Managing across cultures with Cultural Intelligence Quotient (CQ)

360 Pages·2016·5.22 MB·English

by  Narashima Boopathi Sivasubramanian

NARASHIMA BOOPATHI SIVASUBRAMANIAN
Managing across cultures
with Cultural Intelligence
Quotient (CQ)
Study of Finnish business
leaders experience
in India
ACTA WASAENSIA 363
BUSINESS ADMINISTRATION 144
Reviewers Professor Emeritus Asko Miettinen
Tampere University of Technology
P. O. Box 527
FI-33101 TAMPERE
FINLAND
Professor Martin Lindell
Hanken School of Economics
P. O. Box 479
FI-00101 HELSINKI
FINLAND
III
Julkaisija Julkaisupäivämäärä
Vaasan yliopisto Joulukuu 2016
Tekijä(t) Julkaisun tyyppi
Narashima Boopathi Monografia
Sivasubramanian Julkaisusarjan nimi, osan numero
Acta Wasaensia, 363
Yhteystiedot ISBN
Vaasan yliopisto 978-952-476-712-5 (painettu)
Kauppatieteellinen 978-952-476-713-2 (verkkojulkaisu)
tiedekunta ISSN
Johtaminen 0355-2667 (Acta Wasaensia 363, painettu)
PL 700 2323-9123 (Acta Wasaensia 363, verkkojulkaisu)
FI-65101 VAASA 1235-7871 Liiketaloustiede 144, painettu
2323-9735 Liiketaloustiede 144, verkkojulkaisu
Sivumäärä Kieli
360 Englanti
Julkaisun nimike
Kulttuurien välinen johtaminen kulttuuriälyn avulla — tutkimus suomalaisten
yritysjohtajien kokemuksista Intiassa

Tiivistelmä
Globalisoitunut yritysmaailma tarvitsee yritysjohtajia, joilla on kulttuurillisia kykyjä
toimia tehokkaasti yli erilaisten kulttuurirajojen. Tartuttuaan tähän kulttuurillisten
kykyjen tarpeeseen useat kirjoittajat ovat esittäneet erilaisia kulttuuriteorioita ja malleja.
Viime aikoina suurinta huomiota kulttuurillisiin kykyihin liittyvistä teorioista on saanut
teoria kulttuuriälystä (Cultural Intelligence, CQ), joka koostuu neljästä eri
ulottuvuudesta: motivoivasta, tiedollisesta, metakognitiivisesta ja käyttäytymiseen
liittyvästä kulttuuriälystä.

Eräs pääoletuksista kulttuuriälyn teoriassa on se, että erittäin kulttuuriälykkäät ihmiset
kykenevät toimimaan tehokkaasti missä tahansa kulttuurikontekstissa. Syvällisen
kirjallisuuskatsauksen pohjalta voidaan kuitenkin todeta, että kulttuuriälyn teoriaa ei
juurikaan ole käytetty yksittäiseen maahan kohdistuvissa tutkimuksissa. Tämän
väitöstutkimuksen tarkoituksena on selvittää, missä määrin ja millä tavalla kulttuuriäly
edesauttaa suomalaisten yritysjohtajien toimintaa hyvin radikaalisti erilaisessa
kulttuuriympäristössä, Intiassa. Tutkimusstrategiana on fenomenologinen
lähestymistapa ja tutkimuksen aineisto on kerätty kahdella tavalla: kyselylomakkeella 20-
kohtaisella kulttuuriälyn mittarilla ja 22 osittain jäsennetyllä haastattelulla.

Tuloksista käy ilmi, että kulttuurillinen etäisyys maiden välillä on suuri ja todistaa, että
yksilöt tarvitsevat kulttuurillisia kykyjä työskentelyyn intialaisessa toimintaympäristössä.
Empiirisen aineiston pohjalta tutkimus laajentaa aikaisempaa kulttuuriälyn teoriaa ja
esittää siihen kahta uutta ulottuvuutta: kokemukseen perustuvan ja verkostoon
perustuvan kulttuuriälyn. Keskeiset löydökset viittaavat siihen, että yksilöt eivät voi
menestyä toisessa kulttuurissa, ellei heillä ole kykyä kokea kulttuuriin liittyviä asioita ja
ymmärtää kokemaansa sekä kykyä rakentaa paikallista suhdeverkostoa.

