University of Lugano, Switzerland

Faculty of Economics

Cultural Intelligence (CQ) across

Private Banking Departments
MASTER’S DISSERTATION

Author: Aldana Sofia D’Aviri

Supervisor: Luca Solari
Second Reader: Erik Larsen
Academic Year: 2014 - 2016
Submission Date: October 11th, 2016
 Table of Contents

1 Introduction ................................................................................................. 5
1.1 Globalization .................................................................................................................. 5
1.2 Background and Motivation .......................................................................................... 6
1.3 Research Scope .............................................................................................................. 7
1.4 Methodology .................................................................................................................. 8
1.5 Structure ................................................................................................................................... 9
2 Literature Review ..................................................................................... 10
2.1 Culture.......................................................................................................................... 10
2.1.1 The Concept of Culture ............................................................................................ 10
2.1.2 Features of Culture .................................................................................................. 11
2.1.3 National Culture ...................................................................................................... 13
2.1.4 Organizational vs. National Culture ....................................................................... 14
2.1.5 Multiculturalism ................................................................................................................ 15
2.2 Comparing Cultures ..................................................................................................... 15
2.2.1 Approaches to the Study of Culture ......................................................................... 15
2.2.2 Cultural Frameworks ............................................................................................... 16
2.2.3 Kluckhohn & Strodtbeck’s Framework ................................................................... 17
2.2.4 Hofstede’s Study....................................................................................................... 17
2.2.5 Hampden-Turner and Trompenaars’ Framework ................................................... 20
2.2.6 The GLOBE Study .................................................................................................... 22
2.3 Understanding the Influence of Culture ....................................................................... 24
2.3.1 Social Cognition....................................................................................................... 24
2.3.2 Cultural Norms ........................................................................................................ 25
2.3.3 Selective Perception ................................................................................................. 26
2.3.4 Perceived Similarity and Attraction......................................................................... 27
2.3.5 Stereotypic Expectations .......................................................................................... 27
2.3.6 Motivation Across Cultures ..................................................................................... 29
2.4 Cultural Intelligence..................................................................................................... 31
2.4.1 Conceptual Overview ............................................................................................... 31
2.4.2 Four Factors of CQ ................................................................................................. 32
2.4.3 Conceptual Distinctiveness of CQ ........................................................................... 33
2.4.4 Research Results on CQ................................................................................................... 34
3 Methods ...................................................................................................... 37
3.1 Data Collection ............................................................................................................ 37
4 Results and Discussion .............................................................................. 39
4.1 Data Analysis ............................................................................................................... 39
4.1.1 Demographics .......................................................................................................... 39
4.1.2 Antecedents of CQ.................................................................................................... 41
4.1.3 CQS scores ............................................................................................................... 42

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4.2 Discussion .................................................................................................................... 44
4.3 Further Considerations ................................................................................................. 45
5 Conclusion.................................................................................................. 47
5.1 Limitations of the study ............................................................................................... 48
5.2 Recommendations for further research ........................................................................ 49
6 References .................................................................................................. 51
Appendix A - The CQS .................................................................................... 55
Appendix B – CQ Scores ................................................................................. 57
Appendix C – CQ Factor Scores..................................................................... 60

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 List of Figures and Tables

Figure 1: Three Levels of Mental Programming; .................................................................... 12

Figure 2: Hofstede’s Dimensions: Switzerland in comparison with Italy; .............................. 19
Figure 3: Gender distribution by group of respondents ........................................................... 40
Figure 4: Age distribution by group of respondents ................................................................ 40
Figure 5: N° of languages spoken daily by group of respondents ........................................... 41
Figure 6: Time spent abroad by group of respondents ............................................................ 42

Table 1: Comparison of Organizational and National Culture; ............................................... 14

Table 2: GLOBE dimensions as practices: Switzerland compared to Italy; ............................ 23
Table 3: GLOBE dimensions as values: Switzerland compared to Italy; ................................ 24
Table 4: Response rate for each group of respondents ............................................................ 39
Table 5: Native language by group of respondents ................................................................. 41
Table 6: CQ Factor Scores for each group of respondents ...................................................... 43
Table 7: Average CQ for each group of respondents .............................................................. 43

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 1 Introduction

We live in a world that is interconnected as never before. Globalization affects aspects of

everyday life. Advanced communication and information technologies allow
instantaneous communication worldwide, and have made travelling to foreign countries more
affordable and accessible. Being in contact with other cultures has become the norm, and it
might happen even without leaving the office.
Goods are manufactured and sold globally on an unprecedented scale. It is difficult to find
a product or service that is not affected to some extent by an international transaction. As
organizations go global, the workforce becomes more and more diverse.
As globalization expands human connections, not only intercultural interactions increase,
but also the probability of intercultural misunderstandings, tensions, and conflicts intensifies.
Therefore, it is increasingly more crucial to understand why some individuals are successful in
dealing with culturally diverse people, while others fail to adapt to new cultures. The concept
of cultural intelligence emerged into the business literature at the beginning of the 21st century
with the aim to respond to this need. Cultural intelligence (CQ) can be defined as “a person's
capability to adapt effectively to new cultural contexts” (Earley & Ang, 2003: p. 59). In other
words, cultural intelligence is an individual’s capability to adapt his or her views and behaviors
cross-culturally. It is important to note that “CQ is a measurable construct with strong
psychometric properties and evidence of construct validity” (Ang, Dyne & Rockstuhl, 2015:
p. 274).
This measurable construct will be used in this dissertation in order to explore the level of
cultural intelligence of various groups of private bankers who are exposed, to different extents,
to culturally diverse people.

1.1 Globalization

Globalization undoubtedly affects aspects of everyday life. However, the concept itself
does not evoke a clear image of what it is. The author considers it as being appropriate for a
comprehensive understanding of the concept of culture to discuss the topic of globalization in
more detail.
Globalization can be defined as “a process whereby worldwide interconnections in
virtually every sphere of activity are growing. Some of these interconnections lead to

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integration/unity worldwide; others do not” (Parker 2005: p. 5, cited in Thomas 2008). So,
globalization is a process of international integration.
This phenomenon is influenced by economic, legal, political, technological, and cultural
elements. However, the most difficult to understand and the most ignored of these factors can
be the influence of culture. In fact, the influence of culture might play a crucial role in
international relations. As Thomas (2008) explains “although economics, politics, and
technology can define the playing field of international management, it is a game of cross-
cultural interactions that is being played” (p. 4).
The author considers that culture is important to cross-cultural management for three
reasons. First, to a great degree, a nation’s economic, legal, and political systems are a
reflection of the culture of a nation. In other words, these systems originate from a nation’s
history and culture. The economic, legal, and political systems of a nation are the visible
components of a more essential set of shared meanings. In addition, culture influences the
objectives of the institutions of a society, the way in which they operate, and the attributions1
people make for behaviour and policies (Schwarz 1992, cited in Thomas 2008: p. 11). Second,
culture is to a great extent invisible. Because the influence of culture is not easily identifiable,
it is often overlooked. Finally, the practice of cross-cultural management focuses largely on
interpersonal interactions. Thomas (2008) argues that “one of the distinct characteristics of
global management is that these interactions occur with people who are culturally different”
(p. 11).
It is therefore essential to understand the influence of culture at the individual level. The
influence of culture on people’s behavior will be discussed in detail in Chapter 2.

1.2 Background and Motivation

Little applied research on cross-cultural management has been conducted within

Switzerland. After consulting a great textbook on cross-cultural management, the author learnt
about the concept of cultural intelligence (CQ), a relatively new multidimensional construct.
The concept of cultural intelligence was completely new to the author and great interest was
stirred in her.

1
Attribution helps us “understand and react to our environment by linking the observation of an event to its
causes” (Thomas, 2008: p: 81).

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 Given the little amount of data available on the topic of cross-cultural management within
Switzerland, and also the limited amount of research conducted on the construct of cultural
intelligence within Swiss companies, the author decided to collect data on CQ within a Swiss
firm in the banking industry. Thanks to the support given by the supervisor of this dissertation,
it was made possible for this study to be conducted in an Italian firm as well.
It is interesting to note that the Swiss firm is embedded in a multilingual, multicultural
environment, whereas the Italian firm is embedded in a monolingual, mono-cultural
environment. The fact that these two firms are embedded in different cultural environments
fascinated the author.
The author of this dissertation is a multicultural individual who has lived in five different
countries, studied in eight, and has visited many more. The author holds a B.A. in Intercultural
Communication, speaks three languages fluently and currently studies and lives in Switzerland.
The author has worked in two officially monolingual countries, namely Spain and Italy, and
has also gained experience working in a Swiss company with offices in various Cantons of
Switzerland. Because of her international educational background and working experience, the
author is able to analyze from the cross-cultural point of view different cultural environments
and contexts.
Therefore, the little amount of research on CQ conducted within the banking industry in
Switzerland, as well as the author’s inherent interest in cross-cultural interactions, which stems
from her own international experience, have been strong motivating factors for choosing the
topic of Cultural Intelligence.

1.3 Research Scope

The initial purpose of this dissertation was to assess the level of cultural intelligence of
various groups of private bankers that would provide services to either domestic or
international clients. These groups of private bankers would work for similar companies
operating both locally and internationally. More specifically, two groups of private bankers
would work in Switzerland for a Swiss bank and two groups of private bankers would work in
Italy for an Italian bank. Within the Swiss bank, one group would provide services to
international clients, and the other one would provide services to domestic clients; the same
logic would apply to the Italian bank.

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 After the data collection process had started, the private banking division of the Italian bank
would let the author know that even though the Italian bank did operate internationally, its
private banking division provided services only to domestic clients. Thus, the division lacked
an international department.
The actual purpose of this study was therefore to assess the cultural intelligence level of
three groups of private bankers who would provide services to either domestic or international
clients. For confidentiality reasons neither the identity of the Swiss bank nor the identity of the
Italian bank can be revealed. Thus, the author will refer to these two companies as the “Swiss
bank” and the “Italian bank” respectively. The following three groups of private bankers
participated in this study:

- First group, “PB Ticino”: individuals work in Ticino for the private banking division
of the Swiss bank and provide services to domestic clients.
- Second group, “PB Zurich”: individuals work in Zurich for the private banking division
of the Swiss bank and provide services to international clients.
- Third group, “PB Italy”: individuals work in Italy for the private banking division of
the Italian bank and provide services to domestic clients.

Ang, Van Dyne, and Koh (cited in Van Dyne et al., 2007) have demonstrated that those
individuals who have more experience interacting with culturally diverse people have higher
CQ. Based on these findings, the author predicts that the average cultural intelligence level of
the group “PB Zurich” will be higher than the cultural intelligence level of the group “PB
Ticino”.

