4. Results
Smart PLS (ver3.3.2) was used to predict the structural relationships between the independent variable, the mediator, and the dependent variable [
68]. The researchers performed the analysis confirming the internal consistency and convergent validity as shown in
Table 1. The results show factor loadings of more than 0.50, AVE values higher than 0.50, and CR values higher than 0.70, respectively [
68]. For the CQ constructs, all factor loadings exceeded the threshold of 0.50, except for MET2, which showed a value of 0.671.
The HTMT results are shown in
Table 2. This study detected no HTMT value that exceeded 0.90 and the square root of AVE is higher than the relationships between the indicators, thus indicating adequate discriminant validity for the constructs proposed in this research [
69]. The path coefficient, coefficient of determination (
R2), effect size (
f2), and predictive relevance (
Q2) were utilized to examine the structural model [
68].
Table 3 shows the results of the structural model with an indication of a large
R2 of 0.268 for PsyCap and a moderate
R2 of 0.167 for SQ. A blindfolding technique was used to generate the
Q2 values [
68]. As shown in
Table 3, the
Q2 scores for PsyCap (0.163) and SQ (0.101) were higher than zero, demonstrating adequate predictive relevance [
68].
Exhibited in
Table 4 are the
f2 results following Cohen [
70] recommended
f2 values of effect sizes of 0.02 (small), 0.15 (moderate) and 0.35 (large). The results indicate that metacognitive CQ, motivational CQ, and behavioral CQ had a large effect on PsyCap (
f2 = 0.055, 0.036, and 0.064, respectively). Additionally, cognitive CQ at 0.029 had a moderate effect on PsyCap (
f2 = 0.029). The predictor constructs metacognitive CQ and motivational CQ had a moderate effect on SQ (
f2 = 0.018 and 0.021, respectively), while behavioral CQ had a large effect on SQ (
f2 = 0.043). The mediator construct of PsyCap similarly had a relatively large effect on SQ (
f2 = 0.066).
Table 5 shows the hypotheses results of the dimensions of cultural intelligence METCOG H1a (
β = 0.182,
t = 1.607,
p < 0.05) as positively related to PsyCap; however, COG H1b (
β = −0.210,
t = 1.729,
p = 0.042) presented non-statistical significance. MOT H1c (
β = 0.270,
t = 2.564,
p < 0.01) and BEH H1d (
β = 0.258,
t = 2.969,
p < 0.01) were shown to be positively related to PsyCap. For the relationship between the dimensions of CQ and SQ, out of the four dimensions of CQ, two were not positively related, namely, METCOG H3a (
β = −0.046,
t = 0.331,
p = 0.370) and MOT H3c (
β = −0.209,
t = 1.865,
p = 0.031). Similarly, the set of hypotheses testing PsyCap and SQ H2a (
β = −0.273,
t = 3.180,
p = 0.001) showed a negative outcome and, hence, were rejected. On the contrary, COG H3b (
β = 0.303,
t = 2.261,
p < 0.05) and BEH H3d (
β = 0.207,
t = 1.976,
p < 0.05) were positively related to SQ, and therefore, supported.
A bootstrapping procedure (5000 resamples) [
68] was carried out to test for mediation (H4a). The results shown in
Table 6 indicate that METCOG (
β = −0.050,
t = 1.417,
p = 0.157; 95% CI LL = −0.141; and UL = 0.003); COG (
β = 0.057,
t = 1.570,
p = 0.116; 95% CI: LL = 0.003; and UL = 0.150), and MOT (
β = 0.074,
t = 1.919,
p = 0.055; 95% CI: LL = −0.165; and UL = 0.014) indicated no positive indirect effect on service quality and, therefore, were not supported. On the contrary, BEH (
β = −0.071,
t = 2.016,
p = 0.044; 95% CI: LL = −0.140 and UL = −0.002) showed a positive indirect effect on service quality via psychological capital.
5. Discussion
The present study had the aim to investigate the relationship between cultural intelligence (CQ) and service quality (SQ), with psychological capital (PsyCap) serving as a mediator.
Data analysis seemed to support three of the four dimensions of cultural intelligence, namely the metacognitive, motivational, and behavioral aspects, significantly related to employees’ psychological capital (Hypotheses 1a,c,d), while cognitive cultural intelligence was however insignificant (H1b).
