Language Management in International Organizations
Lecture summary + notes
Week 1
What is Language Management?
According to Piekkari et al, language management contains
- Everyday spoken and written language
- Company Jargon and speak
- Technical and professional language
Effective language use = effective business
Management is the strategize and make people work together to attain goals and objectives.
How can you tell that language matters?
English is the global lingua franca = possibility global conversation, functions as a contact or
transit language (a true lingua franca).
> 85% of international organizations use English as one of their official languages
7% of French firms use English as main language
Communicating in native or non-native, or CCL?
Noise exists in communication, foreign languages add more noise, potentially.
A solution to minimize noise is to impose a common corporate language (CCL)
A common Corporate Language (CLL) requires:
1. Fluency
Individuals can create social networks, internally and externally, to grow, maintain a
business.
2. Understanding of a subconscious influence of language (or culture) on business
decisions, e.g. physical distance
Why are these tricky issues?
- Language soul searching
- Language effects opaque
- Language issues/skills seen as a technical, not human capital
Language impacts
- Communication processes
- Knowledge transfer
- Internal structuring mechanism
Language and expansion strategies
Language comfort zones reduces physic distance and has business advantages:
- Collect/process information
, 1
- Build networks
- Negotiate
- Promotional activities
Empire language paths: British/Spanish empire connections.
Diaspora language path: “bamboo network” of Chinese immigrants
What actually goes down in MNC’s? (Harzing & Pudelko, 2013)
A review of language competencies, policies and practices in MNC
- data from 800 subsidiaries
- in 13 countries
- with HQ’s in over 25 countries
Old ways won’t suffice
- MNC’s are multilingual by definition
- Language barriers and conflicts inevitable
- Psychic distance and language
- Research area is wide, lack of knowledge, requires comprehensive overview
Key contributions
- Compare and contrast languages’ role in MNC’s
- HQ-ed in different countries/country clusters
Key contributions continued
- Differentiated set of managerial implications (how effective or not?)
- Managers: local versus local; local versus expatriate; local versus HQ
- Review of language skills: corporate and country language
- Review of choice corporate language and power-authority distortion
What does literature say?
- Info on language diversity within MNC’s is scarce
- But, 6 languages strategies are distinguished:
- Adapt to local language
- Adapt to interlocutor
- Collective negotiation
- Simultaneous use of multiple languages
- Use of a third language
- Improvisation
- Numbers 1 and 5 seem most frequently used
CCL potential advantages/disadvantages
Advantages
- Facilitate formal reporting
- Enhance informal communication and communication flow
- Assist in development common corporate culture
, 2
Disadvantages
- Can be viewed as a political choice/preference
- Disintegration, people feel left out
- Resistance, sabotage by creation language groups/coalitions
- Power imbalance/power-authority distortion
Central research proposition
MNC’s will display distinct structures of language competencies, policies, and practices that
reflect their respective language heritage.
How did they do it?
Cross-sectional survey, translated for all except Nordic (2008-2010). HR managers as
respondents, China low response rate. No significant differences for employee numbers. year
of establishment. No response bias.
The questions language use/skills, corporate language use/skills, power-authority distortion.
Examples of some results
Language use
- Asian country clusters use Asian languages in all communications.
- Strong differentiation for home country clusters and language use for communication
with expats and HQ managers
How many?
- Most subsidiaries multilingual, country cluster does not play a role.
- But, English speaking countries have a lower number of languages
Language skills
- No significant differences between HQ country clusters for corporate language skills
of subsidiary managers
- When English is corporate language in Asian clusters, subsidiary managers have
significantly better skills than HQ managers
Results
Use of corporate language
- Nearly 25% of subsidiaries no official corporate language (Asian clusters almost half;
sub + HQ same countries)
- English dominates, except for Asian clusters
English, corporate language, power-authority distortion
- Asian and Continental shows p-a-d when corporate language is English
- Language as a power source is mostly felt by L2 of English speaking with L1
speakers
Conclusion/Discussion
- English dominates, except Asian cluster (linguistic ethnocentrism?)
