Ethnocentrism, Localization Success, and Cultural Intelligence: Mediating Role of Knowledge Sharing in Digital Marketing: Ethnocentric Behaviour in Digital Marketing

Qristin Violinda; Bayu Kurniawan; Hawik Ervina Indiworo; Chadyan Fathurachman; Alisher Khaydarov

doi:10.21580/jdmhi.2025.7.1.27699

Authors

Qristin Violinda Universitas PGRI Semarang, Indonesia https://orcid.org/0000-0001-8902-6685
Bayu Kurniawan Universitas PGRI Semarang, Indonesia
Hawik Ervina Indiworo Universitas PGRI Semarang, Indonesia
Chadyan Fathurachman Universitas PGRI Semarang, Indonesia
Alisher Khaydarov Uniersity of Economics and Pedagogy (NEI), Uzbekistan

DOI:

https://doi.org/10.21580/jdmhi.2025.7.1.27699

Abstract

This study investigates the influence of ethnocentric behavior and localization success on cultural intelligence through the mediating role of knowledge sharing tendency in the context of digital marketing. Although prior research has examined ethnocentrism in consumer behavior and policy, there is limited understanding of how individual-level ethnocentric tendencies affect human resource localization and intercultural competence in multinational work environments. Addressing this gap, the study surveyed 107 employees in multinational companies in Indonesia using a non-probability snowball sampling method. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0. The findings show that ethnocentric behavior and localization success positively influence both knowledge sharing tendency and cultural intelligence. However, knowledge sharing tendency does not significantly mediate the relationship between either ethnocentric behavior or localization success and cultural intelligence. These results highlight the importance of direct cross-cultural dynamics in enhancing cultural intelligence. The study contributes to the theoretical development of international HR management and cultural adaptation models while offering practical implications for designing training programs and policies that enhance knowledge transfer and cultural intelligence in global digital marketing environments.

Downloads

Download data is not yet available.

References

Afsar, B., Al-Ghazali, B. M., Cheema, S., & Javed, F. (2021). Cultural intelligence and innovative work behavior: The role of work engagement and interpersonal trust. European Journal of Innovation Management, 24(4), 1082–1109. https://doi.org/ 10.1108/EJIM-01-2020-0008

Al-Waqfi, M., & Forstenlechner, I. (2010). Stereotyping of citizens in an expatriate- dominated labour market: Implications for workforce localisation policy. Employee Relations, 32(4), 364–381. https://doi.org/10.1108/01425451011051596

Anand, A., Centobelli, P., & Cerchione, R. (2020). Why should I share knowledge with others? A review-based framework on events leading to knowledge hiding. Journal of Organizational Change Management, 33(2), 379–399. https://doi.org/10.1108/ OCM-06-2019-0174

Argyris, C., & Schon, D. (1978). Organizational learning: A theory of action perspective. Reading, MA: Addison-Wesley.

Areiza-Padilla, J. A., & Cervera-Taulet, A. (2023). Consequences of xenocentrism and ethnocentrism on brand image of Starbucks: moderating effects of national culture and perceived brand globalness between Colombia and Spain. Cross Cultural and Strategic Management, 30(2), 348-374. https://doi.org/10.1108/CCSM-03-2022-0050

Ang, F., & Tan, H. H. (2016). Trust building with Chinese host country nationals. Journal of Global Mobility, 4(1), 44–67. https://doi.org/10.1108/JGM-06-2015-0021

Areiza-Padilla, J. A., & Cervera-Taulet, A. (2023). Consequences of xenocentrism and ethnocentrism on brand image of Starbucks: Moderating effects of national culture and perceived brand globalness between Colombia and Spain. Cross Cultural & Strategic Management, 30(2), 348–374. https://doi.org/10.1108/CCSM-03-2022- 0050

Bandura, A. (1977). Efikasi Diri: Menuju Teori Pemersatu Perubahan Perilaku. Psychological Review, 84 (2), 191–215.

Blau, P. M. (1964). Exchange and Power in Social Life. John Wiley & Sons.

Chen, A. (2015). CQ at work and the impact of intercultural training: An empirical test among foreign laborers. International Journal of Intercultural Relations, 47, 101–112.

