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International Journal of Intercultural Relations 35 (2011) 246–258

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International Journal of Intercultural Relations


journal homepage: www.elsevier.com/locate/ijintrel

Training Section

The relationship between cultural intelligence and performance with


the mediating effect of culture shock: A case from Philippine laborers
in Taiwan
Angela Shin-yih Chen a , Yi-chun Lin b,∗ , Airin Sawangpattanakul c
a
Chang Gung University, 259, Wenhua 1st Road, Kwei-Shan, Taoyuan 333, Taiwan
b
National Taiwan Normal University, 2, Sec. 1, Ren-ai Rd., Linkou Township, Taipei County, Taiwan
c
National Chung Hsing University, Taichung, Taiwan

a r t i c l e i n f o a b s t r a c t

Article history: This purpose of the present study was to explore the role of cultural intelligence (CQ) and
Accepted 3 September 2010 its effect on performance of foreign laborers. We also examined the mediating effect of
culture shock on the relationship between CQ and performance. Data were collected from
Keywords: Philippine laborers working in Taiwan. A paper-based survey, with a return rate of 76.4%,
Culture intelligence was completed by 382 Philippine laborers working in Taiwan’s manufacturing industries.
Culture shock
The results showed that CQ was positively related to the performance of Philippine laborers
Performance
and negatively related to culture shock. In addition, we found that culture shock partly
Foreign laborers
mediated the relationship of CQ and performance. These findings suggested that CQ can
serve as a predictor for cross-cultural effectiveness. Implications for practice and direction
for future research are offered.
© 2010 Elsevier Ltd. All rights reserved.

1. Introduction

Today, rapid advances in technology and communication have created a global economy (Friedman, 2006). In this global
marketplace, people have many opportunities to choose employment in different countries. As such, the socio-demographic
factors such as race, religion and sex that already make for a multi-faceted workforce in a given organization can be exac-
erbated by the factor of nationality. Employees can find themselves working in a newly diverse cultural environment. This
phenomenon has required many organizations and individuals to meet the challenges of cultural diversity (Crocker, 2002;
Earley, Ang, & Tan, 2006; Stiglitz, 2003).
In order to diminish the problems caused by cultural diversity in the workplace, employees must be open to interacting
with colleagues who are from different cultures, and they must have the ability to build interconnections with people who
are different from them. In other words, when employees understand cultural differences in the workplace, they are more
apt to accept them. This kind of intelligence can be an index for the capability to effectively adapt to new cultural contexts.
Earley and his colleagues introduced the construct of cultural intelligence (CQ) to explain differences in the effectiveness
of individual interactions across cultures (Earley, 2002; Earley & Ang, 2003). Individuals with a higher CQ can more easily
navigate and understand unfamiliar cultures and adjust their behaviors to perform effectively in culturally diverse situations
(Earley & Ang, 2003; Earley & Mosakowski, 2004; Rosen, Digh, Phillips, & Rosen, 2000).

∗ Corresponding author. Tel.: +886 2 7714 8656.


E-mail addresses: angelanchu2@gmail.com (A.S.-y. Chen), lin.hrd@ntnu.edu.tw, axc176@gmail.com (Y.-c. Lin), guycmu@hotmail.com
(A. Sawangpattanakul).

0147-1767/$ – see front matter © 2010 Elsevier Ltd. All rights reserved.
doi:10.1016/j.ijintrel.2010.09.005
A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258 247

However, not everyone has the intelligence to adjust effectively in a cross-cultural workplace. Extensive research has
shown that 16–70% of expatriate assignments end in failure. Most expatriates suffer from problems of adjustment and
culture shock (Black & Gregersen, 1999; Black, Gregersen, Mendenhall, & Stroh, 1999; Black, Mendenhall, & Oddou, 1991;
Naumann, 1992; Rose, Kumar, & Subramaniam, 2008). These problems cause uncertain feelings, personal and professional
stress, frustration and confusion, and result in differences in behavioral expectations (Black & Gregersen, 1991a, 1991b).
These problems occur not only among international expatriates, but also among foreign laborers. Increasingly, foreign
laborers are being hired to work in the global marketplace. They move from country to country to fill the demand for labor.
In most countries, the labor workforce is becoming increasingly heterogeneous. As with expatriates, these workers face
intercultural problems in their daily life as well as on the job. Taiwan provides a good example. Taiwan is one of the countries
that has opened its labor market in order to solve the problem of a labor shortage, particularly in its manufacturing and
construction industry sectors since 1992 (CLA, 2002; Lan, 2003). In May 2010, there were a total of 364,789 foreign laborers in
Taiwan. The majority of foreign laborers in Taiwan are from Southeast Asian countries such as Indonesia (147,723 workers),
Vietnam (78,875 workers), the Philippines (75,668 workers), and Thailand (62,512 workers)2 . Among those foreign laborers
in Taiwan, Philippines laborers have a higher proportion of workers who are older and have college degrees, and most are
employed in Taiwan’s manufactory industry (Lan, 2003).
Foreign laborers in Taiwan suffer many on-the-job problems: missing work time with no excuses, performing their jobs
at a much slower pace than normal, neglecting orders by managers, misconduct, and low morale. Those kinds of behaviors
have strong impact on their performance. In a paper by Tsai and Yu (1998), foreign laborers perceived that such behaviors
had an influence on their productivity and created conflicts with employers and fellow employees.
If foreign laborers gain an appreciation for cultures different from their own, then they could possibly solve these problems
easily, decrease their culture shock and avoid the chances for conflict with employers and fellow employees when they work
in a different country or culture. Hence, cultural shock is viewed as fundamental, and expatriates or foreign laborers must
somehow overcome the social and psychological differences between his or her own cultural perceptions and those of the
new environment in order to interact socially. Culture shock is regarded as a transitional experience and a mechanism to
cross-culture effectiveness either in a work setting or a non-work environment in the host country.

