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Language: The forgotten factor in multinational management
Abstract
This article argues that language needs to be considered as an important element in managing multinationals because it permeates virtually every aspect of their business activities. Due to the demands of operating in multiple foreign language environments, a shared company language does not necessarily ensure that meaningful communication occurs. The investigation of a Finnish multinational elevator company, Kone and its diverse subsidiaries, demonstrates the pervasive impact of language, and the range of individual responses to language constraints. An important implication of the analysis is that multinationals need to ensure that language does not become a peripheral, or forgotten, issue; rather, it should be viewed in more strategic terms.
... Scholarly interest in the impact of language diversity within business contexts has grown exponentially since the foundational article of Marschan et al. (1997), with recent literature reviews highlighting the vibrancy of the language-sensitive international business (IB) literature (Karhunen et al., 2018;, and the range of topics investigated by language-sensitive scholars. However, as these same literature reviews demonstrate, until relatively recently, the literature has been dominated by functionalist approaches which consider language as a tool of corporate strategy that can be "managed" by the application of corporate language policies (e.g. ...
... Within the discipline of international business (IB), the domain of language-sensitive work is a relatively young field, which became established after the pioneering work of Marschan et al. (1997), Marschan-Piekkari et al., (1999a, 1999b. Over the past two decades, there has been enormous growth within the field, with scholars investigating a range of topics related to language in the workplace, such as multilingual teams (Henderson, 2005;Tenzer & Pudelko, 2017), knowledge transfer (Holden and Von Kortzfleisch, 2004), expatriation (Vulchanov, 2020), leadership (Tenzer & Pudelko, 2015), and social identity (Lauring, 2007). ...
Although there is now a substantial body of literature exploring the effects of language diversity in international management contexts, little attention has been paid to the ethical dimensions of language diversity at work. This conceptual paper draws on the concept of epistemic injustice in order to explore how language, and in particular corporate language policies, may act as a source of epistemic injustice within the workplace. It demonstrates how language competence affects credibility judgements about a speaker, and also considers how corporate language policies can create situations of hermeneutic injustice, in which marginalised groups are denied the vocabularies to understand their own experiences. Finally, ways in which such epistemic harms can be reduced are discussed, and the possibilities for management education to create epistemically responsible managers are highlighted.
... In 1997, Marschan, Welch, and Welch produced a study titled "Language: The forgotten factor in multinational," which argued that language issues had been "forgotten" in international business (Marschan, Welch, & Welch, 1997). As a result of this pioneering study, language-related business difficulties have been explored from several perspectives, and numerous intriguing research articles have been published. ...
The study explores the adverse implications of the absence of multilingualism in workplaces for businesses while attempting to resolve several language-related paradoxes.
Based on information obtained through interviews and online questionnaires, it revealed that most Japanese workplaces were still extremely monolingual and lacked diversity in languages or cultures, even in large, internationally well-known firms. Yet, English is considered the de facto second official language and is now increasingly required in various types of corporations in Japan. Nevertheless, English is used for limited purposes, even in large, established enterprises. Moreover, Japan's language education is a $3 billion industry; Japanese study English for years to pass high school and university admissions tests. Despite the time and money invested in English education, Japanese English proficiency is reportedly declining every year in international comparison. The study revealed that monolingual myopia among Japanese businesspeople distorts their perceptions of language. Previous research emphasizes that language proficiency requires not only lexicogrammatical knowledge but also the ability to use the language proactively, which is acquired by observing and experiencing what others say and how they communicate. The study indicates that real-world interactions with various non-Japanese speakers would improve their global communicative competence. Therefore, Japanese businesses require enhanced workplace diversity and overseas experience.
Keywords- ELF (English as a Lingua Franca,) BELF (English as a Business Lingua Franca,) Communicative Competence, Workplace Diversity, Corporate Monolingualism, Transcultural Communication
... Such programs aim to enhance language proficiency and cultural awareness, equipping managers with the skills to communicate effectively across linguistic boundaries. These programs not only focus on linguistic competence but also delve into cultural nuances, preparing managers to navigate the intricacies of cross-cultural communication (Marschan-Piekkari et al., 1999;Marschan et al., 1997). ...