- Anglophones are least multilingual (logical ethnocentrism?)
- Corporate languages not always defined (linguistic ethnocentrism?)
- Power-authority distortion: Asian clusters avoid adopting English?
, 3
- Avoid country-specific studies, but use clusters
- Future research: language effects on knowledge transfer, social capital etc > all key
variables in international business
Barner-Rasmussen & Aarnio (2011) A quantitative functional-level exploration of
language use in MNC subs
RQ of the study: Can language systems be designed and aligned with general strategy?
Language is not only rational, also emotional (social).
Study language use:
- Interviews with ‘top decision-makers’ with sufficient knowledge of English
- Parent firms (mostly from US; SWE) active in approx. 87 countries.
- 90% CCL was English
- Rating communication ability; 7-point scales
- Distinction LA1 and LA2 -> L1 and L2
Results of the study
- English dominates but subs - sister units/local firm also other languages, e.g. Finnish,
Swedish
- Variation also due to regional lingua franca: Swedish
- Fluency also varies
Conclusions
H1a: MNC subs’ contacts inside the MNC are conducted in the HQ CCL.
A: it depends
H1b: MNC subs’ external contacts are conducted in the sub language
A: it depends
H2a: There are significant variations in language fluency across functions in MNC subs.
A: Yes
H2b: Language fluency in MNC subs is higher in white-collar functions such as management
than in blue-collar functions such as service.
A: Yes
H3: There are significant variations in language fluency across the different types of interunit
relationships MNC units are involved in, e.g. sis-units; HQ-subs; subs-local firms
A: Yes, for L1.
How do you strategize and navigate under these circumstances?
Both studies show
- Language fluency is unevenly distributed, e.g. L1 versus L2
- Regional but also internal differences are clear
- Variety is the norm; no one-size fits all approach
- Formal and informal language hierarchies, needs change depending on context
- HQ (CCL) and subs languages intersect at subs: key translator function markets/units
- Dependence on key language users across MNC units.
Lecture summary + notes
Week 1
What is Language Management?
According to Piekkari et al, language management contains
- Everyday spoken and written language
- Company Jargon and speak
- Technical and professional language
Effective language use = effective business
Management is the strategize and make people work together to attain goals and objectives.
How can you tell that language matters?
English is the global lingua franca = possibility global conversation, functions as a contact or
transit language (a true lingua franca).
> 85% of international organizations use English as one of their official languages
7% of French firms use English as main language
Communicating in native or non-native, or CCL?
Noise exists in communication, foreign languages add more noise, potentially.
A solution to minimize noise is to impose a common corporate language (CCL)
A common Corporate Language (CLL) requires:
1. Fluency
Individuals can create social networks, internally and externally, to grow, maintain a
business.
2. Understanding of a subconscious influence of language (or culture) on business
decisions, e.g. physical distance
Why are these tricky issues?
- Language soul searching
- Language effects opaque
- Language issues/skills seen as a technical, not human capital
Language impacts
- Communication processes
- Knowledge transfer
- Internal structuring mechanism
Language and expansion strategies
Language comfort zones reduces physic distance and has business advantages:
- Collect/process information
, 1
- Build networks
- Negotiate
- Promotional activities
Empire language paths: British/Spanish empire connections.
Diaspora language path: “bamboo network” of Chinese immigrants
What actually goes down in MNC’s? (Harzing & Pudelko, 2013)
A review of language competencies, policies and practices in MNC
- data from 800 subsidiaries
- in 13 countries
- with HQ’s in over 25 countries
Old ways won’t suffice
- MNC’s are multilingual by definition
- Language barriers and conflicts inevitable
- Psychic distance and language
- Research area is wide, lack of knowledge, requires comprehensive overview
Key contributions
- Compare and contrast languages’ role in MNC’s
- HQ-ed in different countries/country clusters
Key contributions continued
- Differentiated set of managerial implications (how effective or not?)
