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International Journal of Hospitality Management 49 (2015) 93–104

Contents lists available at ScienceDirect

International Journal of Hospitality Management


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

The relationship between hotel employees’ cross-cultural competency


and team performance in multi-national hotel companies
Worarak Sucher ∗ , Catherine Cheung
School of Hotel & Tourism Management, The Hong Kong Polytechnic University, Hong Kong, China

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

Article history: In this study, the authors explored the benefits of understanding employee cross-cultural competency and
Received 29 August 2014 strengthening team performance, which are essential for improving the organizational effectiveness of
Received in revised form 15 May 2015 multi-national hotel companies as they expand globally. Data were collected from six multi-national hotel
Accepted 15 May 2015
companies in Thailand. A total of 738 valid questionnaires were obtained and analyzed using structural
equation modeling to test the proposed relationships, in which cross-cultural competency was developed
Keywords:
as determinant of multi-cultural team performance. The results indicate that cross-cultural competency
Cross-cultural competency
had a positive, direct effect on team performance. The authors provide significant cross-cultural the-
Team performance
Multi-national hotel company
oretical and practical management advice for stakeholders in the hospitality industry. In addition, the
Hotel employee authors establish the foundation for future studies into cross-cultural competency and multi-cultural
Hotel industry team performance in the context of Thai multi-national hotels.
Thailand © 2015 Elsevier Ltd. All rights reserved.

1. Introduction ioral patterns of people (Briscoe et al., 2009). The global hospitality
industry has a strong tradition of diversity in its workforce (Baum
A new form of organization is globally dominating the hotel et al., 2007). As multi-cultural workforces become a major resource
sector (Go and Pine, 1995). The isolation of economic activities in for international hospitality provision, human resource manage-
individual countries has shifted toward worldwide integration. This ment (HRM) has become more difficult and complex (Watson et al.,
emerging market activity demonstrates the accelerating process of 2002). Chappel et al., (2002, p. 123) suggested that hospitality work-
globalization of international hospitality industry operations across ers in this century must “understand, and be sensitive to, other
borders (Briscoe et al., 2009). The expansion of multi-national hotel cultures.” This behavior is influenced to some extent by the cul-
corporations (MHCs) has doubled the number of hotels over the tural norms of different societies as they have to interact with
last decade (ITB, 2012). MHCs are poised to play a major role people from different cultural backgrounds. Organizations that can
in leading the sector, and thus, they are employing more peo- successfully implement global innovative business management
ple across the globe and setting the standard for the industry practices for this type of workforce will gain a competitive advan-
(Boardman and Barbato, 2008). This phenomenon constitutes an tage worldwide as multi-cultural workforces will become a major
increasing interaction, interconnection, and integration of people, resource for international hospitality provision; (Yu, 1999).
culture, corporations, and countries (Briscoe et al., 2009). As these Given the rapid development of MHCs across Thailand (IOM,
development trends continue, human resource operations require 2011), managing multi-cultural team (MCT) has important con-
significant changes in the management of the process of globaliz- sequences for strategic HRM when MCT members have diverse
ing hospitality products and services for the worldwide market (Yu, cultural backgrounds (Hong, 2010) or different nationalities (Earley
1999). and Gibson, 2002). Understanding MCTs is a critical issue for
Multi-national hotels interact with many countries worldwide; MHCs (Gibson and Zellmer-Bruhm, 2001) if they wish to meet the
the differences in the national culture (NC) among these various demands of high professional expertise in intercultural interac-
countries increase the flexibility in the values, beliefs, and behav- tions in the global business environment (Serrie, 1992; Triandis and
Singelis, 1998). Workforce diversity has elevated the value of effec-
tive cross-cultural competency (CCC) (Matveev and Nelson, 2004).
CCC has become an essential component of hospitality and tourism
∗ Corresponding author. Fax: +86 852 2362 9362. practices (Nicolaides, 2010), particularly in multi-national hotels
E-mail addresses: worarak.sucher@connect.polyu.hk (W. Sucher), where employees have to interact with guests and employees of
Catherine.cheung@polyu.edu.hk (C. Cheung).

http://dx.doi.org/10.1016/j.ijhm.2015.05.007
0278-4319/© 2015 Elsevier Ltd. All rights reserved.
94 W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104

1. Identify the cross-cultural competency necessary among Thai


hotel employees to collaborate with multi-national and cross-
cultural team members.
2. Identify the key factors affecting the multi-cultural team perfor-
mance of hotel employees in multi-national hotel companies.
3. Examine the relationship between the cross-cultural compe-
tency of Thai hotel employees and their multi-cultural team
performance.
4. Develop a conceptual framework for the development of multi-
cultural team performance in MHCs.

2. Literature review

2.1. Cross-cultural competency


Fig. 1. Multi-national hotel chains in Thailand.

