Cultural intelligence and managerial relational performance: a resource advantage perspective

Purpose Drawing on the resource-advantage theory, the authors examine the effect of import managers' cultural intelligence (CQ) on their foreign counterpart's psychic distance and relational performance. Design/methodology/approach Survey data collected from 228 Nigerian automobile import managers were analyzed using structural equation modelling (SEM) to examine the relationship among the study variables. The measure of CQ in this study comprises metacognitive and motivational CQs to examine the relations between metacognitive and motivational CQs on psychic distance and their ultimate effect on relational performance. Findings This study suggests that metacognitive CQ reduces the effect of psychic distance in buyer-seller exchange relationships, and in the presence of a low-level psychic distance, relational performance increases. Confirming the intervening role of CQ on performance relationship, the study highlights the role of CQ and its influence on psychic distance in facilitating (or impeding) relational exchanges in international buyer-seller transactions. Originality/value The authors present the concept of CQ as a human capital that has the potential to improve managerial relational performance. The authors go further to advance the potential significance and relevance of CQ in improving international buyer-seller exchanges.