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TOWARDS BETTER CROSS-CULTURAL ADJUSTMENT: FROM CULTURAL DISTANCE TO CULTURAL INTELLIGENCE Presented By Ying Zhang Master of Education (The University of Melbourne) Bachelor of Arts (Yunnan University) A Dissertation Submitted in Fulfilment of the Requirements for the Degree of Doctor of Philosophy Faculty of Business Charles Sturt University September 2013 i Thesis-related Publications Zhang, Y., & Oczkowski, E. (2014: under review). Towards better expatriated cross-cultural adjustment: Modeling the effects of cultural distance asymmetry on cultural intelligence and position levels. Cross-Cultural Manageent: An Interantional Journal. Zhang, Y. (2013). Expatriate development for cross-cultural adjustment: Effects of cultural distance and cultural intelligence. Human Resource Development Review, 12(2), 176-198. Zhang, Y. (2011). Measuring dimensions of cultural intelligence for better cross-cultural adjustment. Paper presented at Annual Meeting of International Association for Chinese Management Research (IACMR), July, Xiamen, China. ii Table of Contents List of Tables ................................................................................................ v List of Figures .............................................................................................. vi Certificate of Authorship ........................................................................... vii Acknowledgments ..................................................................................... viii Ethics Approval ........................................................................................... ix Paid Editorial Assistance ............................................................................. x Abstract ........................................................................................................ xi Abbreviations............................................................................................. xiii CHAPTER ONE: INTRODUCTION ........................................................ 1 1.1 Chapter Overview ................................................................................ 1 1.2 Background of the Study ...................................................................... 2 1.3 Research Problem and Research Design ............................................ 10 1.4 Research Questions ............................................................................ 19 1.5 Research Significance ........................................................................ 20 1.6 Research Methodology ....................................................................... 23 1.7 Key Assumptions and Delimitations of Scope ................................... 26 1.8 Chapter Summary and Thesis Outline ............................................... 28 CHAPTER TWO: LITERATURE REVIEW AND THEORY DEVELOPMENT ...................................................................................... 31 2.1 Chapter Overview .............................................................................. 31 2.2 Culture and Dimensions of Culture .................................................... 32 2.2.1 Culture ......................................................................................... 32 2.2.2 Comparison of Cultural Dimension Models ............................... 33 2.3 Contextual Difference and Cultural Distance .................................... 36 2.3.1 An Overview of the Socio-economic Contexts ........................... 37 2.3.2 The Oriental Chinese Way vs. Occidental Australian Mind ....... 39 2.3.3 Cultural Distance between China and Australia ......................... 43 2.3.4 Cultural Distance Asymmetry ..................................................... 47 2.4 Cross-Cultural Adjustment................................................................. 52 2.4.1 A Review of Cross-Cultural Adjustment Theories ..................... 52 2.4.2 Socio-Cultural and Psycho-Cultural Adjustment ........................ 60 2.4.3 Limitations of Previous Cross-Cultural Adjustment Theories .... 64 2.5 Cultural Intelligence ........................................................................... 68 2.5.1 The Nature of CQ ........................................................................ 69 2.5.2 Conceptualization of Four-Dimensional CQ .............................. 73 2.5.3 Empirical Studies on CQ ............................................................. 83 2.5.4 Summary of Cultural Intelligence ............................................... 86 2.6 Development of Theory and Hypotheses ........................................... 87 2.6.1 Cultural Intelligence and Cross-Cultural Adjustment ................. 87 2.6.2 Moderating Effects of Cultural Distance Asymmetry .............. 101 2.7 Chapter Summary and Conceptual Model ....................................... 111 CHAPTER THREE: METHODOLOGY .............................................. 114 3.1 Chapter Overview ............................................................................ 114 3.2 Methodology Plan ............................................................................ 114 3.3 Target Population and Sampling Frame ........................................... 117 3.4 Research Sites and Procedures ......................................................... 119 iii 3.5 Sample Adequacy and Sample Characteristics ................................ 122 3.6 Research Instrument ......................................................................... 124 3.6.1 Questionnaire Design ................................................................ 124 3.6.2 Demographic Information ......................................................... 125 3.6.3 Measurement of Variables ........................................................ 127 3.6.4 Reliability and Validity Issues .................................................. 135 3.7 Data Analysis Plan ........................................................................... 137 3.7.1 Statistical Modelling Approach ................................................ 137 3.7.2 Model Fit Analysis and Statistical Indices ................................ 