1.1. Research problem

Employees’ intelligence or ability to perform effectively and efficiently in different cultures and environments has been
increasingly recognized as very important. This intelligence is defined as CQ, which is another complementary form of
intelligence. CQ is composed of four dimensions: meta-cognitive CQ, cognitive CQ, motivational CQ, and behavioral CQ
(Ang, Van Dyne, & Koh, 2006; Ang et al., 2007; Earley & Ang, 2003). In the past, researchers primarily focused on CQ with
respect to conceptual theory (Sternberg & Grigorenko, 2006) and by further development of a construct of CQ. Recent
empirical research has a diverse set of individual difference constructs which could be related to CQ (Ang et al., 2006). For
example, the relationship between CQ and the Big Five personality traits was demonstrated by Ang et al. (2006). A later
study found that motivational CQ was significantly related to cross-cultural adjustment (Templer, Tay, & Chandrasekar,
2006). The more updated study examined the effects of CQ on cultural adjustment, decision making, cultural adaptation,
and task performance (Ang et al., 2007). However, as many previous researchers recommended that CQ should continue
to be validated, they applied it in wider and broader contexts. It is critical to examine CQ as a multidimensional con-
struct with differential relationships and specific intercultural effectiveness outcomes (Ang et al., 2007; Templer et al.,
2006).
In addition, dozens of academicians and researchers have written about and studied many topics on cross-culture adjust-
ment or adaptation (Black, 1990; Furnham & Bochncr, 1986; Harrison, 1994; Hisam, 1997; Mumford, 1998; Oberg, 1960;
Winkelman, 1994) and measured the relationship between culture shock and adjustment as well as confirmed this sig-
nificantly negative relationship (Anderson, 1994; Furnham & Bochncr, 1986; Guy & Patton, 1996; Khan & Khan, 2007;
Oberg, 1960; Pires, Stanton, & Ostenfeld, 2006; Selmer, 1999; Sims & Schraederm, 2004; Tsai, 1995; Ward & Searle, 1991;
Winkelman, 1994). Yet, very little attention has been devoted to what is often cited as the primary obstacle to adjustment—the
phenomenon referred to as “culture shock.” Most researchers since Oberg have observed that expatriates do not make suc-
cessful adjustments unless they confront the potentially debilitating effects of culture shock. It is apparent that achieving a
successful expatiate assignment depends on their adjustment to a new culture and requires a successful resolution of culture
shock (Hisam, 1997; Mumford, 1998).
It seems instructive to take a closer look at this troublesome phenomenon of culture shock and its impact on cross-culture
effectiveness. The present study used foreign laborers as a sample in order to study the relationship of CQ with other culture-
related factors in Taiwan. The obtainment of CQ was expected to improve in a cross-cultural environment and there were
different predictions for cross-cultural effectiveness.
The purpose of the present study was to examine the relationship between CQ and performance with culture shock as the
mediating effect when foreign laborers work in a different culture and country. Based on the above statement, the research

2
Statistics are retrieved from the website of Council Labor Affairs, Taiwan (2010). Counseling and Service Website for Foreign Workers Working in
Taiwan (Blue Collar). Bureau of Employment and Vocational training, Council Labor Affairs, Taiwan. http://www.evta.gov.tw/files/57/722048.pdf.
248 A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258

questions were proposed as follows:1. What is the relationship between CQ and performance?2. What is the relationship
between CQ and culture shock?3. What is the relationship between culture shock and performance?4. How do perceptions
of cultural shock affect the relationship between CQ and performance?

2. Theoretical framework and hypotheses

2.1. CQ and performance

The concept of CQ was first described by Christopher Earley and Soon Ang in Cultural Intelligence: Individual Interactions
across Cultures. Earley (2002) and Earley and Ang (2003) introduced the construct of CQ to explain differences in the effec-
tiveness of individual interactions across cultures. CQ is defined as “a person’s capability to adapt effectively to new cultural
contexts,” and, therefore, refers to “a form of situated intelligence where intelligently adaptive behaviors are culturally
bound to the values and beliefs of a given society or culture” (Earley & Ang, 2003, p. 59). Specifically, CQ is composed of
four dimensions: cognitive CQ, meta-cognitive CQ, motivational CQ, and behavioral CQ (Ang et al., 2006, 2007; Earley & Ang,
2003).
Cognitive CQ is defined as an individual’s cultural knowledge about economic, legal, and social aspects of different cultures
and can be acquired from educational and personal experience. People with a higher cognitive CQ have better cognitive-
processing capabilities in a new cultural setting and are able to incorporate new information in order to understand and
interpret new experiences. Hence, they could have better adaptability (Kim & Slocum, 2008). Meta-cognitive CQ is defined as
a person’s mental processing in order to gain awareness and understanding of the appropriate ways of a different culture.
People with a higher meta-cognitive CQ always question cultural assumptions and adjust their mental models to find the
preferred one.
Meanwhile, Motivational CQ is defined as a person’s intrinsic interests and their self-efficacy for cross-cultural adjustment
(Bandura, 1986, 2002; Deci & Ryan, 1985). Individuals with higher motivation in a cross-cultural context are able to gain
more attention and energy for a better performance and have more confidence when accomplishing a given task. Therefore,
a person with a higher motivational CQ tends to have a stronger desire to accept challenges in a new environment and a
greater will to tolerate frustration. This leads to better adaptability. Behavioral CQ is defined as the capability to perform
culturally preferential verbal and non-verbal actions when interacting with people from a different culture. A person with
a higher behavioral CQ gains easier acceptance by the associated group, which helps them develop better interpersonal
relationships.
When working in a cross-cultural environment, expatriates should learn what is expected in their new role and how
to execute those expectations. Stone-Romero, Stone, and Salas (2003) found that expatriates perform poorly in a different
cultural environment when they do not understand the cultural differences required in playing their roles as expected, and,
hence, do not conform to their role expectations. In other words, individuals must increase their cognitive understanding,
motivation, and behavioral performance in order to fulfill role expectations. Accordingly, people who have a high cognitive CQ
would perform well when working in a different culture because of their knowledge of the norms, practices, and conventions
of that culture. With this knowledge and understanding, a worker can formulate appropriate responses and interactions
with host nationals. Campbell (1999) also found knowledge, skills, abilities and motivation to be reliable predictors of job
performance.
Individuals with high meta-cognitive CQ are consciously aware of the cultural preferences of other people before and
during interactions (Ang et al., 2007), and they question cultural assumptions in order to adjust their mental model
during and after interactions (Brislin, Worthley, & MacNab, 2006; Triandis, 2006). Thus, high meta-cognitive CQ individ-
uals can elaborate cultural schema to ensure proper role-playing and to meet their role expectations. In other words,
meta-cognitive CQ determines how individuals apply their cultural knowledge to deal with an expected role and task
performance.
In past research, Kanfer and Heggestad (1997) have proposed that while performing tasks and learning, motivation
can strengthen persistence on task effort and increase efficacy. This is because motivation involves an individual’s beliefs
regarding their general ability to succeed in tasks across different situations and domains. In addition, Judge and Bono (2001)
found that general self-efficacy and self-esteem are both positively related to task performance. Therefore, individuals with
high motivational CQ should have higher performance.
An individual with high behavioral CQ adopts their verbal and nonverbal behavior to meet expectations. They conform
to role expectations in order to maintain a positive self-image (Goffman, 1959). Individuals with high behavioral CQ dis-
play appropriate behaviors based on their verbal and nonverbal capabilities. They can show culturally appropriate words,
tone, gestures, and facial expressions (Gudykunst et al., 1992). By acting or behaving appropriately in a culturally diverse
workplace, an individual will experience a high possibility for success on the job. As Ang et al. (2007) noted with empirical
support, behavioral CQ can predict task performance. According to the above statements, we proposed that CQ and its four
dimensions should positively relate to performance.

