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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
2. Literature review
Table 1
Sample size and response rate.
Table 3
Exploratory factor analysis results for cross-cultural competency (N = 370).
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).
Table 5
Correlation (squared correlation), reliability, AVE, and mean.
Table 6
Second-order confirmatory factor analysis results for CCC (N = 368).
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).
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).
Table 10
Second-order confirmatory factor analysis results for MCTP (N = 368).
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).
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
Table 12
Correlation (squared correlation), reliability, AVE, and mean.
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
Cross-cultural Multi-cultural
competency team
0.75*** performance
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.
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