Cultural Intelligence as a Mediating Mechanism between Psychological Empowerment, Leadership Effectiveness and Organizational Commitment among Expatriates in UAE Hospitality Industries

Expatriates in the UAE hospitality industry serve arguably as the most visible representatives of their home cultures and, at the same time, as key players in navigating the diverse cultures that constitute the UAE. The research draws on data from the sources of survey of expatriate leaders in the hospitality industry in the UAE. Quantitative analyses reveal significant correlations among the main variables, with psychological empowerment as an important predictor of the other three. The workplace environment is multicultural; thus, effective leadership and organizational commitment are essential to the success of the organization. This study aims to investigate the mediating role of cultural intelligence (CQ) between psychological empowerment (PE) and leadership effectiveness (LE) and organizational commitment (OC) among expatriate employees in the UAE hospitality industry. Using a cross-sectional survey design, the data were collected from 205 expatriate employees working in hospitality companies in the UAE. The results of the structural equation modeling analysis indicated that PE was positively related to LE (β = 0.21, p < .001), OC (β = 0.16, p <.001), and CQ (β = 0.38, p <.001). Additionally, CQ was positively related to LE (β = 0.46, p <.001) and OC (β = 0.51, p <.001). The mediation analysis revealed that the relationship between PE and LE is partially mediated by CQ (direct effect: β = .219, p <.05; indirect effect: β = 0.214, p <.01), and the relationship between PE and OC is fully mediated by CQ (direct effect: β = 0.05, p <.05; indirect effect: β = 0.236, p <.001). These findings suggest that CQ plays a crucial role in the relationships between PE, LE, and OC. The research also explores more deeply the connections between psychological empowerment, organizational commitment, and leadership effectiveness when considering the mediating role of cultural intelligence. In this case, structural equation modeling suggests not just a fit but a robust confirmation of the model, indicating that more than mere correlation is at play when all three constructs are considered: psychological empowerment, cultural intelligence, and the other two outcomes: leadership effectiveness and organizational commitment. The result of this research contributes to the understanding of the development and retention of expatriate leaders in the UAE, which provides guidance for firms on how to better align, optimize, and improve firm performance and competitiveness.