analysis showed no relationship between CQ dimensions and task

conflict. This finding was supported by previous literature as mentioned in Chapter 2

(section ��). By categorizing interpersonal conflict through social process theory,

individuals with cooperative behaviors perceive less interpersonal conflict(Schellenberg,

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1996). In addition, individuals with higher levels of cultural intelligence show more

cooperative behaviors (Ang, et al., 2006). Therefore, it is expected that, in a culturally diverse

setting, cultural intelligence can be an effective competency to manage interpersonal

relationship conflict. The argument is that, in highly diverse workgroups, individuals with

higher levels of cultural intelligence perceive less relationship conflict than those individuals

with lower levels of cultural intelligence. Because the effect of cultural intelligence is on an

individual’s behavior and motives to deal with others and not on an individual’s goals, it is

expected that CQ will definitely have no effect on task conflict.

A negative relationship was also found between CQ-1 (meta-cognitive and motivational

dimension) and relationship conflict. Relationship conflict is about incompatibility between

an individuals’ personality or emotions (Simons & Peterson, 2000) or any interpersonal

clashes (Pelled, et al., 1999). If more culturally intelligent individuals show themselves as

having more understanding and sympathy they shall face less interpersonal clashes(Digman,

1990; Kim, et al., 2006).

As mentioned before, Ang et al. (2007) suggested that specific dimensions of CQ have

specific relations with different outcomes. Kanfer and Heggestad(1997) suggested that

motivational CQ controlled cognition and behaviour that facilitated goal accomplishment.

People with high motivational CQ show a strong appeal in other cultures to try to handle

culturally diverse situations (Ang, et al., 2007). Deci and Ryan (2008)stated that individuals

with high motivational CQ adjust their attitudes and behaviors to make successful

intercultural interactions. Xiao-Ping(2012)also suggested that individuals with high

motivational CQ show more interest to understand other cultures and establish stronger

interpersonal relationships. Individuals with high meta-cognitive CQ know when to re-correct

their judgment and are assumed to perceive less relationship conflict(Triandis, 2006).

Therefore, we expect motivational CQ to affect relationship conflict.

As Earley and Ang (2003) stated, cognitive CQ is not be expected to relate to cultural

adaptation. The reason is that cognitive capabilities do not necessarily bring out interaction

motives (Earley & Ang, 2003). An empirical study (Hall, 1993)among service industry

employees showed that cognitive training did not have a significant causal relationship with

cultural adjustment. Also, because relationship conflict is about the differences of

personalities or emotions among individuals, it is expected that behavioral CQ and cognitive

CQ will not affect the relationship conflict directly (Pinkley, 1990).

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5.2.5 The Level Of Cultural Diversity Moderated the Effects of Cultural

Intelligence on Perception of Communication Satisfaction.

As mentioned in Chapter 2 (section ��), Rockstuhl et al. (2011) suggested that CQ

effects on any outcome should be considered just in moderate to high culturally diverse

settings. The results of the analysis in Chapter 4 (section 4.4), supported by previous

literature, showed that there was an interaction between CQ-1 and diversity on level of

communication satisfaction.

As mentioned in Chapter 5 (section 5.2.3), the relationships for cognitive CQ (CQ-2)

and behavioural CQ (CQ-3) with communication satisfaction was not supported. However, it

was found that CQ-2 (cognitive) and CQ-3 (behavioral) variables did not significantly

interact with cultural diversity as proposed in hypothesis 2a.By considering CQ-2 and CQ-3

as independent variables (IV) and communication satisfaction as the dependent variable

(DV), the simple relationship between IV and DV was not established (Chapter 5, section

5.2.3). Therefore, the moderating effect of diversity was not be found. So, only hypothesis 3a

for CQ-1 was significantly supported.

5.2.6 The Level of Cultural Diversity Did Not Influence the Relationship

Between Cultural Intelligence and Perception of Task Conflict.

Regarding hypothesis 2b, because the main causal relationship between CQ dimensions

and task conflict was not found, it was expected that this moderating effect would not be

found as well.

5.2.7 The Level Of Cultural Diversity had a Moderating Effect on the

Relationship Between Cultural Intelligence and Perception of

Relationship Conflict.

As mentioned in Chapter 2 (section ��), CQ should only be associated with conflict

(as an outcome of individual’s interactions) in relatively moderate to high culturally diverse

groups and organizations(Groves & Feyerherm, 2011; Rockstuhl, et al., 2011).