Competency refers to the ability of an individual to perform a


required task effectively (Matveev and Nelson, 2004). Zimmermann
different cultures. The understanding of an individual’s own culture (2010) noted that CCC can be defined as the capacities that are
and competency to work with others can increase the capability and required for the achievement of mutual understanding, as well
enthusiasm of employees (Serrie, 1992). This understanding will as for functional interaction and co-operation between people
allow the management of MHCs to develop more efficient MCTs who have different cultural backgrounds. A standard definition
(Halverson and Tirmizi, 2008; Hong, 2010). for CCC cited in Barbara et al. (2009) is the ability to communi-
Previous studies of CCC have investigated its relationship with cate effectively and appropriately in a variety of cultural contexts,
international management in the context of Western countries, with people who are different from oneself. The CCC proficiency
focusing on handling workplace diversity and cultural differences of an individual can be enhanced by drawing on an appropriate
(e.g., Mendenhall et al., 2001; O’sullivan, 1999). However, there inventory of knowledge, skills, and attributes in response to dif-
have been few studies examining the effect of CCC on MCTP in the ferent cultural contexts (O’sullivan, 1999). Knowledge is required
Asian or hotel industry context. Southeast Asia is a major market to understand the lifestyles, thought processes, experiences, and
for hospitality operation expansion (Meyer and Geary, 1993), mak- practices of others. Skills, including cross-cultural communication
ing further studies in this area are necessary. At the beginning of skills, are used to customize personal behavior to interact with oth-
this century, a new travel market trend emerged in the Asia-Pacific ers from diverse cultural backgrounds (Abbeet al., 2007; Thomas
region, with the fastest growing tourist destinations in the world and Inkson, 2004). Attitudes are a combination of the thoughts,
and where the largest growth opportunities in the global hospi- feelings, values, and assumptions that form an individual’s culture
tality industry are represented (UNWTO, 2012). These emerging and worldview. Cultural attitudes affect the way that individuals
markets attracted the attention of international hotel developers to understand the worldview of members of different cultures (Vonk,
invest more in the Asia-Pacific region. Thailand has been attracting 2001).
the interest of hotel investment companies. According to UNWTO The performance outcome of CCC are behavioral adaptations
(2012), 6.9% of the total investment represented travel and tourism that manifests themselves as an understanding of differences, com-
investment, and the investment should increase by 9.7% over the munication, or effective interaction with people from different
next decade. cultures, as well as integration across these differences (Iles, 1995;
Expansion efforts in Thailand were undertaken by the top Johnson et al., 2006). These attributes are essential tools for indi-
major MHCs worldwide, namely, IHG, Hilton worldwide, Marriott viduals working in culturally diverse teams. They “allow group
International, Wyndham Hotel Group, Accor, Starwood Hotels and members to communicate more effectively with one another about
Resorts, Best Western, and Carlson Rezidor Hotel Group. Fig. 1 their differences, to evaluate more accurately how their own behav-
shows the proportion of MHCs operating across Thailand. This ior is affecting group processes, and to react in a more realistic
rapid expansion increases the opportunities for Thai employees and less judgmental way to the different attitudes and behaviors
working with more multinational employees in the future (IOM, expressed by other group members” (Shaw and Barrett-Power,
2011). Diverse and large numbers of mobile workers have migrated 1998; p. 1318). The major focus of this study is CCC in terms
from different countries/regions. The top, or executive positions, of the appropriateness (Koester et al., 1993) and effectiveness
are imported from the parent companies to carry out the tradi- (Spitzberg, 1988) of the interactions between Thai hotel employees
tional corporate practices of major MHCs (Wickramasekara, 2002). with national cultures.
The executive expatriates are primarily from Europe, North Amer- Thailand is a country with a rich ethnic diversity and organized
ica, Australia, and Japan, whereas migrant workers are primarily by cultural behavioral tendencies, including high power distance,
from the Mekong region who are attracted by the low level of collectivism, femininity, and high uncertainty avoidance (Hofstede
skills required in hotel work (Chalamwong, 2007). The size of the et al., 2010). These cultures determine the way in which Thais
mobile workforce is increasing constantly in the service sector interact with each other within their environment. National cul-
(Chalamwong, 2001; IOM, 2011), and reflects the complexity of ture explains the behaviors and attitudes of people from different
HRM in this century. nationalities and countries. The values and characteristics shape
Thailand is representative of increased number of MHCs and and affect human thought and behavior, contributing to individual
multi-national workers and it is poised for the future to continue differences in behavior (You et al., 2000), thus, the exploration of
to be, a favored international tourism destination (Selwitz, 2000). In a new culture should be concerned with the differences between
addition, existing studies have been limited in identifying the main the two. Hofstede et al. (2010) studies the cultural differences with
drivers of hotel employee performance in MCTs, and the factors emphasis on the value of work orientations, and offers another
which affect MCTP. Thus, this study will address the following four approach to understanding the range of cultural differences. People
research objectives: need to know and learn other culture to behave and act appropri-
W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104 95

