Language Management in International Organizations
Chapter 1. Language and global business expansion
‘Companies deal with language issues every day, they cope, the world continues to turn.
How they do so, however, remains largely absent from the literature.’
Internationalizing firm = multinational corporation, MNC, all firms - small, medium and large.
‘There is almost no aspect of our lives that is not touched by language. We live in and by
language.’
Everyday spoken/written language
Company ‘speak’
Technical/professional/industry language
Everyday spoken/written language = normal social language, that is, everyday spoken and
written language employed for interpersonal inter-unit and external communication.
Company jargon = replete with acronyms, special terms and management process
terminology specific to the company which evolves over time.
Technical/professional language = as with company jargon, there is a coded language that is
common within and between groups, and can be used to include or exclude others from a
specific group.
The book focuses on everyday spoken/written language!
Language ≠ Culture (might not always be possible or wise)
Effective language Effective business
‘Well, we took a four-week English course once, 5 years ago, so we’re good skills-wise.’
‘Communication is key, but you don’t need to be a native speaker in order to be effective!’
Aim of language management: strategize and make people work together to attain goals and
objectives.
The rise of English as a lingua franca
English global lingua franca = possibility global conversation, functions as a contact or transit
language (true lingua franca).
85% of international organizations use English as one of their official languages.
7% of French firms use English as main language.
English ≠ culture, identity
English = functional, practical, neutral tool
,The term ‘lingua franca’ was originally coined in the Middle Ages by traders operating from
Mediterranean ports as a way of coping with the differing languages. In order to carry on the
business of trade, they spoke a common ‘patchwork’ language consisting of bits of Italian,
mixed with Greek, French, Spanish, and Arabic words.’
English has become a ‘contact language’, that is used as a means of communicating with
others from different first-language backgrounds.
Noise exists in communication!
Sharing a native language ≠ noiseless
Foreign languages add more noise, potentially.
A solution to minimize noise is to impose a common corporate language (CLL), e.g.
Volkswagen, Rakuten, Shiseido.
Nickerson (2005) points out that ‘the communication event is often considerably more
complex than the label of English as lingua franca would suggest.’ In multinational settings,
communication often takes place between non-native speakers of English who may also use
one or more other languages alongside English.
A major strength of English is its dynamism. It is a living language that happily incorporates
words from everywhere, continuing the tradition of the polyglot lingua franca of the Middle
Ages.
If the receiver is unable to decode the message because of the language used, translation
may be necessary. Translation involving intermediaries plays a key role in effective
communication across language barriers (chapter 2). Picture language may also play a part in
assisting effective communication.
Solution to the problems of operating in multiple language environments CLL = Common
Corporate Language, often English
A common corporate language (CCL) requires:
Fluency = individuals can create social networks, internally and externally, to grow,
maintain a business. General language skills as well as discourse strategy skills and
intercultural awareness.
Understanding of subconscious influence of language (culture) on business decisions,
e.g. psychic distance. This is the perception of the cultural differences between
people, organizations or markets.
Why are these tricky issues?
- Language soul searching, admit you’re not as fluent as you believe you are.
- Language effects opaque, not easily seen and understood.
- Language issues/skills seen as a technical, something that can be solved by
translators and interpreters, not human capital, an illustration of their knowledge,
experiences and flexibility in international settings.
Language remains a major barrier to the achievement of true integration of the European
Union.
,Language impacts:
- Communication processes
- Knowledge transfer
- Internal (re)structuring mechanism
Language was first emphasized in early studies of internationalization by companies, as a
component of so-called psychic distance, a concept roughly equivalent to cultural distance.
Psychic distance = cultural distance = factors preventing or disturbing the flow of information
between the company’s home country and the target foreign market.
Language and management
Managers of internationalizing firms could be accused of insufficient attention to the
language proficiency levels of their employees and effects of language on their multi-country
and multilingual operations. Language competence levels are not always obvious, they are
often opaque, not readily seen. When confronted with foreign languages, the response is
often to regard these as constituting merely a technical problem that can be readily
addressed through the use of interpreters and translators. However, translation is not the
same as social communication and does not ensure the creation of social capital or
networks. Another way of removing the language problem is to view it as a selection issue:
ensure that the company hires employees with the requisite foreign language skills and/or
provide language training.