Hypothesis 1. CQ positively relates to performance. Specifically, cognitive CQ, meta-cognitive CQ, motivational CQ, and
behavior CQ positively relate to performance.
A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258 249

2.2. CQ and culture shock

Culture shock refers to the anxiety and feelings of disorientation and uncertainty that a person feels when he/she has to
function within a different and unknown culture. Some researchers consider culture shock to be an occupational disease.
Some people recover well and rapidly adjust to the new environment; some do not, and the shock becomes lasting and
debilitating (Christofi & Charles, 2007). Taff (1977) viewed culture shock as a feeling of impotence from the inability to
deal with the environment because of unfamiliarity with cognitive aspects and role-playing skills. According to Black and
Gregersen (1991a), culture shock is an important issue when people leave their familiar environment and are then touched
with an unfamiliar one. Their usual lives are disrupted, which sometimes results in psychological uncertainty. This disorder
is evoked in an effort to reduce the uncertainty occurring in the new setting. This is particularly true when the change is
required or expected, as with employment.
Many factors may influence culture shock. Past studies have found that an individual’s personality characteristics, demo-
graphic factors, and organizational support are the major factors (Sims & Schraederm, 2004). Other studies suggest that
family status, amount of previous international experience, age, and gender are common demographic factors that can
affect culture shock (Black & Gregersen, 1999; Black, Mendenhall, & Oddou, 1991; Mendenhall & Oddou, 1985). Researchers
also suggest that certain personality traits can affect the level of culture shock. Sims and Schraederm (2004) mentioned
that personality traits such as cultural flexibility, ethnocentricity, stress reactions, interpersonal and relational skills, and
willingness to communicate, are most likely to affect a person’s culture shock.
Oberg (1960) stated an aspect of culture shock occurs when expatriates are confused in their roles, role expectations,
values, feelings, or self-identity. This obviously shows that expatriates typically have neither sufficient CQ nor the ability
to deal with the outcome of negative events in a cross-cultural context. We can postulate that individuals with a higher
cognitive CQ will usually suffer less from culture shock. They can use their cognitive CQ to acquire cultural knowledge that
helps to reduce misunderstandings and uncertainty in a cross-cultural context (Black & Mendenhall, 1990). In addition, many
scholars have found that an expatriate’s confidence and willingness to interact with host nationals will aid in a successful
adjustment (Mendenhall & Oddou, 1985; Sims & Schraederm, 2004). Furthermore, Oberg (1960) stated that culture shock
is caused by ineffective intercultural or interpersonal communication. This means that an expatriate’s inability to avoid
culture shock happens through verbal and non-verbal actions when interacting with people from a different culture. Finally,
when people with a higher behavioral CQ are more easily accepted by an associated group, through good relations with their
host national and by gaining social support from networks, they can directly apply this to the resolution of culture shock
(Furnham & Bochncr, 1986). These factors lead us to the second hypothesis:
Hypothesis 2. CQ negatively relates to culture shock. Specifically, cognitive CQ, meta-cognitive CQ, motivational CQ, and
behavior CQ negatively relate to culture shock.

2.3. Culture shock and performance

When individuals start to adapt to a new culture, they are unsure about how to behave appropriately and acceptably.
After a period of time, people gradually realize and distinguish behaviors that are acceptable in their home country but are
not acceptable in the host country. Some behaviors are viewed as offensive in their home country but may be acceptable in
the host country (Black & Gregersen, 1991a). These uncertainties cause people to suffer emotional disturbance, stress, and
anxiety. If uncertain situations last, people may not control their life well, which can lead to depression, isolation and anger.
In theory, the occurrence of uncertain feelings and behaviors is referred to as culture shock.
Cultural shock is an experience in introspection and change. Although the linkage between culture shock and performance
remains a topic with insufficient exploration and previous research has revealed that culture shock is the primary obstacle to
an expatriate’s work adjustment, which means a significant effect from cross-cultural adjustment (Anderson, 1994; Furnham
& Bochncr, 1986; Guy & Patton, 1996; Khan & Khan, 2007; Oberg, 1960; Pires et al., 2006; Selmer, 1999; Sims & Schraederm,
2004; Tsai, 1995; Ward & Searle, 1991; Winkelman, 1994). Guy and Patton (1996) stated that culture shock and cross-cultural
adjustment are the primary determinants of expatriate job performance and turnover. In other words, culture shock is a
pervasive part of the expatriate experience and has a significant negative impact on expatriate performance and turnover.
Hence, expatriates should have an understanding of what impact culture shock and adjustment have on their expatriate
role and performance. Usunier (1998) also demonstrated that culture shock negatively impacts expatriate satisfaction and
performance, particularly when the perspective differs between expatriate managers and host members who manage the
host company. Hence, we propose a negative outcome that lower culture shock can increase higher performance. The
following hypothesis is put forward:
Hypothesis 3. Culture shock negatively relates to performance.

