Transcending conflict in global virtual teams: Multi-level effects of cultural intelligence and perceptions of conflict on subjective and objective outcomes

Abstract

We employ a multilevel Input-Mediator-Output (I-M-O) analytical approach to study cultural intelligence (CQ) as an input variable that reduces team conflict frequency and asymmetry in individual conflict perception, acting as mediators and, consequently, influences global virtual team (GVT) outcomes. The GVT outcomes were measured as objective performance at the team level and subjective outcomes at the individual level. Utilizing 1592 GVTs (consisting of 7029 individuals), we test the effects of CQ on three types of conflict (task, relationship, and process conflicts) and GVT outcomes at both the team and individual levels simultaneously. Results demonstrate that CQ affects team performance outcomes (viz., the team report's quality and creativity as objectively evaluated by outsider reviewers) and subjective outcomes (viz., enjoyment and satisfaction) indirectly via team conflict reduction. At the individual level, CQ affected subjective outcomes indirectly via reducing members' conflict perceptions. The three conflict types influenced GVT outcomes differently, with task conflict exerting a positive effect on team performance and the other two a negative effect. Overall, the study highlights the nuances of the CQ-Conflict-GVT performance relationships and contributes towards better managing GVT's performance-related outcomes simultaneously at the individual and team CQ levels.