How Leaders’ Intercultural Understanding Affects Multicultural Team Performance

The present study examines the relationship between leaders' intercultural understanding and the performance outcomes of multicultural teams. Drawing on cultural intelligence theory, social identity theory, and team effectiveness models, this study proposes that leaders with higher levels of intercultural understanding positively influence team performance through several mediating mechanisms: enhanced communication effectiveness, reduced intergroup conflict, increased psychological safety, and improved coordination processes. A conceptual framework is developed that integrates leader intercultural competencies with team-level outcomes, accounting for contextual variables such as team diversity composition, task interdependence, and organizational culture. The paper reviews empirical evidence from organizational and educational settings, identifies gaps in current research, and proposes directions for future investigation. Practical implications for leadership development and multicultural team management are discussed.