2.4. CQ, culture shock, and performance

Research has demonstrated that knowledge about cultural values is a problem-solving approach to decreasing culture
shock (Winkelman, 1994). As Copeland and Griggs (1985) stated, studying written materials about culture leads to a cognitive
mastery that is the “best antidote” for culture shock. Black (1990) stated that when an individual has an openness to new
250 A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258

or different behaviors and the flexibility to embrace activities enjoyed in the host country, they gain an awareness and
understanding of the appropriate ways of a different culture, which overcomes such culture shock and feelings of isolation,
loneliness and frustration. An individual’s willingness and desire to communicate by using the native language of the host
country helps bring them closer to local people and reduces culture shock. Mendenhall and Oddou (1985) stated that
individuals who have strong interpersonal skills in their home culture tend to experience less culture shock and adjust
better as expatriates than their counterparts with lower levels of interpersonal skills. In particular, they found that the ability
to develop long-lasting friendships with host country nationals is an important factor in overcoming culture shock and in
making a successful overseas adjustment. Winkelman (1994) stated that cultural abilities that make an individual effective
in intercultural communication and adjustment should reduce culture shock, especially those aspects that reduce primary
aspects of culture shock: stress reactions, communication problems, and disrupted interpersonal and social relations. Hence,
possessing a strong cultural competence in the performance of required tasks in a cross-cultural working environment is
viewed as an important factor in resolving culture shock. According to the above research, it seems that the previous relevant
empirical literature on CQ has chronicled its effect on culture shock.
It is logical to say that workers with strong cultural competence and expertise are less likely to suffer culture shock,
and, in turn, that they will experience better performance in their work. Culture shock may cause people a certain amount
of psychological stress and uncertainty, resulting in inappropriate behavior and attitude that can influence job satisfaction
and performance (Black, 1990; Furnham & Bochncr, 1986; Harrison, 1994; Hisam, 1997; Mumford, 1998; Oberg, 1960;
Winkelman, 1994). In fact, culture shock is a normal process of adjustment that affects a foreign worker’s performance. In
other words, culture shock is one of the predictors, or antecedents, of foreign workers’ performance (Guy & Patton, 1996).
Thus, we hypothesize a mediating effect for culture shock on the relationship between CQ and performance.

Hypothesis 4. Culture shock mediates the relationship between CQ and performance.

3. Methods

3.1. Samples and data collection

Our samples were collected from Philippine laborers who all live in labor dormitories or factories near the employer
company and all were first-line operators in high-tech companies located in the central area of Taiwan. Philippine laborers
are the best qualified to be employed by most high-tech companies in Taiwan, because their English proficiency and level of
education are higher on average than laborers from many other countries (Bresnahan, 1979; Lan, 2003; Parrenas, 2001). For
these reasons, they can easily read English instructions on imported machines and equipment and are able to communicate
with local workers to clarify their understanding (Lan, 2003).
When they are on duty during the weekdays, foreign laborers should cooperate with their Taiwanese supervisor and
Taiwanese partners as a work team and usually get along with them for 8–12 h per day. That is a chance to interact with local
people and obtain cultural knowledge. During the weekends and holidays, they are allowed leisure time for entertainment
such as shopping, food tasting, churchgoing, visiting friends, and traveling. They should learn how to interact with local
people apart from their supervisors and colleagues at work.
The questionnaire was developed in English. Most Philippines workers have the ability to read and speak English, because
English is the native language of the Philippines. Prior to data collection, a Philippine translator helped us examine the
appropriateness of the wording and the meaning of each item in the questionnaire. For more than 15 years, this person
serves as a professional English translator in a manpower agency in Taiwan and was responsible for dealing with everything
for Philippine laborers in their daily life. A pilot test was conducted and feedback from the respondents was utilized to
confirm the meanings of the items. The pilot test samples were excluded from the final survey.
The sample data were collected using self-reported and paper-based questionnaires. Five hundred copies of the ques-
tionnaire were distributed directly to the labor dormitories and factories in the year 2009. Within two months, 390 copies
were returned and 382 copies were valid, which resulted in an overall response rate of 76.4% for the present study.

3.2. Measures and variables

3.2.1. Cultural intelligence (CQ)


We adopted the CQ scale developed by Ang et al. (2007). There were a total of 20 items of CQ that were incorporated
in four dimensions of this scale: (1) cognitive CQ: the items asked included “I know the legal and economics systems of
other cultures;” (2) meta-cognitive CQ: the items described included “I am conscious of the cultural knowledge I use when
interacting with people of different cultural backgrounds;” (3) motivational CQ: items included “I enjoy interacting with
people from different cultures;” and, (4) behavioral CQ: items included “I change my non-verbal behavior when a cross-
cultural situation requires it.” All items were rated on a 7-point Likert scale (1 = strongly disagree; 7 = strongly agree). A high
score indicated that a person can better adjust to new cultures, understand local practices, and can behave appropriately
and effectively in other cultures outside their own. The Cronbach’s alpha reliability of the CQ is 0.94 and the four dimensions
of CQ in the present study ranged from 0.83 to 0.92.
A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258 251

3.2.2. Culture shock


We measured culture shock using a 12-item of questionnaire adopted from Mumford (1998). Questions asked included
the following: “Do you feel strain from the effort to adapt to a new culture?”; “Do you ever wish to escape from your new
environment altogether?”; and, “Do you feel anxious or awkward when meeting local people?” These items were rated on
a 5-point Likert scale (1 = strongly disagree; 5 = strongly agree). The Cronbach’s alpha for culture shock was 0.77.

3.2.3. Performance
We measured performance using a 7-item scale developed by Williams and Anderson (1991), which assesses employee
performance of in-role behavior (IRB). IRB means that employees’ behaviors can meet requirements or expectations of their
performance in a work role. Items used included “I adequately complete assigned duties” and “I perform tasks that are
expected of me,” which were rated on a 7-point Likert scale (1 = strongly disagree; 7 = strongly agree). The Cronbach’s alpha
for performance was 0.68.

3.2.4. Control variables


Previous studies have shown that gender (Hechanova, Beehr & Christiansen, 2003; Sam, 1998), age (Hechanova et al.,
2003; Sam, 1998), duration in the host country (Beiser, 1988; Hechanova et al., 2003), previous foreign experience (Black,
1988; Black, Mendenhall, & Oddou, 1991; Bhaskar-Shrinivas, Harrison, Shaffer, & Luk, 2005) and language ability (Shaffer,
Harrison, Gilley, 1999; Bhaskar-Shrinivas, Harrison, Shaffer, & Luk, 2005) were identified as having potential impact on
cross-cultural effectiveness. Since all our participants are female laborers, we did not include gender as one of the control
variables. Following are the coding description of these variables.