Asiasanat
Johtaminen, kulttuuriäly, Intia, Johtaminen Intiassa, Suomi, Suomalainen johtaminen

V
Publisher Date of publication
Vaasan yliopisto December 2016
Author(s) Type of publication
Narashima Boopathi Monograph
Sivasubramanian Name and number of series
Acta Wasaensia, 363
Contact information ISBN
University of Vaasa 978-952-476-712-5 (print)
Faculty of Business Studies 978-952-476-713-2 (online)
Management ISSN
P.O. Box 700 0355-2667 (Acta Wasaensia 363, print)
FI-65101 Vaasa 2323-9123 (Acta Wasaensia 363, online)
Finland 1235-7871 (Acta Wasaensia. Business
Administration 144, print)
2323-9735 (Acta Wasaensia. Business
Administration 144, online)
Number of pages Language
360 English
Title of publication
Managing across cultures with Cultural Intelligence Quotient (CQ) - Study of
Finnish business leaders experience in India

Abstract
The globalised business world requires business leaders to possess cultural
capabilities to function effectively across different cultures. To assess this cultural
capability, various cultural theories and models have been proposed by a number
of authors. One of the more prominent current cultural capability theories is that
of Cultural Intelligence (CQ). This consists of four measured ‘dimensions’, these
are Motivational CQ, Cognitive CQ, Metacognitive CQ and Behavioral CQ. From
an in-depth literature review, it was observed that little research exists in terms
of applying CQ theory in a single country environment. Thus, this dissertation
seeks to understand to what extent and in what ways CQ facilitates Finnish
leaders in leading businesses in a radically different cultural environment - in
this case India. The study used a phenomenology approach as a research strategy
and the data were collected using two sources, i.e. a 20 item scale CQ
questionnaire and 22 semi-structured interviews.

It is apparent from the results, that the cultural distance between both the
countries is wide and underlines the need of cultural ability in order for
individuals to work in Indian business environment. By drawing on the empirical
data, the thesis extends CQ theory and proposes two new dimensions:
Experiential CQ and Network CQ. Key findings indicate that individuals cannot
be successful in another culture without having the ability to experience cultural
things and make sense of them (Experiential CQ) as well as being capable of
building local relationships (Network CQ).

Keywords
Leadership, Cultural Intelligence, India, Leadership in India, Finland, Finnish
leadership.

