This study examines the influence of motivational cultural intelligence (CQ) on the development of cultural effectiveness among university short-term business study abroad program participants. We conceptualize cultural effectiveness as the degree of psychological comfort and success in managing intercultural demands. Results of a multiple-source, two-wave lagged study demonstrate that initial levels of motivational CQ were positively associated with increases in (a) cultural well-being reported by participants and (b) peer perceptions of suitability for overseas work. In addition, cultural identity, an individual’s psychological identification with his or her own national culture, strengthened the time-lagged relationship between motivational CQ and peer-rated suitability for overseas work. Participants with strong cultural identity and low motivational CQ were viewed as the least suitable for an overseas job. We discuss practical implications for designing cross-cultural education programs and implications for future research.

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