A Study On The Relationship Between Cross - Cultural Conflict And Employee Turnover

For many multinational corporations, they always have to face the cross-culture conflicts when doing their business in a foreign country. The conflicts can lead to lots of negative outcomes, ranging from having operation difficulties to the total failures. One outcome arising from cross-culture conflicts is the high employee turnover rate. Existing studies on this particular issue always involve culture analysis while this essay is intended to clarify the relationship between cross-culture conflict and turnover rate specifically from human resource perspective.This study focuses on studying several Chinese corporations which operating in Indonesia. The research methods such as literature reviews, questionnaire and SPSS analysis are involved, cross-culture conflicts, turnover rate and other working opportunities are deemed as independent variable, dependent variable, and moderator variable respectively being separated in this study. In this study, cross-culture conflicts are divided into four aspects, named salary and compensation conflict, personal development conflict, work life balance conflict and fairness conflict, while turnover intention is being seen as one single variable. This essay is trying to help clarify the relationship between cross-culture conflicts and turnover intention, and also try to find out if other working opportunities have any impacts to the relationship between cross-culture conflicts and turnover intention.The main conclusion of this essay is that the intensity of cross-culture conflicts has a positive effect on employees’turnover intention. Moreover, the higher perspective of more external working opportunities, employees are prone to quit their current jobs.Based on the findings, we would propose such suggestions that corporations should emphasize more on conflict management and cross culture training, build the effective management strategy to lower the level of conflict, improve internal communication and establish effective feedback mechanism in order to increase employees’ job satisfaction and lower the turnover intention rate.This essay still has space to improve in sampling method, the lack of time series data and data processing which will be strengthened accordingly in some future studies.