VII
ACKNOWLEDGEMENT
The years of doctoral studies has been the big learning journey that has led to my
personal and professional transformation. This study would not have been
completed without the support of the following people:
First and foremost, I want to express sincere gratitude to my supervisor Professor
Vesa Routamaa without whom I would not have been writing this
acknowledgement. Professor Vesa’s unconditional guidance offered me great
wisdom that helped me to develop my doctoral candidature. Big thanks for all the
intellectual support that helped me to develop as a researcher. Second, I would
like to thank Associate Professor Tiina Brandt who has graciously accepted to be
my Custos.
Next, I am very grateful for the reviewers Professor Martin Lindell and Professor
Asko Miettinen for their valuable feedback. It is an honour to have you both as my
pre-examiners and your comments helped me truly to develop my thesis.
I would like to thank all the members of the Department of Management for the
support they offered me. In particular, I would like to thank Professor Riita
Viitala, Professor Jukka Vesalainen, Professor Marko Kohtamäki, Professor Vesa
Suutari, Professor Adam Smale, Associate Professor Niina Koivunen, Assistant
Professor Jenni Kantola for their kindness. I also would like to thank Assistant
Professor Risto Säntti who has been of great support in helping me to gain
immense experience as a researcher and as a teacher. Thanks Risto for all the
intellectual discussion we have had over these years that has inspired me in so
many positive ways. Also, I would like to extend my thanks to my colleagues at
the Department of Management: Snaizhana Sniazhko, Raija Salomaa, Rumy
Narayan, Piia Uusi-Kakkuri, Tiina Jokinen. In addition, I would like to thank
Professor Jorma Larimo, Alphonse Aklamanu, Nnamdi Oguji, Wang Yi, and
Pratik Arte from the Department of Marketing.
The international office of University of Vaasa has always been a place that has
offered me support from the first day I arrived in Finland. I sincerely extend my
gratitude to all the members of the International office and in particular, to
Francesca Cucinotta for being kind and supporting me numerous times during
my academic life at the University of Vaasa.
I sincerely thank all the funding institutions who has offered me financial
support. I would like to thank University of Vaasa, Vaasa University Foundation,
Evald and Hilda Nissi Foundation, KAUTE foundation and Nordic institute of
VIII
Asian studies for their generosity in supporting me financially to complete this
study.
I would like to extend my deepest gratitude to my dear friend Donald Jordan who
motivated me to apply for doctoral studies and paved the way to this journey.
Likewise, I also want to offer my special thanks to my dear friend Jayaraman
Subramanyam who has been supporting me and enabled me to gain a wide range
of experience that has helped me to develop personally. I also thank sincerely my
friends, Amar Bodige, Guna Sekar, Ravi, Nadia Zhander, Harri Niskanen, Prabhu
Bojappan, Shivanand Gannur and Heli Kontio.
Even though in my culture it sounds very formal to say thanks to family, saying
BIG THANKS to them at least partly will express my gratitude. My family have
offered me everything that helped me to be who I am today.
Narashima Boopathi Sivasbramanian
December 2016
Finland
IX
Contents
ACKNOWLEDGEMENT ............................................................................ VII
1 INTRODUCTION ................................................................................. 1
1.1 Research Gap ........................................................................... 5
1.2 Research Question and objectives ........................................... 8
1.3 Expected Contributions ........................................................... 9
1.4 Structure of the Dissertation .................................................. 10
2 LITERATURE REVIEW......................................................................... 14
2.1 Overview to India ................................................................... 14
2.2 Comparison of Indian and Finnish cultures through
dimensions ............................................................................ 21
2.2.1 Hofstede Cultural Dimensions ...................................... 22
2.2.2 GLOBE Dimension ......................................................... 24
2.2.3 GLOBE Leadership styles ............................................... 29
2.2.4 Comparison and Discussion .......................................... 30
2.2.5 Conclusion ................................................................... 36
2.3 Introduction to Cultural competence ...................................... 36
2.4 Cultural Intelligence Quotient Overview ................................. 39
2.5 Earlier Studies Concerning CQ ............................................... 44
3 METHODOLOGY ............................................................................... 54
3.1 Research Philosophy .............................................................. 54
3.2 Research Approach ................................................................ 55
3.3 Research Strategy .................................................................. 55
3.4 Research Method ................................................................... 56
3.5 Sources of data ...................................................................... 59
3.6 Source 1 data: CQ 20 item scale questionnaire ..................... 60
3.7 Source 2 data: Semi structured interview ............................... 64
4 FINDINGS ........................................................................................ 77
4.1 Source 1 data - CQ Self-Assessment Questionnaire Analysis ... 77
4.2 Source 2 data – Semi-structured interview -Analysis of
moderate CQ Data ................................................................. 81
4.2.1 Differences ................................................................... 81
4.2.1.1 Hierarchy and leadership ................................... 81
4.2.1.2 Communication ................................................. 86
4.2.1.3 Religion ............................................................. 89
4.2.1.4 External Environment ......................................... 91
4.2.1.5 Work behavior .................................................... 93
4.2.1.6 Time .................................................................. 95
4.2.1.7 Decision Making ................................................ 96
4.2.1.8 Diversity of the host country .............................. 99
4.2.1.9 Attitude of people ............................................ 100
4.2.1.10 Culture .......................................................... 100
4.2.1.11 Gender role .................................................... 101
4.2.1.12 British Influence ............................................. 103
X
4.2.2 Challenges ................................................................. 103
4.2.2.1 Communication ............................................... 103
4.2.2.2 Challenge in gender role .................................. 105
4.2.2.3 Challenge due to diversity ............................... 105
4.2.2.4 Other challenges .............................................. 106
4.2.3 Capabilities Identified ................................................. 107
4.2.3.1 Relationship capabilities .................................. 108
4.2.3.2 Adaptation Skills .............................................. 110
4.2.3.3 Cross-cultural skills ......................................... 111
4.2.3.4 Experience ....................................................... 112
4.2.3.5 Paternalistic skills ............................................ 113
4.2.3.6 Other skills ...................................................... 114
4.2.4 View of factors such as motivation, cultural knowledge
and preparation ......................................................... 114
4.2.4.1 Motivation ....................................................... 115
4.2.4.2 Cultural Knowledge ......................................... 118
4.2.4.3 Preparation ...................................................... 124
4.2.4.4 Behavior .......................................................... 128
4.2.5 Summary of the findings from the moderate CQ data . 135
4.3 Source 2 data – Semi-structured interviews -Analysis of High
CQ Data .............................................................................. 138
4.3.1 Differences ................................................................. 138
4.3.1.1 Communication ............................................... 139
4.3.1.2 Hierarchy and Leadership ................................ 146
4.3.1.3 Time ................................................................ 151
4.3.1.4 Diversity of Host Country ................................. 154
4.3.1.5 Religion ........................................................... 156
4.3.1.6 Decision Making .............................................. 159
4.3.1.7 Observation about host country people ........... 162
4.3.1.8 Work Environment ........................................... 165
4.3.1.9 Micromanagement ........................................... 167
4.3.1.10 Host Country Environment ............................. 168
4.3.1.11 Gender .......................................................... 170
4.3.1.12 Risk Taking .................................................... 172
4.3.2 Challenges ................................................................. 172
4.3.2.1 Attitude of host people .................................... 172
4.3.2.2 Communication ............................................... 175
4.3.2.3 Hierarchy ......................................................... 177
4.3.2.4 Finding the Right Person .................................. 178
4.3.2.5 Other challenges .............................................. 179
4.3.3 Capabilities Identified ................................................. 183
4.3.3.1 Experience ....................................................... 183
4.3.3.2 Relationship capabilities .................................. 185
4.3.3.3 Trust ............................................................... 188
4.3.3.4 Cross-cultural skills ......................................... 190
4.3.3.5 Open-Mindedness ............................................ 192
4.3.3.6 Communication Skills ...................................... 193
4.3.3.7 Patience ........................................................... 194
4.3.3.8 Other Skills ...................................................... 194