By examining the intricate relationship between the wine industry and its banking partners, this study aims to contribute to existing literature on both cultural intelligence (CQ) and lending decision-making. Considering the economic crisis currently impacting the French wine sector, this paper sets out to demonstrate the importance of loan officers’ CQ in fostering trust-based relationships with their clients in the wine industry. CQ is used to address information asymmetry and facilitate specific risk assessments. This adaptation of Rockstuhl and Van Dyne’s (2018) CQ decision model addresses the critical role of extra-financial information in informed lending decisions, particularly strong cultural elements that are inherent to the wine industry.
Firstly, results were constructed through an inductive analysis, then by using a theory-guided selective coding of 20 interviews with loan officers holding a wine industry portfolio in four different banks, as well as documentary evidence provided by their public information.
Results demonstrate how the four dimensions of CQ are used in the crucial evaluation of extra-financial information, during the risk assessment phase of a lending decision, as well as in the overall quality of the banker–client relationship. Loan officers’ cultural adaptation skills rely on their cognitive resources, their thinking organization (metacognition), as well as their behavioral adaptation and motivations. The ability to capture their customers’ culture gives banks a competitive advantage in building strong relationships, managing risk and collecting alternative information. Thus, CQ skills should be assessed during bank officers’ recruitment and strengthened through training during their careers.
The applicability of CQ theory to a financial context shows that loan officers can use their CQ in an intersectoral relationship. While the CQ theory is predominantly applied in an international context, this study argues that cultural adaptation abilities are equally applicable in a national context, transcending cultural boundaries and encompassing individuals from diverse backgrounds.