The results of the analysis in Chapter 4 (section 4.4), supported by previous literature,

showed that there was an interaction between CQ-1 and diversity on relationship conflict. As

mentioned in Chapter 5 (section 5.2.4), we do not expect cognitive and behavioral CQ to be

related to cultural adaptation because cognitive capabilities do not necessarily translate into

understanding expectations and motives to interact (Earley & Ang, 2003). Also, because

relationship conflict is about the differences of personalities or emotions among individuals

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(Pinkley, 1990), it is expected that behavioral CQ does not affect the relationship conflict

directly, too. Therefore, the relationships for cognitive CQ (CQ-2) and behavioural CQ (CQ-

3) with relationship conflict (chapter 5, section 5.2.4), were not supported. By considering

CQ-2 and CQ-3 as independent variables (IV) and relationship conflict as the dependent

variable (DV), the simple relationship between IV and DV was not established (section

5.2.4). Therefore, the moderating effect of diversity was not found for the relationship

between CQ-2/CQ-3 and relationship conflict. So, hypothesis 3a was significantly supported

only for CQ-1.

5.3 Implications for Theory and Practice

This thesis contributes to deeper understanding of cultural intelligence and its

consequences on individuals’ perceptions of interpersonal conflict and communication

satisfaction. Several important contributions in this thesis are introduced in the following

sections.

5.3.1 Contribution to Theory

Although the effect of cultural intelligence on individuals’ psychological and

organizational outcomes has been mentioned before in the literature, there are still few

empirical studies around cultural intelligence and its implications(Ang, et al., 2006; Elenkov

& McMahan, 2005; Imai & Gelfand, 2010; Kim, et al., 2006; Templer, et al., 2006).

Therefore, this thesis introduces a new perspective.

The findings of this thesis provide many implications for the concept of cultural

intelligence. First, this research examines the effect of cultural intelligence on an individual’s

perception of interpersonal conflict especially in the contexts with moderate to high levels of

cultural diversity. The findings also show that cultural intelligence only reduces the

perception of relationship conflict and has no effect on the perception of task conflict.

Second, the importance of interpersonal communication in the engineering occupation

has been highlighted in previous research (Beaufait, 1991; Bjorklund & Colbeck, 2001;

Denton, 1998; Yu & Liaw, 1998). In addition, research (Hecht, 1978b; Honeycutt &

McCann, 2008) shows the importance of interpersonal communication satisfaction among

coworkers and its psychological outcomes. The findings of this thesis support the positive

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effect of cultural intelligence on interpersonal communication satisfaction in moderate to

high diverse settings.

Third, limited research (Groves & Feyerherm, 2011; Rockstuhl, et al., 2011) has

examined the moderating effects of the level of diversity on the relationship between CQ and

any individual outcome. This thesis has taken the moderating effect of level of diversity into

consideration.

Fourth, the findings of this thesis demonstrate that not all of the CQ dimensions

correlate with individual outcomes. Therefore, it is very important for organizations to

support the conditions that develop the meta-cognitive and motivational CQ. Research (Deci

& Ryan, 2008; Xiao-Ping, 2012) demonstrates the importance of motivational CQ on

intercultural interactions. As intercultural interactions are becoming the norm in today’s

workplaces (Earley & Ang, 2003), incorporating motivational CQ into organizational

competencies and investing in multicultural competencies can be worth doing. Therefore, the

proposed model has been updated to show the findings.

Figure 5.1 The supported hypotheses

• Meta-Cognitive CQ

• Motivational CQ

Outcomes:

•Communication Satisfaction

•Relationship Conflict

Cultural Diversity

5.3.2 Contribution to Practice

The findings of this thesis also have practical implications for the selection of

employees in multinational engineering firms. First, Human Resource Managers should

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consider the meta-cognitive and motivational competencies of job applicants before assigning

them to multicultural environments.

Second, when the level of diversity increases in a workgroup it is crucial to manage

interpersonal interactions(Gross, 2002). As Earley and Ang(2003) pointed out, cultural

intelligence requires cognitive, affective, and behavioural training. To make a person

culturally intelligent, they require behavioural modification training to increase the

probability of desirable behaviours and decrease the probability of undesirable

behaviours(Paige & Martin, 1996). Human resource management in each organization can

decide on the necessity for cultural intelligence training for workgroups, targeting this

training only at workgroups with moderate to high levels of diversity.