Davidaviciene, V., & Al Majzoub, K. (2022). The effect of cultural intelligence, conflict, and transformational leadership on decision-making processes in virtual teams. Social Sciences, 11(64), 64. https://doi.org/10.3390/socsci11020064 De

Clercq, D., & Pereira, R. (2020). Knowledge-sharing efforts and employee creative behavior: The invigorating roles of passion for work, time sufficiency and procedural justice. Journal of Knowledge Management, 24(5), 1131–1155. https://doi.org/ 10.1108/JKM-06-2019-0274

Dickmann, M., Parry, E., & Keshavjee, N. (2019). Localisation of staff in a hostile context: An exploratory investigation in Afghanistan. The International Journal of Human Resource Management, 30(11), 1839–1867. https://doi.org/10.1080/ 09585192.2017.1291531

Durnell Cramton, C., & Hinds, P. J. (2004). Subgroup dynamics in internationally distributed teams: Ethnocentrism or cross-national learning? Research in Organisational Behavior, 26, 231–263. https://doi.org/10.1016/s0191-3085(04) 26006-3

Deci, E. L., & Ryan, R. M. (1985). Intrinsic Motivation and Self-Determination in Human Behavior. Springer.

Earley, P. C., & Ang, S. (2003). Cultural Intelligence: Individual Interactions Across Cultures. Stanford University Press.

Farah, M. F., & Mehdi, N. I. (2021). Consumer ethnocentrism and consumer animosity: A literature review. Strategic Change, 30(1), 19–28. https://doi.org/10.1002/jsc.2384

Fritsche, I., Jonas, E., & Kessler, T. (2011). Collective reactions to threat: Implications for intergroup conflict and for solving societal crises. Social Issues and Policy Review,5(1), 101–136. https://doi.org/10.1111/j.1751-2409.2011.01027.x

Ferguson, C. J. (2023). Are orcs racist? Dungeons and Dragons, ethnocentrism, anxiety, and the depiction of “evil” monsters. Current Psychology, 42, 12400–12408. https:// doi.org/10.1007/s12144-021-02551-4

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th Edition). Pearson.

Hair, J. F., Hult, G., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage.

Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M.,Danks, N.P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R.Springer.

Hayes, A.F. (2017) Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. Guilford Press, New York.

Hallenbeck, J. (2002) Cross-cultural issues. In: Berger, A., Portenoy, R.K. and Weissman, D.E., Eds., Principles and Practice of Palliative Care and Supportive Oncology, 2nd Edition, Lippincott Williams & Wilkins, Philadelphia, 661-672.

Hong, E., Park, J., Jaroenwanit, P., Siriyota, K., & Sothonvit, A. (2023). The effect of customer ethnocentrism and customer participation on global brand attitude: The perspective of Chinese customer. Journal of Retailing and Consumer Services, 70, Article 103167.https://doi.org/10.1016/j.jretconser.2022.103167

Huang, X. (2023). The roles of competition on innovation efficiency and firm performance: Evidence from the Chinese manufacturing industry. European Research on Management and Business Economics, 29(1), Article 100201. https://doi.org/ 10.1016/j.iedeen.2022.100201

Jain, H. C., Sloane, P., & Horwitz, F. (2015). Employment equity and affirmative action: An international comparison: An international comparison. Routledge.

Johnston, R., Jones, K., & Manley, D. (2018). Confounding and collinearity in regression analysis: A cautionary tale and an alternative procedure, illustrated by studies of British voting behaviour. Quality & Quantity, 52(4), 1957–1976. https://doi.org/ 10.1007/s11135-017-0584-6

Karoui, S., Belaid, S., & Khemakhem, R. (2022). Islamic religiosity and consumer ethnocentrism in post-Arab Spring countries. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-07-2021-1012. Vol. ahead-of-print No. ahead-of-print.

