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Language Fluency, Socialization and Inter-Unit Relationships in Chinese and Finnish Subsidiaries

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  • Barner-Rasmussen, Wilhelm
  • Björkman, Ingmar

Abstract

High levels of trust and shared vision contribute to collaborative behaviour among units belonging to the same corporation. We examined the relationship of language fluency and socialization mechanisms to inter-unit shared vision and trustworthiness, using a sample of 310 inter-unit relationships involving subsidiaries of multinational corporations located in China and Finland. Results show that language fluency related significantly to shared vision and perceived trustworthiness in both the Chinese and Finnish subsidiaries. We also found socialization mechanisms to have a positive relationship to shared vision in the Chinese but not the Finnish sample, and no significant relationship to perceived trustworthiness in either sample. The interaction effects of language fluency and socialization mechanisms produced different results in the Chinese and Finnish samples. The study confirmed the importance of language fluency for inter-unit relationships and offered several suggestions for future research.

Suggested Citation

  • Barner-Rasmussen, Wilhelm & Björkman, Ingmar, 2007. "Language Fluency, Socialization and Inter-Unit Relationships in Chinese and Finnish Subsidiaries," Management and Organization Review, Cambridge University Press, vol. 3(1), pages 105-128, March.
    • Handle: RePEc:cup:maorev:v:3:y:2007:i:01:p:105-128_00
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    Cited by:

    1. Peltokorpi, Vesa & Yamao, Sachiko, 2017. "Corporate language proficiency in reverse knowledge transfer: A moderated mediation model of shared vision and communication frequency," Journal of World Business, Elsevier, vol. 52(3), pages 404-416.
    2. Lauring, Jakob & Selmer, Jan, 2018. "Person-environment fit and emotional control: Assigned expatriates vs. self-initiated expatriates," International Business Review, Elsevier, vol. 27(5), pages 982-992.
    3. Schomaker, Margaret Spring & Zaheer, Srilata, 2014. "The Role of Language in Knowledge Transfer to Geographically Dispersed Manufacturing Operations," Journal of International Management, Elsevier, vol. 20(1), pages 55-72.
    4. Denice E. Welch & Lawrence S. Welch, 2008. "The importance of language in international knowledge transfer," Management International Review, Springer, vol. 48(3), pages 339-360, May.
    5. 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.
    6. Sherae Daniel & Ritu Agarwal & Katherine J. Stewart, 2013. "The Effects of Diversity in Global, Distributed Collectives: A Study of Open Source Project Success," Information Systems Research, INFORMS, vol. 24(2), pages 312-333, June.
    7. Barner-Rasmussen, Wilhelm & Aarnio, Christoffer, 2011. "Shifting the faultlines of language: A quantitative functional-level exploration of language use in MNC subsidiaries," Journal of World Business, Elsevier, vol. 46(3), pages 288-295, July.
    8. Klitmøller, Anders & Lauring, Jakob, 2013. "When global virtual teams share knowledge: Media richness, cultural difference and language commonality," Journal of World Business, Elsevier, vol. 48(3), pages 398-406.
    9. Michailova, Snejina & Minbaeva, Dana B., 2012. "Organizational values and knowledge sharing in multinational corporations: The Danisco case," International Business Review, Elsevier, vol. 21(1), pages 59-70.
    10. Björkman, Anette & Piekkari, Rebecca, 2009. "Language and foreign subsidiary control: An empirical test," Journal of International Management, Elsevier, vol. 15(1), pages 105-117, March.
    11. Piekkari, Rebecca & Welch, Denice Ellen & Welch, Lawrence Stephenson & Peltonen, Jukka-Pekka & Vesa, Tiina, 2013. "Translation behaviour: An exploratory study within a service multinational," International Business Review, Elsevier, vol. 22(5), pages 771-783.
    12. Zhang, Yanlong & Zhou, Xiaoyu & Lei, Wei, 2017. "Social Capital and Its Contingent Value in Poverty Reduction: Evidence from Western China," World Development, Elsevier, vol. 93(C), pages 350-361.
    13. Jurásek Miroslav & Potocký Tomislav, 2020. "How to Improve Communication within an Organization? The Relationship between Cultural Intelligence and Language Competence," Journal of Intercultural Management, Sciendo, vol. 12(2), pages 53-81, June.
    14. 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.
    15. Piekkari, Rebecca & Oxelheim, Lars & Randøy, Trond, 2013. "The Role of Language in Corporate Governance: The Case of Board Internationalization," Working Paper Series 974, Research Institute of Industrial Economics.
    16. 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.
    17. Aichhorn, Nathalie & Puck, Jonas, 2017. "Bridging the language gap in multinational companies: Language strategies and the notion of company-speak," Journal of World Business, Elsevier, vol. 52(3), pages 386-403.
    18. repec:hig:wpaper:38man2015 is not listed on IDEAS
    19. Harzing, Anne-Wil & Pudelko, Markus, 2013. "Language competencies, policies and practices in multinational corporations: A comprehensive review and comparison of Anglophone, Asian, Continental European and Nordic MNCs," Journal of World Business, Elsevier, vol. 48(1), pages 87-97.
    20. Tian, Xiaocong, 2022. "The art of rhetoric: Host country political hostility and the rhetorical strategies of foreign subsidiaries in developing economies," Journal of World Business, Elsevier, vol. 57(5).
    21. Ting Liu, 2018. "The Review of Language Studies in International Business: Suggestions and Future Directions for Japan," Discussion Papers in Economics and Business 18-30, Osaka University, Graduate School of Economics.
    22. Alfredo Jimenez & Jonas Holmqvist & Diego Jimenez, 2019. "Cross-Border Communication and Private Participation Projects: The Role of Genealogical Language Distance," Management International Review, Springer, vol. 59(6), pages 1009-1033, December.
    23. Lauring, Jakob & Klitmøller, Anders, 2015. "Corporate language-based communication avoidance in MNCs: A multi-sited ethnography approach," Journal of World Business, Elsevier, vol. 50(1), pages 46-55.
    24. Lauring, Jakob & Selmer, Jan, 2012. "International language management and diversity climate in multicultural organizations," International Business Review, Elsevier, vol. 21(2), pages 156-166.

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