Cultural Intelligence in International Business Negotiations: A Systematic Review

Abstract

In today's interconnected global economy, negotiating international business deals and fostering cross-border collaborations require a profound understanding of cultural nuances. This systematic review explores the pivotal role of cultural intelligence (CQ) in navigating the complexities of international negotiations and enhancing the success of cross-border collaborations. This review synthesises empirical findings and theoretical insights to elucidate the multifaceted dimensions of cultural intelligence in international business contexts. The review begins by outlining the conceptual framework of cultural intelligence and its components, which include metacognitive, cognitive, motivational, and behavioural aspects, each contributing uniquely to effective intercultural interactions. Subsequently, it examines the influence of cultural intelligence on negotiation strategies, emphasising its significance in mitigating cultural misunderstandings, fostering trust, and achieving mutually beneficial outcomes.

Furthermore, the review elucidates how cultural intelligence facilitates the formation of strategic alliances, joint ventures, and other forms of cross-border collaborations by enabling effective communication, adaptability, and relationship-building across diverse cultural settings. Moreover, the review underscores the role of cultural intelligence in managing cultural tensions and conflicts that may arise during the negotiation process or within collaborative endeavours, offering insights into constructive conflict resolution strategies. Additionally, this review investigates the factors influencing the development and enhancement of cultural intelligence among negotiators and collaborators, including individual differences, cultural exposure, intercultural training, and organisational support mechanisms. Furthermore, it discusses the implications of cultural intelligence for organisational performance, competitiveness, and sustainable global engagement, highlighting its potential to serve as a strategic asset in today's dynamic business landscape.