The fact that metacognitive CQ positively affects PsyCap (H1a) suggests that FLEs can plan for eventual cultural differences [
23]. Individuals with a higher metacognitive CQ are capable of planning, monitoring, and adjusting in response to cultural norms [
21]. As a result, individuals are more aware of their surroundings during and after interactions, which contributes to increased feelings of hope in terms of being more motivated to accomplish goals, raised confidence or efficacy, the ability to cope (resilience) given the capability to respond to ambiguous situations, and optimism regarding life in general [
42]. Additionally, past research has shown that motivated and energized employees are more likely to willingly contribute fresh resources to their caravan, resulting in a more re-energized capability, which leads to an improvement in overall well-being [
71].
Motivational CQ also has a positive influence on employees’ PsyCap (H1b), as expected. Frontline employees are conscious of their interest, context of work, and work environment, and it has been observed that they could navigate their skills effectively during unfamiliar and ambiguous situations. Those with high motivational CQ tend to divert their energy towards effectiveness in their work to realize their goals [
3]. They enjoy dealing with people from different cultures, and they are self-assured in unfamiliar cultural circumstances [
71,
72]. The motivational aspects of cultural intelligence, as well as the four PsyCap capacities (hope, optimism, self-efficacy, and resilience), are regarded as essential traits and motivation [
41], allowing employees to acquire and pursue personal resources such as creativity and productivity [
73]. Drawing upon the JD-R and COR theories, these four capacities enable employees to cope with stressful and challenging situations.
Behavioral CQ (H1d) regards an individual’s capacity to use acceptable verbal and nonverbal acts while engaging with people from diverse cultures [
21]. This dimension enhances social interactions and focuses on how individuals modify their behavior to adapt to cultural differences. In this context of study, FLEs may have had a supportive environment, which is critical, as they are exposed to a variety of scenarios during their interactions with guests of diverse background. Increased confidence in their capacity to complete tasks efficiently benefits them, and this is normally complemented by a willingness to go the extra mile in completing work. That is, the more productive, the better the outcome. In this regard, employees who value these characteristics are more likely to have high PsyCap and be more involved in their work [
52,
73].
Cognitive CQ refers to an individual’s cultural knowledge of the environment attained through education and experience in which he or she operates. The more knowledgeable the individuals, the more appropriate their behavior [
21]. Similarly, the study findings by Brislin et al. [
74] posited that such behaviors are displayed in those with high cognitive CQ whereby they can compare the similarities and differences across cultures, thus allowing them to respond accordingly. These behaviors complement the perspectives of PsyCap which has been empirically proven to be an important predictor of desirable work outputs [
45,
75]. The results generated for this study for the linkage between cognitive CQ and to PsyCap (H1b) however indicated that cognitive SQ does not influence employees’ psychological capital. Further insights into the indifference unveiled two practical explanations. First, lack of support. This could have been associated with the absence or lack of supportive management in the work environment. To employees, a supportive working environment assures that the process of guiding, facilitating, and developing of employees is present to help them accomplish their goals. Iskhakova [
76] in her research with a different set of respondents who are international students, attested that this is particularly so with those who are newly adjusting in an environment. All employees desire a workplace with such provision as this motivates them to adjust appropriately and accordingly. Second, lack of exposure. It is highly likely that the management may not have adequately prepared the FLEs in terms of cultural knowledge prior to commencement of their work. Many of them are from the Generation Z and Millennials group. Being exposed and trained to handle diverse guests is critical in this setting as the employee-guest interaction is high therefore a vast amount of knowledge and exposure is needed to navigate themselves effectively. As enlightened by the theory of COR, the lack of work preparation for the employees would negatively hasten their work commitment and job satisfaction, particularly in a situation in which there is a failure to gain key resources to allow them meaningful interaction; this could lead to stress [
77]. This outcome is consistent with the JD-R theory, which claims that individuals endure stressful and uncertain situations and are expected to maintain a cheerful demeanor when dealing with difficult situations. Therefore, frontline employees should ideally be provided with some exposures, such as training to identify stressful interpersonal actions, and the techniques to manage these effects thus help them build their resource caravan [
77].
Regarding the relationship between cultural intelligence and service quality, out of the four hypotheses (H3a, H3b, H3c, H3d), two were supported, which are discussed first. The findings imply that cognitive CQ (H3b) and behavioral CQ (H3d) are positively related to SQ.