1.4 Methodology

This study is based on quantitative data. The approach adopted is descriptive. Primary data
was collected by the use of a self-completion questionnaire, including the Cultural Intelligence
Scale (CQS), a standardized instrument developed and validated by Ang et al. (2007). Further
information on data collection method is provided in Chapter 3.
Data was analyzed by the use of descriptive statistics. In particular, mean CQ scores for
each group of respondents were calculated and assessed.

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 1.5 Structure

This dissertation is divided in five chapters. Chapter 1 introduces the topic of cultural
intelligence and lays out the relevant context for it. It also provides an explanation on
background and motivation for the selection of the topic of Cultural Intelligence, and presents
the research scope and methodology. Chapter 2 is dedicated to literature review. On the one
hand, the concept and influence of culture are discussed in detailed, which function as a
foundation for the conceptualization of CQ; on the other hand, the construct of Cultural
Intelligence and its development, as well as research findings on CQ, are explained. Chapter 3
provides information related to the data collection method and procedure. In Chapter 4,
demographic data and CQS scores for each group of participants are displayed and discussed.
Lastly, Chapter 5 provides a summary of the findings. Limitations of the study and
recommendations for future research are also provided.

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 2 Literature Review

2.1 Culture

Research has shown that culture affects the roles and behavior of individuals both directly
and indirectly. But what does culture mean? In this section, the concept of culture will be
explored and discussed.

2.1.1 The Concept of Culture

Kroeber and Kluckholn (1952), cited in Gudykunst, Ting-Toomey & Nishida (1996: p. 4),
distinguished more than sixty definitions of culture. Although there are many definitions of
culture, no consensus has been achieved to date on only one definition. To name only two
possible conceptualizations, culture can be seen as the human-made part of the environment
(e.g., Herskovits 1955, cited in Gudykunst et al., 1996, p. 4) or “as the subjective perception of
the human-made part of the environment” (Triandis 1972, cited in Thomas 2008: p. 27).
Material culture consists of objective elements such as food, dress, buildings and tools, whereas
subjective culture consists of subjective elements such as beliefs, attitudes, values and norms.
Greetz (1973), cited in Gudykunst at al. (1996: p. 4), sees culture as a system of shared
meanings, and Hofstede (1980), cited in Thomas (2008), suggests that “culture consists of
shared mental programs” (p. 27) that guide individuals in their interactions with their
environment.
Another definition of culture is provided by Rohner (1984), who suggests that culture is:

the totality of equivalent and complementary learned meanings maintained by a human population, or by
identifiable segments of a population, and transmitted from one generation to the next. (Rohner 1984, cited
in Earley & Ang, 2003: p. 63)

The author makes useful distinctions of culture, society and social system. Society is
defined as a multigenerational population delimited by a territory, and organized around a
common culture or a common way of viewing the world, whereas a social system is defined as
the behavioral interactions of individuals who live in a culturally organized population.
It is worth noting that Rohner acknowledges that cultural meanings within a society are
imperfectly transmitted across generations. His argument is that over time people internalize

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changes on cultural meanings held by their predecessors. Any two individuals from the same
culture might attach somewhat dissimilar meanings to the same occurrence or construct, and
these two persons may share meanings with other groups in the society but not with one
another. In addition, Rohner argues that:

It is probable that no single individual ever knows the totality of equivalent and complementary learned
meanings that define the “culture” of a given population, and it is therefore unlikely that the person is able
to activate, at any given moment, the full range of meanings that define the “culture” of his or her people.
But complementary meanings free one from the necessity of having to know all of one´s “culture”. For
example, most persons do not need to know how to behave as a physician or shaman if they are ill, only how
to behave properly as a patient. (Rohner 1984, cited in Earley & Ang, 2003: p. 64)

Earley and Ang (2003) suggest that Rohner´s approach provides an advantage over
Hofstede´s by making a distinction between culture and social system, and acknowledging that
culture represents a set of imperfectly shared meaning of members within a social system.
A relevant working definition of culture, which will be adopted in this dissertation, is
provided by Thomas (2008). In his words, culture “consists of systems of values, attitudes,
beliefs and behavioral meanings that are shared by members of a social group (society) and
learned from previous generations” (Thomas, 2008: p. 29).
This definition does not distinguish between culture and social system, because in practice
it is not perfectly clear when one concept ends and the other begins (Smith & Bond 1999, cited
in Thomas, 1999: p. 29).

2.1.2 Features of Culture

The following elements are of particular significance for our understanding of the
relationship between cultural issues and people’s behavior.

Culture is shared

Culture is something shared by members of a group or society. Hofstede (2001), cited in

Staeheli (2003: p. 38), describes culture as the collective mental programming that makes
distinctions between the members of a particular group and those of another. As shown in

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Figure 1, individuals carry in their minds three levels of mental programming that guide their
behavioral interactions with their environment.

Figure 1: Three Levels of Mental Programming;

Source: Hofstede (2001: 3), cited in Staeheli (2003: p. 38)

The universal level of mental programming is common to all human beings, and therefore
independent from culture. The individual level of human programming is specific to an
individual and is the truly unique part. Culture occurs at an intermediate collective level and is
shared by people belonging to the same group or category.

Cultures is learned

A second significant feature of culture is that it is transmitted from one member of the
society to another through a “process of learning and interacting with the environment”
(Thomas, 2008: p. 29). According to the author, people in a given society generate patterned
ways of dealing and interacting with their environment, and these patterns are passed on to new
members as they learn the different appropriate behaviors and ways of interacting with the
environment. These cultural patterns include the language, the political system, and the
religious system of a society.

Culture is manifested at different layers

Another important element is that culture is multilayered, like an onion (Trompenaars &
Hampden-Turner, 1997). Like most definitions of culture, this model differentiates between
observable elements and subjective elements.

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 The outer layer consists of explicit products, in other words, the visible features of culture.
Explicit culture such as food, buildings, clothing and art, reflects deeper layers of culture.
The middle layer consists of norms and values. Norms are acceptable standards of behavior
that are shared by a social group. Norms have a strong influence on behavior and can develop
either on the formal level, as written rules and laws, or on the informal level, as social control.
Values dictate what is right or wrong for individuals in a given cultural context, and therefore
are associated with the ideals shared by a social group (Trompenaars & Hampden-Turner,
1997: p. 22). According to the authors, a given culture is relatively stable when the values of
the society are reflected on its norms.
The core consists of basic assumptions, which are implicit. These beliefs, thoughts, and
perceptions operate unconsciously and are taken for granted by members of the cultural group.
An important implication of this aspect is that because basic assumptions are difficult to
perceive, the effects of culture are often overlooked by global managers (Thomas, 2008: p. 30).

2.1.3 National Culture

As suggested by Thomas (2008), a fundamental question in identifying culture is to which

degree a nation has a distinctive culture.
Hofstede (1983), cited in Thomas (2008), suggests that “because nations are political
entities, they vary in their institutions, form of government, legal systems, educational systems,
labor and employment relations systems” (p. 35). Moreover, the majority of nations have one
or several official languages, which may be added to the one learned from childhood by
inhabitants (Smith et al. 2006, cited in Thomas, 2008). These factors influence how individuals
interact with each other and their surrounding environment, and therefore influence the way
they think, in other words, their mental programming. Hofstede argues that nations can have
cultures because they are social systems. In addition, according to the author, the concept of
nationality has an impact on how citizens identify themselves.
When adopting the notion of national culture, two important issues have to be
acknowledged. First, when we make comparisons between national cultures, we risk ignoring
multiple cultures that exist within nations. Second, we might fail to recognize the diversity,
tensions and disagreement that exist within national cultures. That is, “each individual has
unique life experiences that contribute to diversity within the culture” (Thomas, 2008: p. 36).

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2.1.4 Organizational vs. National Culture

Although there are many definitions of organizational culture, little consensus has been
achieved. Many authors describe it as “and internal attribute of the organization that is socially
constructed, historically determined, holistic, and difficult to change” (Hofstede, Neuijen,
Ohayv, & Sanders, 1990, cited in Thomas, 2008: p. 40).
Hofstede et al. (1990), cited in Thomas (2008), provide evidence that the constructs of
organizational and national culture are made of different elements. According to the authors,
values held by the founders and key leaders shape organizational cultures, and these values
influence organizational members through rules and routines of the organization.
Organizational practices are transmitted from one generation of employees to the next and
shape the organizational culture. The authors argue that people are hired by the organization
after their national cultural values, beliefs and attitudes are well developed, whereas
“organizational practices are learned through workplace socialization” (Hofstede et al. 1990,
cited in Thomas 2008: p. 41).
Triandis (1995), cited in Thomas (2008: p. 41), suggests that organizations might influence
an individual´s attitudes, values and beliefs. However, the effect of organizational culture is
probably very weak compared to the effect of national culture on individuals, and has limited
lasting influence. The underlying assumption is that individuals are partially involved with
their organization and totally immersed in their national culture.
Thomas, Au, & Ravlin (2003, cited in Thomas, 2008), argue that “membership in an
organization is conditional and based on an exchange relationship between the individual and
the firm” (p. 41). In contrast, being a member of a national culture does not depend on any
exchange relationship, therefore it is considered as being unconditional. Table 1 shows a
comparison between features of organizational and national culture.

Organizational Culture National Culture

Shared behaviors Shared meanings

Conditional relationship Unconditional relationship
Socialized into it Born into it
Partly involved Totally immersed

Table 1: Comparison of Organizational and National Culture;

Source: Adapted from Thomas (2008, p. 41)

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 Another possible approach to the influence of organizational culture is its compatibility
with national culture. Research studies suggest that national culture has an influence on the
relationship between organizational culture and outcomes (England 1983, cited in Thomas,
2008: p. 41). For example, research has shown that matching organizational and national
culture resulted in better decision making (Misumi 1984, cited in Thomas, 2008: p. 42).
National culture may also influence the type of local culture that evolves within an
organization. Therefore, it is worth noting that the elements of organizational culture such as
rules and procedures might need to be assessed in terms of their relationship to societal or
national culture.

2.1.5 Multiculturalism

Intended as a social phenomenon, multiculturalism refers to the co-existence of different

cultures in a common place. It entails the promotion of equality and mutual respect between
citizens of diverse ethnic background. As Staeheli (2003) explains, multiculturalism may be
defined as having different origins:

“historical multiculturalism grows as a result of the historical aggregation of different ethnicities into a
federation of states (e.g. Switzerland); modern, opportunistic multiculturalism has its roots in the
immigration of foreigners, for example for employment reasons, and requires a certain degree of tolerance
from the hosting country and citizens; lastly, political multiculturalism, such as the U.S. model, which
promotes affirmative action and diversity as political programs and imposes multiculturalism politically.”
(Staeheli, 2003: p. 47)

Switzerland’s multicultural composition, with up to four official languages (German,

French, Italian, Romansch), and respective subcultures, is a true example of within-nation
multiculturalism (Staeheli, 2003: p. 50). An assessment of cultural dimensions in Switzerland,
as compared to Italy, which is considered as a mono-cultural society, will be presented in the
following section.