This research paper explores the role of language as a pivotal tool for multicultural understanding in management. It examines current practices and trends and investigates how global companies implement language policies, training programs, and communication technologies to address challenges and leverage opportunities. The integration of multilingualism into organizational policies and the impact of enhanced virtual communication tools are analyzed. Challenges include potential miscommunication and unequal language proficiency distribution within teams. Opportunities for improvement involve AI language tools, continuous learning cultures, and fostering inclusivity. The paper concludes by emphasizing the strategic importance of language in navigating the complexities of multicultural management. It provides insights for future research and managerial strategies.
... Studies by Marschan et al., 1997 andKameda, 2005 show us the significance of English in business world including engineering industry. Bairagipatra et al., 2016, opine that few decades ago the general notion was that engineers only carryout technical things behind the stage so they don't have to require higher level of English proficiency. ...
Engineering students are tomorrow’s problem solvers. They are going to provide technical and innovative solutions and services to solve societal problems and make life easier. This necessitates today’s engineering student to acquire numerous skills to prepare themselves for not only national work front but also international work front. The ever evolving and challenging role of today’s engineer makes today’s students work on building and updating themselves on the required core technical skills but they fail to work on their English language skills. For many engineering students it has been observed that they have anxieties associated with the English language which in turn hinders their performance. This study is a humble try to induce Imitation Technique as a skill to help engineering students acquire English language Proficiency. Lot of work has already happened on how to improve students English Language skills but this study has an edge over by providing a unique method to not only learn English language but acquire English language without juggling through the tough grammatical rules of the language. The study focuses to strengthen the twelfth Program Outcome of the Engineering Attribute that is “Life Long Learning.” The study was conducted on freshman engineering students of a technical University. The study used quantitative research approach. The study investigated what are the apprehensions and anxieties students have towards English language and how Imitation Technique helps them overcome their apprehensions. The Public Speaking Class Anxiety Scale (PSCAS) was used to find out the pre intervention status and post intervention results of the students. The post intervention status shows reduced English language anxiety level and how students have successfully been able to acquire English language through Imitation technique. Keywords—Engineering students; English language Anxiety; Imitation Technique.
Zusammenfassung
Betriebliche Sprachqualifizierungen in multinational agierenden Unternehmen spielen vor dem Hintergrund zunehmender sprachlicher Heterogenität eine entscheidende Rolle für die berufliche Handlungsfähigkeit von Beschäftigten. Die vorliegende Studie exploriert den Stellenwert informeller Mitarbeiterkommunikation am mehrsprachigen Arbeitsplatz und deren Rolle in betrieblichen Sprachkursen. Den empirischen Untersuchungsgegenstand bilden Interviewdaten aus Gesprächen mit Firmenangehörigen eines führenden deutschen Technologieunternehmens. Die inhaltsanalytische Auswertung lässt darauf schließen, dass die für informelle Gespräche erforderlichen soziopragmatischen Kompetenzen in betrieblichen Sprachqualifizierungen marginalisiert werden.
Languages and its role in International Business (IB) literature has grown dynamically in past two decade. The research in the field demonstrates how languages impacts relationships such as trust building, knowledge sharing, international recruitment/placements but also choice of markets or market entry in large and smaller firms. This study is a unique comprehensive country-level empirical study (where n= 417 SMEs across UK) that examines organisational level LOC (language operating capacity) and identifies the key (individual as well as firm level) drivers necessary to develop LOC in a firm. The study also assesses the impact of LOC on SME key performance indicators such as export (market) orientation, export sales and export profit. Further, we identify LOC as a process which mediates the relationship between managerial relevant drivers and performance indicator export orientation. The mediation analysis demonstrate that LOC fully mediates the relationship between export orientation and the three antecedent variables: linguistic competence, willingness to invest, and awareness of technological services, while it partially mediates the effect of training and cultural intelligence. Furthermore, despite insignificant positive mediation between LOC and export performance, we find significant positive quadratic mediation between LOC and export performance. The study clearly identifies the process mechanism of LOC and how it facilitates export performance from managerial relevant individual drivers.
