Does cultural intelligence increase work engagement? The role of idiocentrism-allocentrism and organizational culture in MNCs Rachel Gabel-Shemueli Pacific Business School, Universidad del Pacifico, Lima, Peru Mina Westman and Shoshi Chen Leon Recanati Graduate School of Business Administration, Tel Aviv University, Tel Aviv, Israel, and Danae Bahamonde Pacific Business School, Universidad del Pacifico, Lima, Peru Abstract Purpose – The purpose of this paper is to examine the effects of cultural intelligence (CQ), idiocentrism- allocentrism and organizational culture on work engagement in a multinational organization from the perspective of conservation of resources theory. Design/methodology/approach – The sample consisted of 219 employees of a multinational company (MNC). Partial least squares–structural equation modeling was used to test the research model. Findings – The results suggest that CQ is positively related to work engagement and that this relationship is moderated by employees’ idiocentrism-allocentrism, as well as by the adaptability dimension of organizational culture. Research limitations/implications – Greater generalizability of the findings could be achieved with a more geographically dispersed sample. Other cultural dimensions, as well as personal and organizational characteristics, should be considered in order to more clearly ascertain the relationships between these variables. Practical implications – The findings suggest that CQ is a powerful tool for developing employee engagement within MNCs. Furthermore, a highly adaptive organizational culture and consideration of employees’ cultural values are important in order to enhance the effect of CQ on engagement. Originality/value – This study identifies relevant resources that can aid in managing a diverse workforce and increasing employee engagement in companies that operate across national borders. Keywords Organizational culture, Cultural intelligence, Engagement, Idiocentrism-allocentrism Paper type Research paper Introduction Multinational companies (MNCs) are uniquely complex in their interactions and group dynamics, and the uncertainty, cultural diversity, constant changes and work-related stress typical of MNCs can lead to conflict and inefficient business processes (Farndale et al., 2015; Trefry, 2006). For example, communication becomes more difficult and time consuming; creating common understanding requires more effort; and different expectations may lead to misunderstandings, conflict and negative evaluations of other employees (Trefry, 2001). Given these potential challenges, skills and capabilities that allow employees to adapt to and interconnect with people from various cultures may be considered crucial resources in culturally diverse settings (Karma and Vedina, 2009). In this sense, cultural intelligence (CQ), defined by Earley and Ang (2003) as the capability to function and manage multicultural settings, is a crucial asset for work performance in MNCs. This concept has gained considerable attention since its introduction (Ng et al., 2012; Ott and Michailova, 2016). Individuals with high CQ are culturally competent; they have a repertoire of cognitive, behavioral and motivational abilities to work effectively with members of different Cross Cultural & Strategic Management Vol. 26 No. 1, 2019 pp. 46-66 © Emerald Publishing Limited 2059-5794 DOI 10.1108/CCSM-10-2017-0126 Received 2 October 2017 Revised 16 May 2018 6 December 2018 Accepted 14 December 2018 The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/2059-5794.htm 46 CCSM 26,1