140 3.8 Chapter Summary ............................................................................ 143 CHAPTER FOUR: DATA ANALYSIS AND RESULTS .................... 144 4.1 Chapter Overview ............................................................................ 144 4.2 Preliminary Analysis ........................................................................ 145 4.2.1 Data Integrity ............................................................................ 145 4.2.2 Reliability Tests ........................................................................ 151 4.3 Descriptive Analysis ........................................................................ 152 4.3.1 Descriptive Statistics for the Sample Groups ........................... 152 4.3.2 Descriptive Statistics for Independent and Dependent Variables ............................................................................................................ 155 4.4 Bivariate Analysis ............................................................................ 157 4.5 Evaluation of Measurement Model and Confirmatory Factor Analysis ................................................................................................................ 162 4.5.1 Model Modification .................................................................. 163 4.5.2 Construct Reliability and Validity Testing ............................... 165 4.6 Tests of Hypothesized Structural Models and Interpretation of Results ................................................................................................................ 171 4.6.1 Overall Goodness-of-Fit for the General Model ....................... 171 4.6.2 Causal Relationship Testing and Interpretation of Results ....... 174 4.6.3 Tests of CDA Moderation Effect and Interpretation of Results 186 4.7 Discussion ........................................................................................ 193 4.7.1 Individual Differences and Cross-Cultural Adjustment ............ 194 4.7.2 Cultural Distance Asymmetry Moderating Effect .................... 199 4.7.3 Control Variables ...................................................................... 208 4.8 Chapter Summary ............................................................................ 211 CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS... 216 5.1 Chapter Overview ............................................................................ 216 5.2 Summary of the Research Findings ................................................. 217 5.3 Theoretical and Empirical Contributions ......................................... 222 5.4 Practical Contributions ..................................................................... 230 5.5 Limitations of the Research and Recommendations for Future Study ................................................................................................................ 235 5.6 Concluding Remarks ........................................................................ 240 REFERENCES ......................................................................................... 245 APPENDICES A - C ................................................................................ 263 iv List of Tables Table 2. 1 Comparison of Models of Cultural Dimensions ........................... 34 Table 2. 2 Comparison of Cultural Characteristics of Australia and China ... 44 Table 2. 3 Demonstration of Berry‟s (1990) Model of Acculturation ........... 58 Table 2. 4 Conceptualization and Applications of Cultural Intelligence ....... 81 Table 2. 5 Summary of Empirical Studies on Cultural Intelligence .............. 84 Table 2. 6 Summary of Hypotheses in the Current Study ............................ 112 Table 3. 1 Sampling Frame and Responses ................................................. 120 Table 3. 2 Sample and Database Concordance ............................................ 123 Table 3. 3 Measuring Socio-Cultural Adjustment ....................................... 129 Table 3. 4 Measuring Psycho-Cultural Adjustment ..................................... 131 Table 3. 5 Measuring Cultural Intelligence .................................................. 132 Table 3. 6 Summary of Variables ................................................................ 134 Table 3. 7 Summary of Model Fit Indices ................................................... 142 Table 4. 1 Descriptive Statistics of the Dataset Post Removal of Outliers .. 148 Table 4. 2 Cronbach‟s Alpha Reliability Tests ............................................ 151 Table 4. 3 Comparative Demographic Variables of Sample Groups: Mean and SD ......................................................................................... 152 Table 4. 4 Comparative Demographic Variables of Sample Groups: Frequency Table .......................................................................... 153 Table 4. 5 Descriptive Statistics for Independent and Dependent Variables156 Table 4. 6 Pearson Correlational Coefficient Analysis for Independent and Dependent Variables .................................................................... 157 Table 4. 7 Pearson Correlational Coefficient and Point Biserial Analysis for All Relevant Variables ................................................................. 158 Table 4. 8 Summary of Measurement Model and Reliability and Validity Measures ...................................................................................... 167 Table 4. 9 Correlation Matrix for Latent Variables ..................................... 168 Table 4. 10 Confirmatory Factor Analysis Results ...................................... 169 Table 4. 11 Summary of Goodness-of-Fit Statistics for the Measurement Model and Structural Models ...................................................... 172 Table 4. 12 Comparison of Regression Weights in Hypothesized Structural Models 1 and 2 ............................................................................ 173 Table 4. 13 Structural Equation Modelling: H1 to H8 Hypotheses Testing 185 Table 4. 14 Testing for Multi-group Invariance: Model Fit Comparison .... 188 Table 4. 