Third, the findings also show the positive effect of length of work experience outside

country of residency on individuals' level of cultural intelligence (see Table 4.3). Therefore,

besides cultural intelligence training, employees can be sent to other countries to gain

international experience.

This study will have important implications for the need for training. By examining the

knowledge structures, some exercises such as role-plays to maintain behavioural flexibility

can be useful (Earley & Peterson, 2004). Hofstede(2002) also suggested that asking questions

about other cultures, interacting more with people and participating in different practices in

order to increase our knowledge of other cultures is necessary. The training should focus on

increasing the individual’s meta-cognition and motives because this thesis shows that the two

other dimensions of cultural intelligence (cognitive and behavioural) do not play a significant

role in decreasing the perceived relationship conflict or increasing the interpersonal

communication satisfaction.

5.4 Limitations and Implications for Further Research

First, the number of constructs that were examined in this thesis was limited to five

(cultural intelligence, perception of relationship conflict, perception of task conflict,

interpersonal communication satisfaction, cultural diversity), to avoid participant fatigue. It is

recommended future research extend the findings by examining other outcomes of cultural

intelligence. These outcomes can include performance in cross-cultural negotiations, conflict

management in multicultural contexts and the required skills for working on global teams.

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The second limitation is the national scope of the research. Although the research was

conducted in eleven companies in a limited number of countries (Australia, New Zealand,

United States and Iran), the cross-validation of the CQ scale in different cultural contexts

should be considered for further research with much larger samples.

Across-sectional study lets the researcher examine the relationship between variables

when there is no time ordering among the variables. The problem is that with cross-sectional

design, the direction of causal influence is not certain because the features of experimental

design are not available (Bryman & Bell, 2003). Because of the nature of cross-sectional

research design, the results are carried out at one time point and give no indication of the

sequence of events.

In addition, the effect of the other party in the conflict situation, the effect of the

context to measure the intensity of conflict and the effect of the department manager in team

selection has not been considered. These are areas where further research would be valuable.

Because the research is based on self-reporting, the common problem of social desirability

bias may happen as well.

Another limitation of this research was the fact that gathering data from the human

resource departments of the sample organizations was not successful. Therefore, lack of

demographic information about the whole population of employees in each company did not

allow the researchers to measure objective diversity and only perceived diversity was

measured. Although the recent literature about diversity emphasizes measuring the perceived

level of diversity between group members rather that the objective measurement of diversity,

it is recommended for future research to measure both perceived and objective level of

diversity and compare the consequences(Acar, 2010; Harrison, et al., 2002; Hobman, et al.,

2003).

The small sample size is subject to sampling error (McDaniel & Gates, 1998). Another

limitation is that this survey has been conducted on a very small population of engineers in

the oil and gas industry. The convenience sampling strategy does not allow the results to be

fully generalized to the whole population of engineers in the oil and gas industry. It is

recommended that future research examine other industries and other occupations besides

engineering with different levels of cultural diversity.

� 104

An important limitation of this thesis is not considering the laws, institutional and

structural conditions that may be present in the engineering occupation in the oil and gas

industry. Special correspondence or communication methods, hierarchical position of

engineers in oil and gas industry may also cause barriers to interpersonal interactions. The

findings support that cognitive and behavioural dimensions of CQ were not affecting

perception of interpersonal conflict and communication satisfaction. Future research should

consider the laws or organizational structure of engineering firms that may place barriers on

or may develop the cognitive and behavioural dimensions of CQ.

In addition, cultural differences across various countries may affect the findings.

Although all the participants were working in multinational firms, the effects of the host

countries’ culture and the effects of the respondents’ cultural dimensions (Hofstede,

1980)have not been considered in this thesis. Future research shouldconsider the cultural

dimensions of the firms’ host country and respondents’ cultural dimensions into

consideration.

Finally, organizational culture of the surveyed companies has not been considered in

this thesis and this can have a considerable effect on individuals' interpersonal interactions. It

is recommended to future research to consider the possible effects of norms, values and

organizational culture, as well.

5.5 Conclusions

Section 5.2 reviewed the research hypotheses and their results. The aim of this section

is to summarize the results of the research problems that were introduced in Chapter 2.

