The Effect of the CEO's Cultural Intelligence on Foreign Information Technology Firm Performance

Abstract

Multinational Information Technology firms that start new operations in a culturally distant host country will experience negative effects based on the level of cultural distance between home and host country. Depending on the level of cultural distance and the dimensions along which these cultural differences occur, these effects can be synergistic but will tend to be mostly discordant. This paper seeks to examine how leadership in Information Technology companies can bridge the cultural divide, promoting a spirit of novelty and enrichment, thereby ensuring enrichment and synergy based on these cultural differences, instead of division and mistrust.