How differences in language affects international business?
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One of the first barriers that companies face on the path of internationalisation is difference in natural languages.
Surprisingly though, language in international business has long remained an ignored research field. There might be several reasons for this.
Why is this an ignored research field?
Business researchers and linguists alike may have been deterred by the cross-disciplinary nature of the subject.
The pre-eminence of Anglophone researchers who may have a reduced perception of the importance of language.
The enormous influence of Hofstede's cultural dimensions and the Kogut & Singh scale for cultural differences, which eclipsed the earlier but more cumbersome cultural measure of Psychic Distance in which language difference was a crucial component.
The language barrier and its solutions
Perhaps the most serious barrier to language research in business has been the absence of clear conceptual frameworks that explain how the language barrier actually works and what solutions might be available. With Alan Feely I published two papers that helped answering these questions, one focusing on the language barrier in HQ-subsidiary relationships and one on language management in MNCs. On a citations per year basis, these two papers have become two of the three most cited papers published in Cross Cultural Management: an International Journal since its inception.
A later interview-based study in Japanese subsidiaries of German MNCs has led to an article with Kathrin Köster and Ulrike Mayer, identifying a range of solutions to overcome the language barrier in HQ-subsidiary relationships. Work with Helene Tenzer and Markus Pudelko, published in JIBS in 2014 and the third most cited article in the journal that year, looks at the impact of language barriers on trust in a multinational team context. Finally, work with Ling Zhang looks at the role of the host country language in the interaction between expatriates and local employees in China, culminating in a book on Managing Expatriates in China.
Scenario-based research: response styles and leadership styles
In 2005 I started a new project that investigated the impact of language on management practices within MNCs, funded by an ARC Discovery Grant of more than A$190,000. Part of this project used a critical incident technique to collect data with MBA students in 20 different countries, leading to a systematic comparison of ranking and rating to study cross-cultural differences.
A second paper - published in a special issue of the Journal of World Business in 2011- examined whether managerial reactions to specific leadership scenario-based situations change as a consequence of the language they use.
English and competitive behaviour
An experimental study with Dirk Akkermans and Arjen van Witteloostuijn showed that language impacts the competitive behaviour of students. A prisoner’s dilemma game played in English lead to significantly more competitive behaviour than when the same game was played in Dutch. The resulting paper was published in Management International Review in 2010.
Language in HQ subsidiary relationships
A large-scale cross-sectional survey in a wide range of host countries (Australia/NZ, China, Japan, Korea, France, Germany, Spain, UK, Denmark, Finland, Norway & Sweden) resulted in an article that proposes four home country clusters (Anglophone, Asian, Continental European and Nordic) that show substantial differences in terms of language competencies, policies and practices.
A further paper dealing with language and communication was published in The International Journal of HRM, whereas a paper investigating the role of language in knowledge transfer was published in Journal of International Business Studies.
Surprisingly though, language in international business has long remained an ignored research field. There might be several reasons for this.
Why is this an ignored research field?
Business researchers and linguists alike may have been deterred by the cross-disciplinary nature of the subject.
The pre-eminence of Anglophone researchers who may have a reduced perception of the importance of language.
The enormous influence of Hofstede's cultural dimensions and the Kogut & Singh scale for cultural differences, which eclipsed the earlier but more cumbersome cultural measure of Psychic Distance in which language difference was a crucial component.
The language barrier and its solutions
Perhaps the most serious barrier to language research in business has been the absence of clear conceptual frameworks that explain how the language barrier actually works and what solutions might be available. With Alan Feely I published two papers that helped answering these questions, one focusing on the language barrier in HQ-subsidiary relationships and one on language management in MNCs. On a citations per year basis, these two papers have become two of the three most cited papers published in Cross Cultural Management: an International Journal since its inception.
A later interview-based study in Japanese subsidiaries of German MNCs has led to an article with Kathrin Köster and Ulrike Mayer, identifying a range of solutions to overcome the language barrier in HQ-subsidiary relationships. Work with Helene Tenzer and Markus Pudelko, published in JIBS in 2014 and the third most cited article in the journal that year, looks at the impact of language barriers on trust in a multinational team context. Finally, work with Ling Zhang looks at the role of the host country language in the interaction between expatriates and local employees in China, culminating in a book on Managing Expatriates in China.
Scenario-based research: response styles and leadership styles
In 2005 I started a new project that investigated the impact of language on management practices within MNCs, funded by an ARC Discovery Grant of more than A$190,000. Part of this project used a critical incident technique to collect data with MBA students in 20 different countries, leading to a systematic comparison of ranking and rating to study cross-cultural differences.
A second paper - published in a special issue of the Journal of World Business in 2011- examined whether managerial reactions to specific leadership scenario-based situations change as a consequence of the language they use.
English and competitive behaviour
An experimental study with Dirk Akkermans and Arjen van Witteloostuijn showed that language impacts the competitive behaviour of students. A prisoner’s dilemma game played in English lead to significantly more competitive behaviour than when the same game was played in Dutch. The resulting paper was published in Management International Review in 2010.
Language in HQ subsidiary relationships
A large-scale cross-sectional survey in a wide range of host countries (Australia/NZ, China, Japan, Korea, France, Germany, Spain, UK, Denmark, Finland, Norway & Sweden) resulted in an article that proposes four home country clusters (Anglophone, Asian, Continental European and Nordic) that show substantial differences in terms of language competencies, policies and practices.
A further paper dealing with language and communication was published in The International Journal of HRM, whereas a paper investigating the role of language in knowledge transfer was published in Journal of International Business Studies.
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