Cultural Intelligence's Impact on Project Performance
Cultural Intelligence's Impact on Project Performance
Supervisor
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Table of Contents
TABLE OF CONTENTS................................................................................................................................... 2
1. INTRODUCTION:........................................................................................................................................ 3
3. SUPPORTING THEORY:............................................................................................................................. 8
4. LITERATURE REVIEW............................................................................................................................ 10
5. RESEARCH MODEL.................................................................................................................................. 13
FIGURE 1.1.............................................................................................................................................................14
5.1 RESEARCH HYPOTHESES..................................................................................................................................14
6. RESEARCH METHODS............................................................................................................................. 15
7. REFERENCES............................................................................................................................................ 18
8. QUESTIONNAIRE...................................................................................................................................... 24
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1. Introduction:
1.1 Background of the study
Project is defined by Turner (1990) as, “An endeavor which organizes human,
work, of required specification, keeping in view time and cost constraint, so that beneficial
change can be achieved through qualitative and quantitative objectives” (Turner & Miller,
2003).
The unique or intricate activities are effectively handled through comprehensive tool
of project management almost from last 30 years. The discipline of project management deals
with unique or intricate activities, which are collectively called a project (Munns & Bjrermi,
1996). Organizations in the modern era need rapid responses to ever changing internal and
external environment. This need further intensifies given the expectations from clients and
competitiveness of the market and has resulted in constant search for creative and innovative
nature of work is demanding. Globalization effect makes it need of an hour for every
change is not limited to inclusion of new technology but requires evident change in
leadership effectively that enhances the success rate of projects (Gilley et al., 2008; Jones et
al., 2005; Turner & Muller, 2005). The organizations now need managers that can effectively
manage diverse work groups (Jyoti & Kaur, 2015). Wellner (2000) defined cultural
intelligence as a tool that enables individuals to interact with individuals of other cultures
cultural diversity.
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Organizations are continuously confronting the challenge of maintaining a balance
between continuous improvement and innovation (Turner & Lee-Kelley, 2012). These two
terms are defined by March (1991) on the scale of requisite for exploitation and exploration,
where scale of exploitation takes into account terms as choice, refinement, execution,
account terms as innovation, search, discovery, variation, flexibility, risk taking, play,
in a constructive manner (Avery & McKay, 2008). It enhances the element of innovation,
backgrounds to interact, reduce cross cultural communication barriers, and also cause multi-
with workforce having cultural diversity can positively affect commitment of employees,
their morale and innovative capability to work (Goldman, Gutek, Stein & Lewis, 2006). It is
important areas like human resource management, organizational culture and employee
relations among themselves and with manager (Ensher, Grant-Vallone & Donaldson, 2001).
team.
stems from cultural intelligence (De Waal, 2012). Project manager’s cultural intelligence is
relatively a new variable and so far cultural intelligence has been studied in the context of
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traditional organizations. The scope of work on this variable in the context of project based
study by Korzilius et. al. (2017) highlighted the role of cultural intelligence in innovative
work behavior, but this study utilizes the gap to study project manager’s cultural intelligence
role in enhancing project performance, making it one of the fewer studies in the particular
domain.
While addressing this gap, the study also identifies potential mediator and moderator.
The study suggests that managerial ambidexterity as a mediator along with the variable;
one of the unique domains which are still needed to be explored in the context of project
management.
There is more room to study these variables in the context of Pakistan because study
using such variables together would be very useful for meeting the competitive innovation of
organizations working in Pakistan. The study will contribute significantly towards the
existing literature as well as towards the research study in Pakistan for project based
organizations.
In the present age of Globalization, project managers have to deal with diversity in
workforce (Martin, 2014). The role played by project manager’s cultural intelligence on the
individual and as a mediating variable is also limited. This study focuses on project
manager’s cultural intelligence impact on project performance with mediating role of project
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moderating role of intercultural group climate between project manager’s cultural intelligence
contextual setting of Pakistan. So, this is the novel domain which has not been studied yet
along with all the variables (Project manager’s cultural intelligence, Managerial
On the basis of the stated problems, the present study is intended to find answers for
Performance?
Question 3: Does Intercultural Group Climate moderates the relationship between project
Question 4: What is the significance of the study in the contextual settings of Pakistan?
Research objective is to explore the relation between the variables according to the
proposed model, that all of the variables are interrelated with each other to provide the
desired results of increased project performance. In addition, intercultural group climate will
be used as a moderator to identify the strength of the relation between project manager’s
cultural intelligence and managerial ambidexterity. The main aim is to illustrate the new
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The specific objectives of the study are sated below:
project performance.
ambidexterity.