ately in a specific society due to the basic principles of interaction


(Walker et al., 2003). Culture can explicitly express the underlying Cross-Cultural Multi-Cultural
assumptions of a society in the complex fundamental interaction of Competency Team
values, attitudes, and behavioral patterns; its essence is to describe Performance
the basic representation members of particular shared social group
(Thomas, 2008).
Fig. 2. Research model.
Within MHCs, culture-general knowledge, skills, and attitudes
are required for MCT members to agree on a common work basis.
“MCT members must acknowledge differences in communication together cooperatively and are involved in a project throughout the
and interaction styles of others from different cultures, demon- process; it lasts until the expected outcomes are obtained and the
strate flexibility in resolving communication misunderstandings, goals are achieved at a certain level, during which time it may be
and feel comfortable when communicating with foreign nationals” called effective performance (Salas et al., 2008). The term “effec-
(Matveev and Milter, 2004; p. 106). Members must be comfort- tiveness” is typically used as an evaluative term for the outcome
able with their superiors, fellow workers, and customers, who may of group performance. In dealing with MCTs, attention should be
exhibit a wide range of human variations, especially in relation given to team culture and cooperative climates in which cohesion,
to culture (Nicolaides, 2010). CCC is an important component of commitment, and the clarity of responsibilities and intercultural
international HRM practice and is vital for people who work in the competence are essential (Matveev and Milter, 2004). Conflict and
international hospitality industry (Hong, 2010). CCC and diversity communication breakdown between team members produce pro-
can act as sources of competitive advantage and add value to a com- cess losses and discourage teamwork (Jehn and Mannix, 2001).
pany (Yu, 1999). Consequently, MHCs can attain a more profitable Communication can also be a source of conflict, as individuals from
position by creating effective MCTs through CCC. different cultures display different communication styles, which
can lead to misunderstanding and poor performance (Jehn and
2.2. Multi-cultural team performance Bezrukova, 2004).
Adler (2008) suggested guidelines for maximizing the produc-
MCTs are collective task-oriented groups whose members have tivity of a team. Tasks should be selected by team members based
different nationalities and diverse cultural backgrounds (Earley and on their task-related abilities. Team members should recognize,
Gibson, 2002; Marquardt and Horvath, 2001). The present study understand, and respect cultural differences. A common vision and
includes token, bicultural and MCTs. Token teams have only one goals should be shared to direct the subsequent activities of team
member from a different culture, bicultural teams consist of mem- members. Power among members should be based on individual
bers from two cultural backgrounds, and MCTs contain members ability to contribute to the tasks. Members should have mutual
from three or more cultural groups (Berger and Brownell, 2009). respect for one another. Positive feedback, recognition of contri-
The interactions between MCT members from different cultures butions, and trust are essential for team values. In addition, Zakaria
stimulate the formation of an emergent team culture (Earley and et al. (2004) provided another five guidelines to help MCT members
Mosakowski, 2000). Team cultures are developed by MCT members direct their diverse knowledge, skills, and abilities toward effec-
to simplify the few commonalities that exist among themselves and tive performance. Team goals and roles must be established with
to formulate rules, actions, performance expectations, and mem- face-to-face meetings. Team norms and codes of conduct for spe-
ber perceptions. This sharing has a positive effect on building trust, cific modes of communication must be defined. Team members
improving performance, and enhancing team efficacy (Pearson and must support each other by helping the team to solve problems
Nelson, 2003). Team culture refers to a cooperative climate charac- and conflicts. Team learning must be facilitated through collabora-
terized by qualities such as openness, patience, enjoyment, and the tion. Relationships and social ties between team members must be
ability of members to learn from one another (Matveev and Milter, built.
2004). A strong team culture supports team cohesion (Schneider
and Barsoux, 2003).
MCT effectiveness requires a long-term perspective on team 3. Research model
functionality, and has been defined in various ways (Thomas, 2008).
Effectiveness is contingent on a team’s cooperation and effective CCC has been of interest to some researchers in determining
use of resources to achieve its tasks (Adler, 2008). The effective- the ability of a person to work in a multi-cultural setting and suc-
ness of team processes can enhance the overall effectiveness of cessfully interact with others from many cultures (Serrie, 1992;
a team. The five dimensional approaches to team effectiveness Johnson et al., 2006). CCC within MCTs can create trust and cohe-
proposed by Singh and Muncherji (2007) are team objectives, deci- sion, which are essential for building teamwork (Adler, 2008). CCC
sion making, implementation, dynamics, and health. The first four raises awareness of differences in cultural values, communication
dimensions are self-explanatory and the final component refers to styles, and approaches to decision making, problem solving, and
the internal components of team well-being. These components conflict resolution, allowing cultural differences among team mem-
can include personal skills, attitudes, and competencies, such as bers to be overcome (Grosse, 2002). Previous studies have indicated
openness, respect, cohesion, trust, and team development. Orga- that CCC is positively related to the performance of MCTs (e.g., Abbe
nizational factors, such as strategy, policies, or human resource et al., 2007; Johnson et al., 2006; Thomas, 2008), and that CCC pre-
practices, influence the effect of diversity on teams and team effec- dicts MCTP (Matveev and Nelson, 2004). Such cultural differences
tiveness (Halverson and Tirmizi, 2008; Jehn and Bezrukova, 2004). influence team dynamics and the ability of MCTs to achieve high
The composition of a group depends on the organization’s human levels of performance (Matveev and Milter, 2004). A cross-cultural
resource policy on recruitment and its selection process, and is competent member of a MCT should be able to establish an inter-
crucial in determining the skills, attitudes, values, and beliefs of personal relationship with another team member from a different
individuals in work groups, which can enhance the performance of culture, through effective behavioral exchanges at the verbal and
the team (Maznevski and Chudoba, 2000). non-verbal levels (Matveev and Nelson, 2004). The following ini-
Teamwork is the interdependent performance of multiple indi- tial research model in Fig. 2 is proposed, based on our literature
viduals that results from effective coordination, and is vital to team review. This study postulated multi-cultural team performance as
performance. Team performance occurs when team members work an outcome of hotel employees’cross-cultural competency.
96 W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104

Table 1
Sample size and response rate.

IHG Marriot Starwood Accor Hilton Wyndham Total

Questionnaire distributed 60 220 140 410 130 40 1000


Questionnaire returned
No. 47 163 104 358 112 35 819
Percentage 5.74 19.90 12.70 43.71 13.68 4.27 100
Valid questionnaire
No. 34 142 89 334 107 32 738
Percentage 4.61 19.24 12.06 45.26 14.49 4.34 100
Response rate 78.33 74.09 74.29 87.32 86.15 87.5 81.9

