The Effects of Cultural Intelligence on Leadership Effectiveness in Multinational Organizations

Nowadays, businesses must think big. It is not enough to be the best in the city or even the country. The goal should be to go global and take advantage of the opportunities offered by the phenomenon of globalization and be part of the “global market”. This is rather ambitious but some companies have stepped out their country’s borders and have gained global recognition.

Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9.500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company. This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization

Businesses continually adapt to a changing environment to maintain their market position (Appelbaum, Habashy, Malo, & Shafiq, 2012; Biedenbacha & Soumlderholma, 2008). Change is inevitable considering the current rate of technological advancement and the growth in global competition (Appelbaum et al., 2012; Armenakis & Harris, 2009; By, 2007). Increasing competition and the need for strategic flexibility and globalization is affecting almost every organization today, regardless of size, market, focus, and so on (Jaros, 2010).

The following paper will discuss the author’s understanding of the four areas of cultural intelligence (CQ): drive, knowledge, strategy and action. It will further describe how CQ specifically affects the author, their personal CQ knowledge and information that could increase this knowledge.

There are a number of specific cultural leadership skills needed for effective cross-cultural leadership, with cultural metacognition being essential. Leaders with high cultural intelligence skills are able to

If I were the CEO of a multinational corporation in the 21st century, it would be critical for me to develop and employ a cross cultural approach to the leadership in consultation with Hofstede's Five Cultural Dimensions. Though I have prior knowledge of management theories and other examples of Hofstede's work, "Cultural Constraints in Management Theories" (1993) was a welcomed shock and surprise. One of the aspects of the article that struck me the most was the clear demonstration of the singularity of the American style, perspective, and application of management in the workplace. This fact made it abundantly clear to me, that as the CEO of a hypothetical multinational corporation, that it is imperative for the sake of my financial success, professional reputation, and for the sake of all my employees, I must not implement the American style of management as part of the leadership practice.

Cultural differences between countries have strong effects on individual personality and behavior, as well as on organizational culture (Hofstede 2001). These differences can be a significant barrier for an international business leader. Failure to understand and adapt to these differences may

The Project GLOBE (Global Leadership and Organizational Behavior Effectiveness). The GLOBE research followed in Hofstede 's footsteps yet also searched for additional dimensions (Cater, Lang & Szabo, 2013, p. 446) as depicted and defined on Table II. In light of the GLOBE findings, earlier conceptualisations of culture have been reconsidered with respect to the impact of culture on leadership (Dickson et al., 2012 as cited in Cater et al., 2013, p. 447). GLOBE researchers introduced twnety one first-orderr “primary leadership dimensions” which were then condensed in six second-order “global leadership dimenions” that are charismatic/value-based, team-oreinted, participative, human-oreinted, autonomous, or self-protective (Cater et al., 2013, p. 450).

Ambrose, Koh, Gregory and Moran conducted research on cultural intelligence of international managers, especially in the IT industry therefore the attention will be drawn to their works as well. Cultural differences can be among the reasons for

The increasing of global and diverse contexts nowadays, Cultural Intelligence has played a significance role to the people and organizations especially global organizations that have to deal with variety of people. Cultural Intelligence differs from IQ and EQ because it is a critical capability that enhances an individual’s success in cross-cultural settings and it can grow and develop over time. It is importance for us to be aware of our own Cultural Intelligence as well as the cultural Intelligence of others. At first we need to identify what is the cultural intelligence.

Organization wants to achieve the objectives of sustained growth and increased profitability, organization must constant innovation its product or service, also need to carry out some plans to expand its business to enable an organization to have a better development. Organization expands its business cannot be confined to the domestic market must also move abroad, which effectively allows an organization closer to the global market and broadening the scope of business and profitability. However, business expansion is not as easy in this global environment, globalization has not only changed the enterprise competitive landscape also influence the way leaders conduct business (Caligiuri, 2006). Furthermore, with globalization, global leadership in terms of cultural knowledge needed to become more acute and require more advanced level of cognitive ability on the complexity of managing the demand of multiple cultures while completing managerial tasks (Caligiuri, 2006, Grosse, 2011). Therefore, the development of global management skills is very important for the global organizations and managers. Only effective in developing global management skills can help the organization reduce the risk of international business

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In times of rapid globalisation and economic development growth, the environment of business has become more and more complicated as a huge number of firms want to globally expand their businesses. Subsequently, the managerial implications of cross-cultural management is the challenge of this development. As Abbe (2007) states, cross-cultural leadership has developed as a way to understand leaders who work in the global markets. Culture is the “software of mind” that can influence people’s patterns of thinking and behaving.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

Coca-Cola, a multi-national beverage corporation and manufacturer, started as a medicine sold in a small pharmacy that John Pemberton made in his backyard. This brand grew world wide through strategic marketing and affective global management. Managing a company globally is a tough task because there are several factors that affect a global workforce. The first challenge one may think of when determining the factors that affect the management of a global workforce may be the difference in language. This factor is actually small when compared to other differences needing to be addressed when businesses plan to become multinational. Major factors may include the differences in