Keith, K. (2019). Ethnocentrism: Seeing the world from where we stand. In K. Keith (Ed.), Cross-cultural psychology: Contemporary themes and perspectives. Wiley. https://doi. org/10.1002/9781119519348.ch2. Kessler, T., & Fritsche, I. (2011). Ethnocentrism. The Encyclopedia of Peace Psychology. https://doi.org/10.1002/9780470672532.wbepp107

Khan, H. S., Li, P., Chughtai, M. S., Mushtaq, M. T., & Zeng, X. (2023). The role of knowledge sharing and creative self-efficacy on the self-leadership and innovative work behavior relationship. Journal of Innovation & Knowledge, 8(4). https://doi.org/ 10.1016/j.jik.2023.100441

Kusumawardani, K. A., & Yolanda, M. (2021). The role of animosity, religiosity, and allocentrism in shaping purchase intention through ethnocentrism and brand image. Organizations and Markets in Emerging Economies, 12(2), 503–525. https://doi.org/ 10.15388/omee.2021.12.67

Kolb, D.A. (1984). Experiential Learning: Experience as a Source of Learning and Development. Englewood Cliffs, NJ: Prentice Hall.

Latukha, M., Po´ or, J., Mitskevich, E., & Linge, D. (2020). Human resource management practices transferring from foreign firms to Russia: The case of MNCs subsidiaries. Journal of Business Research, 108, 476–486. https://doi.org/10.1016/j. jbusres.2019.03.020

Law, K., Song, L., Wong, C. S., & Chen, D. (2009). The antecedents and consequences of successful localisation. Journal of International Business Studies, 40(8), 1359–1373.https://doi.org/10.1057/jibs.2009.31

Lee, L. Y., & Nguyen, P. T. (2019). A synthesis of expatriate competence, intelligence, adaptability, work-role demand and organisational support on expatriation effectiveness. International Journal of Services Standards, 13(1–2), 83–103. https:// doi.org/10.1504/IJSS.2019.104305

Lee, J. J., & Hwang, J. (2024). Antecedents of American hospitality students’ intercultural communication apprehension: Effect of ethnocentrism, cultural intelligence and core self-evaluations. Journal of Hospitality, Leisure, Sport & Tourism Education, 34, Article 100464. https://doi.org/10.1016/j.jhlste.2023.100464

Lee, A. P. (2023). Cultural intelligence as a predictor of organisational outcome. International Journal of Cross Cultural Management, 23(2), 299–316. https://doi.org/ 10.1177/14705958231187473

Lundan, S., & Cantwell, J. (2020). The local co-evolution of firms and governments in the information age. Journal of International Business Studies, 51(9), 1516–1528. https:// doi.org/10.1057/s41267-020-00373-3

Meyer, K. E., & Xin, K. R. (2018). Managing talent in emerging economy multinationals: Integrating strategic management and human resource management. The International Journal of Human Resource Management, 29(11), 1827–1855. https:// doi.org/10.1080/09585192.2017.1336362

Nahapiet, J., & Ghoshal, S. (1998). Social Capital, Intellectual Capital, and the Organizational Advantage. Academy of Management Review, 23(2), 242-266.

Nonaka, I. and Takeuchi, H. (1995) The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press, New York.

Neuman, W.L. (2007) Basics of Social Research Methods: Qualitative and Quantitative Approaches. 2nd Edition, Allyn and Bacon, Boston.

Philip; Chau, Michael; and Lui, Richard, "The Necessary Evil in Mixed-motivational Systems: The Negative Effect of Entropy in Serious Games" (2023). PACIS 2023 Proceedings. 62.

https://aisel.aisnet.org/pacis2023/62

Sumner, W. G. (1906). Folkways: A Study of the Sociological Importance of Usages, Manners, Customs, Mores, and Morals. Ginn and Co.

Schein, E. H. (1985). Organizational Culture and Leadership. Jossey-Bass.

Tajfel, H., & Turner, J. C. (1986). The Social Identity Theory of Intergroup Behavior. In S. Worchel & W. G. Austin (Eds.), Psychology of Intergroup Relations. Nelson-Hall.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533.

Tran & Selvaraj. (2018). Knowledge of Nurse towards Cardiopulmonary Resuscitation in a tertiary care teaching hospital in Nepal. Journal of clinical and Diasnostmic Research, 5(8). 1585-1588n1.

Thomas, R., Sanders, S., Doust, J. et al. (2015). Prevalence of Attention-Deficit/Hyperactivity Disorder: A Systematic Review and Meta-Analysis. Pediatrics, 135, e994-e1001.https://doi.org/10.1542/peds.2014-3482

Zeira.(1979). Ethnocentrism in host-country organizationsBusiness Horizon, 22 (3), pp. 66-75, 10.1016/0007-6813(79)90087-9