2.2 Comparing Cultures

2.2.1 Approaches to the Study of Culture

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 Emic and etic are the “two basic approaches to the study of culture” (Pike 1966, cited in
Gudykunst at al., 1996: p. 6). The former focuses on understanding cultures from the
perspective of the members of the culture being examined, in other words, it focuses on
studying cultures from the inside. The latter, in contrast, focuses on understanding cultures
from the outside by comparing cultures using some preselected criteria. Most sociological and
psychological research tends to draw on the etic approach, whereas most anthropological
research tends to be emic.
Triandis (1972), cited in Gudykunst at al. (1996: p. 7), suggests that researchers should
integrate both approaches to the study of cultures, by including aspects that are common across
cultures as well as aspects that are specific to the culture being examined.

2.2.2 Cultural Frameworks

The etic approach is often employed to study dimensions of cultural variability. Such
dimensions can be used to explain differences or similarities in behavior across cultures. Much
of the current understanding of cultural variability has been achieved by focusing on the study
of values. Different value orientations arise from different solutions that societies have
elaborated to manage a limited number of problems that are common to all peoples at all times.
Kluckhohn & Strodtbeck (1961), cited in Thomas (2008: p. 47), argue that because there is a
finite number of ways in which societies can deal with these common problems, it is possible
to create a system that compares societies on this basis. By studying the choices made by social
groups, it is possible to infer their preferences for such fundamental issues, and therefore
categorize them according to their shared assumptions on how things should be and how
individuals should behave (Thomas, 2008: p. 47).
Different frameworks have been devised for comparing and categorizing cultures.
Although these frameworks have been applied at different times, by using different methods,
a number of similar cultural dimensions have been identified. The major dimension identified
by researchers across cultures is individualism-collectivism (Gudykunst et al., 1996: p. 10),
which might be “the most useful and powerful dimensions of cultural variation in explaining a
diverse array of social behavior” (Triandis 1995, cited in Thomas, 2008: p. 62).
Major cultural frameworks will be reviewed subsequently, with a focus on cultural
variability between Switzerland and Italy.

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2.2.3 Kluckhohn & Strodtbeck’s Framework

Kluckhohn & Strodtbeck developed a framework for analyzing culture “that has influenced
how the management literature has conceptualized cultural variation” (Maznevski, DiStefano,
& Nason 1993, cited in Thomas 2008: p. 48). Their model is based on three main assumptions:
1) there is a finite number of problems that are common to all people, and must be solved; 2)
there is a limited number of possible solutions despite variability; 3) all possible solutions exist
in every society at all times but the alternatives are differently preferred (Yeganeh, Su, &
Sauers, 2009). The authors identified six major dimensions along which a society can be
classified:

• Relationships to nature: domination, harmony, subjugation

• Beliefs about human nature: good, evil or a mix of both
• Relationships between people: individualism, collectivism or hierarchical structure
• Orientation to time: focus on the present, past or future
• Nature of human activity: focus on being, achieving or thinking
• Human nature: good, bad or a combination of both
• Conception of space: private, public or a combination of both

These six value orientations have not been conceptualized as being bipolar. For example,
German people might show a preference for the private conception of space, but a public
conception of space might be their second preferred choice. In other words, “a high preference
for one assumption does not necessarily mean a low preference for the other two assumptions
in the same value orientation. All preferences can be represented in a society, but with a rank
order of the preferred alternatives” (Thomas, 2008: p. 48).

2.2.4 Hofstede’s Study

Hofstede’s framework is a comprehensive study of work values. Hofstede analyzed a large

database of employee value scores, collected by IBM between 1967 and 1973, and extracted
four cultural dimensions with which he categorized 40 out of 70 countries represented
(Thomas, 2008: p. 49). The cultural dimensions identified were individualism-collectivism,
power distance, uncertainty avoidance, and masculinity-femininity. It is important to note that

17
Hofstede stresses that dimensions of cultures do not exist in a tangible sense. Cultural
dimensions are constructs, and so are values (Hofstede, n.d.)

Individualism vs. Collectivism is defined as “the extent to which one’s self-identity is

defined according to individual characteristics or by the characteristics of the groups to which
the individual belong on a permanent basis, and the extent to which individual or group
interests dominate” (Thomas, 2008: p. 50). Power Distance is defined as “the extent to which
power differences are accepted and sanctioned in a society” (Thomas, 2008: p. 50). Uncertainty
Avoidance refers to the extent to which societies are tolerant for uncertainty and ambiguity.
Masculinity vs. Femininity is “the extent to which traditional male orientations of ambition and
achievement are emphasized over traditional female orientations of nurturance and
interpersonal harmony” (Thomas, 2008: p. 50).
After subsequent studies, in 1991, a fifth dimension called Long-term versus Short-term
Normative Orientation was included in the original framework. This dimension describes the
time horizon of a society, in other words, it describes the importance assigned to the past versus
the present and future (Hofstede, n.d.).
In the 2010 edition of Hofstede’s book Cultures and Organizations: The Software of the
Mind, scores were listed for 76 countries and regions, partly based on extensions and
replications of the IBM study. A sixth dimension called Indulgence versus Restraint was added
to the framework. This sixth dimension refers to “the extent to which individuals try to control
their desires and impulses, based on the way they were raised” (Hofstede n.d., “Indulgence”).
It is important to mention that the scores given to each country are average scores of all
participants in the country. Therefore, it is inappropriate to draw the inference that because two
countries score differently in a particular dimension, two persons from those two countries will
differ in the same way. In other words, within each country there might be differences in a
given dimension. Making the mistake of applying the scores at the country level to the
individual level has been called ecological fallacy.

Comparison between Switzerland and Italy

A comparison of the scores given to Switzerland and Italy is shown in Figure 2.

18
 Figure 2: Hofstede’s Dimensions: Switzerland in comparison with Italy;
Source: The Hofstede Centre (n.d., “Country Comparison”)

The 6-D Model© can provide a good overview of the drivers of Swiss culture relative to
Italian culture. A brief analysis of the scores shown in Figure 2 is provided below. Two aspects
are worth noting. First, the German and French parts of Switzerland can have widely different
scores, as can the Italian canton Ticino (The Hofstede Centre, n.d.). Second, a distinction
between the German and French parts of Switzerland is not always performed, and no scores
for the Italian part of Switzerland are included, due to data unavailability in Hostede’s work
(Hofstede, n.d.).
As we can see from Figure 2, Switzerland scores lower than Italy in all except two
dimensions, namely Masculinity versus Femininity, in which both countries score equally, and
Indulgence versus Restraint.
Switzerland scores 34 in Power Distance, which means that society believes that
inequalities between people should be minimized. On this dimension, there is a vast difference
between the German (score: 26) and the French (score: 70) speaking parts of Switzerland. The
latter scores much higher than the former, which means that in French speaking Switzerland
people accept a hierarchical order in which everyone has a place, whereas in German speaking
Switzerland power is decentralized, hierarchy is for convenience only, and communication is
direct and participative.
Both Switzerland and Italy score high in Individualism, and within Switzerland both the
German (score: 69) and the French (score: 64) speaking parts score high on this dimension,

19
which means that both are considered as Individualist societies. In individualistic countries,
people are supposed to take care of themselves and their direct family members only.
Switzerland and Italy score equally high in Masculinity, and within Switzerland, both
rankings for the German (score: 72) and the French (score: 58) speaking parts indicate a
Masculine society. People in masculine countries live in order to work (The Hofstede Centre,
n.d).
Switzerland scores 58 in Uncertainty Avoidance, possibly showing the difference between
the German (score: 56) and the French (score: 70) parts: the former scores lower, while the
latter has a strong preference for avoiding uncertainty. Countries showing high uncertainty
avoidance maintain rigid codes of belief and conduct, and are intolerant of unconventional
ideas and behavior.
With a high score of 74 in Long Term Orientation, Switzerland is a pragmatic country,
same as Italy at 61. In societies with a pragmatic orientation, people believe that truth depends
on context, time and situation. People are able to adapt traditions and habits to changed
conditions, and show a strong inclination to save and invest money.
Lastly, Switzerland scores high in Indulgence, with a score of 66. In societies characterized
by a high score in indulgence, people show a willingness to realize their desires regarding
having a good time and enjoying life. People communicate positivism and have a propensity
towards optimism. In contrast to Indulgent societies, Restraint societies have a tendency to
cynicism and pessimism. A score of 30 indicates that Italian culture is one of Restraint.

2.2.5 Hampden-Turner and Trompenaars’ Framework

Trompenaars and Hampden-Turner conducted a comprehensive study of value

orientations. They defined a set of seven cultural dimensions that “were derived from the prior
work of sociologists and anthropologists” (Kluckhohn & Strodtbeck, 1961; Parsons & Shils,
1951; cited in Thomas, 2008: p. 59). The first five of these dimensions regard relationships
between individuals, whereas the last two dimensions refer to orientations towards time and
the environment. A brief description of these dimensions follows below.

• Universalism vs. Particularism: “Universalism is a belief that what is true and good can
be discovered and applied universally, whereas particularism is a belief that particular
circumstances determine what is right or good” (Thomas, 2008: p. 59).

20
 • Individualism vs. Collectivism: It refers to the extent to which people regard themselves
as dependent or independent of other group members.
• Neutral vs. Affective: In neutral cultures, keeping an image of self-control is
fundamental, whereas in affective cultures, expressing emotions is expected.
• Specific vs. Diffuse: This dimension concerns the extent to which individuals let others
get to know their inner-selves. In specific cultures, people keep the private part of their
lives separated from the public, whereas in diffuse cultures, these two aspects are kept
together.
• Achievement vs. Ascription: This dimension has to do with how status and power are
established in a society. In an achievement society, status is assigned on the basis of
birth, whereas in an ascription society status is assigned on the bases of merit.
• Sequential Time versus Synchronous Time: This dimensions refers to the extent to
which a society view time as linear versus holistic and integrative.
• Internal Direction versus Outer Direction: This dimension concerns the extent to which
people feel that they control their environment, or are controlled by it. In an outer-
directed society people have an organic view of nature and aim at achieving harmony
with it, whereas in an inner-directed society people believe that they are more powerful
than nature, and thus that the environment can be controlled by them (Thomas, 2008:
p. 60).

As the authors explain in the book Riding the Waves of Culture, the relative position of an
individual along these dimensions guides his or her beliefs and actions through life
(Trompenaars & Hampden-Turner, 1997).
The authors have a dynamic notion of culture and cultural dimensions, hence believe that
cultures dance from one preferred point to the other. That is, in each dimension, cultural
categories do not exclude each other, instead they try to manage their opposites. (Trompenaars
& Hampden-Turner, 1997: p. 27).
Yeganeh, Su, and Sauers (2009) suggest that even though the seven dimensions of this
framework seem exhaustive and intelligible, the model does not provide a practical approach
to measure culture. For instance, some dimensions such as individualism/particularism have
blurred borders, which decreases the applicability of the framework in cross-cultural research.

