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Purpose – Existing research in organizational behavior and social psychology focuses on comparisons in behaviors and attitudes across national groups, instead of studies on interactions among individuals with different national cultural backgrounds. In this chapter, we hope to motivate efforts within cross-national literatures to address some largely unexamined questions regarding dynamics in multicultural diverse teams.

Design/approach – Through a review of the prior perspectives on multicultural teams and a summary of findings in a recent meta-analysis study on multicultural teams in both single nation and multinational settings, we critique the limitations of the current perspectives and propose a new theoretical framework that draws on status perspectives in sociological and ethological research.

Findings – Drawing from status literatures, we explore how the status construction process and the status differential hierarchy of the team may affect trust, psychological safety, and creative problem solving of complex tasks in multicultural teams.

Originality/value – We propose a new theoretical angle of status for future research on interaction dynamics in multicultural teams, and diverse teams in general.

The rapidly evolving competitive global marketplace with its culturally diverse customers has increased demand for multinational corporations (MNCs) to accelerate global innovation. Leaders increasingly face the challenge of facilitating global and local team knowledge in order to improve strategic planning and execution for new products and services worldwide. An unresolved question in this regard is how global leaders can facilitate multicultural team collaboration aimed at improving performance of global innovation initiatives? Addressing this research question, a qualitative study was conducted focusing on the role of global leadership in facilitating multicultural collaboration and global innovation performance. The study included interviews with 105 global project leaders at 36 MNCs with headquarters based in Europe, Asia, and North America. These exploratory findings demonstrate how global leadership behaviors can facilitate cross-cultural collaboration for international project performance.

As part of the globalizing work environment, new forms of organizations have emerged, ranging from international to multinational and transnational organizations. These forms of organizations require high levels of cross-national interdependence, and often the formation of multicultural teams (MCTs), nested within multinational organizations. Employees who operate in the global multinational context should share common meanings, values, and codes of behaviors in order to effectively communicate with each other and coordinate their activities. What helps global multicultural team members create the social glue that connects them to each other, above and beyond the national cultures to which they belong? We propose that a more macro-level meaning system of a global work culture, which is the shared understanding of the visible rules, regulations, and behaviors, and the deeper values and ethics of the global work context, that is formed outside of the level of national cultures, binds members of MCTs. At the individual level, the representation of these global work values in the self leads to the emergence of a global identity, which is an individual's sense of belonging to and identification with groups (such as MCTs), operating in the global work environment of multinational organizations. The chapter focuses on the potential influence of a global work culture, and of a global identity on the effectiveness of MCTs.

Multicultural individuals are those who identify with two or more cultures, such as Chinese-Canadians, Turkish-Germans, or Arab-Americans. They are more likely to see multiple sides of an ethical dilemma than monocultural individuals, who identify with one culture. This tendency toward ethical relativism – where ethics are seen to be relative to the context – could help multicultural individuals excel as ethical global leaders. Global leaders must manage the ethical tensions inherent in their multinational operations by understanding multiple ethical perspectives. Multiculturals’ inclination toward relativism may be driven by the structure or content of their cultural identities. The identity structure argument is based on the patterns in which individuals mentally organize their cultural identities, while the identity content argument is based on the degree to which individuals endorse relativism as a result of having internalized cultural schemas with relativist norms. We offer an exploratory test of these dual hypotheses, and find evidence to support the identity structure, but not the identity content argument. Specifically, multicultural individuals who separate their cultures are more likely to exhibit relativism in decision-making than those who integrate them. This indicates that identity patterns can drive relativism. In contrast, individuals who identify with high relativism cultures are not more likely to endorse relativism than those who identify with low relativism cultures, indicating a lack of evidence for identity content driving relativism. These findings have implications for hiring or placement managers who seek global leaders who are likely to see more than one side of an ethical issue.

Arguing that it is necessary to look into specific global leadership processes in specific contexts, this article focuses on collective global leadership in self-managed multicultural teams using an input-process-output model. Building on a study of nationally and culturally diverse self-managed teams, our work demonstrates that collective global leadership in these teams is critical for team performance (output). Our study also examines some of the affective or attitudinal antecedents of collective global leadership in self-managed multicultural teams (process) and their members’ goal orientations (input). Our findings suggest that a team learning orientation may greatly help multicultural teams overcome the liability of cultural diversity, create a positive intra-team environment, and enable collective global leadership. Our research also suggests that team performance orientation moderates the above effects.

Multinational corporations (MNCs) confront complex challenges to continuously achieve higher levels of social performance across diverse country and cultural contexts. Yet many MNCs have reactive strategies toward corporate social responsibility (CSR). Such strategies do not leverage multicultural team diversity for dynamic learning. Meanwhile, cross-sector alliances between MNCs and not-for-profit entities present a rich opportunity for MNC learning. Multicultural teams often lie at the core of such initiatives in MNCs, although they have been, at best, a peripheral concern of CSR research and theory. We redress this gap in the CSR literature by integrating theory on social capital and the external team perspective and applying this to the CSR context. Our analysis has practical implications for MNCs as well, suggesting further extensions.

With the historic rise in globalisation, there is more contact between countries and businesses than ever. Not only due to globalisation, technological change, and shorter product life cycles lead entrepreneurs to adopt internationalisation strategies. Internationalisation is a creative activity conducted by global entrepreneurs who seek to operate part of their businesses in international markets. Entrepreneurs, economists, policymakers, and researchers have long observed that international business success depends upon global entrepreneurial activity.

Over the past 30 years, diversity in the global market has been among the most researched topics in international business literature. However, since the entrepreneurship system consists of interwoven elements, such as an entrepreneur, management system, culture, market, region, customers and workers, diversification in one piece directly or indirectly affects the other components within the system. Therefore, diversity in global entrepreneurship should be examined by considering the dynamics of every element within the system.

In this chapter, the author reviewed and commented upon the development of the literature on diversity, global entrepreneurship, internationalisation, and multinational organisations. In an overview of previous studies, this study aims to analyse the nexus between diversity and global entrepreneurship, the importance of this connection in the international business domain and how this connection can evolve in the future.

The literature on academic international research teams (AIRTs) has drawn conclusions and made recommendations based on cross-sectional “snapshots” of the research team process – observations made prior to the conclusion of the research project. Several large-scale AIRTs have now evolved through a life cycle including result-related publications. We evaluate and extend the literature using a project life cycle perspective, in which each stage exhibits different challenges and opportunities that influence the quality, reliability and validity of the final research output and the overall viability of the knowledge-creation project. We conclude with recommendations for the effective management of AIRTs and, indeed, perhaps all multinational, globally distributed teams engaged in both basic and applied knowledge creation.