The impact of cultural intelligence on communication effectiveness, job satisfaction and anxiety for Chinese host country managers working for foreign multinationals
Publication typeArticle in academic journal
JournalInternational Journal of Human Resource Management
Publication Begin page2068
Publication End page2087
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AbstractIn the last two decades, the private sector has contracted a substantially larger share in the total amount of foreign-currency international debt (private sector share of external debt), especially in developing countries. In this paper, I empirically examine the effect of this phenomenon on bank loan prices. I find that the private sector share of external debt negatively and significantly impacts the price of bank loans. This result supports the hypothesis that private sector debt contributes to international financial stability to a greater degree than sovereign debt. Nevertheless, this impact is canceled out in the presence of fixed exchange regimes that are unsuitable with respect to fundamentals. In such circumstances, the private sector may take advantage of capital market distortions that are maintained by official authorities and thus exposes the country to further financial instability. Additional results corroborate the observation that the gain in financial stability stems from more efficient use of funds and reduced monitoring costs.
Cultural intelligence (CQ) is an important construct attracting growing attention in academic literature and describing cross-cultural competencies. To date, researchers have only partially tested the relationship between CQ and its dependent variables, such as performance. In this study, the relationship between CQ and communication effectiveness and job satisfaction is measured in a sample of 225 Chinese managers working for foreign multinational enterprises in China. The results show that CQ plays an important role in reducing anxiety and influencing both communication effectiveness and job satisfaction positively. Another outcome is the unexpected influence of anxiety on job satisfaction but not on communication effectiveness. These findings contribute to the development of theory with regard to the CQ construct.
KeywordAnxiety, China, Communication Effectiveness, Cultural Intelligence, Job satisfaction, Performance
Knowledge Domain/IndustryPeople Management & Leadership