Skip to main content
SpringerLink
Log in

Assessing the Effect of Ethnocentrism and Cultural Intelligence on Employees During Corporate Restructuring

  • Published:
Employee Responsibilities and Rights Journal Aims and scope Submit manuscript

Abstract

The paper studies the impact of ethnocentrism and cultural intelligence on employee outcome during corporate restructuring or expansion. The authors propose a theoretical model to test this relationship. In-depth interviews of 122 professionals in Northern India who have either been a part of an international assignment or have expanded their businesses were conducted and analysed for testing the proposed model. Key findings suggest that an ethnocentric person finds it difficult to perform well at his workplace as he is constantly faced with dilemmas of cultural fitness. A culturally intelligent person easily adapts oneself to the new environment without any adverse effect on performance. To provide a smooth transition during restructuring, mangers should take measures to encourage cultural intelligence and promote ethno-relativism among the employees.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Alon, I., Boulanger, M., Elston, J. A., Galanaki, E., Martínez de Ibarreta, C., Meyers, J., & Vélez-Calle, A. (2018). Business cultural intelligence quotient: a five‐country study. Thunderbird International Business Review, 60(3), 237–250.

    Article  Google Scholar 

  • Ang, S., & Inkpen, A. C. (2008). Cultural intelligence and offshore outsourcing success: a framework of firm-level intercultural capability. Decision Sciences, 39(3), 337–358.

    Article  Google Scholar 

  • Ang, S., Van Dyne, L., Koh, C., Ng, K. Y., Templer, K. J., Tay, C., & Chandrasekar, N. A. (2007). Cultural intelligence: its measurement and effects on cultural judgment and decision making, cultural adaptation and task performance. Management and organization review, 3(3), 335–371.

    Article  Google Scholar 

  • Balabanis, G., Mueller, R., & Melewar, T. C. (2002). The relationship between consumer ethnocentrism and human values. Journal of Global Marketing, 15(3/4), 7.

    Article  Google Scholar 

  • Bannister, J. P., & Saunders, J. A. (1978). UK consumers’ attitudes towards imports: the measurement of national stereotype image. European Journal of Marketing, 12, 562–570.

    Article  Google Scholar 

  • Bennett, R., Aston, A., & Colquhoun, T. (2000). Cross-cultural training: a critical step in ensuring the success of international assignments. Human Resource Management, 39(2‐3), 239–250.

    Article  Google Scholar 

  • Caputo, A., Ayoko, O. B., Amoo, N., & Menke, C. (2019). The relationship between cultural values, cultural intelligence and negotiation styles. Journal of Business Research, 99, 23–36.

    Article  Google Scholar 

  • Conrad, H., & Meyer-Ohle, H. (2019). Overcoming the ethnocentric firm?–foreign fresh university graduate employment in Japan as a new international human resource development method. The International Journal of Human Resource Management, 30(17), 2525–2543.

    Article  Google Scholar 

  • Chen, G. M. (2010). The impact of intercultural sensitivity on ethnocentrism and intercultural communication apprehension. Intercultural Communication Studies, 19(1), 1–9.

    Google Scholar 

  • Curtis, S., Gesler, W., Smith, G., & Washburn, S. (2000). Approaches to sampling and case selection in qualitative research: examples in the geography of health. Social Science & Medicine, 50(7–8), 1001–1014.

    Article  CAS  Google Scholar 

  • De Hauw, S., & De Vos, A. (2010). Millennials’ career perspective and psychological contract expectations: does the recession lead to lowered expectations? Journal of Business and Psychology, 25(2), 293–302.

    Article  Google Scholar 

  • Dornoff, R. J., Tankersley, C. B., & White, G. P. (1974). Consumers’ perceptions of imports. Akron Business and Economic Review, 26 – 9.

  • Earley, P. C. (2002). Redefining interactions across cultures and Organizations: moving Forward with Cultural Intelligence. Research in Organizational Behavior, 24, 271–299.

    Article  Google Scholar 

  • Earley, P. C., & Ang, S. (2003). Cultural Intelligence: individual interactions across cultures. Stanford, CA: Stanford University Press.

    Book  Google Scholar 

  • Elman, C., & O’Rand, A. M. (2002). Perceived labor market insecurity and the educational participation of workers at midlife. Social Science Research, 31(1), 49–76.

    Article  Google Scholar 

  • Ettenson, R., Wagner, J., & Gaeth, G. (1988). Evaluating the effect of country of origin and the ‘Made in the USA’ campaign: a conjoint approach. Journal of Retailing, 64(1), 85–100.