Language and individual
Internationalizing firms are not in full control of individuals’ utilization of their language skills
for company purposes. Individuals make choices about whether, when and how they might
employ any language skills they possess. They may choose whether or not to employ their
foreign language skills for company benefit, or use them in a way that is contrary to
company interests. Individual and organizational interests may coalesce because of:
- Knowledge-sharing hostility
- The exercise of power
- Because the language task is outside to an individual’s assigned job tasks
Language use for company purposes is mediated by:
- Personal language skills
- Experience
- Networks
- Personal interests
Language is part of psychic distance. International marketers feel more at home in foreign
markets that have a common language.
For firms beginning international operations, staying within one’s language comfort zone not
only helps reduce psychic distance, but also has business advantages.
- Easier and cheaper to collect and process information pertaining to a foreign market that
is using the same language as it removes the need for translation.
- Easier to build contacts and negotiate in one’s mother tongue.
- Promotional activities may be much cheaper to undertake.
, The impact and timing of language effects on international expansion depends on the
starting point – the home-country language base.
1. The Empire Language Path
2. Diaspora Language Path
The Empire Language Path
Empire brings language in its train: French in Africa, English in India and Singapore, parts of
Africa and the Caribbean.
Limitation: empires can differ in sizes and other markets may be more attractive.
Diaspora Language Path
Make use of what is commonly known as ‘the bamboo network’ of Chinese immigrants.
Limitation: you need to move beyond your network within foreign markets.
Divergent languages paths
(1) Many Japanese firms have moved into English-speaking countries, developed language
and other cultural competences, and then been able to continue an expansion path
based on English-speaking markets. Japanese firms have been able to move into
countries such as the Netherlands and Finland, due to the higher level of English fluency
found within such countries.
(2) US firms can follow the English Empire path but movement into markets such as Japan
will mean a very steep jump in language demands. The Empire Path can provide firms
from English-speaking countries with a language advantage, but as we will later
demonstrate, this may mask communication issues that affect performance.
Following along an Empire Path can produce false confidence Paradox of language
distance
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Chapter 1. Language and global business expansion
‘Companies deal with language issues every day, they cope, the world continues to turn.
How they do so, however, remains largely absent from the literature.’
Internationalizing firm = multinational corporation, MNC, all firms - small, medium and large.
‘There is almost no aspect of our lives that is not touched by language. We live in and by
language.’
Everyday spoken/written language
Company ‘speak’
Technical/professional/industry language
Everyday spoken/written language = normal social language, that is, everyday spoken and
written language employed for interpersonal inter-unit and external communication.
Company jargon = replete with acronyms, special terms and management process
terminology specific to the company which evolves over time.
Technical/professional language = as with company jargon, there is a coded language that is
common within and between groups, and can be used to include or exclude others from a
specific group.
The book focuses on everyday spoken/written language!
Language ≠ Culture (might not always be possible or wise)
Effective language Effective business
‘Well, we took a four-week English course once, 5 years ago, so we’re good skills-wise.’
‘Communication is key, but you don’t need to be a native speaker in order to be effective!’
Aim of language management: strategize and make people work together to attain goals and
objectives.
The rise of English as a lingua franca
English global lingua franca = possibility global conversation, functions as a contact or transit
language (true lingua franca).
85% of international organizations use English as one of their official languages.
7% of French firms use English as main language.
English ≠ culture, identity
English = functional, practical, neutral tool
,The term ‘lingua franca’ was originally coined in the Middle Ages by traders operating from
Mediterranean ports as a way of coping with the differing languages. In order to carry on the
business of trade, they spoke a common ‘patchwork’ language consisting of bits of Italian,
mixed with Greek, French, Spanish, and Arabic words.’
English has become a ‘contact language’, that is used as a means of communicating with
others from different first-language backgrounds.
Noise exists in communication!
Sharing a native language ≠ noiseless
Foreign languages add more noise, potentially.
A solution to minimize noise is to impose a common corporate language (CLL), e.g.
Volkswagen, Rakuten, Shiseido.
Nickerson (2005) points out that ‘the communication event is often considerably more
complex than the label of English as lingua franca would suggest.’ In multinational settings,
communication often takes place between non-native speakers of English who may also use
one or more other languages alongside English.
