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Strategic Decision-Making in a Global Context: The Comprehension Effect of Foreign Language Use on Cooperation

Author

Listed:
  • Diemo Urbig

    (Brandenburg University of Technology Cottbus-Senftenberg
    Indiana University)

  • Katrin Muehlfeld

    (Trier University
    Utrecht University)

  • Vivien Procher

    (Grenoble Ecole de Management, Univ Grenoble Alpes ComUE
    RWI-Leibniz-Institut für Wirtschaftsforschung)

  • Arjen Witteloostuijn

    (Vrije Universiteit Amsterdam
    Antwerp University)

Abstract

With increasing globalization comes an increasing number of people communicating in foreign languages when making strategic decisions. We develop a theoretical model in which comprehension constitutes an essential mediator for the effects of using a foreign language on cooperation in global business contexts. To resolve conceptual ambiguities, we separate information processing leading to comprehension from decision-making employing the previously comprehended information. For the first step, we demonstrate how using a foreign language can, depending on individuals’ foreign language proficiencies, trigger both lower and higher comprehension. Variation in comprehension is, as a second step and independent of its cause, negatively associated with individuals’ tendencies to cooperate. Our experimental results support our theorizing. This study provides new micro-foundations for strategic decision-making and discusses unreliable cooperation as a potentially destructive managerial group dynamic within foreign language contexts.

Suggested Citation

  • Diemo Urbig & Katrin Muehlfeld & Vivien Procher & Arjen Witteloostuijn, 2020. "Strategic Decision-Making in a Global Context: The Comprehension Effect of Foreign Language Use on Cooperation," Management International Review, Springer, vol. 60(3), pages 351-385, June.
    • Handle: RePEc:spr:manint:v:60:y:2020:i:3:d:10.1007_s11575-020-00412-z
    DOI: 10.1007/s11575-020-00412-z
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