The first research problem was whether cultural intelligence can influence interpersonal

conflict and communication satisfaction. When cultural backgrounds are different, it takes

time for co-workers to understand how they can maintain their relationships with other

colleagues. It was hypothesized that being aware of cultural norms and values and behaving

correctly (being culturally intelligent) can reduce the possibility of interpersonal relationship

conflicts and increase communication satisfaction.

The results (section 4.4) provided some evidence that meta-cognitive and motivational

dimensions of CQ can help individuals to feel less relationship conflict and feel more

satisfied from their daily communications with co-workers. In this research, the other two

� 105

dimensions of CQ (cognitive and behavioral) were not shown to validate the proposed model.

One important reason could be the organizational cultures. All the eleven companies were

engineering companies in oil and gas industry. As the research of Gordon (1991) showed, the

organizational culture is strongly influenced by the industry in which the organization

operates. This research argued that there are some certain industry-driven cultural elements

that all the companies in that industry share(Gordon, 1991). These industry-driven cultural

elements make organizational cultures look alike. Therefore, the reason for the influence of

only two dimensions of CQ on perceived interpersonal conflict and communication

satisfaction maybe the industry-driven culture of the selected companies. In addition, as

mentioned before, 64.5 per cent of the respondents were Iranian engineers working in other

countries. The cultural values of this larger group of respondents might be another important

factor which affected the results.

The other important result was the moderating effect of the level of cultural diversity

on the relationship between CQ and its outcomes. Following previous research, this thesis

examined the situational effect of the level of cultural diversity that was supported by the data

analysis in section 4.4(Groves & Feyerherm, 2011; Rockstuhl, et al., 2011). As mentioned in

section ��, in evaluating the effect of diversity, it is important to specify the perceived

diversity between group members rather than the objective measurement of diversity(Acar,

2010; Harrison, et al., 2002; Hobman, et al., 2003). Another important point in considering

the moderating effect of diversity is that this thesis used perceived diversity rather than

objective diversity.

Participant demographics were also controlled. Controlling for gender, education and

company size did not show any effect on the level of cultural intelligence while controlling

for age and expatriate experience did indicate a strong relationship with cultural intelligence.

� 106

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Appendix A: The Online Survey

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QUT ethics approval number 1100000726

Principal Researcher

MahshidTootoonchy, research student, School of Management, QUT Business School. [email protected]

Research Supervisors

Dr. Robin Price &Dr.SukanlayaSawang, QUT Business School

Description

This project is being undertaken as part of Master of Business (Research) for MahshidTootoonchy. Australia has large multinational organizations with highly diverse workforce, many of whom have worked in a number of countries globally. Research shows that cultural background influences individuals' communication and conflict management styles. The purpose of this project is to investigate how an individual's cultural background and style of conflict management, as well as work experience influence their psychological outcomes in order to help them to improve their negotiation/problem solving skills.

You are invited to participate in this project because you are currently a part of this diverse workforce.

Participation

Your participation in this project is entirely voluntary. If you do agree to participate, you can withdraw from the project at any time without comment or penalty. Any identifiable information already obtained from you will be destroyed. Your decision to participate, or not participate, will in no way impact upon your current or future relationship with QUT or your company.

Participation will involve completing a 5 page survey that will take approximately 10 minutes of your time. If you agree to participate you do not have to complete any question (s) that you are uncomfortable answering.

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Expected Benefits

It is expected that this project will not directly benefit you, however, it may benefit your company to know how inter cultural conflict affects its employees and may take steps to generate greater cultural understanding between employees.

Risks

There are no risks beyond normal day-to-day living associated with your participation in this project.

Privacy and Confidentiality

All comments and responses are anonymous and will be treated confidentially.

Consent to Participate

The return of the completed questionnaire is accepted as an indication of your consent to participate in this project.

Questions / further information about the project

If you have any questions or require any further information about the project, please contact one of the research team members below:

Dr. Robin Price, School of Management, QUT Business School, phone 3138 2790,

email: [email protected]

Dr.SukanlayaSawang, School of Management, QUT Business School, phone 3138 1294,

email: [email protected]

Concerns / Complaints Regarding the Conduct of The Project

QUT is committed to research integrity and the ethical conduct of research projects. However, if you do have any concerns or complaints about the ethical conduct of the project you may contact the QUT research ethics unit on [+61 7] 3138 5123 or email [email protected]. The QUT research ethics unit is not connected with the research project and can facilitate a resolution to your concern in an impartial manner.

