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Corporate Language Proficiency and Reverse Knowledge Transfer in Multinational Corporations: Interactive Effects of Communication Media Richness and Commitment to Headquarters

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  • Peltokorpi, Vesa

Abstract

While corporate language proficiency provides the ability for employees in foreign subsidiaries to transfer knowledge to headquarters (HQ) in multinational corporations, this topic has received relatively little attention in international management research. In this paper, I link host country national (HCN) employee corporate language proficiency to reverse knowledge transfer. In addition to its direct effect, I draw on media richness theory and related research to hypothesize that communication media richness has a mediating effect between HCN corporate language proficiency and reverse knowledge transfer. As employees also need to be motivated to transfer knowledge to HQ, I draw on ability–motivation frameworks to hypothesize that HCN employee commitment to HQ has a moderating effect between communication media richness and reverse knowledge transfer. Data derived at two points in time from 661 functional departments of foreign subsidiaries in Japan provide support for the direct and interactive effects.

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  • Peltokorpi, Vesa, 2015. "Corporate Language Proficiency and Reverse Knowledge Transfer in Multinational Corporations: Interactive Effects of Communication Media Richness and Commitment to Headquarters," Journal of International Management, Elsevier, vol. 21(1), pages 49-62.
    • Handle: RePEc:eee:intman:v:21:y:2015:i:1:p:49-62
    DOI: 10.1016/j.intman.2014.11.003
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    3. Ahmad, Farhan & Barner-Rasmussen, Wilhelm, 2019. "False foe? When and how code switching practices can support knowledge sharing in multinational corporations," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    4. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    5. Sheng, Margaret L. & Hartmann, Nathaniel N., 2019. "Impact of subsidiaries' cross-border knowledge tacitness shared and social capital on MNCs' explorative and exploitative innovation capability," Journal of International Management, Elsevier, vol. 25(4).
    6. Golesorkhi, Sougand & Mersland, Roy & Piekkari, Rebecca & Pishchulov, Grigory & Randøy, Trond, 2019. "The effect of language use on the financial performance of microfinance banks: Evidence from cross-border activities in 74 countries," Journal of World Business, Elsevier, vol. 54(3), pages 213-229.
    7. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    8. Helene Tenzer & Siri Terjesen & Anne-Wil Harzing, 2017. "Language in International Business: A Review and Agenda for Future Research," Management International Review, Springer, vol. 57(6), pages 815-854, December.
    9. Zhou, Abby Jingzi & Fey, Carl & Yildiz, H. Emre, 2020. "Fostering integration through HRM practices: An empirical examination of absorptive capacity and knowledge transfer in cross-border M&As," Journal of World Business, Elsevier, vol. 55(2).
    10. Tenzer, Helene & Pudelko, Markus, 2017. "The influence of language differences on power dynamics in multinational teams," Journal of World Business, Elsevier, vol. 52(1), pages 45-61.
    11. Klitmøller, Anders & Lauring, Jakob, 2016. "When distance is good: A construal level perspective on perceptions of inclusive international language use," International Business Review, Elsevier, vol. 25(1), pages 276-285.
    12. Du, Yan & Deloof, Marc & Jorissen, Ann, 2015. "The Roles of Subsidiary Boards in Multinational Enterprises," Journal of International Management, Elsevier, vol. 21(3), pages 169-181.
    13. Päivi Karhunen & Anne Kankaanranta & Tiina Räisänen, 2023. "Towards a Richer Understanding of Language and Identity in the MNC: Constructing Cosmopolitan Identities Through “English”," Management International Review, Springer, vol. 63(3), pages 507-530, June.
    14. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    15. Peltokorpi, Vesa, 2017. "Absorptive capacity in foreign subsidiaries: The effects of language-sensitive recruitment, language training, and interunit knowledge transfer," International Business Review, Elsevier, vol. 26(1), pages 119-129.
    16. Presbitero, Alfred, 2020. "Foreign language skill, anxiety, cultural intelligence and individual task performance in global virtual teams: A cognitive perspective," Journal of International Management, Elsevier, vol. 26(2).
    17. Michailova, Snejina & Fee, Anthony & DeNisi, Angelo, 2023. "Research on host-country nationals in multinational enterprises: The last five decades and ways forward," Journal of World Business, Elsevier, vol. 58(1).
    18. Chung-Jen Chen & Ya-Hui Lin & Shan-Huei Wang & Ruey-Shan Guo, 2022. "Parent-subsidiary linkage: How resource commitment and resource similarity influence firm performance," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 615-658, June.

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