From cultural intelligence to supply chain performance

Published date09 May 2016
Pages95-121
Date09 May 2016
DOIhttps://doi.org/10.1108/IJLM-01-2014-0009
AuthorLuu Trong Tuan
Subject MatterManagement science & operations,Logistics
From cultural intelligence to
supply chain performance
Luu Trong Tuan
School of Government, University of Economics (UEH),
Ho Chi Minh City, Vietnam
Abstract
Purpose Cultural intelligence (CQ) has transcended its role of adaptation to local values toward
narrowing the cultural gap between foreign stakeholders and local stakeholders in the supply chain.
The purpose of this paper is to decipher the catalyzing role of CQ in its chain effect, through corporate
social responsibility and trust, to supply chain performance and competitive intelligence (CI).
Design/methodology/approach The proof for the research model was derived from the
SEM-based analysis of cross-sectional data provided by 392 respondents from MNCs in Vietnamese
business landscape.
Findings Findings, from this inquiry, produce the evidence for the positive effect of all four
dimensions of CQ (metacognitive, cognitive, motivational, and behavioral CQ) on ethical and legal CSR,
as well as knowledge-based and identity-based trust, which leverage supply chain performance.
The connectivity between supply chain performance and CI was also established.
Originality/value Supply chain literature, from this research model, has increased its breadth with
the novel role of CQ and stakeholder-oriented levers such as CSR in heightening supply chain
performance.
Keywords Trust, Corporate social responsibility, Cultural intelligence, Vietnam,
Supply chain performance, Competitive intelligence
Paper type Research paper
Introduction
Organizations cannot be successful if they stand as silos in the marketplace. The more
interactions with stakeholders an organization generates, the larger pool of knowledge
of market forces it accumulates, leading to its optimal strategic decisions (Wilcox King
and Zeithaml, 2003). These interactions are especially crucial for a supply chain whose
stakeholders should, through interactions, share knowledge and values for the sake of
increasing strengths of each supply chain stakeholder as well as the synergistic
strength of the entire supply chain.
Supply chain research has investigated a variety of precursors to supply chain
performance including interaction (Vachon and Klassen, 2008), communication (Paulraj
et al., 2008), collaboration (Manthou et al., 2004; Ryu et al., 2009) and commitment (Kwon
and Suh, 2004). However, precursors specific to the supply chain performance of an
MNC in a local business scene have been under-researched. Organizational culture was
reportedly a predictor of supply chain performance (Cadden et al., 2013). Nonetheless,
if all stakeholders of a supply chain share values of a national culture, the impact of
organizational culture on supply chain performance is likely less strong than in cases of
cultural divergence between the MNC and its domestic supply chain stakeholders.
Cultural intelligence (CQ), which reflects capabilities to effectively manage oneself and
to interact and harmonize with others in cross-cultural landscapes (Eisenberg et al.,
2013), may reduce the degree of this cultural divergence or even turn this divergence
into the organizations strength, since the divergence gives birth to the convergence of
novel ideas and creativity from stakeholders. As such, CQ can serves as a starting
The International Journal of
Logistics Management
Vol. 27 No. 1, 2016
pp. 95-121
©Emerald Group Publis hing Limited
0957-4093
DOI 10.1108/IJLM-01-2014-0009
Received 16 January 2014
Revised 5 August 2014
7November2014
Accepted 18 August 2015
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
95
From CQ to
supply chain
performance
milestone of an MNCs road to high performance of the supply chain in a different
culture. Therefore, the researchs first aim is to establish the role of CQ in activating the
chain effect toward supply chain performance, especially in case of cultural divergence
between an MNC and its local partners.
Supply chain performance should contain antecedents which enhance bonds among
supply chain stakeholders (Spekman et al., 2002). Supply chain literature has unveiled
the effect of trust on supply chain performance (Gulati and Sytch, 2007); nonetheless,
stakeholder-oriented degrees inside trust have not been fathomed to its full depth.
The second aim of this research thus involves examining how the three levels of
trust calculation-based trust, knowledge-based trust, and identity-based
trust among which the two latters are more stakeholder-oriented (Luu, 2013a),
would be influenced by CQ and would influence supply chain performance. These
relationships, when proved, will add to supply chain literature with the resonant effect
from CQ through trust to supply chain performance.
Another stakeholder-oriented catalyst for the path from CQ to supply chain
performance can be corporate social responsibility (CSR). CSR, which portrays the
commitment of organizations to contribute to stakeholder interests, sustainable
development, and enhancement of societal conditions ( Jamali, 2008; Jamali et al., 2008),
will align supply chain membersinterests with the shared mission of sustainable
growth of the entire supply chain. The third research aim hence is to delve into the
bridging role of CSR between CQ and supply chain performance.
The last research aim and contribution to supply chain literature is to prove the role
of supply chain performance in building competitive intelligence (CI), which is a way to
constantly alert companies of changes in the competitive setting (Muller, 2005). Supply
chain performance, which augments the exchange of information on external forces to
supply chain stakeholders, heightens CI.
This section of the paper is followed by the literature review for hypotheses
development. Data and its analysis to verify hypotheses are then presented. The paper
ends with theoretical and managerial implications emerging from research findings on
CQ and its outcomes.
Literature review and hypotheses development
CQ and CSR
CSR points to values and infiltrating values into practice (Grant and OConnor, 2013).
CSR is integrated with a corporate ethical and moral environment and corporate value
system ( Jin et al., 2013). CSR, from Carrolls (1979) view, covers a companys obligations
to pursue profits, accept social obligations, grow its business, and embed ethical values,
which are mapped to instrumental, political, integrative, and ethical theories (Garr iga
and Melé, 2004). Carrolls (1979) view on CSR is also expressed in CSR pyramid which
comprises four levels in the upward direction including economic CSR, legal CSR,
ethical CSR, and discretionary CSR. These levels of the CSR pyramid are consistent
with layers from inside out of Luus (2012a, b) onion model.
CQ is viewed as a set of values, attitudes, and behaviors that function together in a
system and facilitate working across cultural divides (Mosakowski et al., 2013). From
the view of culture as shared values (Luu, 2010, 2011), values not only function together
but also interact and synergize to bridge cultural divides. CQ thus reflects the
interaction and intersection between an entitys values and the others values:
CQ ¼{own values} {the others values}. For the adaptation process of a foreign firm
in a local context, the global values that the foreign firm brings to the local context may
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