4. Methodology ments in different positions, such as sales and marketing, rooms


divisions, food and beverage, and others, were invited to participate
The authors used a combination of qualitative and quantitative in the survey. This principle of selection was adopted to generate a
research method to investigate the relationship between the two variety of opinions and views that can then be generalized to obtain
constructs of CCC and MCTP, and to examine the relative contribu- a relatively wide and representative range of responses. The sam-
tion of CCC to the performance of MCTs. This study used a sample pling was purposively selected based on the membership report of
size of 738 Thai hotel employees to represent the entire population, the Thai Hotel Association in 2011, which listed 709 hotels. Only the
to verify the measurement item scales and to verify the validity of hotels affiliated with the six major western MHCs were selected for
the structural model. the study, including IHG, Accor, Marriott, Wyndham, Starwood, and
Hilton. Such convenient purposive and snowball sampling method
4.1. Instrument development were convenient and helped the researcher collect the most desir-
able data from the target respondents (Locke, 2001).
The development of measurement items follows the procedure The questionnaires were distributed to Thai hotel employees
suggested by Churchill (1979). It is the most appropriate proce- working in MCTs of different departments in multi-national hotels
dure to develop the reliable and valid multi-item instrument, which with ratings ranging from four to five stars in IHG, Accor, Marriott,
has been used in previous research and applied in diverse settings Wyndham, Hilton, and Starwood, which are located in Bangkok and
(Getty and Thompson, 1994). The preliminary measurement scales Pattaya, Thailand. Data collection carried on a cautious framework
are derived from the extensive literature review and use the data and an on-site intercept procedure by distributing hardcopies of
obtained from in-depth interviews to further supplement and mod- questionnaires to employees (Hsieh and Chang, 2006). Completed
ify the variables and finalize the reliable measurement scale items questionnaires were collected by hotel human resource depart-
based on the discussion and consultation with the expert panels; ments; the authors visited the hotels and contacted a key person
five academic educators and three hotel managers. This step allows (i.e., the human resource director, human resource manager, or
the authors to develop the initial questionnaire for the pilot study. training manager), who agreed to assist in survey distribution and
The authors initially designed the measurement scales on the collection in 2-3 weeks’ time. When the number of questionnaires
basis of relevant literature on CCC and MCTP. The 20 items of cul- met the requirement, the authors personally collected the com-
tural intelligence developed by Earley and Ang (2003) were adopted pleted hardcopies from the hotels.
to measure the CCC construct. Cultural intelligence describes an One thousand questionnaires were distributed and 819 ques-
individual’s adaptive capability to function effectively in culturally tionnaires were returned, which translates to an 81.9% response
diverse situations with others and is used in several organiza- rate, as shown in Table 1. The data were screened and filtered
tions with practical and direct relevance to employees. Cultural by examining missing data using listwise deletion (Allison, 2003),
intelligence also shows high internal consistency and test-retest identifying outliers (Hair et al., 2010), assessing data normality
reliability for each factor. In determining the level of MCTP, the (Byrne, 2010), and testing reliability (Field, 2005), to ensure that the
authors used 26 items based on the group development question- dataset satisfied the structural equation modelling (SEM) require-
naire created by Wheelan and Buzaglo (1999), to which the authors ments (Little and Rubin, 2002). Data reliability and validity were
added the MCT assessment of Halverson and Tirmizi (2008). tested and determined to be acceptable. After the screening pro-
The measurement instrument was tested in the pilot study to cess, 81 cases (less than 10% of the total) were removed from the
ensure the validity and reliability of the initial questionnaire, and dataset (Kline, 2005), leaving 738 valid questionnaires for further
its validity and high internal consistency were established. The analysis.
measurement scales were further modified based on preliminary
results by employing EFA with a varimax rotation to support the 4.3. Data analysis
determination of the scales of each dimension and the Cronbach’s
coefficient alpha is assessed to ensure its reliability. Finally, 26 The dataset was analyzed using SEM on Amos 20. This method
items for CCC and 22 items for MCTP were retained and used was used to test the measurement and structural models by
in the main survey. The final questionnaire with valid and reli- describing the level of significance of the relationships and the
able measurement scales items are developed for further analysis. extent to which the model fit the data (Byrne, 2010; Hair et al.,
Each item was measured using a seven-point Likert-scale, ranging 2010). First, descriptive analysis was used to illustrate the basic
from 7 (extremely agree) to 1 (extremely disagree), in the self- demographic profiles and characteristics of the respondents and
administered questionnaire. to examine their responses (Finn et al., 2000). Second, exploratory
factor analysis (EFA) was used to filter the measurement items and
4.2. Data collection examine the construct dimensionality and the reliability of the vari-
ables. Third, confirmatory factor analysis (CFA) was conducted to
For the purposes of this study, the population is defined as examine the relationship between the observed variables under-
the hotel employees who have been working in the multi-cultural lying each construct and to assess the construct convergent and
teams in multi-national hotels. The employees of different depart- discriminant validity. Cross validation was used to assess the data
W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104 97

structure’s representativeness of the population. The entire valid Table 2


Profile of the respondents (N = 738).
sample was randomly split into two subsets. One subset (N = 370)
was used for calibration in EFA and the other subset (N = 368) was Item Characteristics Frequency Percentage (%)
used for validation in CFA. Finally, SEM was applied to the entire Gender Male 254 34.4
dataset to examine the relationships between the latent constructs Female 484 65.6
(Hair et al., 2010). Age 20 years or below 11 1.5
21–25 years 206 27.9
26–30 years 212 28.7
5. Results 31–35 years 172 23.3
36–40 years 71 9.6
5.1. Profile of the respondents 41–45 years 47 6.4
46 years or above 19 2.6
Educational level High school 77 10.4
Table 2 shows detailed demographic information for the 738 College diploma or 71 9.6
respondents. The female respondents (65.6%) outnumbered their equivalent
male counterparts (34.4%). The respondents were Thai hotel Bachelor’s degree 525 71.1
employees working in MHCs in Thailand (Marriott, Accor, Star- Master’s degree 63 8.5
Ph.D. or doctoral degree 2 0.3
wood, IHG, Hilton, and Wyndham) in departments including the
Main area of study Hospitality and tourism 296 40.1
front office (34.3%), food and beverage (26.3%), sales and market- Business administration or 119 16.1
ing (17.5%), housekeeping (7.6%), and others, including recreation, general management
spa, security, and engineering (14.4%). Respondents aged between Arts and humanities 162 22.0
21 and 25 years (27.9%) and between 26 and 30 years (28.7%) Others 161 21.8
Department Sales and marketing 129 17.5
accounted for more than half of the total population. More than Food and beverage 194 26.3
89.2% of the respondents had completed college-level education or Front office 253 34.3
above. This indicated that majority of the respondents were well- Housekeeping 56 7.6
educated. About 40.1% studied hospitality and tourism programs, Others 106 14.4
22% studied arts and humanities, 16.1% studied business admin-
istration or general management, and around 21.8% studied other
subjects.
off point for factor interpretation (Field, 2005). Twenty-five items
5.2. Individual measurement model test were retained and categorized into relationship building, cultural
sensitivity, and cultural awareness, as shown in Table 3. The aver-
5.2.1. Exploratory and confirmatory factor analysis of age community was equal to 0.68 and the factor loading ranged
cross-cultural competency from 0.62 to 0.78. These three factors produced 68% of the overall
EFA of 26CCC items was conducted using a 370 dataset. Varimax variance. The result of Barlett’s test of sphericity was highly sig-
rotation and an eigenvalue greater than 1 were adopted to examine nificant (2 = 7675.198, df = 300, p < 0.00) and Kaiser-Meyer-Olkin
the underlying structure of the relationships between the items in (KMO) was 0.97. The Cronbach alpha coefficients of the three fac-
the construct. A factor loading of less than 0.50 was used as a cut- tors were extremely high (0.92 to 0.95). The authors concluded that

Table 3
Exploratory factor analysis results for cross-cultural competency (N = 370).