    Google Scholar 

  • Foster, W. M., Hassard, J. S., Morris, J., & Cox, W., J (2019). The changing nature of managerial work: the effects of corporate restructuring on management jobs and careers. Human Relations, 72(3), 473–504.

    Article  Google Scholar 

  • Geneste, L., & Weber, P. (2011). Business perceived success and growth intentions. Journal of Asia Entrepreneurship and Sustainability, 7(2), 72.

    Google Scholar 

  • Halil Nadiri & Mustafa Tümer. (2010). Influence of ethnocentrism on consumers’ intention to buy domestically produced goods: an empirical study in North Cyprus. Journal of Business Economics and Management, 11(3), 444–461. DOI: https://doi.org/10.3846/jbem.2010.22.

    Article  Google Scholar 

  • Heydari, A., Teymoori, A., Haghish, E. F., & Mohamadi, B. (2014). Influential factors on ethnocentrism: the effect of socioeconomic status, anomie, and authoritarianism. Social Science Information, 53, 1?15. https://doi.org/10.1177/0539018413517521.

  • Hoffman, M., & Tadelis, S. (2021). People management skills, employee attrition, and manager rewards: an empirical analysis. Journal of Political Economy, 129(1), 243–285.

    Article  Google Scholar 

  • Hooghe, M. (2008). Ethnocentrism International Encyclopedia of the Social Sciences.

  • Hogler, R., Henle, C., & Gross, M. (2013). Ethical behavior and regional environments: the effects of culture, values, and trust. Employee Responsibilities and Rights Journal, 25(2), 109–121.

    Article  Google Scholar 

  • Hu, N., Wu, J., & Gu, J. (2019). Cultural intelligence and employees’ creative performance: the moderating role of team conflict in interorganizational teams. Journal of Management & Organization, 25(1), 96–116.

    Article  Google Scholar 

  • Islam, M. N., Idris, A., & Furuoka, F. (2022). The role of leadership to nurture employee championing behavior during organizational change: does valence matter? An individual level analysis. Employee Responsibilities and Rights Journal, 34(1), 1–17.

    Article  Google Scholar 

  • James, W., Neuliep, Stephanie, M., Hintz, James, C., & McCroskey (2005). The influence of ethnocentrism in organizational contexts: perceptions of interviewee and managerial attractiveness, credibility, and effectiveness. Communication Quarterly, 53(1), 41. DOI: https://doi.org/10.1080/01463370500055954.

    Article  Google Scholar 

  • Karman, A. (2020). Understanding sustainable human resource management–organizational value linkages: the strength of the SHRM system. Human Systems Management, 39(1), 51–68.

    Article  Google Scholar 

  • Koç, K., & Turan, M. (2018). The impact of Cultural Intelligence on Social Skills among University students. Journal of Education and Learning, 7, 241.

    Article  Google Scholar 

  • Kindsiko, E., & Poltimäe, H. (2019). The poor and embarrassing cousin to the gentrified quantitative academics: what determines the sample size in qualitative interview-based organization studies?. SSOAR-Social Science Open Access Repository.

  • Kindsiko, E., & Poltimäe, H. (2019). The Poor and Embarrassing Cousin to the Gentrified Quantitative Academics: What Determines the Simple Size in Qualitative Interview-Based Organization Studies? Qualitative Social Research. 2019, 2(3).

  • Kuzel, A. (1999). Sampling in qualitative inquiry. In W. Miller, & B. Crabtree (Eds.), Doing qualitative research (2nd ed., pp. 33–45). Thousand Oaks, CA: SAGE.

    Google Scholar 

  • Lambert, R., & Chan, A. (2018). Global dance: factory regimes, asian labour standards and corporate restructuring. Globalization and patterns of Labour Resistance (pp. 72–104). Routledge.

  • Li, S., & Scullion, H. (2006). Bridging the distance: managing cross-border knowledge holders. Asia Pacific Journal of Management, 23(1), 71–92.

    Article  CAS  Google Scholar 

  • Lichtman, L. (Ed.). (2010). Qualitative Research in Education: A User’s Guide. Edition 2. Thousand Oaks: Sage Publications;

  • Marshall, M. N. (1996). Sampling for qualitative research. Family practice, 13(6), 522–526.

    Article  MathSciNet  CAS  PubMed  Google Scholar 

  • Mat Nor, F., Alias, N., & Yaacob, M. (2008). Corporate Restructuring: firm characteristics and performance. Jurnal Pengurusan, 27, 129–141.