In light of the findings, cognitive CQ, also known as knowledge, seems to be an important predictor of service quality (H3b). In the services sector, FLEs who have knowledge of diverse and comparable cultures can accomplish their intended task better. This also means that employees with the knowledge and ability to deal with cultural differences can handle multiple situations [
78]. This outcome is in line with Lam and Cheung’s [
79] theory that hotel employees should ideally possess features of CQ in order to communicate effectively with culturally diverse guests. Age and years of employment, which are both associated with enhanced knowledge and work experience, may also have played a role in this positive result. In this present study, respondents who have been in their jobs for more than 4 years account for 18.7 percent, while those who have been in their jobs for more than 7 years accounted for 22.7 percent: a straightforward indicator that employees stay longer in their jobs. Even though it is changing, the approach to career management in the hotel industry is still traditional [
80]. Employees continue to rise through the ranks by starting at the bottom and working their way up, which could take years. Employees who have been with the company for a longer amount of time, on the other hand, gain from this because it allows them to gather the resources needed to compete for job promotions or transfers. According to the COR theory, people are naturally motivated to obtain and preserve resources that are valuable and meaningful to them [
77]. Additionally, employment experience, particularly within the same department or industry, makes them appear more confident and mature in their ability to withstand negative consequences, as they have gathered sufficient resources to allow for positive outcomes. The JD-R theory asserts that employee well-being is determined by a balance of available resources and the demanding nature of the job. This is especially true in the hotel industry, where service quality and customer retention are critical [
16].
Behavioral CQ contributing positively to SQ (H3d) signifies the importance of flexibility in displaying appropriate behavior while interacting with people of diverse cultures. This research finding suggests that FLEs possess the requisite verbal and nonverbal skills to effectively communicate their intention. Behavioral CQ is essentially about how one is able to communicate with people from various cultural backgrounds through acceptable verbal and nonverbal behaviors in a diverse setting [
21]. That is to say, those with a high behavioral CQ can quickly adapt to another’s gestures to enable a pleasant intercultural conversation. Aside from having the ability to adjust both verbal and nonverbal behavior for effective communication, an individual must also have a varied range of behaviors that can be deployed flexibly in response to a variety of challenging situations [
21,
81]. Individuals with high behavioral CQ also understand how to employ culturally appropriate vocabulary, tone, gestures, and facial expressions [
21]. The possible factors that contributed to the positive outcome are discussed. First, this study recorded 40 percent of those aged above 30 with longer employment. Employees who have worked for a longer period of time would have accumulated the necessary resources to present themselves maturely, and are therefore more likely to be able to handle ambiguous interactions better. According to a research study by Groves, Feyerherm, and Gu [
82], behavioral CQ can be developed through observation of others and practice in a simulated environment. In their comparative study on negotiators improving negotiation skills, they discovered that those exposed to skilled negotiators performed at the highest level, but were unable to clearly explain the reason. Second, the language competency might have aided the employees in better engaging with their guests. Based on the researchers’ interviews with the managers of the participating hotels, the capacity to communicate in at least two languages, English and Bahasa Melayu (the national language), is required for recruitment. Furthermore, some of the employees were able to converse in Chinese or other local dialects, which was not unusual. This important factor may have also had a role in the beneficial outcomes. When employees have enough resources (experience) and accumulated skills to handle guests from various backgrounds, they gain confidence, perform well ([
83], and their employee-guest experience improves; therefore, they become more committed [
84]). Third, the employees may enjoy their jobs (personality-fit jobs), hence naturally have a positive outlook towards work. Consequently, it is possible that their insights, personalities, and behavioral actions influence their ability to perform their jobs with flair, thereby increasing the likelihood of repeat visits [
64].
The paragraphs that follow deliberate on the meta-cognitive (H3a) and motivational (H3c) aspects of CQ that do not influence service quality. This study reveals that the meta-cognitive aspect does not influence service quality (H3a) which implies that the employees were not consciously aware of the cultural preferences of others. The lack of appropriate training, younger workforce, and educational background may have played a role in the outcome. From this study, the respondents profile shows that a vast majority of them were between the age of 18 to 29, an indication that they had either no or minimal work exposure. Furthermore, they may have lacked educational credentials necessary to assist them in properly grasping the fundamental concepts of workplace dynamics, particularly those relating to communication in a variety of situations as this requires high-order thinking skills to understand, analyze, and evaluate ambiguous situations. Lacking in adequate guidance, training, and supervision could all have a negative impact on the overall quality of their work if they are not provided with suitable resources. This is supported by the JD-R theory, which states that if employees are not provided with adequate resources, they may face stressful and unpleasant situations [
16]. They would struggle to replenish the resources that would allow them to retain a meaningful connection to their work, themselves, and their work environment. This can be inferred from the theory of COR, which proposes a concept that is comparable.
