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

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. [ABSTRACT FROM AUTHOR]