Age. We asked the participants their age and then transformed their answer into months for analysis.
Education. We asked the participants to indicate the highest educational degree they have received, and measured it by
a dummy variable. Since no one indicated her educational level was elementary school, we started our coding with High
School (8.5%, coded as 000), then added Vocational Diploma (35.3%, coded as 010), and Bachelor’s degree (50%, coded as
001).
Number of visits to Taiwan. We asked the participants to indicate how many times they had visited Taiwan. The foreign labor
policy of Taiwan permits a laborer to stay in Taiwan for three years per visit. We considered this variable as the proxy of
duration in the host country. Answering “once” was coded as “1”, twice was coded as “2”, etc.
Foreign experience. We asked the participants if they had any previous overseas experience before coming to Taiwan and
for how long if the answer was “yes.” An answer of “no” was coded as 0. The length of foreign experience was coded by the
number of months for analysis.
English and Chinese abilities. We asked the foreign laborers to rate their language ability according to their proficiency on
listening, speaking, reading, and writing. Answering “not at all” was coded as 1, “poor” was coded as 2, “Average” was coded
as 3, “Good” was coded as 4, and “Excellent” was coded as 5. Total language ability was computed as an average of listening,
speaking, reading, and writing proficiency.

3.3. Confirmatory factor analysis (CFA)

Before testing the hypotheses, we performed a confirmatory factor analysis (CFA) to evaluate the distinctiveness of
the measures used in the present study by using AMOS 7.0. Since the chi-square (2 ) test is sensitive to sample size, the
overall model fit was also examined by various fit indices including root-mean-square error of approximation (RMSEA),
Tucker–Lewis non-normed index (TLI), incremental fit index (IFI), and the comparative fit index (CFI). A good model fit was
shown when RMSEA was below .08 (Browne & Cudeck, 1993) and TLI, IFI and CFI scores were above .90 (Byrne, 1998). In
our analysis, the results of CFA for each dimension were satisfactory. We also conducted a three-factor model CFA to check
the model fit. The chi-square of the three-factor (i.e., CQ, Culture Shock, and Performance) model was 2 (684) = 1619.30,
p < .001, while the other fit indices were: RMSEA = .06, TLI = .88, IFI = .89, CFI = .89. The fit indices were slightly below .90, but
within the acceptable range. The results are presented in Table 1.

Table 1
Results of confirmatory factor analyses (n = 382).

Model fit indices

2 df 2 /df RMSEA CFI NFI TLI IFI

1. CQ 466.355 159 2.93 0.07 0.94 0.90 0.94 0.93


2. Cultural shock 129.270 52 2.49 0.06 0.93 0.95 0.93 0.91
3. Performance 18.606 10 1.86 0.05 0.99 0.99 0.99 0.99
4. 3-factor model 1619.30 684 2.37 0.06 0.89 0.82 0.88 0.89
5. 1-factor model 5002.97 702 7.13 0.13 0.49 0.45 0.49 0.46

RMSEA = Root Mean Square Error of Approximation; NFI = Normed Fit Index; CFI = Comparative Fit Index; TLI = Taker–Lewis Index, NNFI; IFI = Incremental
Fit Index.
252 A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258

Since all measures used in the current study were completed by one person and used a similar response format, Har-
man’s one-factor test (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003) was conducted to detect potential bias caused by
common method variance (CMV). If a single factor emerges or one general factor explains most of the covariance in the
independent and dependent variables, it is reasonable to conclude that a significant CMV is present (Podsakoff et al., 2003).
We entered all scale items into a principal components analysis and examined the unrotated factor solution. Eight factors
possessing an eigenvalue greater than 1.0 emerged, which accounted for 65.24% of variance. The first factor accounted for
28.86% of variance, which showed that the items did not load on a general single factor. Next, we linked all the mea-
sures of the three constructs to one single factor to perform a one-factor CFA. Results of this one-factor model were
2 (702) = 5002.97, p < .001, RMSEA = .13, TLI = .46, IFI = .49, CFI = .49, which displayed a poor model fit. The significant chi-
square change (2 (18) = 3383.67, p < .001) indicated that common method variance is not a serious threat in our data
analysis.

3.4. Demographic information

The research data were obtained from 382 Philippine laborers working in Taiwan’s manufacturing industries. Regarding
personal information, most of the respondents were female (99.2%). The respondents mainly ranged from 26 to 35 years
of age (74.5%). Half of the respondents had an undergraduate degree (Bachelor’s: 50%). Approximately two-thirds of the
foreign laborers stayed in agency dormitories (64.4%), and one-third of them lived in a factory dormitory (32.5%). Only 6.8%
of the respondents indicated that they had foreign experience, and most of them had visited Taiwan less than three times
(first time: 25.9%; second time: 44.2%; third time: 24.3%). Of the respondents, 72.5% had lived in Taiwan for no more than
four years. The majority of them had above-average English language ability (85.3%), but their Chinese language ability was
below average (90.6%).
The means, standard deviations, reliabilities, and correlations among all of the variables are presented in Table 2. All
the reliability coefficients appear to be acceptable except the coefficients of performance, which were slightly below 0.70
(˛ = .68). Among the control variables, English ability was positively correlated with CQ ( = .21, p < .001) and performance
( = .16, p < .01), while Chinese ability was positively correlated with CQ ( = .12, p < .05) but negatively correlated with
performance ( = −.14, p < .01). In the meantime, the major variables were significantly correlated with each other. CQ was
positively correlated to performance ( = .49, p < .001), but negatively correlated to culture shock ( = −.23, p < .001), while
culture shock was negatively correlated to performance ( = −.31, p < .001). Meanwhile, the four sub-dimensions of CQ had
moderate inter-correlations (ranged from .44 to .69.) with each other. In addition, the four sub-dimensions of CQ were all
positively correlated to performance and negatively correlated to culture shock at significant levels.

