ABSTRACT This paper investigates the relationship between cultural intelligence and job performance, and the mediating role of cross-cultural adjustment in that relationship. Based on sample of 332 expatriates working in Malaysia, cultural intelligence predicts job performance, and both the interaction and work adjustment mediates the relationship. The findings of this study contributes to the body of knowledge in the cross-cultural management field as well as practical implication to expatriating firms especially in the area of selection and training of international candidates. Keywords: Cultural Intelligence, Cross-Cultural Adjustment, Job Performance 1. INTRODUCTION Globalization and liberalization of trade and services in many part of the world has created an opportunity for multinational corporations (MNCs) to operate in diverse geographical environments (Maertz, Hassan & Magnusson, 2009). This effort requires presence of globally competent workforce, and with it, the intensive use of expatriates (Froese & Peltokorpi, 2011). Expatriates identified as sojourner who leaves his or her country, under assignment, for business purpose, with the intent of eventual return (Aycan & Kanungo, 1997). Many MNCs acknowledged that the effectiveness of expatriates on international assignments is an important source of competitive advantage for them (Zhang & Dodgson, 2007). Some of the advantages that companies can gain from sending their employees abroad are establishing new international markets, spreading and sustaining corporate culture, facilitating organizational coordination and control, and transferring of technology, knowledge and skills (Huang, Chi & Lawler, 2005; Shay & Tracey, 2009). International Journal of Business and Society, Vol. 13 No. 1, 2012, 19 - 32 CULTURAL INTELLIGENCE AND EXPATRIATE PERFORMANCE IN GLOBAL ASSIGNMENT: THE MEDIATING ROLE OF ADJUSTMENT Subramaniam Sri Ramalu ♣ Universiti Utara Malaysia Raduan Che Rose Universiti Putra Malaysia Jegak Uli Universiti Putra Malaysia Naresh Kumar Universiti Putra Malaysia ♣ Corresponding author: Subramaniam Sri Ramalu, School of Business Management, College of Business, Universiti Utara Malaysia, 06010 UUM Sintok Kedah, Malaysia, Tel: +6049283634, Email: subra@uum.edu.my business vol 12 no2 Update 2Feb_Layout 1 7/20/12 3:23 PM Page 19