To test empirically and establish the proposed relationships in the creative and
The world has gradually transformed into a global village and the organizations
maintain competitive edge through innovation. This study examines the personal
enhance the project performance because in the modern age of globalization projects have
been the most popular way of performing tasks in a specific duration. So, concepts regarding
cultural intellect and ambidexterity of project manager need to be clarified to make sure that
the projects are completed successfully and have positive impact on the society in general.
Overall, the cultural intelligence literature involves thorough research on performance of task
in culturally diverse settings but very limited theoretical papers and empirically tested studies
are available on cultural intelligence and leadership performance (Groves & Feyerherm,
2011).
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The study will fulfill the theoretical gap existing in pervious literature because the
managerial ambidexterity has not been studied in the field of project management within
contextual settings of Pakistan. The study will contribute positively in a productive manner
towards achievement of the desired goals and milestones of the project along with active
involvement of project manager making the best use of cultural diversity of the project team
cultures in the workforce. Cross-cultural study of this kind keeping in view project manager’s
cultural intellect and ambidexterity will not only help in literature enhancement for scholars
but also help organizations in Pakistan dealing with cultural diversity like embassies of
different countries operating here, to effectively deal with culturally diverse workforce and
3. Supporting theory:
the study and will help to understand the relationship between variables.
forward the triarchic theory of human intelligence. The theory was first of its kind by taking
into account more detailed approach to cognitive studies. Sternberg defines human
intelligence as ‘a cognitive ability directed towards purposive adaptation to, selection and
shaping of, real-world environments relevant to a person’s life’ (Sternberg, 1985). The theory
illustrates how soundly human beings handle changes in their environmental settings
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throughout life experiences. Sternberg’s triarchic theory of human intelligence comprises of
The contextual (practical) sub theory relates intelligence to the external world of the
individual; it addresses the questions of what behaviors are intelligent for whom and of
where these behaviors are intelligent. In present study this part of theory relates to project
manager’s cultural intelligence as he interacts with external world of cultural diversity and
seek appropriate behaviors to interact with diverse workforce. The sub theory specifies the
potential set of contents for behaviors that can be characterized as intelligent. The
experiential (creative) sub theory relates intelligence to both the internal and external worlds
of the individual; it answers the question of when behavior is intelligent. This sub theory
specifies the relation between intelligence as exhibited on a task or in a situation, on the other
hand, and amount of experience with task or situation, on the other. The experiential sub
The componential (analytical) sub theory relates intelligence to the internal world of the
individual; it answers the question of how intelligent behavior is generated. In particular, the
sub theory specifies the potential set of mental mechanisms that underlie intelligent behavior,
regardless of the particular behavioral contents. This part of the theory relates to internal
mental mechanisms of culturally diverse workforce. The three sub theories, taken together,
The theory proposed in this study can be viewed holistically to analyze how different
aspects of intelligence work together as a system. Interaction between intelligence and the
experience relates to cognitive capability of dealing with novelty and capability to mechanize
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information processing. Interaction between intelligence and external world relates to
4. Literature review
and has been considered as learning ability for managers around the globe (Dunning &
Lundan, 2009). Cultural intelligence was assembled initially to determine factors influencing
a person’s capability to successfully mould his/her personality in cultural settings (Earley &
disposition factor but also a scale to measure individual’s competencies ahead of stable
other being quantitative and emotional intelligence (Sternberg & Detterman, 1986; Alon &
Higgins, 2005). In the domain of project management, project manager’s cultural intelligence
is one of the effective tools to enhance individual and project performance (Beck, Gregory
and Prifling, 2008). Cultural intelligence has positive impact on job and task performance
(Ramalu et al., 2010; Chen, Lin & Sawangpattanakul, 2011; Ramalu, Rose, Uli & Kumar,
H1: There is positive association between project manager’s cultural intelligence and project
performance.