- Managers: local versus local; local versus expatriate; local versus HQ
- Review of language skills: corporate and country language
- Review of choice corporate language and power-authority distortion
What does literature say?
- Info on language diversity within MNC’s is scarce
- But, 6 languages strategies are distinguished:
- Adapt to local language
- Adapt to interlocutor
- Collective negotiation
- Simultaneous use of multiple languages
- Use of a third language
- Improvisation
- Numbers 1 and 5 seem most frequently used
CCL potential advantages/disadvantages
Advantages
- Facilitate formal reporting
- Enhance informal communication and communication flow
- Assist in development common corporate culture
, 2
Disadvantages
- Can be viewed as a political choice/preference
- Disintegration, people feel left out
- Resistance, sabotage by creation language groups/coalitions
- Power imbalance/power-authority distortion
Central research proposition
MNC’s will display distinct structures of language competencies, policies, and practices that
reflect their respective language heritage.
How did they do it?
Cross-sectional survey, translated for all except Nordic (2008-2010). HR managers as
respondents, China low response rate. No significant differences for employee numbers. year
of establishment. No response bias.
The questions language use/skills, corporate language use/skills, power-authority distortion.
Examples of some results
Language use
- Asian country clusters use Asian languages in all communications.
- Strong differentiation for home country clusters and language use for communication
with expats and HQ managers
How many?
- Most subsidiaries multilingual, country cluster does not play a role.
- But, English speaking countries have a lower number of languages
Language skills
- No significant differences between HQ country clusters for corporate language skills
of subsidiary managers
- When English is corporate language in Asian clusters, subsidiary managers have
significantly better skills than HQ managers
Results
Use of corporate language
- Nearly 25% of subsidiaries no official corporate language (Asian clusters almost half;
sub + HQ same countries)
- English dominates, except for Asian clusters
English, corporate language, power-authority distortion
- Asian and Continental shows p-a-d when corporate language is English
- Language as a power source is mostly felt by L2 of English speaking with L1
speakers
Conclusion/Discussion
- English dominates, except Asian cluster (linguistic ethnocentrism?)
- Anglophones are least multilingual (logical ethnocentrism?)
- Corporate languages not always defined (linguistic ethnocentrism?)
- Power-authority distortion: Asian clusters avoid adopting English?
, 3
- Avoid country-specific studies, but use clusters
- Future research: language effects on knowledge transfer, social capital etc > all key
variables in international business
Barner-Rasmussen & Aarnio (2011) A quantitative functional-level exploration of
language use in MNC subs
RQ of the study: Can language systems be designed and aligned with general strategy?
Language is not only rational, also emotional (social).
Study language use:
- Interviews with ‘top decision-makers’ with sufficient knowledge of English
- Parent firms (mostly from US; SWE) active in approx. 87 countries.
- 90% CCL was English
- Rating communication ability; 7-point scales
- Distinction LA1 and LA2 -> L1 and L2
Results of the study
- English dominates but subs - sister units/local firm also other languages, e.g. Finnish,
Swedish
- Variation also due to regional lingua franca: Swedish
- Fluency also varies
Conclusions
H1a: MNC subs’ contacts inside the MNC are conducted in the HQ CCL.
A: it depends
H1b: MNC subs’ external contacts are conducted in the sub language
A: it depends
H2a: There are significant variations in language fluency across functions in MNC subs.
A: Yes
H2b: Language fluency in MNC subs is higher in white-collar functions such as management
than in blue-collar functions such as service.
A: Yes
H3: There are significant variations in language fluency across the different types of interunit
relationships MNC units are involved in, e.g. sis-units; HQ-subs; subs-local firms
A: Yes, for L1.
How do you strategize and navigate under these circumstances?
Both studies show
- Language fluency is unevenly distributed, e.g. L1 versus L2
- Regional but also internal differences are clear
- Variety is the norm; no one-size fits all approach
- Formal and informal language hierarchies, needs change depending on context
- HQ (CCL) and subs languages intersect at subs: key translator function markets/units
- Dependence on key language users across MNC units.
