Impact of Employees' Intercultural Competencies on Job Performance. A Case Study of a Sri Lankan Banking Sector

Abstract

This study investigates the impact of intercultural communication competences on job performance among bank employees in Sri Lanka, addressing a significant research gap in the Sri Lankan banking context. Despite the increasing multicultural nature of Sri Lankan banking environments, limited empirical evidence exists on how intercultural skills of banking employees influence employee effectiveness and organizational outcomes. The problem arises from the sector’s reliance on Western-centric studies and the underutilization of formal intercultural training, which hampers the full potential of a diverse workforce. The aim is to explore the relationship between intercultural competencies—such as cultural sensitivity, communication skills, adaptability, and cultural empathy—and job performance in Sri Lankan banks. The study’s population comprises approximately 52,263 employees in government and public commercial banking sectors, with 100 participants selected through convenience sampling based on age (20–55 years) and willingness to participate. Data collection involved online surveys with data analysis, including multiple regression, correlation, and descriptive statistics, complemented by reliability and validity assessments. Key findings reveal a significant positive correlation between intercultural competencies and job performance, notably in interpersonal skills and team effectiveness. Interestingly, a positive relationship between cultural uncertainty and performance was observed, suggesting that comfort with ambiguity fosters adaptability and innovation. The results imply that enhancing intercultural training can improve customer satisfaction, reduce conflicts, and increase employee engagement. Practically, banks should prioritize targeted intercultural development initiatives to harness workforce diversity, leading to improved service quality and organizational performance. The study contributes valuable localized insights, emphasizing the strategic importance of intercultural competence in the evolving Sri Lankan banking sector.