Multicultural challenges and employee experience in globally dispersed teams: insights from Indian software firms

Purpose Geographically dispersed teams (GDTs) have become prevalent in the digital era, and managing such teams presents businesses with distinct multicultural challenges. As organisations recognise the pivotal role of employee experience in the success of such teams, there is a growing need to address and understand the relationship of multicultural challenges on this crucial aspect. Therefore, the purpose of this study is to investigate the relationship between multicultural challenges and employee experience within the GDTs of Indian software firms. Design/methodology/approach The study predominantly uses a quantitative research approach. Data were collected using the snowball sampling technique from 384 employees across different software firms in India, all engaged in GDTs. The study uses IBM SPSS 25 for data analysis and conducts structural equation modelling using IBM SPSS AMOS Version 24 to test the hypotheses and offer valuable insights into the complex dynamics of multicultural challenges and their relationship with employee experience in the context of GDTs. Findings Communication and diversity revealed a negative relationship with behavioural, cognitive and social dimensions of the employee experience within GDTs. Conversely, trust revealed a positive and significant relationship, showcasing its substantial contribution to enhancing the employee experience. The study outlines avenues for future research and offers managerial implications, providing a roadmap for advancing understanding and enhancing employee experience in the dynamic realm of managing multicultural challenges in virtual settings. Originality/value The research presents novel and significant evidence by demonstrating the relationships among three important variables – communication, trust and diversity – and the behavioural, cognitive and social aspects of the employee experience. Applying an in-depth analysis to the interplay of these characteristics within GDTs, the study is novel. It emphasises the beneficial impact that trust plays in improving employee experience while also highlighting the negative relationship of communication and diversity with employee experience. These findings not only close a significant gap in the literature but also have application for Human Resource Management practices and policies, laying the groundwork for further investigations in virtual work settings.