Managing Cross-Cultural Dynamics in IT Offshore Outsourcing Relationships: The Role of Cultural Intelligence

2MANAGING CROSS-CULTURAL DYNAMICS IN IT OFFSHORE OUTSOURCING RELATIONSHIPS: THE ROLE OF CULTURAL INTELLIGENCE ABSTRACT Purpose – The purpose of this paper is to better understand how cross-cultural dynamics can be managed effectively by individuals in IT offshore outsourcing relationships. Design / methodology / approach – The research approach was an in-depth exploratory single-case study. The concept of cultural intelligence formed our theoretical foundations. A total of 15 semi-structured interviews were conducted and analyzed in an interpretive fashion along the three dimensions offered by the cultural intelligence concept. Findings – In this paper, we contribute to the cultural intelligence theory by offering empirical evidence that particular communication, conflict resolution, and trust-building techniques are the most important individual-level skills for successful cross-cultural interaction. We thereby extend the behavioral dimension of the cultural intelligence framework. Furthermore, we found that motivation for cross-cultural adaption can be achieved by overcoming negative forces, such as the fear of job loss, and enforcing positive forces, such as curiosity for the other culture, trust-based relationships and clear articulations of expectations. The latter two concepts extend the motivational dimension of cultural intelligence. Practical implications – This study helps to understand how effective cross-cultural interaction is driven by a person’s ability to adapt to new cultural settings. For each cross-cultural problem identified in the project, strategies and techniques employed to overcome the cross-cultural differences are presented. We also found that personal site visits and face-to-face interactions are most effective for developing cultural intelligence. Originality / value – This is the first empirical study to apply the concept of cultural intelligence to the context of IT offshore outsourcing. Furthermore, there have been few empirical studies in IS that analyze cross-cultural issues at the individual level.