Despite the fact that hypotheses set H3c proposed the perception of motivation as significantly related to service quality, it was discovered that there was no statistical relationship. The findings contradicted prior research, such as that of Ang et al. [
21]. Two factors that may have played a role in these findings are discussed next. First, supervisory support. Supportive management is critical to this discussion. Supportive management has been defined as the expression of concern and support by management for their employees’ performance at their jobs [
85]. Managers and supervisors make a genuine effort to help employees under their supervision develop their full potential so they can relate to the bottom line which is work outcome. Because of the demanding and extensive employee-guest contact that occurs in the hotel industry, some degree of supportive role is naturally expected. This is one of many crucial factors in keeping an employee happy and motivated since it affects their work performance. Not only can work demands sap employees’ motivation and prevent them from achieving significant work goals, they can also be exacerbated by a lack of job resources. When considerable resources are lost or exhausted, job strain occurs [
24]. Supervisors who are not adept in overseeing the employee work performance would likely encounter their adverse work results [
86]. In this context of study, there could have been insufficient supporting supervisory role to enable the employees to interact with individuals from diverse backgrounds. Second, lack of skills. The success of hotels is heavily reliant on their employees providing exceptional service to their guests [
66]. To provide this level of service, employees should ideally have the know-how of effective interpersonal skills in addition to knowledge of the product or service they provide [
67]. The FLEs may have lacked the essential resources, such as interpersonal skills, to deal with their guests more effectively, especially in ambiguous encounters. It can be highly frustrating to be unable to satisfy day-to-day work expectations owing to a lack of abilities, especially for new employees. Morale and motivation may suffer, which may have a negative impact on the hotel’s overall competitiveness. Furthermore, they would be more susceptible to emotional exhaustion [
16]. While they would be motivated to try their best, they may also be limited by a lack of basic job abilities.
Similarly, the findings also showed that PsyCap is not positively related to SQ (H2a). PsyCap is postulated in this study as a four-second-order construct: hope, optimism, resilience, and efficacy. These four characteristics, when combined, have been shown to help firms improve not only their staff productivity and happiness, but also the quality of their customer service [
87,
88]. Numerous studies have shown the relevance of psychological capital, demonstrating that the higher an employee’s level of psychological capital (PsyCap), the more devoted and fulfilled they are, which affects their degree of job results [
89,
90,
91]. This supports the COR theory that motivated employees are likely more willing to fill their resource caravans and go the extra mile. However, a perplexing finding from this study, which contradicts previous research, suggests that psychological capital and service quality have no significant association. This means the four PsyCap capacities of hope, efficacy, resilience, and optimism were ineffective in helping employees enhance their motivation, productivity, and satisfaction in efforts to enhance a meaningful employee-guest interaction. The negative results may have been due to the construct of PsyCap treated as a higher-order factor structure. Although conducted in a different setting, past research has examined a model that analyzed PsyCap as a four-factor construct (treated separately), indicating that the four-factor construct produced better results compared to the higher-order construct [
92,
93]. The fact that PsyCap was treated as a higher-order construct could have contributed to the unfavorable outcome. Previous research examined a model that analyzed PsyCap as a four-factor construct (treated independently) and found that it provided better results than the higher-order construct, despite the study being conducted in different contexts [
93,
94].
This study has proposed that psychological capital mediates the relationship between the aspects of cultural intelligence (meta-cognitive, cognitive motivational, and behavioral) with service quality (H4a, H4b, H4c, H4d). The findings indicate that the current body of evidence is insufficient to infer PsyCap as a mediator taken as one composite factor to mediate the relationship between CQ and SQ contradicting past studies that suggest PsyCap has a role in predicting venerable job outcomes [
47,
48,
73]. The possible reasons for such findings could have been due to PsyCap being treated as a one composite factor. Previous studies have tested a model treating psychological capital as a four-factor construct (treated individually) and as one composite factor (treated collectively), which demonstrated a different outcome when the results of the two models were compared [
92,
93,
94]. Dawkin [
94] affirmed that a four-factor model of PsyCap established a greater criterion validity in relation to individual-level outcome variables than a second-order model in which the PsyCap components were merged into a single factor. Noting this, there is a need to take into account more specific aspects of background for the evaluation of the PsyCap such as replications of the questionnaire instruments in different contexts. Other likely reasons bring back to the background of this present study. In particular, the respondents’ profile in terms of age-educational attainment and work exposure.