    Article  Google Scholar 

  • Manuti, A., Spinelli, C., & Giancaspro, M. L. (2016). Organizational socialization and psychological contract: the vulnerability of temporary newcomers. A case study from an italian call Center. Employee Responsibilities and Rights Journal, 28(4), 225–245.

    Article  Google Scholar 

  • Washington, M. (2013). Intercultural business communication: An analysis of ethnocentrism in a globalized Business environment. Journal of Business & Management (COES&RJ-JBM), 1(1).

  • Murdock, G. P. (1931). “Ethnocentrism”. In E. R. A. Seligman (Ed.), Encyclopaedia of the Social Sciences (pp. 613–614). New York, NY: Macmillan.

    Google Scholar 

  • Nadiri, H., & Tümer, M. (2010). Influence of ethnocentrism on consumers’ intention to buy domestically produced goods: an empirical study in North Cyprus. Journal of Business Economics and Management, 11(3), 444–461.

    Article  Google Scholar 

  • Neuliep, J. W., Hintz, S. M., & McCroskey, J. C. (2005). The influence of ethnocentrism in organizational contexts: perceptions of interviewee and managerial attractiveness, credibility, and effectiveness. Communication Quarterly, 53(1), 41–56.

    Article  Google Scholar 

  • Nishina, S. (1990). Japanese consumers: introducing foreign products/brands into the Japanese market. Journal of Advertising Research, April/May, 35–45.

  • Ng, E. S., Schweitzer, L., & Lyons, S. T. (2010). New generation, great expectations: a field study of the millennial generation. Journal of business and psychology, 25(2), 281–292.

    Article  Google Scholar 

  • Negy, C., Shreve, T. L., Jensen, B. J., & Uddin, N. (2003). Ethnic identity, self-esteem, and ethnocentrism: a study of social identity versus multicultural theory of development. Cultural Diversity and Ethnic Minority Psychology, 9(4), 333.

    Article  PubMed  Google Scholar 

  • Onodugo, V., Adeleke, B., & Nneka, R. (2017). Ethnocentric behaviour and business performance of multinational enterprises (MNES): evidence from South-West Nigeria. International Journal of Advanced engineering Management and Science, 3, 98–106. https://doi.org/10.24001/ijaems.

    Article  Google Scholar 

  • Oberg, K. (1960). Cultural shock: Adjustment to new cultural environments.Practical anthropology, (4),177–182.

  • Patrick, H. A., & Kumar, V. R. (2012). Managing Workplace Diversity: Issues and Challenges. SAGE Open. April 2012. doi:https://doi.org/10.1177/2158244012444615

  • Patrick, H. A., & Kumar, V. R. (2012). Managing Workplace Diversity: Issues and Challenges. SAGE Open. https://doi.org/10.1177/2158244012444615.

    Article  Google Scholar 

  • Patton, M. (1990). Qualitative evaluation and research methods. Newbury Park, CA: Sage.

    Google Scholar 

  • Patton (2015). Patton, M. Q. (2015). Qualitative research & evaluation methods: Integrating theory and practice (4th ed.) Thousand Oaks, CA: SAGE.

  • Putzhammer, M., Puck, J., & Lindner, T. (2020). Changes in foreign operation modes: a review and research agenda. International Business Review, 29(1), 101619.

    Article  Google Scholar 

  • Rasmussen, C. C., Ladegård, G., & Korhonen-Sande, S. (2018). Growth intentions and board composition in high‐growth firms. Journal of Small Business Management, 56(4), 601–617.

    Article  Google Scholar 

  • Rawwas, M. Y. A., Rajendran, K. N., & Wuehrer, G. A. (1996). The influence of world mindedness and nationalism on consumer evaluation of domestic and foreign products. International Marketing Review, 13(2), 20–38.

    Article  Google Scholar 

  • Savitha, M. C., & Ganseamurthi, K. (2020). Impact of Corporate Restructuring on Companies Business Operations in Hosur Region. Solid State Technology, 63(5), 7271–7276.

    Google Scholar 

  • Shankarmahesh, M. N. (2006). Consumer ethnocentrism: an integrative review of its antecedents and consequences. International marketing review, 23(2), 146–172.

    Article  Google Scholar 

  • Sharma, S., Shimp, T. A., & Shin, J. (1995). Consumer ethnocentrism: a test of antecedents and moderators. Journal of the Academy of Marketing Science, 23(1), 26–37.