3.5. Test of the hypotheses

The hypotheses were tested via hierarchical linear regression analysis. Hypothesis 1 stated that individuals with a higher
CQ had higher performance. Table 3 presents the results of Hypothesis 1. The results were designated as Model 1–Model
7. We used the following items as control variables: age, education, number of visits to Taiwan, foreign experience, English
ability, and Chinese ability. From the results, English language ability was positively related to performance in all models,
while Chinese language ability showed a negative beta coefficient with performance in all models.
In Model 2, we added CQ to examine its relationship with performance. The regression model was significant (R2 = .29,
p < .001) and CQ had a positive and statistically significant effect on performance (ˇ = .48, p < .001; R2 = .21, p < .001).
In addition, we examined the effect of the four dimensions of CQ in Model 3. The results showed a significant regression
model (R2 = .39, p < .001). Three of the four sub-dimensions of CQ (meta-cognitive CQ (ˇ = .27, p < .001), motivational CQ
(ˇ = .23, p < .001), and behavioral CQ (ˇ = .27, p < .001) had a positive and statistically significant effect on performance, but
cognitive CQ showed a negative coefficient on performance (ˇ = −.19, p < .001). Since the correlation of cognitive CQ and
performance was positive ( = .21, p < .001), we assumed the negative beta coefficient was caused by multicolinearity in
regression. To further clarify the relationship of sub-dimension CQ and performance, we put the sub-dimensions of CQ in
the regression one by one, instead of putting in all four CQ factors at once. As shown in Model 4–Model 7, the beta coefficients
of four sub-dimensions were all positive, leading to accept Hypothesis 1.
Hypothesis 2 predicted a negative relationship between CQ and culture shock. It assumed that individuals with a higher
CQ would suffer less from culture shock. Table 4 lists the results of Hypothesis 2. In Model 1, we entered the same control
variables as Hypothesis 1. For the control variable, “number of visits to Taiwan” was negatively related to culture shock at
a significant level (ˇ = −.15, p < .05). We then added CQ in Model 2 to test its effect on culture shock. The regression in this
model was significant (R2 = .10, p < .001) and CQ had a negative and statistically significant effect on culture shock (ˇ = −.24,
p < .001; R2 = .06, p < .001). In Model 3–Model 6, we examined the effect of the four dimensions of CQ on culture shock. All
sub-dimensions of CQ had a negative and statistically significant relationship with culture shock. Therefore, these results
supported Hypothesis 2.
Hypothesis 3 predicted a negative relationship between culture shock and performance. This hypothesis stated that
individuals with a higher cultural shock would perform more poorly. Table 5 lists the results of Hypothesis 3. In Model 1, we
entered the same control variable as in Hypothesis 1, and we found that English language ability had a significantly positive
effect on performance (ˇ = .19, p < .01). Chinese language ability had a significantly negative effect on performance (ˇ = −.18,
Table 2
Mean, standard deviation, correlation, and reliability (n = 382).

Variable Mean S.D. 1-1 1-2 1-3 1-4 1-5 1-6 1-7 1-8 2 2-1 2-2 2-3 2-4 3 4

A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258


1. Control variable
1-1 Age 30.58 3.96 N.A.
1-2 High school 0.09 0.28 0.07 N.A.
1-3 Vocational 0.35 0.48 0.02 −0.23*** N.A.
diploma
1-4 Bachelor 0.50 0.50 −0.08 −0.31*** −0.74*** N.A.
degree
1-5 Number of 2.10 0.94 0.34 ***
−0.05 −0.02 −0.01 N.A.
visit to Taiwan
1-6 Foreign 1.09 5.26 0.16** −0.06 0.03 0.03 0.14** N.A.
experience
1-7 English 4.05 0.65 0.10* −0.10+ −0.09+ 0.16** 0.15** 0.06 N.A.
ability
1-8 Chinese 2.12 0.53 0.08 0.06 0.08 −0.11* 0.07 0.06 0.25*** N.A.
ability
2. CQ 4.73 0.87 0.02 −0.01 −0.06 0.07 0.05 0.04 0.21 ***
0.12* (0.94)
2-1 Meta 4.96 1.00 −0.01 0.04 −0.08 0.06 0.00 0.06 0.07 0.02 0.73*** (0.83)
cognitive CQ
2-2 Cognitive CQ 4.30 1.18 0.03 0.00 −0.03 0.03 0.03 0.05 0.23*** 0.17** 0.82*** 0.44*** (0.92)
2-3 Motivational 4.85 1.05 0.03 −0.01 −0.07 0.07 0.06 −0.02 0.16** 0.08 0.84*** 0.52*** 0.54*** (0.88)
CQ
2-4 Behavioral 4.91 1.03 0.02 −0.05 −0.05 0.08 0.06 0.03 0.17** 0.08 0.84*** 0.56*** 0.52*** 0.69*** (0.90)
CQ
3. Culture shock 2.66 0.46 −0.09+ 0.00 0.00 0.00 −0.17** 0.00 −0.06 0.07 −0.23*** −0.15** −0.13* −0.29*** −0.18*** (0.77)
4. Performance 5.39 0.78 0.04 −0.05 −0.12* 0.17** 0.02 0.04 0.16** −0.14** 0.49*** 0.47*** 0.21*** 0.49*** 0.50*** −0.32*** (0.68)

Number in parentheses represents Cronbach’s alpha value.


+
p < .1.
*
p < .05.
**
p < .01.
***
p < .001.

253
254 A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258

Table 3
Result of regression analysis for CQ and performance (n = 382).

Variable Performance

Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Model 7

ˇ VIF ˇ VIF ˇ VIF ˇ VIF ˇ VIF ˇ VIF ˇ VIF

Age 0.05 1.17 0.05 1.17 0.05 1.177 0.06 1.18 0.05 1.17 0.04 1.17 0.05 1.17
High school 0.04 3.45 0.07 3.45 0.04 3.497 0.03 3.45 0.06 3.46 0.03 3.45 0.09 3.46
Vocational diploma 0.04 7.62 0.12 7.65 0.08 7.724 0.09 7.63 0.09 7.67 0.05 7.62 0.12 7.65
Bachelor degree 0.16 8.02 0.21 8.03 0.14 8.138 0.17 8.02 0.2 8.07 0.13 8.02 0.21+ 8.03
Number of visits to Taiwan −0.02 1.17 −0.03 1.17 −0.03 1.174 −0.02 1.17 −0.02 1.17 −0.03 1.17 −0.03 1.17
Foreign experience 0.03 1.05 0.02 1.05 0.03 1.059 0.01 1.05 0.03 1.05 0.05 1.05 0.02 1.05
English ability 0.18*** 1.14 0.10* 1.17 0.14** 1.193 0.15** 1.14 0.14* 1.19 0.12* 1.16 0.12* 1.16
Chinese ability −0.18*** 1.11 −0.22*** 1.11 −0.19*** 1.122 −0.18*** 1.11 −0.20*** 1.12 −0.21*** 1.11 −0.21*** 1.11
CQ 0.48*** 1.06
Meta cognitive CQ 0.27*** 1.574 0.46*** 1.02
Cognitive CQ −0.19** 1.646 0.20*** 1.09
Motivational CQ 0.23*** 2.265 0.46*** 1.03
Behavioral CQ 0.27*** 2.242 0.49*** 1.04