Code Item Factor loading Eigen-value % Var. ␣

Factor 1 cultural sensitivity 14.70 58.80 0.95


CS 7 Confidence of remaining calm in effectively dealing with stress 0.72
CS 8 Valued own ability of adapting to various cross-cultural encounters 0.71
CS 10 Harmonious relationship with multi-cultural team members 0.71
CS 13 Confidence of working with other cultures in harmony 0.71
CS 4 Ability of working in a team in which the majority of members from unfamiliar cultures 0.70
CS 5 Effective handling of own emotions and frustrations 0.69
CS 9 Appropriate adaptability of non-verbal behavior 0.69
CS 3 Utilization of a variety of effective communication strategies 0.67
CS 12 Enjoyment of working in unfamiliar team cultures 0.67
CS 11 Confidence in socialization with unfamiliar cultures 0.65
CS 2 Reflection of own behavior effecting on other team members 0.63
CS 1 Employment of appropriate strategies for adjusting to other cultures 0.62
Factor 2 cultural awareness 1.35 5.39 0.92
CA 3 Accuracy in evaluating multi-cultural knowledge 0.73
CA 4 Consciousness of the application of cultural knowledge 0.72
CA 1 Awareness of acceptable choices and consequences in other cultures 0.71
CA 6 Awareness of how other cultures view one own 0.71
CA 2 Comprehension of own culture in responding to other cultures 0.70
CA 5 Awareness of norms and taboos of other cultures 0.68
Factor 3 relationship building 0.95 3.81 0.93
RB 2 Ease of starting a friendship with those of different cultures 0.78
RB 1 Enjoyment of working with culturally diverse members 0.70
RB 5 Enjoyment of intercultural interaction 0.65
RB 3 Capability to contrast aspects of other cultures with one own 0.63
RB 4 Ability to adapt appropriate verbal behavior 0.63
RB 6 Capability to describe one own cultural behavior 0.58
RB 7 Attempt to behave in an appropriate way 0.56

Overall Kaiser–Meyer–Olkin (KMO) = 0.970, Barlett’s test of sphericity: Chi-square = 7675.198, df. = 300, p < 0.000 % Var. = percentage of variance explained, ˛ = cronbach’s
alpha.
98 W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104

Table 4
First-order confirmatory factor analysis results for CCC (N = 368).

Items Factor Estimate C.R. (t-value) Std. FL SMC

Factor 1cultural sensitivity


CS11 ←− Cultural sensitivity 1.000 0.778 0.606
CS3 ←− Cultural sensitivity 1.015 14.999 0.771 0.594
CS8 ←− Cultural sensitivity 1.049 15.260 0.789 0.622
Factor 2 cultural awareness
CA4 ←− Cultural awareness 1.000 0.882 0.778
CA3 ←− Cultural awareness 0.965 16.344 0.819 0.671
Factor 3 relationship building
RB7 ←− Relationship building 1.000 0.779 0.606
RB4 ←− Relationship building 1.102 16.267 0.826 0.682
RB5 ←− Relationship building 1.143 15.989 0.805 0.648

Noted: All are significant at the 0.01 level.

Table 5
Correlation (squared correlation), reliability, AVE, and mean.

Cultural sensitivity Cultural awareness Relationship building

Cultural sensitivity 1.000


Cultural awareness 0.641 (0.411) 1.000
Relationship building 0.748 (0.560) 0.647 (0.419) 1.000
Reliability 0.823 0.839 0.844
AVE 0.607 0.724 0.646
Mean 5.619 5.380 5.570
S.D. 0.891 0.999 0.907

Table 6
Second-order confirmatory factor analysis results for CCC (N = 368).

Factor Construct Estimate C.R. (t-value) Std. FL SMC

Cultural sensitivity ←− CCC 1.000 0.948 0.899


Cultural awareness ←− CCC 1.008 12.725 0.811 0.658
Relationship building ←− CCC 0.974 12.694 0.948 0.899

Noted: All are significant at the 0.001 level.

the CCC construct represented adequate sampling and good data Finally, second-order CFA was conducted to examine the identi-
fitting, given the high internal consistency and the reliable scale. fication status of the higher order portion of the model. The overall
CCC is a multi-dimensional construct consisting of two levels of model fit indices (2 = 18.267, df = 17, GFI = 0.988, CFI = 0.999,
latent variables. Examination of each level should be conducted RMSEA = 0.014) indicated that the model fit the data acceptably
separately to confirm the identification. A partial aggregation well. The standardized estimates (Std. FL and C.R.) were statistically
model was chosen to examine the distinctiveness of the abstract significant as shown in Table 6.
construct (Byrne, 2010). First and second-order CFAs were con-
ducted to test the 25 observable variables and the three factors.
The initial model fit indices of the first-order CFA (2 = 846.77,
df = 272, GFI = 0.835, CFI = 0.917, RMSEA = 0.076) indicated a poor 5.2.2. Exploratory and confirmatory factor analysis of
model fit. An examination of the modification indices (MIs) multi-cultural team performance
revealed that the factor loadings were inappropriate and error EFA with varimax rotation was used for 370 cases. Three factors
covariance had been mis-specified. Seventeen items were removed, were extracted as illustrated in Table 7 and 20 items were retained.
leaving eight items. The final model showed an excellent goodness 70% of the total variance was explained by the extracted factors. The
of fit (2 = 18.267, df = 17, GFI = 0.988, CFI = 0.999, RMSEA = 0.014). average communality was 0.70 and all of the factor loadings were
The validity of the model was further assessed by examining above the minimum standard (Field, 2005), ranging from 0.51 to
convergent and discriminant validity. The convergent validity was 0.79. The overall KMO measure was 0.96, which indicated adequate
measured by standardized loading and the level of statistical sig- sampling, as it was greater than 0.5 (Hair et al., 2010). Barlett’s test
nificance. As shown in Table 4, all of the standardized factor loading of sphericity was highly significant (2 = 5991.10, df = 190, p < 0.00).
exceeded 0.5 (Hair et al., 2010), ranging from 0.77 to 0.88, and the The Cronbach alpha coefficient was 0.92, which was significant. The
statistics of all of the C.R. values were greater than 1.96, and were items in this construct were internally and extremely consistent,
therefore statistically significant (Byrne, 2010). thereby forming a highly reliable scale, and three factors fit the
The average variance extracted (AVE) was also used to test for data well.
both convergent and discriminant validity. Table 5 shows that all of MCTP is also a multi-dimensional construct, consisting of three-
the AVE values were greater than the minimum requirement (0.50) factor constructs (team function, team climate, and team skills)
and reliability also exceeded the minimum standard (0.7). The AVE measured by 20 observable variables. First- and second-order CFAs
value for each construct was greater than the squared correlation were conducted on this construct. The initial statistical results of
coefficients for the corresponding inter-constructs, which showed the first-order CFA (2 = 615.604, df = 167, GFI = 0.851, CFI = 0.921,
that each construct was distinct from the others. Thus, the con- RMSEA = 0.086) indicated a poor fit of the model to the sample
vergent and discriminant validity was statistically significant and data. Thus, MIs were used to find inappropriate factor loadings
acceptable (Hair et al., 2010). and mis-specified error covariance. Eight items were retained and
goodness of fit indices were examined. The results showed that the
W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104 99