Today’s engineer constantly delivers on both national and international work fronts which gives interaction in English language a key role. This requires teachers to work on their interaction abilities especially for the students who come from rural background. It has been observed that rural students find it difficult to get acclimatized and comfortable with the usage of grammatical concepts in real time situations. This observation necessitates researchers to cater to the needs of these students through proper pedagogical interventions for continuous improvement. Over the years many researchers have used many theories and approaches to enhance interaction skills of rural students but these studies have given temporary solution. Here lies major lacuna thus the current study focuses on how rural freshman engineering students’ interaction can be augmented with the Task based language teaching approach. TBLT is an approach that emphasizes the learning of language through the completion of meaningful tasks. It is based on the belief that language is best learned when it is used to complete a real-world task. It provides students with immersive and engaging learning environment and promotes the practical and effective use of language in real-life situations. The study uses quantitative research approach. A sample of 35 rural freshman students of Technological University is obtained and analyzed. Based on the Pre-Intervention Test and the Post-Intervention Test the results reveal that TBLT strongly augments rural students’ interaction in English language using CEFR’s Common Reference Levels: Self- Assessment Grid. After the intervention, students were requested to evaluate their performance using the assessment grid once again. Encouragingly, there was a clear indication of improvement in their self-assessment outcomes. Keywords—Interaction; Engineers; Pedagogical Intervention; Task Based Language Teaching.
Virtually all research on strategic control within multinational corpo- rations (MINCs) has focused on macro differences in control systems and processes across entire MNCs. Taking a less macro (i.e., subsid- iary-specific contingency perspective), this article examines how, within the same corporation, the nature of corporate control might also vary systematically across subsidiaries. Differences in subsidi- ary contexts are analyzed along two dimensions: (a) the extent to which the subsidiary is a user of knowledge from the rest of the cor- poration and (b) the extent to which the subsidiary is a provider of such knowledge to the rest of the corporation.
The MNC is probably the most complex form of organization in widespread existence today. Operating across products and markets, nations and cultures, it faces problems and situations far more diverse than even the largest domestic firms. With the increasing globalization of business, a rapidly growing level of economic activity now depends upon this form of organization. Thus the MNC is an important entity for scholarly study both because its influence is growing and because it presents organizational problems that lie at the forefront of organization theory and challenge the capacities of existing theory.
Ikujiro Nonaka e Hirotaka Takeuchi establecen una vinculación del desempeño de las empresas japonesas con su capacidad para crear conocimiento y emplearlo en la producción de productos y tecnologías exitosas en el mercado. Los autores explican que hay dos tipos de conocimiento: el explícito, contenido en manuales y procedimientos, y el tácito, aprendido mediante la experiencia y comunicado, de manera indirecta, en forma de metáforas y analogías. Mientras los administradores estadounidenses se concentran en el conocimiento explícito, los japoneses lo hacen en el tácito y la clave de su éxito estriba en que han aprendido a convertir el conocimiento tácito en explícito. Finalmente, muestran que el mejor estilo administrativo para crear conocimiento es el que ellos denominan centro-arriba-abajo, en el que los gerentes de niveles intermedios son un puente entre los ideales de la alta dirección y la realidad caótica de los niveles inferiores.
The demands of structure and control in the organisation accord information from official channels an importance beyond its value in sustaining operations. Yet, formal mechanisms seem unable to supply all the information senior management requires for the formulation of strategy. Frustrated by the paucity of the information the organisation is able to supply, those responsible for strategy may sometimes take extraordinary steps to acquire appropriate information. These, and other means of acquiring information informally, seem to be incompatible with the formal information systems of the organisation. Using evidence from large international firms, the paper looks at the acquisition of information for strategy by both formal and informal means. It concludes that formal mechanisms seem likely to suppress and distort the informal, leaving senior managers deprived of information important for strategy.
This article considers the extent to which multinational enterprises adopt a global or local approach in their management of human resources. The analysis is based on the findings of research in nine subsidiaries of multinationals operating in Ireland. The study revealed that the majority of multinationals adopted a local approach, with headquarters involvement in many cases limited to monitoring the financial implications of human resource decisions. It appears that the transfer of human resource management practices can be a two-way process and that some subsidiaries manipulate human resource policies in order to maintain their competitive position within the corporation. The findings also suggest that the integration of human resource issues in strategic decision making may need to be considered as a local, rather than a corporate level, activity.
Much has been made of “networks” and corporate “culture” as sources of cohesion in increasingly loosely structured international firms. But how strong is the “corporate glue”? Using a case study of human resource management (HRM) in an international accounting firm, this article shows that growth and internationalization may themselves weaken the corporate glue, just as the need for global integration of activities increases. The resulting stresses lead to a greater emphasis on formal bureaucratic structures and processes, further calling into question the role of traditional culture. Alternative strategies for managing these tensions are proposed. © 1995 by John Wiley & Sons, Inc.