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4.2. Project Manager’s Cultural Intelligence and Managerial Ambidexterity
Maylor & Swart, 2015). It involves exploiting existing knowledge and exploring new
innovative ideas to enhance the creativity and innovation (Eriksson, 2013). Research
indicates that ambidexterity when exhibited on individual level leads to creativity and
innovation the task being performed (Wu & Wu, 2016). The element of ambidexterity is well
diverse workforce to express their innovative ideas and proper channel to exploit and explore
For a leader to be successful in any contextual setting his knowledge about the cultural
background of the workforce and ability to trigger innovation on any organizational level is
must (Chua, Roth & Lemoine, 2014) and for exhibiting it properly the environmental factors
do play important part. Ambidexterity on the individual level along with many other factors
stems from cultural intelligence of the manager, hence my second hypothesis can be stated
as:
H2: There is positive association between project manager’s cultural intelligence and
managerial ambidexterity.
organizations are relying on to have competitive edge over competitors. Firms have to
develop both exploitative and exploratory innovativeness to keep up with the latest trends and
maintain market position (Vrontis et al., 2016). Kang and Snell (2009) are of the view that
organizational innovativeness stems from its human resource base and success of its
operations depends on the innovative capability of the human capital. However, limited
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insight is available on how individuals attain explorative and exploitative innovative
organizational, business unit and team performance (Gibson & Birkinshaw, 2004; Jansen,
Simsek & Cao, 2012) however, similar evidence in the domain of project based organizations
(Kobarg, Wollersheim, Welpe & Sporrle, 2017). Hence my third hypothesis can be stated as:
performance.
new situations in flexible manner. Intelligence level increases as humans’ social interacting
phenomenon increases and intelligence level is positively associated with increased social
interaction in different cultures. The cultural hypothesis reaffirms the notion that intelligence
level increase as social interaction levels increases allowing more explorative learning
(Schaik, Burkart, 2011). Individual ability of carrying out explorative and exploitative
activities enables managerial effectiveness and ability to perform job or task more
Recent world economic crisis have made organizations to make adaptability with innovation
their key formula to success and retain competitive edge over the competitors. Recent shift is
towards aligning exploitative innovation with explorative innovation along with workforce
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having cultural diversity supervised with cultural intellect to ensure success of an
H4: Managerial Ambidexterity plays a mediating role between Project Manager’s Cultural
In the recent era, researchers have focused their efforts to study effects of intercultural
group climate in the workforce. The variable has still not achieved its potential as
methodological approach (Perry, Harp & Oser, 2013). Cultural diversity fosters the group
behavior positively and effectively enhances the work group productivity. Intercultural group
climate positively impacts the decision-making ability of the group (Oetzel, 2017).
When there is intercultural group climate at workplace; it affects employees feelings towards
work and manager positively (Triana, Jayasinghe & Pieper, 2015) enhancing both managerial
performance in general (Burke, 1991; Valentine, Silver & Twig, 1999; Hopkins, 1980;
H5: Intercultural Group Climate moderates the relationship between project manager’s
cultural intelligence and managerial ambidexterity; such that if intercultural group climate is
high then the relationship between project manager cultural intelligence and managerial
5. Research Model
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Intercultural Group
Climate
Figure 1.1: Research Model of PM’s cultural intelligence on project performance through
H1: There is positive association between project manager’s cultural intelligence and project
performance.
H2: There is positive association between project manager’s cultural intelligence and
managerial ambidexterity.
performance.
H4: Managerial Ambidexterity plays a mediating role between Project Manager’s Cultural
H5: Intercultural Group Climate moderates the relationship between project manager’s
cultural intelligence and managerial ambidexterity; such that if intercultural group climate is
high then the relationship between project manager cultural intelligence and managerial
6. Research Methods
Methodology:
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constructed questionnaire, cover letter is also attached displaying the purpose of the study as
well as the researcher’s contact details in case of any query or questionnaire, respectively.
The questionnaire will be designed in such a way that is will be easy for the consumers to fill
and as a result generate honest and truthful response. This kind of response will help to
analyze the proposed relationships appropriately and efficiently. According to Sekaran (2006)
the questionnaire mode is termed as the most efficient way of collecting data as researcher is
well aware about the fact that what is required or demanded actually and how one should
measure the constructed construct or variable of interest correctly?
Due to time constraints and to complete the responses, personally administrated questionnaire
will be used for the local area of Rawalpindi and Islamabad – the twin cities of Pakistan. To
make a quick and appropriate decision, a type of close ended questionnaire will be used as it
saves respondent as well as researchers’ time of obtaining the response by just selecting a
particular given option efficiently (Sekaran, 2006). According to Horst (1968), it is
recommended to keep the length of the questionnaire should be minimum to get the
responsive response on time and therefore the present study questionnaire is one full line in
print asking brief and to the point questions, alternatively.
To give the level of ease and confidence to the respondent, demographic factors should be
asked in the end of the constructed questionnaire. To generate the true and honest responses
from the consumers their anonymity and secrecy of the information will be fully ensured.
