Exploring mediating factors linking cultural intelligence to employee performance in cross-cultural teams of Chinese multinational companies

Abstract

With the rise of China's economy, multinational Chinese companies have developed considerable advantages in international market competition. Cross-cultural teams are vital for global success but face three key challenges:internal communication difficulties, varying work styles among employees from different cultural backgrounds, and leadership disagreements rooted in cultural differences. These challenges can potentially hinder overall employee performance within cross-cultural teams.Grounded in Social Identity Theory and Social Cognitive Theory, this research investigates how cultural intelligence affects employees’ perception of inclusiveness, knowledge sharing, and employee innovative behavior, and how these three factors collectively influence employee performance. Survey data from 407 employees at Chinese multinational companies were analyzed via partial least squares structural equation modeling. The findings reveal that: (1) cultural intelligence enhances employees’ perception of inclusiveness, encourages knowledge sharing, and promotes employee innovative behavior; (2) employees’ perception of inclusiveness, knowledge sharing, and employee innovative behavior each have a positive influence on employee performance; and (3) these three factors serve as mediators in the relationship between cultural intelligence and employee performance.