21
2.2.6 The GLOBE Study

The Global Leadership and Organizational Behavior Effectiveness (GLOBE) research

program was conceptualized in 1991 by Robert J. House and launched in 1993. An
international team of researchers gathered data from around 17,000 middle managers working
in 951 organizations worldwide (Thomas 2008: p. 60).
One of the outcomes of the GLOBE study published in 2004 was the construction of nine
dimensions of cultural variation. It is important to note that GLOBE refers to societal culture
rather than countries, as data extracted from the study showed that some countries are
fractionated into different cultural groups. For instance, in Switzerland GLOBE makes a
distinction between French- and German-speakers.
Three of Hofstede’s dimensions were adopted in the study, namely Power Distance,
Uncertainty Avoidance and Individualism. The latter was further divided into Societal and
Institutional Collectivism. Societal Collectivism is the degree to which people stick together,
and express loyalty and pride in their organizations or families, whereas Institutional
Collectivism refers to “the degree to which organizational and societal institutional practices
encourage and reward collective distribution of resources and collective action” (House, 2004:
p. 30). Hofstede’s Masculinity dimension was substituted by two new dimensions named
Gender Egalitarianism and Assertiveness. The former refers to gender inequalities being
minimized by a collective. The latter refers to the extent to which “individuals are assertive,
confrontational, and aggressive in their relationships with others” (House, 2004: p. 30).
The next two dimensions, called Human Orientation and Future Orientation, derive from
the work of Kluckhohn & Strodtbeck (1961, cited in Thomas, 2008: p. 61) on the nature of
human beings and time orientations explained previously. The former is “the degree to which
a collective encourages and rewards individuals for being fair, altruistic, generous, caring and
kind to others” (House, 2004: p. 30). The latter concerns “the extent to which people engage
in future-oriented behaviors such delaying gratification, planning and investing in the future”
(House, 2004: p. 30).
The last dimension, called Performance Orientation, has its origins in McClelland’s (1961,
cited in Thomas, 2008: p. 61) work on achievement motivation, and refers to “the degree to
which a collective encourages and rewards group members for performance improvement and
excellence (House, 2004: p. 30).
At this point, it is worth noting that “cultural dimensions were measured both as practices
(the way things are) and societal values (the way things should be)” (Thomas, 2008: p. 62). For

22
seven dimensions the correlations between these two types of measures were significantly
negative. Seemingly, people’s values are in opposition to their practices (Thomas, 2008).

Comparison between Switzerland and Italy

The results of the assessments of nine GLOBE dimensions as practices in French- and
German-speaking Switzerland compared to Italy are shown in Table 2.

Cultural dimension (GLOBE) CHF CHD IT

Power Distance 4.86 4.9 5.43
(med.) (med.) (high)
Uncertainty Avoidance 4.98 5.37 3.79
(high) (high) (low)
Humane Orientation 3.93 3.6 3.63
(med.) (low) (low)
Collectivism I 4.22 4.06 3.28
(med.) (med.) (low)
Collectivism II 3.85 3.97 4.94
(low) (low) (med.)
Assertiveness 3.47 4.51 4.07
(low) (high) (med.)
Gender Egalitarianism 3.42 2.97 3.24
(med.) (low) (med.)
Future Orientation 4.27 4.73 3.25
(high) (high) (low)
Performance Orientation 4.25 4.94 3.58
(med.) (high) (low)
Table 2: GLOBE dimensions as practices: Switzerland compared to Italy;

Source: GLOBE (2004).

The results of the assessments of nine GLOBE dimensions as values in French- and
German-speaking Switzerland compared to Italy are shown in Table 3.

Cultural dimension (GLOBE) CHF CHD IT

Power Distance 2.8 2.44 2.47
(med.) (low) (low)
Uncertainty Avoidance 3.83 3.16 4.47
(low) (low) (med.)
Humane Orientation 5.62 5.54 5.58
(med.) (med.) (med.)
Collectivism I 4.31 4.69 5.13
(low) (med.) (high)
Collectivism II 5.35 4.94 5.72
(low) (low) (med.)
Assertiveness 3.78 3.21 3.82
(med.) (low) (med.)
Gender Egalitarianism 4.69 4.92 4.88
(med.) (high) (high)

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 Future Orientation 4.8 4.79 5.91
(low) (low) (high)
Performance Orientation 5.98 5.82 6.07
(med.) (med.) (med.)
Table 3: GLOBE dimensions as values: Switzerland compared to Italy;

Source: GLOBE (2004).

2.3 Understanding the Influence of Culture

The most critical issue in international management is the interpersonal relationships

between people from different cultures. Identifying cultural variations in national culture is
important, since this cultural variation has implications for a wide range of organizational
issues. However, this identification of cultural variation is not sufficient to understand the
influence of culture on people´s behavior. Thomas (2008) argues that “culture manifest its
influence through a number of intermediate mechanisms or conduits” (p. 71), which involve
how people think about, assess and respond to people from other cultures. Such mechanisms
will be explored in this section.

2.3.1 Social Cognition

Social cognition refers to “the role that our mental representations play in the ways we
process information about people or social events” (Thomas, 2008: p. 72). It is connected with
the study of intercultural interactions when these mental representations are about people from
other cultural groups and how these representations influence the information that we process
about members of that cultural group (Thomas, 2008: p. 72).
These cognitive structures are grounded in our past experiences with objects, people and
situations, and are simple representations of the complex concepts that they represent. They
help us limit the complexity of our environment to a number of categories that are manageable
to us. Cognitive structures can be schemas, when they define a category, or scripts, when they
involve a behavioural sequence, as we will see in the next section.
In cross-cultural management, the effect of the categorization of people, specially
regarding their culture, is particularly relevant. According to Wilder (1978), cited in Thomas
(2008), “the categorization of people works in the same way as the categorizations of other
aspects of the environment, and it occurs because of our inability to process all the complexity
presented by our surroundings” (p. 72).

24
 Turner (1987), cited in Thomas (2008: p. 72), argues that we categorize ourselves
according to our membership or lack of membership in the social groups in our environment.
This categorization includes information about relevant behaviours and attitudes assigned to
such groups. The total sum of these social identifications used by people to describe themselves
create their social identity. Our cultural group is one of the groups that forms part of our social
identity.
We also categorize others according to the characteristics they share, such as religion,
political views, lifestyle, and country of birth. A schema for a particular nationality is created
through the assignment of a set of characteristics to that national culture label.
Tajfel (1981), cited in Thomas (2008: p. 72), argues that the consequence of this
categorization of other people (them) and ourselves (us) is that we see more clearly who we
are and how we should behave when we interact with others.

2.3.2 Cultural Norms

Thomas (2008) defines cultural norms as “acceptable standards of behavior that are shared
by the members of our cultural group” (p. 73). The norms of a cultural group are a powerful
influence on individuals’ behavior (Asch 1952, cited in Thomas, 2008: p. 74). However, people
can vary in the extent to which they accept and follow cultural norms.
According to Thomas (2008), one’s behavior is influenced by the cultural norms of society
“only to the extent that a norm exists for a particular situation and for which societal sanctions
for noncompliance exist” (p. 74). It is important to consider that societal norms that originate
from different sources can be applied in different situations. In addition, cultural norms can be
more important predictors of behaviour in collectivist than in individualist cultures.
In the previous section scripts were described, that is, “mental representations that we have
about ourselves in a given situation” (Thomas, 2008: p. 74). Scripts consist of a particular
behavioral sequence required for familiar situations. When people find themselves in these
familiar situations, they do not actively think about how they should behave, instead they react
mainly automatically. As Thomas (2008: p. 75) explains “people rely on scripts to guide
behavior when cues about a situation match a particular script”. For example, while for
members of a particular cultural group attending a business meeting invokes a certain
behavioral sequence without much active thought, for members of other cultures attending a
business meeting might evoke a completely different set of behaviors.

25
 Miller (1994), cited in Thomas (2008: p. 75), argues that cultural differences in the content
of behavioral scripts for a certain situation are likely to exist because scripts can be guided by
cultural norms. An example of a culturally based behavioral or normative script is that most
Chinese are influenced to be respectful and obedient to superiors at work (Liu 1986, cited in
Thomas, 2008: p. 75). In this case, the situational cue of the presence of superiors automatically
invokes respectful and obedient behavior. As this example illustrates, scripts not only help
people interpret behavior but they also guide individuals’ behavior.
Therefore, Thomas (2008) argues that “much of our behavior and the behavior that we
observe in others is a semi-reflexive response to the situation influenced by cultural norms” (p.
75). The author suggests that the way in which people respond to behavior depends in part on
their ability to perceive it.

2.3.3 Selective Perception

Perception is “the process by which people interpret the messages they received from their
senses and thereby give meaning to their environment” (Thomas, 2008: p. 75). Differences in
what is perceived and what is excluded depend on the perceiver, the person or object being
perceived, and the situation. Research has consistently shown that different people can receive
the same stimulus and perceive it differently.
Particularly important for cross-cultural management are differences in the way people
with different cultural backgrounds perceive each other and situations. The question asked by
Thomas (2008: p. 75) is whether culture influences which stimulus receives attention and
which is tuned out. The answer given by the author is that cultural differences can influence
perception in several ways. First, as members of a cultural group we learn to perceive things in
a certain way, and attend to particular stimuli. We share certain expectations and
understandings of events. Thomas (2008: p. 76) explains that anyone observing for the first
time an unfamiliar sporting event can vouch for selective perception. This selective perception
also extends to social situations such as visiting a doctor or meeting someone for lunch.
Second, we are inclined to focus more on information that is inconsistent with our
culturally based expectations, but also are inclined to screen out information that is contrary to
our existing views. Lastly, we hold the perception that individuals from other cultures are more
similar to each other than members of our cultural group are. In other words, we observe the

26
individual variation that occurs within our own cultural group but perceive members of other
cultures as homogenous.

2.3.4 Perceived Similarity and Attraction

Many research studies have supported the idea that similarity leads to interpersonal
attraction. As Rushton (1989), cited in Thomas (2008: p. 77), argues we might be biologically
programmed to give a positive response to all kinds of similarities, such as religion, race,
national culture or age.
Thomas (2008) suggests that “the extent to which we perceive other individuals to be
similar to us influences our attitudes and behavior towards them” (p. 77), regardless of other
perceptual biases we might have. So basically, other things being equal, perceptions of
similarity predict more positive communication between individuals.
Mechanisms that lead us to selectively perceive others are based on socialization in a
culture, however they also rely on some expectations of how individuals outside our own
cultural group will behave. As discussed in the next section, these expectations are often based
on very limited information about individuals from different cultures.