Thank you for helping with this research project.

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PART A: Instructions

These questions ask about any recent thoughts you may have had about your current job. Please

pick the most appropriate answer.

None Little Somewhat Much A lot

1. How much friction is there

among members in your work unit?

2. How much are personality

conflicts evident in your work unit?

3. How much tension is there

among members of your work unit?

4. How much emotional conflict is

there among members in your work

unit?

5. How frequently are there

conflicts about ideas in your work

unit?

6. How often do people in your

work unit disagree about opinions

regarding the work being done?

7. How much conflict about the

work you do is there in your work

unit?

8. To what extent there are

differences of opinion in your work

unit?

PART B: Instructions

The purpose of this questionnaire is to investigate your satisfaction from your conversations with

your co-workers. Imagine your latest conversation and please indicate the degree to which you

agree or disagree.

Strongly

DISAGREE DISAGREE

Slightly

DISAGREE Neutral

Slightly

AGREE AGREE

Strongly

AGREE

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1. The other person let me know

that I was communicating

effectively.

2. Nothing was accomplished.

3. I would like to have another

conversation like this one.

4. The other person genuinely

wanted to know me.

5. I was very dissatisfied with the

conversation.

6. I felt that during the conversation

I was able to present myself as I

wanted the other person to view

me.

7. I was very satisfied with the

conversation.

8. The other person expressed a lot

of interest in what I had to say.

9. I did NOT enjoy the

conversation.

10. The other party did not provide

support for what he / she were

saying.

11. I felt I could talk about

anything with the other person.

12. We both got to say what we

wanted.

13. I felt that we could laugh easily

together.

14. The conversation flowed

smoothly.

15. The other person frequently

said things which added little to the

conversation.

16. We talked about something I

was NOT interested in.

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Part C: Instructions

Read each statement and select the response that best describes your abilities. Select the answer

that BEST describes you AS YOU REALLY ARE!

Strongly

DISAGREE DISAGREE

Slightly

DISAGREE Neutral

Slightly

AGREE AGREE

Strongly

AGREE

1. I am conscious of the cultural

knowledge I use when interacting

with people with different cultural

backgrounds.

2. I adjust my cultural knowledge

as I interact with people from a

culture that is unfamiliar to me.

3. I am conscious of the cultural

knowledge I apply to cross-cultural

interactions.

4. I check the accuracy of my

cultural knowledge as I interact

with people from different cultures.

5. I know the legal and economic

systems of other cultures.

6. I know the rules (e.g.,

vocabulary, grammar) of other

languages.

7. I know the cultural values and

religious beliefs of other cultures.

8. I know the marriage systems of

other cultures.

9. I know the arts and crafts of

other cultures.

10. I know the rules for expressing

non-verbal behaviors in other

cultures.

11. I enjoy interacting with people

from different cultures.

12. I am confident that I can

socialize with locals in a culture

that is unfamiliar to me.

13. I am sure I can deal with the

stresses of adjusting to a culture

that is new to me.

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14. I enjoy living in cultures that

are unfamiliar to me.

15. I am confident that I can get

used to the shopping conditions in a

different culture.

16. I change my verbal behavior

(e.g., accent, tone) when a cross-

cultural interaction requires it.

17. I use pause and silence

differently to suit different cross-

cultural situations.

18. I vary the rate of my speaking

when a cross-cultural situation

requires it.

19. I change my non-verbal

behavior when a cross-cultural

situation

20. I alter my facial expressions

when a cross-cultural interaction

requires it.

Part D : Demographic information

What is your Organization/ Department / Work Unit name?

Your age (years)?

Your gender?

Male

Female

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In which country are you living/working right now ? (years)

How long have you lived outside of the country of your residency?(years)

Your ethnicity (country of birth):

Your father’s ethnicity:

Your mother’s ethnicity:

How many people are in your work unit (Approximately) ?

Less than 10 10 to 20 20 to 30 30 to 50 more than 50

Within your work unit, there may be many people that do not have the same nationality as yours.

In your opinion, how would you rate the cultural/national diversity in your work unit?

None A few Some A lot Too much

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Your highest level of education:

High school or

below

Certification/Diploma

Bachelor

degree

Master degree or

higher

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Appendix B: Ethics Clearance Form

conflict and communication among...

Documents