While the metacognitive, cognitive, and motivational dimensions of cultural intelligence do not indirectly pertain to service quality, psychological capital’s mediating effect is noteworthy for the behavioral dimension of cultural intelligence. This result supports the body of prior knowledge [
76,
79]. The main significance of this finding is that it implies the FLEs as having the capacity to adjust and appropriately react to a variety of situations and interactions in addition to producing self-generated interactions (meaningful interactions) [
53]. Further reflecting on this, the impact of psychological capital on employee behavior reveals that psychological capital has a positive impact on employees’ innovative behavior [
95]. This most likely indicates that the employees’ inherent cheerful demeanor (natural disposition) and enthusiasm for their jobs influenced their behavior at work and in their surroundings [
35]. Positive attitudes and interest in their jobs may have also impacted their ability to perform well [
39]. This outcome can be explained using both the COR and JD-R theory: people are naturally motivated to acquire and safeguard resources that are deemed acceptable to them in terms of individual relevance and significance. This could aid them in developing personal characteristics and energies to obtain additional resources [
77]. The JD-R theory recognizes employees’ ability to modify their approach in order to remain pleasant despite dealing with haughty individuals [
16,
37].
6. Conclusions
This research presented an investigation on the influencing factors of cultural intelligence toward service quality with the use of psychological capital as a mediator in the hotel industry in Sabah, Malaysia. The outcomes highlight the effect of the influencing factors of cultural intelligence on psychological capital and service quality and the significant roles each play in explaining the fundamentals behind employees’ capacities and willingness to nurture their employee-to-guest communication. It is suggested that hotel managers develop strategies particularly in training programs and support, as the findings suggest that an individual’s metacognitive, cognitive, motivational, and behavioral resources all affect their overall service quality. As previously mentioned, frontline employees are confronted with different kinds of situations as they interact with different guests, therefore developing their soft skills will ultimately benefit both the employees and the organization. The findings discovered that the employees’ natural disposition and interest in the job are indicators of their productivity, and given the appropriate mechanism, such as training and support, could help employees improve this.
Theoretically, this study documents that enhanced knowledge of cultural intelligence has impacts on the psychological capital of frontline employees which overall affect service quality. The model has been tested in the research setting and the result indicates the theories of COR and JD-R play a role in the motivational, behavioral, and cognitive aspects. This study contributes to the current body of knowledge in the given context by delving into the JD-R model and COR theory and integrating their importance and practicality into the aspects of cultural intelligence, psychological capital, and service quality relevant to the research setting. Apart from contributing to the literature, the development of this model and integration of theory has the potential to have implications for management and employee training in the hospitality industry. Additionally, it adds to the current literature of cultural intelligence and psychological capital, addressing calls from academics to investigate cultural intelligence and its impact on the psychological well-being of hotel frontline employees [
3,
23].
From the managerial perspectives, findings of this study provide practical guidance for hotel managers on how to utilize cultural intelligence and psychological capital to implement realistic training programs that continuously improve frontline employees’ performance and productivity. Moreover, this study aids managers in deciding on the type of training to develop employees’ capabilities and enthusiasm. In retrospect, given the challenges or uncertainty around the impact of the current coronavirus disease (COVID-19) pandemic, developing sustainable training programs may serve as a foundation for addressing industry-specific issues, increasing economic returns, and retaining company competitiveness.
The major limitations of this study are the inability to obtain consent from several hotels due to privacy and confidentiality concerns, and the fact that data collection was limited in Kota Kinabalu. This practice may affect the generalizability and representativeness of the findings to some extent. In the future, sampling could take place in more Malaysian regions or in other countries. This could enhance an understanding of the interactions between various facets of cultural intelligence, psychological capital, and service quality. This is especially important because globalization will not stop and workforce mobility will continue apace.
On directions for future studies, researchers may focus on employing a longitudinal study. Researchers may be able to detect changes or developments in the characteristics of the target population at both the group and individual levels if their observations are carried out over an extended period of time. Additionally, a large sample size is recommended to obtain a robust result. Despite the fact that a large sample-size study could necessitate greater financial and time commitments, larger sample sizes do have the obvious advantage of providing more data for researchers to work with.