2.3.5 Stereotypic Expectations

Stereotypes “are a categorization of the characteristics and behavior of a set of individuals”

(Ashmore & Del Boca 1981, cited in Thomas, 2008: p. 78). Tajfel & Turner (1986), cited in
Thomas (2008: p. 44), argue that in order to maintain our self-image, we favorably compare
the attributes of our own group to the attributes of out-groups. Often times, prejudicial
judgments about members of out-groups are solely based on their membership in a particular
group. Although the term stereotype often evokes negative images because of its association
with prejudice, it needs not be negative (Allport 1954, cited in Thomas, 2008: p. 78).

National stereotypes

The suggestion presented previously that cultures can be categorized according to a limited
number of cultural dimensions is a form of national stereotyping. However, the cultural
expectations attributed to a nation can be useful if one is aware of the influence of stereotyping.

27
Thomas (2008: p. 80) argues that the extent to which stereotypic expectations about members
of another culture can be helpful is limited by:

• The extent to which these mental representations include accurate information

• Our understanding that positive or negative feelings about the cultural group are linked
to the stereotype
• Our ability to adjust our expectations based on new information about the cultural group

Research studies conducted decades ago on stereotypes demonstrated that individuals can
keep in their minds intense stereotypes about members of other cultural groups even though
they had never been in contact with a person from that cultural group (Katz & Braly 1993, cited
in Thomas, 2008: p. 78). However, these stereotypes are frequently hold about members of
other cultural groups with which our own cultural group has had a long relationship, usually a
negative one.
Stereotypes are based on restricted information about others. People use very basic
information to categorize others, and once this categorization has occurred, the stereotype is
applied to the same degree to each individual in the category (Allport 1954, cited in Thomas,
2008: p. 79). For example, if I have never met Russian people, my stereotype might consist of
information I have acquired from secondary sources such as movies and testimonials. And I
expect all Russian people to behave the same way. The chance that my expectation of typical
Russian behavior is not met is pretty high.

Resistance to new information

Once stereotypic expectations of others are built, they get reinforced over time (Snyder
1981, cited in Thomas, 2008: p. 79). In other words, we reconstruct information about the
category, e.g. a cultural group, in a way that is consistent with our stereotype and behave
towards members of that culture in ways that prove our expectations. New information about
the member of a cultural group is often considered as not representative, so the stereotype is
maintained (Hamilton 1979, cited in Thomas, 2008: p. 79). For example, if we meet a Japanese
businessman who has adopted the Western behavior of using an informal greeting, we consider
the person as an outlier and still maintain our stereotypic expectation that Japanese
businessmen are formal.

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Stereotype complexity

Since stereotypes are learnt, we tend to have more complex stereotypes about categories
that are more familiar to us (Fiske & Taylor 1984, cited in Thomas, 2008: p. 79). Therefore,
we have more complex mental representations of our own culture than we do of other cultures.
This implies that we expect to observe more homogeneity in behavior in other cultures than in
our own, that is, more variability in behavior is expected in our own culture than in others. It
also leads to differences in our evaluation of new information about other cultures. New
information about a category for which we hold a simple stereotype, for example another
culture, is evaluated more extremely than new information about a category for which we hold
a more complex representation. Therefore, the more information we have about a cultural
group, the higher the probability that we accurately evaluate new information about them. It is
interesting to note that bicultural individuals might have more complex mental representations
of the two cultures they are familiar with than mono-cultural individuals of each separate
culture (Benet-Martinez, Lee & Leu 2006, cited in Thomas, 2008: p. 80). This suggests that an
individual who is significantly exposed to another culture may improve his ability to “detect,
process, and organize cultural information in general” (Thomas 2008, p. 80).

Social dominance

National stereotypes might also be the result of social dominance theory. This theory
suggests that “within every complex society certain groups are dominant over others and enjoy
a disproportionate amount of privilege” (Thomas 2008, p. 80). At an international level, there
might be a group of nations that enjoy high status because of economic development or other
desirable characteristic. According to this theory, the attitude of others towards my national
group and my attachment to it are influenced by the extent to which my nation enjoys high
status. For example, nationals of developing countries might hold U.S. nationals in high regard
because of the level of economic development of the U.S.

2.3.6 Motivation Across Cultures

Motivation refers to the dynamics of our behavior. The main assumption underlying the
Western explanations of motivation, such as equity and expectancy theories, is that people will

29
pursuit their own self-interest. However, culture guides the behavior of its members “by giving
meaning and ascribing value to motivational variables (Thomas 2008, p. 87). In fact, Erez &
Earley (1993), cited in Thomas (2008), argue that cultural values are a reflection of people’s
needs but also dictate the appropriate behavior required to fulfil those needs. Thus, it should
be expected that people from different cultures would respond to different motivating factors
in their intercultural encounters. For example, an American person might be motivated by
individual rewards and differentiation, whereas an individual from a collaborative culture
might find these motivating factors inappropriate.
The way in which people define themselves, that is their self-concept, is central to
understanding the nature of motivation.

Cultural variation in self-concept

In each culture, individuals perceive themselves as being physically separated from others.
Apart from the physical being, within every person there is an inner-self “that consists of
thoughts and feelings that cannot be directly known by others” (Markus & Kitayama 1991,
cited in Thomas 2008). Different aspects define our inner-self, that is, some aspects of our
private inner self are universal, such as the feeling of being hungry, but others are specific to
particular cultures (e.g. the belief that one’s soul will be reincarnated), because of a shared
understanding of what being human implies (Triandis 1989, cited in Thomas 2008). From the
cultural point of view, the inner self can be conceptualized in two ways: people can view
themselves either as being apart from others or as being connected with others (Markus &
Kitayama 1991, cited in Thomas 2008).
The conceptualization of the inner-self as being separate from others is representative of
Western cultures and, as seen in section 1.2, it is related to the cultural dimension of
individualism. In Western cultures the self is seen as “an autonomous individual with unique
attributes whose behavior is organized and made meaningful by reference to one’s internal
thoughts and feelings” (Thomas 2008, p. 87). The interdependent self-concept, in contrast, is
characteristic of collectivistic cultures. The inner self here is less differentiated and more
connected to others. Behavior is determined, constringent on, and organized “by a perception
of the thoughts, feelings and actions of others in the larger social unit” (Markus & Kitayama
1991, cited in Thomas, 2008: p. 88).
Several motivational implications of these two differing types of self-concepts have been
identified by researchers. However, since the focus of this dissertation is on the construct of

30
cultural intelligence, the author considers inappropriate to cover such implications. Instead, the
concept of cultural intelligence will be discussed next.

2.4 Cultural Intelligence

We live in a world that is globalized and interconnected as never before. Many difficulties
in international relations and politics reflect the failure of people to understand each other´s
cultures and needs. In such a globalized world, cultural differences and cultural diversity too
often lead to difficulties and conflict. As Earley & Ang (2003: p. 12) explain, one way in which
researchers have explored interpersonal misunderstandings is through the elaboration of the
construct of intelligence. Different approaches, such as identifying social intelligence,
emotional intelligence, physical intelligence and successful intelligence, have provided new
insights for understanding interpersonal relationships. However, it is not clear for the authors
how these culturally-bound models might help the intercultural or international scholar
understand why people vary so much in their capability to adjust to new cultures. As we will
see, the construct of cultural intelligence developed by Earley & Ang (2003) is meant to reflect
a person’s capability to adjust to new cultures and deal effectively with people who have
different cultural backgrounds.

2.4.1 Conceptual Overview

The conceptualization of cultural intelligence is based on contemporary theories of

intelligence. Sternberg and Detterman (1986), cited in Van Dyne, Ang & Nielsen (2007),
combined the multiple views on intelligence and presented four complementary ways of
conceptualizing intelligence within a person. The authors proposed that intelligence has
different loci, namely metacognitive intelligence, cognitive intelligence, motivational
intelligence and behavioral intelligence. A brief description of these loci of intelligence is
provided below.
According to Van Dyne et al. (2007) metacognitive intelligence refers to knowledge and
control of cognition, that is, “the processes individuals use to acquire and understand
knowledge” (p. 345); cognitive intelligence refers to “knowledge and knowledge structures”
(p. 345); motivational intelligence focuses on “a person´s capability to channel energy towards
acquiring knowledge” (p. 346); behavioral intelligence refers to the capability to display actual

31
behaviors. This integrative framework is noteworthy because it moves beyond the more
traditional focus on an individual´s cognitive ability (linguistic, logical-mathematical, and
spatial) and recognizes multiple loci of intelligence within an individual.
Drawing on Sternberg and Detterman multiple loci view of intelligence, Earley and Ang
(2003), cited in Van Dyne et al. (2007), conceptualized CQ as a multifactor construct,
comprising metacognitive, cognitive, motivational and behavioral factors. These four factors
are “different capabilities that together form overall CQ” (Ang et al., 2007: p. 8).

2.4.2 Four Factors of CQ

Metacognitive CQ. This aspect refers to “an individual´s level of conscious cultural
awareness cross-cultural interactions” (Ang, Van Dyne & Tan, 2010: p. 584). It involves
higher-level cognitive strategies. Individuals with high metacognitive CQ are aware of their
own cultural assumptions, actively reflect during intercultural encounters, and adjust their
cultural knowledge when interacting with people with different cultural backgrounds.
Metacognitive CQ therefore reflects mental processes individuals use “to acquire and
understand cultural knowledge” (Ang & Van Dyne, 2008: p. 5). Metacognitive CQ capabilities
include developing new rules to interact in new cultural settings and adjusting models of
cultural norms to generate appropriate strategies in new cultural contexts.
Cognitive CQ. This aspect refers to “an individual´s level of cultural knowledge or
knowledge of the cultural environment. Cultural knowledge includes knowledge of oneself as
embedded in the cultural context of the environment” (Ang & Van Dyne, 2008: p. 5). It
includes knowledge about economic and legal systems, social norms, religious beliefs, values,
and language in different cultures. Cognitive CQ includes knowledge of cultural similarities
and differences.
Cognitive CQ therefore reflects knowledge structures about culture. Individuals with high
Cognitive CQ are better able to deal with people from different societies.

Motivational CQ. This aspect reflects “an individual’s capability to direct attention and
energy towards learning about and functioning in situations characterized by cultural
differences” (Ang & Van Dyne, 2008: p. 6). It includes a person’s intrinsic interest in
exchanging views and thoughts with people from different cultures. It also includes a person´s
sense of confidence in the effectiveness of cross-cultural interactions.

