Understanding methods of improving the cultural intelligence of XYZ Company during international expansion

Abstract

To remain competitive in today's global marketplaces, businesses must effectively adapt to diverse cultural contexts. International expansion has presented XYZ Company, a manufacturer based in Finland that operates in multiple countries, with challenges about leadership, cross cultural communication, and organisational alignment. In order to improve global performance, this study investigates the connection between organisational culture and cultural intelligence (CQ). By utilising a mixed methods approach, the study used semi structured interviews to gather qualitative information about cultural challenges and leadership practice. As a quantitative approach, the Organisational Culture Assessment Instrument (OCAI) is used to determine current and preferred cultural profiles, and the Cultural Intelligence Scale (CQS) to measure CQ across four dimensions. The results show that the desired future culture places more emphasis on elements driven by innovation and the market, whereas the current culture blends market and clan orientations. The CQ results indicated that while knowledge related aspects needed improvement, motivational and behavioural aspects were strong points. The greatness of structured CQ development programs, leadership adaptation requirements, and communication barriers were all highlighted in the interviews. To support XYZ Company's long term international strategy, the study integrates organisational culture and CQ frameworks, making theoretical as well as practical contributions and providing actionable suggestions for enhancing CQ, aligning culture, and integrating cross cultural leadership practice