    Article  Google Scholar 

  • Shimp, T. A., & Sharma, S. (1987). Consumer ethnocentrism: construction and validation of the CETSCALE. Journal of Marketing Research, 24, 280–289.

    Article  Google Scholar 

  • Skarmeas, D., Saridakis, C., & Leonidou, C. N. (2018). Examining relationship value in cross-border business relationships: a comparison between correlational and configurational approaches. Journal of Business Research, 89, 280–286.

    Article  Google Scholar 

  • Søderberg, A. M., & Holden, N. (2002). Rethinking cross cultural management in a globalizing business world. International Journal of Cross Cultural Management, 2(1), 103–121.

    Article  Google Scholar 

  • Strauss, A., & Corbin (1998). Basics of qualitative research. Techniques and procedures for developing grounded theory.

  • Stull, J. B., & Von Till, B. (1994). Determinants of Ethnocentrism: A Study of the Relationship between Students’ Exposure to Other Cultures and Their Attitudes toward Cultural Values.

  • Stephan, U., & Pathak, S. (2016). Beyond cultural values? Cultural leadership ideals and entrepreneurship. Journal of Business Venturing, 31(5), 505–523. https://doi.org/10.1016/j.jbusvent.2016.07.003.

    Article  Google Scholar 

  • Sumner, W. G. (1959). Folkways. Boston: Ginn, 1906. Sumner Folkways1906.

  • Sandelowski, M. (1995). Sample size in qualitative research. Research in nursing & health, 18(2), 179–183.

    Article  CAS  Google Scholar 

  • Thomas, M., & Hill, H. (1999). The impact of ethnocentrism on devising and implementing a corporate identity strategy for new international markets.International Marketing Review.

  • Thomas, D. C., & Inkson, K. (2003). People skills for global business: cultural intelligence. San Francisco: Berrett-Koenler.

    Google Scholar 

  • Trotter, I. I., R. T (2012). Qualitative research sample design and sample size: resolving and unresolved issues and inferential imperatives. Preventive medicine, 55(5), 398–400.

    Article  PubMed  Google Scholar 

  • Triandis, H. C. (2005). Issues in individualism and collectivism research. In Cultural and social behavior: The Ontario symposium. 10, 207–225. Mahwah, NJ: Lawrence Erlbaum Associates.

  • Turnley, W. H., & Feldman, D. C. (1998). Psychological contract violations during corporate restructuring. Human Resource Management: published in Cooperation with the School of Business Administration, the University of Michigan and in alliance with the. Society of Human Resources Management, 37(1), 71–83.

    Article  Google Scholar 

  • Tuckett, A. G. (2004). Qualitative research sampling: the very real complexities. Nurse Researcher, 12(1), 47–61.

    Article  PubMed  Google Scholar 

  • Walsh, D., & Downe, S. (2006). Appraising the quality of qualitative research. Midwifery, 22(2), 108–119.

    Article  PubMed  Google Scholar 

  • Wurtz, O. (2022). A transactional stress and coping perspective on expatriation: new insights on the roles of age, gender and expatriate type. Journal of Global Mobility, 10(3), 351–372. https://doi.org/10.1108/JGM-10-2021-0086.

    Article  Google Scholar 

  • Weller, S. C., Vickers, B., Bernard, H. R., Blackburn, A. M., Borgatti, S., Gravlee, C. C., & Johnson, J. C. (2018). Open-ended interview questions and saturation.PloS one, 13(6), e0198606.

Download references

Author information

Authors and Affiliations

  1. Amity Business School, Amity University, Sector 125, 201301, Noida, Uttar Pradesh, India

    Divya Sethi & Vijit Chaturvedi

  2. Former Instructor Clarkson University, 13699, Potsdam, NY, USA

    Anju Sethi

  3. Vivekananda Institute of Professional Studies, 110034, Pitampura, New Delhi, India

    Nidhi Jain

Authors
  1. Divya Sethi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Vijit Chaturvedi
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Anju Sethi
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Nidhi Jain
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Vijit Chaturvedi.

Ethics declarations

Conflict of Interest

There is no Conflict of Interest with Anyone in this Paper for any Author.

Additional information

Publisher’s Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Sethi, D., Chaturvedi, V., Sethi, A. et al. Assessing the Effect of Ethnocentrism and Cultural Intelligence on Employees During Corporate Restructuring. Employ Respons Rights J 36, 19–39 (2024). https://doi.org/10.1007/s10672-022-09430-5

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10672-022-09430-5

Keywords

Search

Navigation