32
 Therefore, individuals with high motivational CQ are driven by their inherent interest
(Deci & Ryan 1985, cited in Ang & Van Dyne 2008) and confidence (Bandura 2012, cited in
Ang & Van Dyne 2008) when interacting with culturally diverse others.
The conceptualization of motivational intelligence is based on contemporary views that
motivational capabilities are essential to real-world problem solving, which are beyond the
academic setting. Without motivation, cognitive abilities such as decision making or reasoning
may not even be activated (Ang, Van Dyne & Tan, 2011).

Behavioral CQ. This aspect reflects an individual’s capability to generate appropriate

verbal and non verbal behavior in intercultural encounters. It includes the capability to be
flexible and adjust behavior to the specifics of each cross-cultural interaction (Ang & Van
Dyne, 2008). Behavioral intelligence refers to what the person does instead of what the person
thinks.

2.4.3 Conceptual Distinctiveness of CQ

In this section differences and similarities between CQ and personality, other forms of
intelligence, and other intercultural competences will be explored.

Other forms of intelligence. Cultural intelligence is similar to, yet different from, other
forms of intelligence, namely general mental ability (IQ) and emotional intelligence (EQ). CQ
is similar to these forms of intelligence because “it is a set of capabilities rather than preferred
ways of behaving” (Mayer, Caruso and Salovey 2000, cited in Ang et al. 2007: p. 8). However,
the nature of the abilities is what differentiates CQ from these other constructs.
On the one hand, general mental ability focuses on cognitive abilities, does not include
behavioral or motivational factors, and is not specific to certain contexts such as culturally
diverse ones. On the other hand, emotional intelligence refers to the ability to manage personal
emotions. It also reflects the ability to read and respond to affective states of other people. Like
CQ, emotional intelligence goes beyond academic or cognitive intelligence. However, it differs
from CQ because it focuses on the general ability to manage personal emotions without
considering the cultural context (Ang et al., 2007). In fact, Earley & Ang (2003) argue that the
cues and behaviors easily decoded by an individual having high emotional intelligence within
his or her culture might be completely misleading or irrelevant in a different cultural context.

33
In other words, the ability to interpret and respond to emotions does not automatically pass on
to an unfamiliar cultural setting. Thus, an individual having high emotional intelligence in one
culture might not be emotionally intelligent in another culture. Unlike EQ, which is culture-
bound, CQ is a culture-free construct that goes beyond cultural boundaries.

Other aspects of intercultural competency. CQ is similar to other aspects of intercultural

competency because it focuses on capabilities associated with culture. However, CQ differs
from other cultural competencies because it is based specifically on the theory of multiple loci
of intelligence. Unlike other intercultural competences, CQ is therefore grounded on a coherent
theoretical foundation (Ang et al., 2007).

Personality. CQ evolves over time and can be enhanced through experience, education,
training and exposure to diversity. As a set of capabilities, CQ refers to what an individual can
do to function effectively in new cultural contexts. Personality traits, in contrast, are stable and
refer to what a person typically does across time and situations, and is greatly influenced by
early socialization experiences (Ang et al., 2007). Thus, personality traits and cultural
intelligence are conceptually different.

In sum, CQ is a malleable construct that can be enhanced over time, distinct from
personality, other models of intercultural competences and other forms of intelligences.

2.4.4 Research Results on CQ

In multicultural contexts and international environments, CQ capabilities are crucial for

managers and employees in their daily life outside and inside the office.
Research has demonstrated that “CQ predicts cultural judgment and decision making
(CJDM) and task performance” (Van Dyne, Ang, & Nielsen, 2007: p. 347). CQ also predicts
adjustment in culturally diverse situations. More important, CQ enhances the ability to predict
and understand these performance outcomes above and over demographic characteristics,
emotional intelligence, general mental ability, and openness to experience (Van Dyne et al.
2007).

34
 Those individuals who have higher CQ are better at making decisions about intercultural
issues. Those who have higher CQ are also more likely to feel confident that they can interact
with culturally diverse others.
An examination of the four factors of CQ helps in better understanding these relationships.
In particular, metacognitive CQ and behavioral CQ predict task performance, while
motivational CQ and behavioral CQ each predict three different forms of adjustment to new
cultures: “general adjustment, interaction adjustment, and work adjustment” (Van Dyne et al.,
2007: p. 347). Overall, research has shown that metacognitive CQ and cognitive CQ explain
variability in CJDM above and over demographic characteristics, emotional intelligence,
general mental ability, and openness to experience (Van Dyne et al. 2007).
Since CQ has consequences for task performance in multicultural settings and adjustment
to new cultures, it is important to understand what predicts CQ, that is, the antecedents of CQ.
In their research studies, Ang, Van Dyne, and Koh (cited in Van Dyne et al., 2007) have
demonstrated that those individuals who have more experience interacting with culturally
diverse people have higher CQ. This includes all four factors of CQ.
International experience is a major determinant of CQ. Situated learning theory proposes
that “international experiences provide individuals with the social contexts and authentic
activities to learn how to manage cultural differences” (Lave & Wenger 1991, cited in Ng, Van
Dyne, & Ang, 2012: p. 37). Studies examining international experience and CQ have
demonstrated relationships between work-related and non-work related international
experience and CQ. However, findings are inconsistent across all four factors of CQ (Crowne,
2008; Shannon and Begley, 2008; Tarique and Takeuchi, 2008; Tay et al., 2008; Moon et al.,
2012; Tharapos and O’Connell, 2014; cited in Tharapos & O’Connell, n.d.).
Unique cultural awareness and knowledge are gained by individuals who work and live in
other cultures. Individuals who are exposed to other cultures have the opportunity to critically
analyze their own cultural values and norms, and to be consciously engage in reflecting and
thinking before being involved in an intercultural interaction, and also during the cross-cultural
encounter. Moreover, international experience can enhance the knowledge of social norms,
traditions, and practices in other cultures. Sahin, Gurbuz & Köksal (2014) argue that
“individuals with international experience are more aware of the similarities and differences in
cultural universals and cultural values which reflect high cognitive CQ” (p. 153). Prior research
on CQ have confirmed that international experience is associated with mental components of
CQ. (Sahin, Gurbuz, & Köksal, 2014).

35
 Furthermore, research has demonstrated that the quantity of international experience is an
important factor for CQ development, however few studies have investigated the quality of the
international experience (Ng et al., 2012). An individual who undertakes a long-term
international experience has a greater opportunity to gain a deeper cultural understanding
through great exposure than does an individual on a short-term trip (Earley and Peterson, 2004;
Crowne, 2008; cited in Tharapos & O’Connell, n.d.). A study conducted by Tharapos and
O’Connell (2014, cited in Tharapos & O’Connell, n.d.) found a positive and statistically
significant relationship between overseas residency and total CQ, as well as with metacognitive
CQ, cognitive CQ and motivational CQ. In their study, overseas residency was defined as
residing in another country for more than one year, thereby capturing the impact of a long-term
international experience. Similarly, a recent study conducted by Alon et al. (2016) found that
“increases in the number of countries lived in clearly leads to higher levels of all four cultural
intelligence dimensions, which suggests that living in foreign countries is also a good way to
increase cultural intelligence” (p. 7).
The same study by Alon et al. (2016) also found that the number of languages spoken
positively relates to higher levels of global general knowledge, greater intercultural
communication skills, and a greater will to learn appropriate behavior in other cultures. In sum,
the higher the number of languages spoken, the higher the level of cultural intelligence.
Another study by Shannon and Begley (2008, cited in Alon et al. 2016) proved that “learning
new languages is positively related to cognitive and behavioral aspects of CQ” (p. 3).
When an individual is engaged in learning a new language, he or she is exposed to a new
cultural environment. Foreign language teachers pass on traditions, habits, cultural values and
basic assumptions to students, who acquire greater cultural knowledge and intercultural skills.
According to Werry (2005, cited in Alon et al. 2016), speaking a foreign language can only be
achieved by adapting our mental model to how the native speakers think, in other words, to the
rationale and structure of the language.
Finally, research has demonstrated that trait-like individual differences also predict CQ.
Specifically, one of the Big Five personality traits called Openness to Experience was found to
be positively related to all four factors of CQ.

36
 3 Methods

Primary data was gathered by the use of a self-completion questionnaire, which is

described in detail in this chapter. It is important to mention that both the Swiss and the Italian
banks happened to be interested in the research topic and were willing to cooperate with the
author to make the data collection process possible.

3.1 Data Collection

A questionnaire, consisting of two parts, was used to collect the data. The questionnaire
was made available in two languages, English and Italian. The questionnaire was pre-tested
before being distributed. Subjects for the pre-test included two relationship managers who
provide services to both domestic and international clients in the online-trading department of
the Swiss bank, and are familiar with the concept of cultural intelligence. A few revisions were
made as a consequence of the pre-test. The final version of the questionnaire was then
distributed to the Swiss and Italian banks. The first part of the questionnaire, which was used
to assess CQ, contained Ang et al.’s (2007) Cultural Intelligence Scale (CQS). The CQS has
been validated across multiple contexts and culturally diverse samples. It consists of 20 items
to measure the four dimensions of CQ: 4 metacognitive CQ items (e.g. “I am conscious of the
cultural knowledge I use when interacting with people with different cultural backgrounds”),
6 cognitive CQ items (e.g. “I know the legal and economic systems of other cultures”), 5
motivational CQ items (e.g. “I enjoy interacting with people from different cultures”), and 5
behavioral CQ items (e.g. “I change my verbal behavior (e.g., accent, tone) when a cross-
cultural interaction requires it”). The CQS, developed by Ang et al. (2007), is shown in
Appendix A. The Italian-translated version of the CQS was validated by Chiara Mercogliano
(2015), and is also shown in Appendix A. All CQS items were measured on seven-point Likert-
type scales, in which a response of one meant “strongly disagree” and seven meant “strongly
agree”.
The second part of the questionnaire consisted of demographic items: “What is your age?”;
“What is your gender?”; “What is your native language?”; “How many languages do you speak
in your daily life”; “Do you have international experience?”.
The questionnaire was made available both online and in paper-and-pencil format, as per
the specific requests of each company. Within the Swiss bank, the questionnaire was

37
administered online internally through an in-house platform, whereas within the Italian bank,
the questionnaire was administered in paper-and-pencil format. As to the Swiss bank, given
the small number of private bankers per department, i.e. domestic and international, the
questionnaire was administered to a total of twenty private bankers, half of which provided
services to domestic clients, and the other half provided services to international clients. All
respondents were given access to the online questionnaire. As respondents could stop filling
the questionnaire without penalty, not all respondents completed the questionnaire. This self-
selection mechanism implied that only the most motivated respondents completed the
questionnaire. On average, respondents spent 10–15 min to go through all questions, which
indicates satisfactory levels of attention.
As to the Italian bank, the questionnaire was administered to a total of ten private bankers
who provided services only to domestic clients. The reason, as specified in the Chapter 1, is
that the private banking division of the Italian bank does not provide any services to
international clients. Such information was revealed to the author only after the data collection
process had started. Unfortunately, even though the Italian bank operates internationally, its
private banking division deals only with domestic clients, and lacks therefore an international
department.
Lastly, to minimize response bias, the author took several preventive measures in
designing the questionnaire. First, respondents were ensured of the anonymity of the answer.
Second, questions of the CQS were sorted out randomly, followed by the second part which
featured factual demographic questions. Third, in order to minimize fatigue and time pressure
respondents were given two-weeks time to complete the questionnaire.

