The Role Of Language On knowledge Transfer In Multinational Enterprises (MNEs)

Abstract

This thesis investigates the role of language and linguistic diversity in international business, manifested in managerial capability, organizational language practice, and cross-border transaction. Three research questions are proposed to direct this investigation. The first question regarding managerial capability is: How important is it for expatriates to know local language(s) when they are posted to a linguistically diverse subsidiary? In terms of organization language practice, expatriates' language proficiency and practice may not be static and can change throughout different stages of investment. This leads to the second research question: At the corporate level, how does language practice change in response to a shift in the importance placed on a knowledge source? Finally, firms pursue foreign expansion for asset seeking or new markets, and merger and acquisition (M&A) is one of the major mechanisms for foreign expansion. Based on this, the third research question is: In terms of cross-border transaction, what configurations influence M&A deal duration?

Study 1 illustrates that the local linguistic capabilities of expatriates influences organizational performance in a multilingual environment. Study 2 follows an inductive approach to reveal multilingual practices throughout the investment stage for managerial communication in multinational enterprises (MNEs). Following the notion of a multilingual community, Study 3 is geared toward the recognition of MNEs as a way of acquiring knowledge and tests the configuration of lingua franca proficiency, linguistic distance, culture distance, industry similarity, full acquisition to influence cross-border M&A deals.

By combining qualitative and quantitative methodologies, this dissertation demonstrates the importance of language IB across multiple aspects in the operation of MNEs. Show more