Table 7
Exploratory factor analysis results for multi-cultural team performance (N = 370).

Code Item Factor loading Eigen-value % Var ␣

Factor 1 team foundation 11.89 59.49 0.92


TF 4 Attempt to accomplish a task 0.79
TF 2 Comprehension and acceptance of an assigned role 0.78
TF 3 Clarity of the purpose of work team 0.75
TF 5 Hold the essential skills and abilities 0.72
TF 1 Acceptance of common work values 0.67
TS 9 Spend sufficient time of working with team members 0.58
Factor 2 team climate 1.10 5.47 0.92
TC 4 Listening to each team member 0.79
TC 6 Highly cohesive and cooperative of the team 0.74
TC 1 Trust among team members 0.74
TC 5 Learning from each other and developing skills 0.74
TC 3 Individual’s performance praise with achievement celebration 0.73
TC 2 Feeling valued at work 0.59
Factor 3 team skills 1.01 5.05 0.92
TS 1 Empowerment for task completion and decision making 0.77
TS 2 Support of hotel management 0.70
TS 4 Effective conflict management strategies 0.68
TS 3 Implementation and evaluation of solutions 0.67
TS 5 Open communication among team members 0.61
TS 7 Enjoyment of working in the team 0.57
TS 6 Give, receive, and use feedback constructively 0.54
TS 8 Comprehension and respect cultural differences 0.51

Overall Kaiser–Meyer–Olkin (KMO) = 0.964, Barlett’s test of sphericity: Chi-square = 5991.101, df = 190, p < 0.000 % Var. = percentage of variance explained, ˛ = cronbach’s
alpha.

Table 8
First-order confirmatory factor analysis results for MCTP (N = 368).

Items Factor Estimate C.R. (t-value) Std. FL SMC

Factor 1 team foundation


TF3 ←− Team foundation 1.000 0.877 0.770
TF2 ←− Team foundation 0.956 20.258 0.847 0.718
TF4 ←− Team foundation 0.878 18.567 0.799 0.638
Factor 2 team climate
TC1 ←− Team climate 1.000 0.890 0.793
TC4 ←− Team climate 0.941 19.584 0.866 0.749
Factor 3 team skills
TS3 ←− Team skills 1.000 0.803 0.644
TS2 ←− Team skills 0.954 15.095 0.806 0.649
TS1 ←− Team skills 0.918 12.440 0.660 0.436

Note: All are significant at the 0.001 level.

Table 10
Second-order confirmatory factor analysis results for MCTP (N = 368).

Factor Construct Estimate S.E. C.R. (t-value) Std. FL SMC

Team skills ←− MCTP 1.000 0.890 0.792


Team climate ←− MCTP 1.068 0.77 13.800 0.891 0.793
Team foundation ←− MCTP 0.878 0.70 12.591 0.853 0.727

Note: All are significant at the 0.001 level.

Table 9 of the AVE values were greater than 0.50 and the reliability was
Correlation (squared correlation), reliability, AVE, and mean.
also higher than the minimum standard (0.7). The AVE value for
Team foundation Team climate Team skills each construct was greater than the squared correlation coefficients
Team foundation 1.000 for the corresponding inter-constructs. Thus, the model success-
Team climate 0.696 (0.484) 1.000 fully confirmed satisfactory convergent and discriminant validity.
Team skills 0.630 (0.397) 0.626 (0.392) 1.000 Second-order CFA was similarly conducted to test the identification
Reliability 0.879 0.870 0.796 status of the higher order portion of the model. The overall model fit
AVE 0.708 0.771 0.577
indices (2 = 11.843, df = 17, GFI = 0.992, CFI = .000, RMSEA = 0.000)
Mean 5.784 5.666 5.525
S.D. 0.907 0.999 0.887 indicated that the model fit the data very well. All of the stan-
dardized estimates (C.R. and Std.FL) were statistically significant
as shown in Table 10.
model perfectly fit the sample data (2 = 11.843, df = 17, GFI = 0.992,
CFI = 1.000, RMSEA = 0.000). 5.3. Overall measurement model test
As shown in Table 8, the estimates of standardized factor loading
ranged from 0.660 to 0.890, which were greater than the minimum The overall measurement model was examined with eight CCC-
criteria (Hair et al., 2010), and the statistics of all of the C.R. values related items and eight MCTP-related items, based on the results
were significant (Byrne, 2010). Additionally, Table 9 shows that all of the CFA. The model fit indices (2 = 201.510, df = 197, GFI = 0.968,
100 W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104

Table 11
Results of overall measurement model (N = 738).

Factor Construct Estimate C.R. (t-value) Std. FL SMC

Construct 1 CCC
Cultural sensitivity ←− CCC 1.000 0.936 0.876
Cultural awareness ←− CCC 0.970 18.121 0.845 0.714
Relationship building ←− CCC 0.976 19.880 0.964 0.929
Construct 2 MCTP
Team foundation ←− MCTP 1.000 0.883 0.780
Team climate ←− MCTP 1.139 18.534 0.856 0.733
Team skills ←− MCTP 0.948 15.203 0.899 0.807

Note: All are significant at the 0.001 level.