38
 4 Results and Discussion

In this chapter, primary data gathered by the questionnaire is displayed and analyzed.

4.1 Data Analysis

Data was analyzed by the use of descriptive statistics. It is important to mention that
response rate of the questionnaire was successfully high. Response rate per group of
respondents is shown in Table 4.

Table 4: Response rate for each group of respondents

PB Ticino PB Zurich PB Italy

Response rate 100% 70% 100%

4.1.1 Demographics

Demographic data, namely gender, age and native language, are displayed in this section.
Gender distribution within each group of respondents is shown in Figure 3. Within the first
group “PB Ticino”, there were 8 men and 2 women, which means that 80% of respondents
were male, whereas only 20% were female. As regards respondents within the second group
“PB Zurich”, there were 5 men and 2 women, which means that 70% were male and around
30% were female. It is interesting to see that within the third group “PB Italy”, there were 5
men and 5 women, which means that 50% of the respondents were male, and the other 50%
were female.

39
 Figure 3: Gender distribution by group of respondents

Gender distribution
100%

80%

60%

40%

20%

0%
PB Ticino PB Zurich PB Italy

Male Female

Age distribution by group of respondents is shown in Figure 4. As we can see from the
figure, within the first group “PB Ticino”, 30% of respondents were in their 30’s, 50% were in
their 40’s, and 20% were in their 50’s.
Within the second group “PB Zurich”, 14% of respondents were in their 30’s, 57% were
in their 40’s, and 29% were in their 50’s.
Within the third group “PB Italy”, 40% of respondents were in their 30’s, 20% were in
their 40’s, and 40% were in their 50’s.

Figure 4: Age distribution by group of respondents

Age distribution
100%

80%

60%

40%

20%

0%
PB Ticino PB Zurich PB Italy

in their 30's in their 40's in their 50's

Lastly, native language spoken by group of respondents is shown in Table 5. As we can

see from the table, 9 out of 10 respondents within the first group “PB Ticino” speak Italian as
their first language, whereas 1 respondent of out 10 is bilingual Italian-German.

40
 Within the second group “PB Zurich”, native language of respondents varied greatly:
Swiss German is the native language of 3 out of 7 respondents; 2 respondents out of 7 are
bilingual, one speaks Croatian-German, the other one speaks Greek-German; 1 respondent out
of 7 speak German; and 1 respondent of out 7 speak Bulgarian.
Within the third group “PB Italy”, the same native language is spoken: 10 out 10
respondents speak Italian as their first language.

Table 5: Native language by group of respondents

Native language PB Ticino PB Zurich PB Italy

Italian 9 - 10
Italian & German 1 - -
Swiss German - 3 -
Croatian & German - 1 -
Greek & German - 1 -
German - 1 -
Bulgarian - 1 -
Total 10 7 10

4.1.2 Antecedents of CQ

In Chapter 2, antecedents of CQ were described. A couple of questions about two

important antecedents of CQ, namely number of languages spoken daily and international
experience, was included in the second part of the questionnaire. Results of the survey are
shown below.

Figure 5: N° of languages spoken daily by group of respondents

N° of languages spoken daily

PB Ticino

PB Zurich

PB Italy

0 1 2 3 4 5

41
 As we can see from Figure 5, respondents within the first group “PB Ticino” speak 2
languages daily on average; respondents within the second group “PB Zurich” speak 4
languages daily on average; and respondents within the third group “PB Italy” speak 1 language
on average.

Figure 6: Time spent abroad by group of respondents

International experience (in months)

PB Ticino

PB Zurich

PB Italy

0 10 20 30 40 50

As regards international experience, time spent abroad varied greatly among groups of
respondents. As shown in Figure 6, time spent abroad by respondents within the first group
“PB Ticino” was 21 months on average; time spent abroad by participants within the second
group “PB Zurich”, which is the only international department, was 48 months on average, in
other words, 4 years; lastly, time spent abroad by respondents within the third group “PB Italy”
was 3 months on average.

4.1.3 CQS scores

Respondents were requested to indicate a score from 1 (strongly disagree) to 7 (strongly

agree), respectively, for all 20 items of the CQS. Responses provided by individuals within
each group of respondents are shown in Appendix B (Figure 1, 2, and 3). The higher the score
indicated on each item, the higher the level of cultural intelligence. For each of the four factors
of CQ a unique score was derived by summing up the item scores and dividing by the number
of items in the corresponding section.
CQ factor scores for each group of respondents are shown in Table 6.

42
 Table 6: CQ Factor Scores for each group of respondents

CQ Factor Scores PB Ticino PB Zurich PB Italy

Cognitive CQ 4.3 5.2 4.3
Metacognitive CQ 4.9 5.7 5.7
Motivational CQ 5.2 5.4 5.3
Behavioral CQ 3.9 5.2 5.2

An examination of the means indicated that respondents within the first group “PB Ticino”
had a moderate level of cognitive, metacognitive and behavioral CQ, and a moderately high
level of motivational CQ; respondents within the second group “PB Zurich” had a moderately
high level of cognitive, metacognitive, motivational and behavioral CQ; and respondents
within the third group “PB Italy” had a moderate level of cognitive CQ, and a moderately high
level of metacognitive, motivational and behavioral CQ. Descriptive statistics for all four
factors of CQ and each group of respondents are shown in Appendix C.

Table 7 displays the descriptive statistics for overall CQ for each group of respondents.
Overall CQ was calculated in the following way: Overall CQ=Mean (metacognitive CQ,
cognitive CQ, motivational CQ, behavioral CQ).

Table 7: Average CQ for each group of respondents

Overall CQ Scores PB Ticino PB Zurich PB Italy

Mean 4.6 5.4 5.1
Standard Deviation 0.1 0.1 0.2
Minimum 2.6 3.5 2.7
Maximum 7 6.8 7
N 10 7 10

An examination of the means indicated that respondents within the first group “PB Ticino”
had a moderate level of CQ; respondents within the second group “PB Zurich” had a
moderately high level of CQ; and respondents within the third group “PB Italy” had a
moderately high level of CQ.

43
 4.2 Discussion

As predicted, the average CQ level of the group “PB Zurich” is higher than the average
CQ level of the group “PB Ticino”. As shown in Table 7, the mean CQ level for the former is
moderately high with a score equal to 5.4, whereas the mean CQ level for the latter is moderate,
with a score equal to 4.6. As regards the group “PB Italy”, their average CQ level is moderately
high with a score equal to 5.1. This latter result is particularly interesting, since it is not what
the author would have expected for a number of reasons, which are explained in detail below.
First, as we have seen in Chapter 2, research studies have demonstrated that those
individuals who have more experience interacting with culturally diverse people have higher
CQ; this includes all four factors of CQ. As shown in Table 5, native language of all individuals
within the group “PB Italy” is Italian, which indicates that this group is culturally
homogeneous. Thus, the lack of cultural diversity within this group prevents individuals from
being exposed to other cultures. In addition, the fact that this group of private bankers provides
services only to domestic clients suggests that these individuals are frequently in contact with
people with similar cultural backgrounds, which also prevents them from being exposed to
culturally diverse others, and therefore, from enhancing their CQ level. As we have seen in
Chapter 2, individuals who are exposed to other cultures have the opportunity to critically
analyze their own cultural values and norms, and to be consciously engage in reflecting and
thinking before being involved in an intercultural interaction, as well as during the cross-
cultural encounter.
Second, in Chapter 2 it was mentioned that international experience and number of
languages spoken fluently are two important predictors of CQ. Research has shown that the
more languages spoken, the higher the level of cultural intelligence. Similarly, research has
demonstrated that the quantity of international experience is important for CQ enhancement.
(Ng et al., 2012). An individual who undertakes a long-term international experience has a
greater opportunity to gain a deeper cultural understanding through great exposure than does
an individual on a short-term trip (Earley and Peterson, 2004; Crowne, 2008; cited in Tharapos
& O’Connell, n.d.). In addition, we have seen that prior findings have confirmed that
international experience is related to mental (cognitive and metacognitive) components of CQ.
In fact, unique cultural awareness and knowledge are gained by individuals who live and work
in other cultures. Moreover, international experience can enhance the knowledge of norms and
practices in other cultures. Individuals with international experience are more consciously

44
aware of the similarities and differences in cultural values. As we have seen earlier, results for
the group “PB Italy” on antecedents of CQ indicate that these individuals have limited
international experience and speak on average one language daily, which is Italian.
In contrast, individuals within the group “PB Zurich”, whose average CQ level is also
moderately high, speak on average 4 languages fluently and have spent on average 4 years
abroad. As shown in Table 5, the private banking department located in Zurich is truly
multicultural. This group is mostly made up of culturally diverse individuals. Three out of
seven people are bilingual. This suggests that individuals within this group are frequently
exposed to other cultures, not only in their daily lives but also in the office. These results are
consistent with the fact that this group of private bankers provide services to international
clients, and live and work in a multicultural environment.
Overall, if one considers all above mentioned factors, one can infer that CQ scores of the
group “PB Zurich” might be more accurate and reliable than CQ scores of the group “PB Italy”.
In fact, it is likely that CQ scores of the latter do not accurately reflect cultural intelligence of
these individuals.

4.3 Further Considerations

As explained earlier, data was gathered from a total of three groups of respondents, namely:

- First group, “PB Ticino”: individuals work in Ticino for the private banking department
of the Swiss bank, and provide services to domestic clients.
- Second group, “PB Zurich”: individuals work in Zurich for the private banking
department of the Swiss bank, and provide services mainly to international clients.
- Third group, “PB Italy”: individuals work in Italy for the private banking division of
the Italian bank, which provide services only to domestic clients, and thus lacks an
international department.

Thus, the private banking division of the Swiss bank has two departments; one of them
provides services to domestic clients, the other one provides services to international clients.
This suggests that private bankers who work for the Swiss bank are mutually aware of the
existence of culturally diverse colleagues and customers. In fact, these individuals are exposed
to culturally diverse people daily. This enhances their CQ level.

45
 However, as the author found out eventually, the private banking division of the Italian
bank consists of one department which provides services to domestic clients. This implies that
private bankers who work for the Italian bank are embedded in a mono-cultural environment,
where colleagues and customers are likely to have similar cultural backgrounds. This lack of
cultural diversity in the workplace is likely to limit their level of cultural awareness. According
to Van Dyne et al. (2012, cited in Tharapos & O’Connell, n.d.) cultural awareness involves
drawing on “cultural thinking and knowledge of self and others in real-time” (p. 299) and
understanding the cross-cultural situation as it is happening. Cultural awareness is one of the
components of metacognitive CQ.
Given that the cultural environments of the Swiss bank and the Italian bank are so different,
it is not possible, nor appropriate, to make any comparison between private banking
departments of one bank and the other.

