Introduction
Organisations are growing internationally more quickly than ever in the interconnected world of today. Although globalisation has brought about many possibilities, it has also made managing various teams, clients, and markets more difficult. Businesses must pay attention to people’s perspectives, interactions, and cross-cultural adaptability in addition to their strategy and products if they want to succeed globally.
Two important factors that determine success in this environment are organisational culture and cultural intelligence (CQ). When taken as a whole, these have an impact on how well a business can communicate across boundaries, incorporate other viewpoints, and develop trust with stakeholders globally. By combining these two components, a company can remain flexible in response to global shifts while maintaining internal alignment.
Understanding Organisational Culture
Organisational culture represents the shared values, beliefs, and behaviours that shape how work is done within a company (Cameron & Quinn, 2011). The conduct of managers and employees is shaped by organisational culture, which integrates principles of human resource management with strategic business perspectives. Organisational culture influences decision-making, leadership, motivation, and collaboration. According to the Competing Values Framework developed by Cameron and Quinn (2011), there are four main types of organisational cultures:
- Clan Culture focuses on teamwork, participation, and family-like relationships.
- Adhocracy Culture values creativity, innovation, and adaptability.
- Market Culture emphasises competitiveness, results, and achievement.
- Hierarchy Culture prioritises stability, control, and structured processes.
A strong and healthy organisational culture provides employees with a sense of purpose and belonging. However, when a company operates internationally, its culture must evolve to embrace diversity, flexibility, and learning.
The Role of Cultural Intelligence (CQ)
Organisational culture defines how employees act collectively. On the other hand, cultural intelligence focuses on individual’s ability to work effectively across national cultures. For example, in a Finnish company, the organisational culture may emphasise low hierarchy, punctuality, and clear communication. However, an employee with high cultural intelligence recognises that colleagues from other countries may prefer more relationship-building or indirect communication, and they adjust their approach accordingly to collaborate effectively. Earley and Ang (2003) describe Cultural Intelligence (CQ) as a set of capabilities that enable individuals to interpret unfamiliar gestures, adapt communication styles, and collaborate in diverse cultural contexts. In simple terms, cultural intelligence (CQ) is the ability to understand, adapt, and work effectively with people from different cultural backgrounds.
It consists of four main dimensions that together explain how individuals function effectively in cross-cultural environments (Ang et al., 2007). CQ Drive (Motivational) refers to a person’s interest, confidence, and willingness to interact with people from diverse cultural backgrounds. CQ Knowledge (Cognitive) involves understanding cultural norms, values, and social practices that shape behaviour across societies. CQ Strategy (Metacognitive) relates to one’s awareness and planning when engaging in intercultural situations, including the ability to reflect and adjust strategies as needed. Finally, CQ Action (Behavioural) is the capability to adapt both verbal and nonverbal behaviour appropriately in diverse cultural contexts. Together, these dimensions enable individuals to communicate, collaborate, and lead more effectively across cultural boundaries.
Cultural intelligence is the ability to understand, adapt, and work effectively with people from different cultural backgrounds.
Together, these elements determine how well an individual can navigate cultural differences, avoid misunderstandings, and build productive relationships in global teams. High Cultural Intelligence (CQ) is increasingly recognised as a critical leadership skill in multinational organisations (Livermore, 2015).
Why Integration Matters?
Integrating organisational culture and cultural intelligence helps companies build both internal cohesion and external adaptability. A workforce that understands different cultures and thrives in an environment that encourages openness and learning could be more effective in tackling global challenges. When employees have high cultural intelligence, they are more likely to embrace diversity and learn from cross-cultural experiences rather than struggle with them. Similarly, an organisational culture that values flexibility and collaboration encourage employees to apply their cultural intelligence more effectively.
Organisational leaders play a crucial role in connecting these two elements. Research shows that culturally intelligent leaders create environments that promote innovation, psychological safety, and shared understanding (Livermore & Clark, 2014). By embedding cultural intelligence principles into leadership development, companies can ensure that managers not only understand business goals but also the cultural dynamics that influence them.
Pathways to Integration
Integrating culture and cultural intelligence does not happen automatically. It requires conscious effort and structured practices. Several approaches can help organisations strengthen this connection:
- Leadership development: Train leaders to recognise their own cultural biases, adapt their communication styles, and model inclusive behaviours.
- Cross-cultural learning: Provide regular workshops, coaching, and exchange programs to build cultural awareness and empathy.
- Inclusive HR practices: Embed cultural intelligence into recruitment, performance evaluation, and promotion criteria to encourage continuous development.
- Knowledge sharing systems: Create platforms for employees to share experiences, lessons, and success stories from international collaborations.
- Organisational learning culture: Promote curiosity, reflection, and feedback so employees view cultural challenges as learning opportunities rather than obstacles.
These initiatives help create an organisational environment in which continuous learning and adaptation are regarded as ongoing habits, considered essential for thriving in an unpredictable global marketplace.
Global Competitiveness through Integration
Global competitiveness is no longer determined only by technology, resources, or market access. It also depends on an organisation’s ability to integrate cultural intelligence into its everyday operations. Companies that achieve this integration can respond faster to customer needs, form stronger partnerships, and build innovative global teams.
Integrating culture and cultural intelligence does not happen automatically.
As Livermore (2015) explains, cultural intelligence is not just about being aware of differences. It is about using that awareness to create value. A culture that supports openness and learning amplifies the impact of cultural intelligence. When cultural intelligence and organisational culture are aligned, employees become more creative, adaptable, and resilient ‒ qualities that are crucial in international business success. When organisations combine this mindset with a strong, flexible culture, they build a sustainable foundation for global growth and long-term competitiveness.
Authors
Theshani Dunusinghe has more than five years of professional experience in human resource management in the manufacturing sector. She has worked in diverse and multicultural environments supporting workforce development and organisational transformation. She is currently pursuing an MBA in International Business Management at Tampere University of Applied Sciences. Her areas of interest include Organisational Culture, Human Resource Analytics, and global HR Practices. Email: theshanidu@gmail.com
Shaidul Kazi, PhD, has over twenty-five years’ teaching experience in cross-cultural management and International Business-related courses. His PhD dissertation topic was “Managerial Decision-Making Behaviour and Impact of Culture. He is a multicultural intelligence expert and senior lecturer in the degree program of International Business, at the Tampere University of Applied Sciences (TAMK). Alongside, teaching he regularly writes newspaper article and involved to EU funded projects. Email: shaidul.kazi@tuni.fi
References
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 Organisation Review, 3(3), 335–371. https://doi.org/10.1111/j.1740-8784.2007.00082.x
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organisational culture: Based on the competing values framework (3rd ed.). Jossey-Bass.
Earley, P. C., & Ang, S. (2003). Cultural intelligence: Individual interactions across cultures. Stanford University Press.
Livermore, D. A. (2015). Leading with cultural intelligence: The real secret to success (2nd ed.). AMACOM.
Livermore, D. A., & Clark, C. (2014). Cultural intelligence: Improving your CQ to engage our multicultural world. Baker Academic.
Photo: Unsplash/Vitaly Gariev