R2 0.07 0.29 0.39 0.28 0.11 0.28 0.30


Adjusted R2 0.05 0.27 0.37 0.26 0.09 0.26 0.29
F 3.53*** 15.76*** 18.47*** 15.05*** 4.87*** 15.01*** 16.88***
R2 0.21 0.32 0.20 0.04 0.2 0.23
F 105.18*** 44.80*** 99.25*** 14.50*** 98.91*** 114.45***
+
p < .1.
*
p < .05.
**
p < .01.
***
p < .001.

p < .01). Next, culture shock was added to Model 2 to analyze its relationship with performance. The results showed that
the regression model was significant (R2 = .17, p < .001), and the R2 increased from 0.08 to 0.17 (R2 = .09, p < .001). From
this analysis, we have support to conclude that culture shock and performance had a negative and statistically significant
(ˇ = −.31, p < .001) relationship, which supports acceptance of Hypothesis 3.
Hypothesis 4 examined the mediating effect of culture shock on the relationship between CQ and performance. To test this
hypothesis, we followed the recommendations of Baron and Kenny (1986) for establishing mediation by using hierarchical
regression analysis. As shown in Table 6, the relationship between CQ and culture shock was confirmed by Model 2 (ˇ = −.24,
p < .001); the relationship between CQ and performance was confirmed by Model 4 (ˇ = .48, p < .001); and, the relationship

Table 4
Result of regression analysis for CQ and culture shock (n = 382).

Variable Culture shock

Model 1 Model 2 Model 3 Model 4 Model 5 Model 6

ˇ VIF ˇ VIF ˇ VIF ˇ VIF ˇ VIF ˇ VIF

Age −0.04 1.17 −0.04 1.17 −0.05 1.18 −0.04 1.17 −0.04 1.17 −0.04 1.17
High school −0.09 3.45 −0.1 3.45 −0.09 3.45 −0.1 3.46 −0.08 3.45 −0.11 3.46
Vocational diploma −0.14 7.62 −0.18 7.65 −0.15 7.63 −0.17 7.67 −0.14 7.62 −0.17 7.65
Bachelor degree −0.12 8.02 −0.14 8.03 −0.12 8.02 −0.15 8.07 −0.1 8.02 −0.14 8.03
Number of visits to Taiwan −0.15* 1.17 −0.14* 1.17 −0.15** 1.17 −0.14* 1.17 −0.14* 1.17 −0.14* 1.17
Foreign experience 0.02 1.05 0.03 1.05 0.03 1.05 0.03 1.05 0.01 1.05 0.03 1.05
English ability −0.07 1.14 −0.02 1.17 −0.06 1.14 −0.03 1.19 −0.03 1.16 −0.04 1.16
Chinese ability 0.10+ 1.11 0.12* 1.11 0.10+ 1.11 0.11* 1.12 0.12* 1.11 0.11* 1.11
CQ −0.24*** 1.06
Meta cognitive CQ −0.16** 1.02
Cognitive CQ −0.15** 1.09
Motivational CQ −0.29*** 1.03
Behavioral CQ −0.19*** 1.04
2
R 0.04 0.10 0.06 0.06 0.12 0.07
Adjusted R2 0.02 0.07 0.04 0.04 0.10 0.05
F 1.80+ 4.10*** 2.66** 2.50** 5.43*** 3.04**
R2 0.06 0.02 0.02 0.08 0.03
F 21.65*** 9.22** 7.79** 33.11*** 12.45***
+
p < .1.
*
p < .05.
**
p < .01.
***
p < .001.
A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258 255

Table 5
Result of regression analysis for culture shock and performance (n = 382).

Variable Performance

Model 1 Model 2

ˇ VIF ˇ VIF

Age 0.05 1.18 0.03 1.18


High school 0.04 3.45 0.01 3.46
Vocational diploma 0.04 7.62 0.00 7.64
Bachelor degree 0.16 8.02 0.12 8.04
Number of visits to Taiwan −0.02 1.17 −0.06 1.19
Foreign experience 0.04 1.05 0.04 1.05
English ability 0.19** 1.14 0.16** 1.14
Chinese ability −0.18** 1.11 −0.15** 1.12
Culture shock −0.31*** 1.04

R2 0.08 0.17
Adjusted R2 0.05 0.15
F 3.53** 7.75***
R2 0.09
F 38.48***
**
p < .01.
***
p < .001.

between culture shock and performance was also confirmed by Model 2 (ˇ = −.31, p < .001) in Table 5. Finally, the beta
coefficient of CQ was reduced from .48 (p < .001) in Model 4 to .43 (p < .001) in Model 5 after culture shock was added. In
addition, the Sobel test was performed to substantiate the mediation. The Sobel test result (z = 3.28, p < .01) was significant,
and indicated that culture shock was a significant mediator of the influence of CQ on foreign laborers’ performance. These
results showed that culture shock partly mediated the relationship between CQ and performance, which equated to support
for Hypothesis 4.

4. Discussion

The purpose of the present study was to examine the relationship among CQ, culture shock, and performance. First,
we found that CQ was positively related to performance. This meant that foreign laborers with a higher CQ had better

Table 6
Result of regression analysis of the mediating role of culture shock (n = 382).

Variable Culture shock Performance

Model 1 Model 2 Model 3 Model 4 Model 5

ˇ VIF ˇ VIF ˇ VIF ˇ VIF ˇ VIF

Controls
Age −0.04 1.18 −0.05 1.18 0.03 1.18 0.05 1.18 0.04 1.18
High school −0.09 3.45 −0.10 3.45 0.01 3.46 0.07 3.45 0.05 3.47
Vocational diploma −0.14 7.62 −0.18 7.65 0.00 7.64 0.12 7.65 0.08 7.68
Bachelor degree −0.12 8.02 −0.14 8.03 0.12 8.04 0.21 8.03 0.18 8.06
Number of visits to Taiwan −0.15* 1.17 −0.14* 1.17 −0.06 1.19 −0.03 1.17 −0.06 1.19
Foreign experience 0.02 1.05 0.03 1.05 0.04 1.05 0.02 1.05 0.03 1.05
English ability −0.07 1.14 −0.02 1.18 0.16 1.14 0.10* 1.18 0.09+ 1.18
Chinese ability 0.10+ 1.11 0.12* 1.11 −0.15 1.12 −0.22*** 1.11 −0.19*** 1.13

Direct Effect
CQ −0.24*** 1.06

Mediating Effect
CQ 0.48*** 1.06 0.43*** 1.125
Culture shock −0.31*** 1.04 −0.21*** 1.106

