Towards an Enterprises’ Cross-Cultural Competence Scale

Enterprises engaged in international business have been playing a crucial role in international business arena and their cross-cultural competence, as a type of dynamic capability, is indispensible. However, enterprises’ cross-cultural competence (ECC) is understudied and how to measure it has not been sufficiently investigated. In the current study, we aim to develop and validate an Enterprises’ Cross-cultural Competence Scale (ECCS). Python semantic analysis was applied to segment the Internet data and interview data with 142 Chinese practitioners to develop scale items. Exploratory and confirmatory factor analysis supported the construct validity of the scale involving three dimensions: cross-cultural communication competence, cross-cultural endogenous development competence, and cross-cultural relationship management competence. The hierarchical regression analysis results indicated that enterprises’ cross-cultural competence had a positive impact on enterprise performance, which documented the concurrent predictive validity of the scale. This empirical study extends and deepens existing theoretical research on organizational cross-cultural competence and dynamic capability. We propose a new measure to systematically observe and assess enterprises’ cross-cultural competence. The three-factor competence model can serve as a basis for evaluating and promoting the cross-cultural competence of Chinese enterprises and beyond.