Cultural Intelligence

International Review of Business Research Papers Volume 6. Number 5. November 2010. Pp. 216 – 234

Cultural Intelligence: Leveraging Differences to Bridge the Gap in the International Hospitality Industry
Pallvi Arora* and Neelu Rohmetra**
Globalization has made the world seem smaller and ‘flat’ in many ways (Friedman, 2005). Still cultural differences and cultural diversity remains a challengeto be faced by individuals and organizations. Managers recognize cultural differences when they realize that people from different cultures behave differently and that those differences affect the way in which their organizations function (Adler, 2007). This challenge of handling and managing multiculturalism is experienced invariably in all sectors of service industry including hospitality. Hotelsand other sectors of hospitality have to duly engage in effective management of cultural disparities deeply rooted in the multicultural contexts to the advantage of the organizations at the individual, group and systems level. Cultural Intelligence (CQ) is one of the key managerial competencies needed for dealing effectively with people from different cultural backgrounds across sectors andindustries including hospitality. This paper introduces the concept of Cultural Intelligence (CQ) and discusses its relevance and implications in the hospitality sector from service encounter perspective. Besides, it seeks to propose a model highlighting CQ as a critical individual capability affecting service encounters for leveraging differences in bridging cultural disparities in organizations withspecial reference to the international hospitality industry.

Field of Research: Management, Cultural Intelligence, International Hospitality Industry, Culture, Cultural Diversity.

1. Introduction
Business in the global context has implicitly increased the interest in the cross cultural management research. In the wake of recognition of diversity being seen as an advantage, the need to dealeffectively with people from diverse cultural backgrounds has become cardinal for ensuring success. The words multiculturalism, multinational, internationalization and globalization are no longer strange words. With the advent of globalization, people, invariably in all sectors of business, belonging to different cultural backgrounds are working together to ensure business success. With the growth inthe service sector internationally, there has been a substantial need to deal and interact effectively with people from different cultural backgrounds. People belonging to different nationalities possess varying cultural backgrounds and therefore contrasting beliefs, values, attitudes, perceptions, expectations and varying underlying assumptions. Hotels and other sectors of hospitality are facedwith the challenges of cross cultural service encounters and continuously need to assess _______________
*Pallvi Arora, The Business School, Faculty of Management Studies, University of Jammu, Jammu, India. Email : pallvi.arora12@gmail.com **Prof. Neelu Rohmetra, Director, International Centre for Cross Cultural Research and Human Resource Management, Faculty of Management Studies, University ofJammu, Jammu, India. Email: nrohmetra@yahoo.co.uk

Arora & Rohmetra
their performance against the expectations of their customers, employees and suppliers from a diverse background (Mohsin, 2006). The acknowledgement of such variations that exist in the outcomes resulting from cultural differences is eminent as it helps to closely understand the needs of your customers and others and meet theircultural expectations too. Thus, culture can be the source of cooperation, cohesion and progress, instead of conflict, disintegration and failure (Harris, 2004). In the service management literature, the term „service encounter‟ is widely established and indicates the contact between customer and service provider (Stauss and Mang, 1999). Service encounters in the hospitality industry are significant...