R2 0.04 0.10 0.167 0.29 0.33


Adjusted R2 0.02 0.07 0.145 0.27 0.31
F 1.80+ 4.10*** 7.754** 15.76*** 16.98***
R2 0.06 0.092 0.21 0.25
F 21.65*** 38.482*** 105.18*** 65.56***
+
p < .1.
*
p < .05.
**
p < .01.
***
p < .001.
256 A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258

performance in a culturally different workplace. Second, we confirmed that CQ and culture shock had a negative relationship
in our study. This meant that Philippine laborers with a higher CQ suffered less culture shock in a culturally different
workplace. This meant that when foreign laborers were more willing to adapt to a new culture in the workplace, they had
more chances to communicate with local people, to eat the food, to understand different religions and social customs, and
to enjoy various types of entertainment. As a result, culture shock was dependent on the experience of the laborers.
Another finding in our study was that culture shock and performance had a negative relationship. This meant that
Philippine laborers with a higher degree of culture shock experienced poor performance. This result was consistent with
many previous studies (Bhaskar-Shrinivas, Harris, Shaffer, & Luk, 2005; Caligiuri, 1997; Feldman & Tompson, 1993; Selmer,
1999; Shaffer, Harrison, Gilley, & Luk, 2001).
The fourth finding confirmed that the influence of CQ on performance was partly mediated by culture shock. This finding
suggests that CQ exhibited both a direct and an indirect relationship on performance. Individuals with a higher CQ will suffer
less culture shock and this condition in turn influenced the Philippine laborers’ performance at work. Therefore, culture shock
is regarded as a mechanism of the effect of CQ on performance in the host country.
In addition, we found that English language ability enhanced Philippine laborers’ performance. This finding explains why
Taiwan manpower companies prefer to hire Philippine laborers who are proficient in reading English and who can more
easily follow instructions and manuals for the operation of machines, which is consistent with Lan’s (2003) study. In addition,
the results of the present study also showed that the majority of the respondents rated their English language ability as above
average (85.5%). There is no doubt that English language ability has an important effect on a foreign laborer’s performance.
One unexpected but interesting finding from the present study was that some foreign laborers who had better host-
country language ability (e.g. Chinese) experienced an increase in culture shock as well as a decrease in performance. This
result was especially interesting because most previous cross-cultural studies suggested that intercultural communication
ability will enhance one’s adaptability to a new environment. The assumption was that foreign laborers with better Chinese
language ability would communicate easily and smoothly with local people and interact with their Taiwanese colleagues
with fewer barriers in the workplace. Common sense dictates that foreign laborers who are good at speaking and reading
Chinese would have a deeper understanding of cultural knowledge regarding a host country’s economic, legal, and social
aspects of different cultures, which results in recognizing themselves as the lower social economic status in the host country
since they are employed in demeaning, unskilled jobs and treated as ethnic “others” in a foreign country. And, they often
suffer discrimination or unfair treatment by indigenous people and managers or colleagues. Some foreign laborers attempt
to negotiate with their employers and fellow employees, including their work loads, the process, and their work rights so that
indigenous people will not treat them in an unfriendly and inequitable manner. The increased realization of this situation
may produce unpleasant feelings and even displays of anger at managers or colleagues while working. This causes poor work
behavior. This result is consistent with many previous findings of a negative relationship between perceived discrimination
and work outcome (Ensher, Grant-Vallone, & Donaldson, 2001; Gutek, Cohen, & Tsui, 1996; Sanchez & Brock, 1996).

5. Conclusions

The present study makes a valuable contribution to the body of research on intercultural effectiveness. It also contributes
to the understanding of intercultural relations research in several ways. First, the concept of CQ has been theorized and con-
structed by Earley and Ang (2003) and would seem to be the best available consensus statement to predict other intercultural
variables. The present study has demonstrated that CQ can serve as a predictor for one’s performance in a cross-cultural
situation. We also explored the fact that CQ is a key element affecting other cultural factors such as culture shock. Culture
shock occurred sometimes due to an inability to understand local customs, social interactions, and local language. When the
psychological barriers can be overcome, individuals can rapidly adjust to a new environment and can increase cross-cultural
adaptability.
Second, this study offers important implications for practice. It is clear to managers and organizations that they should
recognize the importance of employees’ intelligence in adapting cultural differences and a diverse environment; in particular,
this is unavoidable in today’s global workplace. In addition, managers and organizations should encourage their employees
to interact with people from different cultures and should motivate employees’ desire to learn about diverse cultures. The
misunderstandings, or stress, created by a different culture can be reduced.
Last, as a specific implication for manpower agencies and organizations, one of the results we found in the present study
was that in some cases non-native language ability can cause poor work performance and high culture shock among foreign
laborers. Therefore, it should be noted that some overseas employees with better local knowledge and language abilities,
may more easily sense unfair treatment or discrimination from managers or local people, and thereby develop a negative
attitude and negative behavior at work (Ensher et al., 2001). So, managers should find appropriate ways to solve employees’
dissatisfaction and treat them equally in the workplace.
Due to the present study’s data collection, measurement, and sample characteristics, we must acknowledge that this study
has several limitations. First, our data was gathered from a self-reported questionnaire, so it might have a common method
bias (CMV) problem. The instrument was designed using a 5-point or 7-point scale in different variable measurements
to minimize the CMV problems (Crampton & Wagner, 1994; Podsakoff et al., 2003). Second, due to the limited time and
resources, it was not feasible to conduct a random sampling. Therefore, we had to use a purposeful sampling to collect our
data, which could have limited the generalization of our results. Third, only a group of Philippine laborers was used as the
A.S.-y. Chen et al. / International Journal of Intercultural Relations 35 (2011) 246–258 257

sample in the present study. Other foreign laborers who are allowed to legally work in Taiwan, such as Thai, Indonesian, and
Vietnamese, were not included in this study. Therefore, it is difficult to generalize the actual situation for all foreign laborers
in Taiwan. The final limitation was that most Philippine laborers are hired to work in the manufacturing industry. Philippine
laborers who work in other kinds of industries in Taiwan are not easily found. With respect to the above limitations, we
recommend future research to extend the present study into the sectors of other industries such as the construction industry
and healthcare service as well as workers from different nationalities such as Thai, Vietnamese and Indonesian. In addition,
future research should include all levels of foreign employees to increase the generalization of results.

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