A major strength of English is its dynamism. It is a living language that happily incorporates
words from everywhere, continuing the tradition of the polyglot lingua franca of the Middle
Ages.
If the receiver is unable to decode the message because of the language used, translation
may be necessary. Translation involving intermediaries plays a key role in effective
communication across language barriers (chapter 2). Picture language may also play a part in
assisting effective communication.
Solution to the problems of operating in multiple language environments CLL = Common
Corporate Language, often English
A common corporate language (CCL) requires:
Fluency = individuals can create social networks, internally and externally, to grow,
maintain a business. General language skills as well as discourse strategy skills and
intercultural awareness.
Understanding of subconscious influence of language (culture) on business decisions,
e.g. psychic distance. This is the perception of the cultural differences between
people, organizations or markets.
Why are these tricky issues?
- Language soul searching, admit you’re not as fluent as you believe you are.
- Language effects opaque, not easily seen and understood.
- Language issues/skills seen as a technical, something that can be solved by
translators and interpreters, not human capital, an illustration of their knowledge,
experiences and flexibility in international settings.
Language remains a major barrier to the achievement of true integration of the European
Union.
,Language impacts:
- Communication processes
- Knowledge transfer
- Internal (re)structuring mechanism
Language was first emphasized in early studies of internationalization by companies, as a
component of so-called psychic distance, a concept roughly equivalent to cultural distance.
Psychic distance = cultural distance = factors preventing or disturbing the flow of information
between the company’s home country and the target foreign market.
Language and management
Managers of internationalizing firms could be accused of insufficient attention to the
language proficiency levels of their employees and effects of language on their multi-country
and multilingual operations. Language competence levels are not always obvious, they are
often opaque, not readily seen. When confronted with foreign languages, the response is
often to regard these as constituting merely a technical problem that can be readily
addressed through the use of interpreters and translators. However, translation is not the
same as social communication and does not ensure the creation of social capital or
networks. Another way of removing the language problem is to view it as a selection issue:
ensure that the company hires employees with the requisite foreign language skills and/or
provide language training.
Language and individual
Internationalizing firms are not in full control of individuals’ utilization of their language skills
for company purposes. Individuals make choices about whether, when and how they might
employ any language skills they possess. They may choose whether or not to employ their
foreign language skills for company benefit, or use them in a way that is contrary to
company interests. Individual and organizational interests may coalesce because of:
- Knowledge-sharing hostility
- The exercise of power
- Because the language task is outside to an individual’s assigned job tasks
Language use for company purposes is mediated by:
- Personal language skills
- Experience
- Networks
- Personal interests
Language is part of psychic distance. International marketers feel more at home in foreign
markets that have a common language.
For firms beginning international operations, staying within one’s language comfort zone not
only helps reduce psychic distance, but also has business advantages.
- Easier and cheaper to collect and process information pertaining to a foreign market that
is using the same language as it removes the need for translation.
- Easier to build contacts and negotiate in one’s mother tongue.
- Promotional activities may be much cheaper to undertake.
, The impact and timing of language effects on international expansion depends on the
starting point – the home-country language base.
1. The Empire Language Path
2. Diaspora Language Path
The Empire Language Path
Empire brings language in its train: French in Africa, English in India and Singapore, parts of
Africa and the Caribbean.
Limitation: empires can differ in sizes and other markets may be more attractive.
Diaspora Language Path
Make use of what is commonly known as ‘the bamboo network’ of Chinese immigrants.
Limitation: you need to move beyond your network within foreign markets.
Divergent languages paths
(1) Many Japanese firms have moved into English-speaking countries, developed language
and other cultural competences, and then been able to continue an expansion path
based on English-speaking markets. Japanese firms have been able to move into
countries such as the Netherlands and Finland, due to the higher level of English fluency
found within such countries.
(2) US firms can follow the English Empire path but movement into markets such as Japan
will mean a very steep jump in language demands. The Empire Path can provide firms
from English-speaking countries with a language advantage, but as we will later
demonstrate, this may mask communication issues that affect performance.
Following along an Empire Path can produce false confidence Paradox of language
distance
E
lC
a
rn&
M
L
S
y
g
w
N
o IW
sic
k
te
x
u
m h
f?
tiv
d
