Conflict in Virtual Teams & Necessity of Cultural Intelligence for Effective Performance

Abstract

Applying an Input-Processes-Output model of team processes, we view cultural intelligence as an input variable to global virtual teams, which could help reduce one procedural aspect of team dynamics – frequency of conflicts– and consequently influence the team outcome performance. Utilizing data from a sample of 1592 global virtual teams (consisting of 7029 individuals) we tested for the effects of cultural intelligence on conflict frequency by type and team performance at both the individual and team level. Results showed that cultural intelligence exerts its effect on both individual process performance (e.g., team member satisfaction with the project) and team outcome performance (e.g., grade of the final team report) indirectly via reduction of team conflict frequency. The effects of conflict on outcome performance were differential depending on the type of conflict, which corresponds with previous literature findings. Overall, the study suggests that educators and practitioners can utilize and develop the cultural intelligence of global virtual team members to decrease negative conflict frequency and ultimately increase global virtual team performance. The study contributes to research on cultural intelligence and conflict within the context of global virtual teams.