Investigating the mediating role of cultural intelligence on the relationship between relational governance and firm social performance

2017 IJRSM – Volume 6 Issue 2


Awan, Usama*
Lappeenranta University of Technology Lappeenranta, Finland (

Kraslawski, Andrzej
Lappeenranta University of Technology Lappeenranta, Finland (


The purpose of this research is to examine mediation relationship of cultural intelligence between the relational mechanism and firm social performance. This study based on a cross-sectional survey; data were collected using self-administered structured questionnaire from the senior managers working in manufacturing firms in the Pakistan. Structural equation modelling method was used to test confirmatory factor analysis, and mediation analysis was conducted with regression analysis using SPSS macro developed by Preacher and Hayes. This study demonstrates that cultural intelligence is a critical factor for joint planning and problem solving which promotes firm social performance. We found that individual with CQ tends to have cooperative norms and enable them to overcome hurdles in joint planning and perform well in resolving conflicts through investing more cognitive efforts. Cultural intelligence is aimed at facilitating relational governance to enhance joint planning and problem solving, involves a collaborative process to improve effectiveness and communication. Thus, CQ maintains more stable inter-firm relationship, help to acquire more knowledge on social issues, ultimately achieving more socially sustainable outcomes. Empirical findings suggest that cultural intelligence warrant consideration in developing successful social sustainable performance.

Keywords: mediation analysis; cultural intelligence; social performance; cultural training



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