Table 12
Correlation (squared correlation), reliability, AVE, and mean.

Cross-cultural competency Multi-cultural team performance

Cross-cultural competency 1.000


Multi-cultural team performance 0.641 (0.411) 1.000
Reliability 0.871 0.846
AVE 0.838 0.516
Mean 5.502 5.605
S.D. 0.828 0.838

CFI = 0.986, RMSEA = 0.038) indicated a high degree of model fit. results of the structural path estimates, including all of the latent
Table 8 shows the critical ratio and the standardized factor loading. variables, between CCC and MCTP is represented in Fig. 3. The struc-
All of the standardized factor loading estimates were greater than tural path estimates were statistically significant and had valid C.R.
0.50 (Hair et al., 2010) and the CR values were significant (Byrne, values. The path coefficient from CCC to MCTP was 0.75 and the
2010). Thus, examining the items as indicators of the CCC and MCTP C.R. (t-value) was 15.42 (Byrne, 2010). The path coefficient value
construct should lead to convergence at a common high proportion and significance level illustrated that the influence of CCC on MCTP
of variance (Hair et al., 2010). The AVE values were greater than was positive and statistically significant.
0.50 and reliability was also higher than the minimum standard
(0.7). The AVE value for each construct was greater than the squared 6. Discussion and conclusion
correlation coefficients for the corresponding inter-constructs. The
model successfully confirmed the satisfactory discriminant validity This study examined the relationships between the CCC and
(Hair et al., 2010) Tables 11 and 12. MCTP of Thai hotel employees. The proposed relationship was
developed based on a comprehensive literature review. The statis-
5.4. Structural measurement model test tical findings described the relationship between CCC and MCTP.
CCC has positive direct effects on MCTP. The multi-dimensional
In the previous section, the authors described an acceptable measurements of CCC and MCTP were used in a CFA and structural
measurement model. The structural model was then evaluated model testing. The measurement scales used in this study were
to determine the relationship between CCC and MCTP. The verified by statistical analysis. The results demonstrated that the
model fit indices (2 = 201.510, df = 197, GFI = 0.968, CFI = 0.986, measurement scales were reliable and valid when used in the set-
RMSEA = 0.038) were all higher than the minimum criteria, which ting of hotels in Thailand. The internal consistency and construct
indicated that the structural model fit the sample data well. The validity were tested and were found to be acceptable. The results

Relationship Cultural Cultural


building awareness sensitivity

0.96*** 0.84*** 0.94***

Cross-cultural Multi-cultural
competency team
0.75*** performance

0.90*** 0.86*** 0.88***

Team Team Team


skills climate foundation

Fig. 3. Final structural model with standardized parameter estimates.


W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104 101

Fig. 4. Conceptual framework.

indicated that the measurement and structural models adequately other cultures and their own culture (Campinha-Bacote, 2002). The
fit the sample data. As such, the proposed model was shown to current study refined the measurement scale and determinants
be satisfactory and effective. The proposed structural model has of the CCC construct and verified its descriptions and categories,
the statistical ability to predict the determinants of hotel employee which are important for hotel employees in MHCs to enhance
MCTP and the outcomes of CCC. Next, the authors discuss how to MCTP. This three-dimensional model was shown to be applicable
the research objectives were achieved and propose the conceptual in Thailand. The refined measurement construct of CCC can be used
framework of the relationship between cross-cultural competency as a reference for future studies in this area and as a guideline for
and multi-cultural team performance in multi-national hotel com- Thai hotel employees’ cross-cultural training.
panies.

6.1. Cross-cultural competency necessary for thai hotel 6.2. Key factors affecting the multi-cultural team performance of
employees in multi-cultural hotel companies hotel employees in multi-cultural hotel companies

Eight essential competencies that are necessary for Thai hotel The essential factors of the MCTP of hotel employees in MHCs
employees prior to joining MCTs were identified. These compe- identified by the Thai hotel employees’ perceptions were catego-
tencies fall into three dimensions of relationship building, cultural rized into three components, team skills, team foundation, and
sensitivity, and cultural awareness. They allow Thai hotel employ- team climate. The contribution of these key factors to MCTP is a
ees to work and communicate effectively with multi-national and suitable topic for investigation in MHCs. As in previous studies,
cross-cultural team members. These finding were consistent with certain variables in the organizational and societal contexts also
those of previous studies. Enjoyment in or motivation for “rela- influenced team effectiveness (Halverson and Tirmizi, 2008). The
tionship building” competency is a vital foundation for achieving “team foundation” component includes clarity of team goals and
higher CCC (Bennett, 2009; Earley and Ang, 2003), when combined responsibilities, complementary skills, and attitudes such as open-
with cultural knowledge and skills, personal abilities, and inter- ness, respect, and helpfulness. These factors positively influence
ests (O’sullivan, 1999). The “cultural sensitivity” competency is an cohesion, trust, and team development (Earley, 2002; Marquardt
important component of CCC, because it addresses the individual’s and Horvarth, 2001 Matveev and Milter, 2004; Zakaria et al., 2004).
affective perception of cultural diversity (Suh, 2004). Cultural sen- The internal components of team cooperation (Adler, 2008) and
sitivity likewise denotes the possession of affective recognition, team well-being, such as a healthy team climate (Thomas, 2008),
respect for cultural differences and an accepting attitude (Jones are essential elements in supporting internal team factors that later
et al., 1998). Individuals can increase their “cultural awareness” enhance the functioning of team processes and increase MCT effec-
competency by accumulating cultural knowledge and using it as tiveness (Earley and Garder, 2005; Singh and Muncherji, 2007). The
a reference for their own perceptions regarding cultural diversity. overall results indicated that the measurement of MCTP of Thai
Cultural awareness refers to an individual’s appreciation for and hotel employees was valid and reliable, and can be effectively used
sensitivity toward examining their own preconceptions toward in the context of Thai MHCs.
102 W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104