Both Females and male’s consumers will be ensured to provide a fair sort of representation in
filling the constructed questionnaire. Moreover, cross-sectional study- data collected more
than once will be carried out. Three time lags should be there for the current study. In the
first-time lag (T1), data of the independent variables will be collected. In the second-time lag
(T2), data of moderating as well as mediating variables will be gathered out and in the third-
time lag (T3), data of the endogenous variables will be collected, alternatively.
3.4 Measurements
All assumed constructs of the contemporary study will be measured via scale of multiple
items where all the following items will be measured and analyzed using a five point Likert
scale ranging from 1= strongly disagree (SDA) to 5= strongly agree (SA), consequently. The
scale of personality having 44 items is adopted from John & Srivastava (1999). Whereas,
Hofstede’s (1997) scale of cultural dimension will be used to measure cultural values. Scale
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of Religiosity (Gorsuch and McPherson 1989) is used to measure intrinsic and extrinsic
religiosity of the customer. Green Buying Intention of customers will be measured by suing
tool developed by Chan and Lau (2000). The ethical self identity will be measured by using 2
item scales of Shaw and Shiu (2003).
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Instead of first generation linear as well as multiple regression techniques- the first-
generation multivariate methods, it is preferable to use SEM-Structural Equation Modelling
for gauging the proposed links as exogenous as well as endogenous variables are
incorporated in the contemporary study model, respectively.
SEM is considered as an excellent tool for conducting multivariate analysis techniques
because firstly, for practice and theory, it is the most usable tool for handling complex
proposed relationship process (Bollen, 1989; Dubin, 1976). Secondly, the contemporary
model is not practically and readily possible to analyzed via multiple regression method as
multiple sequential steps is required for this type of regression evaluation. Thirdly, SEM-
Structural Equation Modelling helps in simultaneous analysis of all the identified variables in
the construct and error of measurement is not identified in residual term -aggregated form
consequently (Chin, 1998). Fourthly, SEM helps to model the relationship among IV-
Independent Variable and DV-Dependent Variable as it analyzes the interrelated relationships
in more comprehensive and systematic way (Gerbing & Anderson, 1988). Fifthly,
hierarchical (recursive) and non- hierarchical (non-recursive) structure equations are there for
checking complicated relationships among variables and therefore it helps in presenting a
complete bird view of the model, consequently (Bullock et al., 1994; Hanushek & Jackson,
1977). Lastly, SEM will help to observed as well as latent variables factor loading,
consequently (Gefen et al., 2000). Thus, SEM will be used to examine the interrelationships
among variables and the model fitness, consequently.
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8. Questionnaire
Dear Respondent,
Sincerely,
Capital University of Sciences and Technology, Islamabad.
Section I
Gender
1 2
Male Female
Age
1 2 3 4 5
18-25 26-33 34-41 42-49 50 and above
Qualification
1 2 3 4 5 6 7
Metric Inter Bachelor Master MS/[Link]. PhD Post PhD
Experience
1 2 3 4 5 6
0-5 6-10 11-16 17-22 23-28 29 and above
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Section II: Project Manager’s Cultural Intelligence; 1 = Not at all, 2 = a little, 3 = Somewhat, 4 =
A lot, 5 = Extremely Well
1 I know the ways in which cultures around the world are different. (K)
2 I can give examples of cultural differences from my personal experience,
reading, and so on. (K)
3 I enjoy talking with people from different cultures. (S)
4 I have the ability to accurately understand the feelings of people from other
cultures. (S)
5 I sometimes try to understand people from another culture by imagining how
something looks from their
perspective. (S)
6 I can change my behavior to suit different cultural situations and people. (S)
7 I accept delays without becoming upset when in different cultural situations
and with culturally different people. (S)
8 I am aware of the cultural knowledge I use when interacting with someone
from another culture. (M)
9 I think a lot about the influence that culture has on my behavior and that of
others who are culturally different. (M)
10 I am aware that I need to plan my course of action when in different cultural
situations and with culturally different people. (M)
K=Knowledge Item.
S= Skill Item.
M=Metacognition Item.
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Section IV: Project Performance; 1= Strongly Disagree, 2= Disagree, 3= Neither Agree/nor
Disagree, 4= Agree, 5= Strongly Agree
1 Projects are completed on time.
2 Projects met budget requirements.
3 Projects met expectations.
4 Project team members are satisfied to work together.
5 Benefits of projects to the organization are high.
6 Projects resulted in sales growth.
7 Projects helped the organization to increase market share.
8 Projects helped the organization improve its competitive
position.
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