46
 5 Conclusion

In this study, the concept and influence of culture were explored and discussed. The
importance of understanding the influence of culture lies on the fact that it plays a crucial role
in today’s globalized world, as it is at the core of cross-cultural interactions and international
relations.
The concept of cultural intelligence was presented and discussed in detail. CQ emerged
into the business literature as a key factor in effective performance in cross-cultural settings.
As literature has shown, cultural intelligence predicts task performance and adjustment to new
cultures. A high CQ is therefore essential for any business professional working in an
international or cross-cultural environment.
According to prior findings, a major determinant of CQ is international experience.
Another important factor that leads to cultural intelligence is the number of languages spoken.
Ang, Van Dyne, and Koh (cited in Van Dyne et al., 2007) demonstrated that those individuals
who have more experience interacting with culturally diverse people have higher CQ. Based
on these findings, the following proposition was made: average CQ level of the group “PB
Zurich” is higher than average CQ level of the group “PB Ticino”. This proposition held true.
The average CQ level of the group “PB Ticino” was moderate with a score equal to 4.6,
whereas the average CQ level of the group “PB Zurich” was moderately high with a score
equal to 5.4. Thus, data results gathered from these two groups of private bankers are, to a great
extent, aligned with what the literature suggests.
Another interesting finding was related to the group “PB Italy”. The average CQ score of
these individuals came out to be 5.1, which is moderately high. This result was unexpected,
since it was not aligned with prior research findings. An in-depth evaluation of data results
gathered from this group led to the conclusion that, in fact, it is likely that CQ scores from these
individuals did not accurately reflect their actual level of cultural intelligence. In contrast,
results gathered from the group “PB Zurich”, a truly multicultural team, were found to be more
accurate and reliable.
Through analyzing the cultural and business contexts in which individuals in one bank and
the other are embedded, it appeared that the level of cultural awareness of private bankers in
Italy was likely to be limited by the absence of cultural diversity in the workplace.

47
 5.1 Limitations of the study

In this section, a number of limitations that influenced the interpretation of the findings
are indicated.
The first two major limitations of this study are, on the one hand, that the number of
samples used for the survey was incomplete, with a total of three groups of respondents instead
of four; on the other hand, that the samples sizes were small, which would not allow any general
conclusions to be reached. Sample selection was very much dictated by the availability of
private bankers within each private banking division.
The second limitation concerns the use of the self-report CQS instrument adopted in this
study, which shares the same weaknesses as other self-report measures, e.g. the various types
of response bias that may occur. Response bias can be defined as “the tendency of a person to
answer questions on a survey untruthfully or misleadingly” (“Response Bias: Definition and
Examples”, 2016). It can have a large impact on the validity of surveys. One type of response
bias is social desirability bias, which influences the respondent to “deny undesirable traits, and
ascribe to traits that are socially accepted or desirable” (Nederhof 1985, cited in Wikipedia,
n.d.). As long as social desirability bias is symmetrical within a group of respondents, it will
inflate individual responses but not change their ranking position. However, if some
respondents are more affected by social pressure than others, their ranking order within the
overall distribution of responses could be altered (West, 2014).
Another concern in the use of self-report instruments is that they can be subject to error.
For instance, questions may be misunderstood or may ask for information that the respondent
is not able to accurately report. These issues can be magnified in self-report questionnaires
because the interviewer is absent, thus respondents cannot ask questions about unclear
statements, and the researcher cannot inquire to see if respondents understood the question as
expected.
In addition, it is important to mention a number of limitations regarding the use of the CQS
in the assessment of CQ. One disadvantage in the use of the cultural intelligence scale is that
it assumes that individuals can accurately assess their own level of CQ, though there is a large
amount of evidence that people are overconfident in assessing their own skills and aptitudes
(Dunning, Heath, & Suls 2004, cited in Ang & Dyne, 2008), especially those individuals who
have low competence (Kruger & Dunning 1999, cited in Ang & Dyne, 2008). According to
Ang & Dyne (2008), a person who knows more is more aware of how much he or she does not

48
know. Therefore, it is fully possible that culturally intelligent individuals assign lower scores
to themselves than individuals who are less culturally intelligent.
Another limitation, which needs to be taken into account when assessing CQ, is that
respondents with limited international experience are likely lack sufficient intercultural
knowledge to be able to make clear distinctions among the items that measure the four CQ
factors (Bücker, Furrer, & Lin, 2015). As a result of their experiences, their cultural perspective
is likely to be too limited to allow them to assess nuances of the CQS items effectively (Huang
et al. 2012, cited in Bücker, Furrer, & Lin, 2015) and respond accurately to the survey items
(Koo Moon et al., 2012; Mabe and West, 1982; cited in Bücker, Furrer, & Lin, 2015).
Furthermore, Ang & Dyne (2008) noted that the CQS has particular limitations with regard
to the measurement of intelligence. More specifically, it asks respondents to rate aspects of
their CQ rather than to prove it objectively, which is questionable. According to the authors, a
more valid test of intelligence would require respondents to engage in problem solving rather
than asking respondents if they have the ability or the knowledge to solve it.
Lastly, focusing only on the individual’s perspective and not considering a more objective
view, for instance an observer’s view or the colleagues’ view, is limited in its nature. As
indicated earlier, an individual can be overconfident in assessing his or her own skills and
abilities, especially those individuals who have low competence. Thus, the validity of the
answers given by respondents is questionable.

5.2 Recommendations for further research

Given the limitations of this study, a number of recommendations for future research are
mentioned.
First, this study could be extended to include two more groups of private bankers working
for the same bank, either in Italy or in any other neighboring country. In this case, the bank
would need to share certain characteristics in common with the Swiss bank. In particular, it
should operate both locally and internationally, and its private banking division should provide
services to domestic and international clients.
It would be interesting to test whether the nation or country of work, i.e. Switzerland versus
Italy, has an effect on CQ. The rationale behind is that nations are political entities which vary
in their systems of government, legal systems, educational systems, institutions, number of
official languages, labor and employment relations systems. These factors influence the

49
behavioral interactions of individuals with their surrounding environment and with each other,
and therefore influence the way they think, in other words, their mental programming (Thomas,
2008).
Another possibility would be to test whether the type of department in which individuals
work, i.e. domestic or international, has an effect on CQ.
Second, it would be interesting and more accurate to not just assess CQ by the use of the
self-report CQS, but also by employing a number of qualitative methods, namely in-depth
interviews or observation, in order to supplement qualitative analysis of CQ with qualitative
methods. Therefore, a multi-method approach to the collection of data could be employed to
facilitate additional quality controls.
For instance, an observational method would allow the researcher to analyze behavior in-
context, identify patterns of behavior, learn what is taken for granted by participants in a
specific context, and reveal aspects of group dynamics that other research methods could not
(Constable et al., 2005; Parker, 2008; Bryman and Bell, 2011; Richards and Morse, 2013; cited
in Tharapos & O’Connell, n.d.).

50
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 Appendix A - The CQS

Original English Version

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Italian-translated Version

CQ COMPORTAMENTALE

Vario la frequenza del mio parlare quando una situazione interculturale lo richiede (CQ Comp)
Modifico le mie espressioni facciali quando una interazione culturale lo richiede (CQ Comp)
Uso pause e silenzi in modo diverso in base alle diverse situazioni interculturali (CQ Comp)
Cambio il mio comportamento verbale (es accento, tono) quando una interazione culturale lo richiede (CQ Comp)
Cambio il mio comportamento non verbale quando una situazione interculturale lo richiede (CQ Comp)

CQ COGNITIVA

Conosco i valori culturali e le credenze religiose di altre culture (CQ Cogn)

Conosco il sistema di matrimonio di altre culture. Conosco i riti di altre culture (CQ Cogn)
Conosco le arti ed i mestieri di altre culture (CQ Cogn)
Conosco i sistemi giuridici ed economici di altre culture (CQ Cogn)
Conosco le regole per esprimere comportamenti non verbali in altre culture (CQ Cogn)
Conosco le regole (ad esempio vocaboli, grammatica) di altre lingue (CQ Cogn)

CQ MOTIVAZIONALE

Mi piace vivere in culture che non sono familiari per me (CQ Motivaz)
Sono sicuro che posso abituarmi alle condizioni economiche in una cultura diversa (CQ Motivaz)
Sono sicuro di poter affrontare le sollecitazioni di adattarsi a una cultura che per me è nuova (CQ Motivaz)
Sono fiducioso di poter socializzare con la gente del posto in una cultura che per me è sconosciuta (CQ Motivaz)

CQ METACOGNITIVA

Sono consapevole delle conoscenze culturali che uso quando interagisco con persone con diversi background culturali (CQ Meta)
Sono consapevole delle conoscenze culturali che utilizzo nelle interazioni cross culturalili (CQ Meta)
Adatto le mie conoscenze culturali quando interagisco con persone provenienti da una cultura che è per me non familiare (CQ Meta)
Controllo l'esattezza delle mie conoscenze culturali quando interagisco con persone di culture diverse (CQ Meta)

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 Appendix B – CQ Scores

Figure 1: CQ Scores for “PB Ticino”

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Figure 2: CQ Scores for “PB Zurich”

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Figure 3: CQ Scores for “PB Italy”

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 Appendix C – CQ Factor Scores

PB Ticino
Descriptive statistics Cognitive CQ Metacognitive CQ Motivational CQ Behavioral CQ
Mean 4.3 4.9 5.2 3.9
Median 4.4 4.8 5.1 3.6
Standard Deviation 0.9 0.9 1.1 1.1
Minimum 2.8 4.0 3.2 2.6
Maximum 5.5 6.3 7.0 5.4
Count 10 10 10 10

PB Zurich
Descriptive statistics Cognitive CQ Metacognitive CQ Motivational CQ Behavioral CQ
Mean 5.2 5.7 5.4 5.2
Median 5.7 5.8 5.8 5.0
Standard Deviation 1.1 0.9 1.0 0.9
Minimum 3.5 4.0 4.0 4.0
Maximum 6.2 6.8 6.6 6.6
Count 7 7 7 7

PB Italy
Descriptive statistics Cognitive CQ Metacognitive CQ Motivational CQ Behavioral CQ
Mean 4.3 5.7 5.3 5.2
Median 4.5 5.8 5.0 5.3
Standard Deviation 1.0 0.9 1.2 0.9
Minimum 2.7 4.0 3.2 3.8
Maximum 5.8 7.0 7.0 6.8
Count 10 10 10 10

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