6.3. Relationship between the cross-cultural competency of thai industry practices, and by assessing the relationship between CCC
hotel employees and their multi-cultural team performance and MCTP. Moreover, through the model, CCC was examined for
its relationship with and effect on MCTP. Our model enhances the
The findings illustrated that CCC has a significant positive effect current understanding of the determinants of MCTP.
on MCTP, which was consistent with previous studies, and con- Statistical tests and instrument verification have shown that
firmed that CCC has theoretical influence on MCT collaborations CCC measures are feasible in the Eastern social context. Some mea-
(e.g., Abbe et al., 2007; John et al., 2006 Thomas, 2008) and on surements and dimensions have been amended based on statistical
MCTP prediction (Matveev and Milter, 2004). The findings also analysis; thus, these conform to the context of hotel employees.
highlighted the importance of CCC in establishing interpersonal The study also verified and developed measurement scales for CCC
relationships and working effectively with culturally diverse col- and MCTP in the hotel context. The measurement items of CCC
leagues. In other words, hotel employees with higher levels of CCC and MCTP constructs were initially developed in the Western set-
perform better in MCTs and contribute to a more successful MCTP. ting. These studies used EFA to verify the measurements of the
The standardized estimate of the direct effect of CCC on MCTP constructs and CFA to examine the reliability and validity of mea-
was 0.75, which meant that a one-point increase in CCC would surement items. All of the constructs were valid in the context of the
result in an increase of 0.75 in MCTP. Thai hotel employees’ percep- hotel industry in Thailand. These constructs indicated a high inter-
tions of their own CCC were related to their performance in MCTs. nal consistency, reliability, and validity. The measurements can
Furthermore, the three determinants of CCC had similar significant contribute to the existing theory and can be a basis for future stud-
positive effects on MCTP. The “relationship building” competency ies in related areas under Thai settings, specifically in the context
factor had the highest contribution to MCTP, followed by the “cul- of MHCs.
tural sensitivity” and “cultural awareness” factors. All of the items
under investigation were found to be highly correlated with MCTP. 7.2. Practical contributions
To overcome cultural differences within a team, members must
have CCC (Matveev & Nelson, 2004) and multi-cultural teamwork This study provides key information for stakeholders on how
values (Grosse, 2002). to prepare effective human resources in the international hospital-
ity industry setting, particularly in Thailand, as well as in tailoring
6.4. Conceptual framework of the relationship between ccc and practices to produce the best match, which will eventually enhance
mctps in MHCs potential Thai employees’ competency in collaborating with multi-
cultural colleagues and in different cross-cultural settings. The
Fig. 4 demonstrates the conceptual framework derived from the practical implications can be implemented by hotel practitioners
study findings. CCC contributed positively to MCTP in MHCs. The and hospitality academics as described below. The recommenda-
enjoyment and application of appropriate behavior implied by the tions can be made to practitioners to emphasize the impact that
“relationship building” competency allows individuals to develop even they are common practices in multi-national hotel compa-
social ties (Zakaria et al., 2004) and increases the likelihood of par- nies, they are useful references for Thai hotel companies and Thai
ticipation in cross-cultural exchanges (Abbe et al., 2007; Earley and educators in their human resources planning and training.
Ang, 2003; Suh, 2004). Individuals with a high level of “relation- Through the dimension of MCTs in MHCs in this study, manage-
ship building” competency are predicted to have the capability to ment can obtain an understanding of Thai employee perceptions
strengthen their network, develop skills, and perform remarkably of MCTP, design effective HRM practices to fit the psychological
well in MCTs. demands of employees, and assess employees’ CCC as a marker
The “cultural sensitivity” and “cultural awareness” competen- for their ability to work in an international culture. This study
cies are related to behavior or skills that are important in the confirmed the effect of CCC on MCTs, showing that management
present international work environment (Bennett, 2009). There- should concentrate on enhancing employee CCC to improve MCTP.
fore, these two competencies guide an individual to behave Moreover, when CCC is improved, employees express their sat-
appropriately and effectively in an intercultural situation, partic- isfaction with working in MCTs. Increased knowledge of the CCC
ularly in MCTs. Nevertheless, cultural knowledge had a positive of Thai employees and their performance in MCTs may help the
effect on the maximization of CCC attributes, especially the CCC of management of MHCs with subsidiaries in Thailand to implement
other individuals (Koester et al., 1993). The accumulation of these appropriate and effective strategies for enhancing the abilities, sat-
three competencies in MCT members helps them to perform suc- isfaction, and performance of Thai hotel employees.
cessfully in MCTs and enhance their team performance. Furthermore, the study indicated that investment in cross-
“Team skills,” “team foundation,” and “team climate”, as the cultural training for students will enhance their capabilities in
predominant factors in overall team performance, should be con- intercultural effectiveness before they enter the international hos-
sidered by all stakeholders, including the organization, team pitality industry. Graduate cross-cultural training will enhance
members, and the individual in question. As the contributor to orga- performance in MCTs. Information on CCC and MCTP will be useful
nizational success and growth in the global market is based on the for potential hotel employees in MHCs to understand the ways in
successful performance of MCTs (Guindi and Kamel, 2003), orga- which they can enhance their CCC and develop relationships with
nizations that can successfully implement practices for improving other employees who are from different cultures and backgrounds,
MCTP will gain a competitive advantage worldwide (Yu, 1999). so that they can work effectively in MCTs. The information from this
study may provide insights for educators in developing an appro-
priate pedagogy for educating and training future generations of
7. Research contributions
employees in the hospitality industry, by integrating the influences
7.1. Theoretical contributions of cultural diversity on the industry today and in the future.

The authors have contributed to the theoretical literature by 8. Limitations of the study
developing a model that is particularly relevant to MHCs. This study
has extended the existing theory of CCC and MCTP into the hotel Despite the valuable contributions discussed previously, certain
context. The authors have enhanced the current literature by devel- limitations are evident in the sample selection and data collection
oping a model based on a synthesis of the existing literature and processes.
W. Sucher, C. Cheung / International Journal of Hospitality Management 49 (2015) 93–104 103

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