15 Structural Equation Modelling: H9 and H10 Hypotheses Testing ..................................................................................................... 190 Table 4. 16 Multi-group Invariance Analysis for Moderating Effects and Tests for Differences between Path Coefficients ........................ 191 Table 4. 17 Comparison of Empirical Findings Regarding Hypotheses H1 to H8 ................................................................................................ 198 Table 4. 18 CDA Moderation Effects on Position Level and Adjustment Relationships ............................................................................... 206 v List of Figures Figure 2. 1 The U-Curve Model of Adjustment.............................................. 55 Figure 2. 2 Systemic Typology of Current Study with Cross-Level Analysis66 Figure 2. 3 Demonstration of Dimensions of Cultural Intelligence ................ 73 Figure 2. 4 Clarification of Moderated Relationships Among Variables ..... 103 Figure 2. 5 Theoretical Research Model ....................................................... 113 Figure 3. 1 Hypothesized Theoretical Model ................................................ 140 Figure 4. 1 Scatter Plots for CQ Measures with Work Adjustment Graph ... 149 Figure 4. 2 Scatter Plots for CQ Measures with General Living Condition Adjustment Graph ...................................................................... 149 Figure 4. 3 Scatter Plots for CQ Measures with HCN Interaction Adjustment Graph .......................................................................................... 149 Figure 4. 4 Scatter Plots for CQ Measures with Psycho-Cultural Adjustment Graph .......................................................................................... 150 vi Certificate of Authorship I hereby declare that this submission is my own work and that, to the best of my knowledge and belief, it contains no material previously published or written by another person nor material, which, to a substantial extent, has been accepted for the award of any other degree or diploma at Charles Sturt University, or any other educational institution, except where due acknowledgment is made in the thesis. Any contribution made to the research by colleagues with whom I have worked at Charles Sturt University or elsewhere during my candidature is fully acknowledged. I agree that this thesis be accessible for the purpose of study and research in accordance with the normal conditions established by the Executive Director, Library Services or nominee, for the care, loan, and reproduction of theses. Zhang Ying Ying Zhang Faculty of Business Charles Sturt University September 2013 vii Acknowledgments Throughout this doctoral journey, my principal supervisor, Professor Eddie Oczkowski deserves my heartfelt thanks. He became my mentor during a difficult time and offered tremendous support and encouragement. It has been a wonderful and rewarding experience working with and learning from him. I offer my sincere thanks for his kindness, his timely and detailed answers to all of my questions, his help throughout each and every phase of the dissertation process, and his very useful and enjoyable teaching on the quantitative structural equation modelling approach. I would also like to express my deepest gratitude to my associate supervisors, Dr Robert Herriot and Dr Debra Da Silva for their invaluable comments, time, and generous guidance. My appreciation also goes to the Australian China Chamber of Commerce and the Sydney Chinese Consulate for allowing me access to their expatriate databases and for providing valuable background information. I would like to acknowledge Professor Alan Fish for his kind efforts in helping me expand the networking during the data collection stage and supervising the early stage of my candidature. Special thanks also go to the Chinese and Australian expatriates who responded to the survey, to Dr Ramudu Bhanugopan and Dr Robert Tuck for practical feedback on the initial research and survey design, and to the staff at Charles Sturt’s Wagga Wagga library and Faculty of Business, in particular, staff members, Mr Robert Scully and Ms Merryn Lanarus. I sincerely thank Charles Sturt University for its scholarship award, without which this study would not have been possible. I would also like to take this opportunity to show my appreciation to Mr Adrian Lindner, Mr Tony Bush, and Dr David Strong for their exceptional assistance in helping my family settle down in Wagga Wagga. I am truly thankful to my many friends and colleagues, especially Mr Huang Jianhui, Ms Nicole Chen and Dr Hao Yin, who offered extraordinary support to me during this process with their encouragement, proofreading skills, suggestions, and prayers. Finally, a special thankyou goes to my husband Jianhong, my brother Jing, and my dearest mother Aiya, for their strong faith in my ability to complete the doctoral program and giving me unconditional support and continuous encouragement during the years of research and preparation when I needed them most. This research would not have been possible without unfailing support given by each one of them. One more PhD is unlikely to change the world, but my own world and my own self have undoubtedly changed dramatically as a result of pursuing this academic honour. viii Ethics Approval ix Paid Editorial Assistance During the final stage of the preparation of this thesis the services of Kerry Davies, Principal of Academic Editorial Publishing Services - ABN: 63 983 631 395 - Queensland was used. Ms Davies‟ current or former academic specialisation had no relevance to the thesis. Her professional service consisted of punctuation, grammar, and style, and conformed to Australian Standard for Editing - Completeness and Consistency. At no stage did Ms Davies‟ editing alter or improve the substantive content or conceptual organisation of the thesis. Ying Zhang Faculty of Business Charles Sturt University September 2013 x

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that the severity of culture shock is related to the cultural distance between . unfamiliar culture, where culture shock and disorientation begin. During
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