Assessing and Fostering Individual Intercultural Absorptive Capacity in Culturally Diverse Virtual Teams

Building on the foundation of Absorptive Capacity and Grounded Learning theories, this study examines perceived individual Intercultural Absorptive Capacity (iACAP) in culturally diverse Global Virtual Teams (GVTs). It assesses whether iACAP self-reinforces over time and whether peer evaluation and project context mediate its development. As virtual collaboration becomes essential in global business and education, understanding how individuals recognize, assimilate, transform, and exploit intercultural knowledge is critical for optimizing team dynamics and performance. The study was conducted on 345 international business course participants with at least two years of professional experience engaged in an eight-week international GVT consulting project. Using structural equation modeling (SEM), iACAP was measured at the beginning and end of the project to test its self-reinforcing effect and the mediating roles of peer evaluation and project context. Results confirmed that iACAP is self-reinforcing, meaning individuals with higher initial iACAP experience greater growth. Project context significantly mediates iACAP development, highlighting the importance of structured learning environments. However, peer evaluation does not mediate iACAP, suggesting that forms of evaluation that are asynchronous, decontextualized, or perceived as anonymous may be less effective for intercultural learning.