MANAGING INTERPERSONAL CONFLICT BETWEEN EXPATRIATES AND THAI MANAGERS THROUGH INTERCULTURAL COMMUNICATION: THE MODERATING EFFECT OF EXPATRIATES’ CULTURE OF ORIGIN

Abstract

Intercultural communication has been considered as an effective tool in performing international business in overseas subsidiaries. In this paper, we investigate the impact of intercultural communication on interpersonal conflict between expatriates and Thai managers during the new product development process, and how expatriates’ culture of origin moderates this impact. Data were collected through a questionnaire survey from local managers who regularly communicate with expatriate managers working in Thailand. The results show that intercultural communication reduces relationship conflict and increases task conflict. Furthermore, the negative impact of intercultural communication on relationship conflicts between Asian expatriates and Thai managers is stronger than between Western expatriates and Thai managers. The research results contribute to the existing theories by extending inter-functional communication and conflict to an intercultural context. Also, this research enhances understanding on how the impact of intercultural communication on conflict is moderated by expatriates’ culture of origin, namely Asian and Western. Managerial implications for MNC subsidiaries and future research are also discussed.