Hostname: page-component-745bb68f8f-mzp66 Total loading time: 0 Render date: 2025-02-04T18:19:16.810Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  02 February 2015

Wilhelm Barner-Rasmussen  and
Ingmar Björkman
Wilhelm Barner-Rasmussen
Affiliation:
Swedish School of Economics, Finland
Ingmar Björkman
Affiliation:
INSEAD Euro-Asia and Comparative Research Centre, France
Get access Rights & Permissions [Opens in a new window]

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.

Keywords

languagemultinational corporationsshared visionsocializationtrustworthiness语言，跨国公司，社会化，共同愿景，可信赖性
Type
Articles
Information
Management and Organization Review , Volume 3 , Issue 1 , March 2007 , pp. 105 - 128
Copyright
Copyright © International Association for Chinese Management Research 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aiken, L. S., & West, S. G. 1991. Multiple Regression: Testing and Interpreting Interactions. Sage, Newbury Park, Calif.Google Scholar
Barner-Rasmussen, W. 2003. Knowledge sharing in multinational corporations: a social capital perspective. Doctoral dissertation. Swedish School of Economics and Business Administration Helsinki.Google Scholar
Bartlett, C. A., & Ghoshal, S. 1986. Tap your subsidiaries for global reach. Harvard Business Review, 64: 87–94.Google Scholar
Bartlett, C. A., & Ghoshal, S. 1987. Managing across borders: new organizational responses. Sloan Management Review, 29: 47–57.Google Scholar
Bartlett, C. A., & Ghoshal, S. 1989. Managing Across Borders: the Transnational Solution. Harvard Business School Press, Boston, Mass.Google Scholar
Becerra, M., & Gupta, A. K. 2003. Perceived trustworthiness with the organization: the moderating impact of communication frequency on trustor and trustee effects. Organization Science, 14: 32–44.CrossRefGoogle Scholar
Bigley, G. A., & Pearce, J. L. 1998. Straining for shared meaning in organization science: problems of trust and distrust. Academy of Management Review, 23: 401–421.CrossRefGoogle Scholar
Birkinshaw, J. M., & Hood, N. 1998. Multinational subsidiary evolution: capability and charter change in foreign-owned subsidiary companies. Academy of Management Review, 23: 773–795.Google Scholar
Bresman, H., Birkinshaw, J., & Nobel, R. 1999. Knowledge transfer in international acquisitions. Journal of International Business Studies, 30: 439–461.CrossRefGoogle Scholar
Brewer, M. B., & Kramer, R. M. 1985. The psychology of intergroup attitudes and behavior. Annual Review of Psychology, 36: 219–243.Google Scholar
Browne, M. W., & Cudeck, R. 1989. Single sample cross validation rules for covariance structures. Multivariate Behavioral Research, 24: 445–455.CrossRefGoogle Scholar
Child, J., Chung, L., & Davies, H. 2003. The performance of cross-border units in China: a test of natural selection, strategic choice and contingency theories. Journal of International Business Studies, 34: 242–254.CrossRefGoogle Scholar
Child, J., & Möllering, G. 2003. Contextual confidence and active trust development in the Chinese business environment. Organization Science, 14: 69–80.Google Scholar
Cohen, J., & Cohen, P. 1983. Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences, 2nd edn. Erlbaum, Hillsdale, N.J.Google Scholar
Cyr, D. J., & Schneider, S. C. 1996. Implications for learning: Human resource management in east-west joint ventures. Organization Studies, 17: 207–226.Google Scholar
Das, T. K., & Teng, B.-S. 1998. Between trust and control: developing confidence in partner cooperation in alliances. Academy of Management Review, 23: 491–512.CrossRefGoogle Scholar
DiMaggio, P. J., & Powell, W. W. 1983. The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48: 147–160.Google Scholar
Earley, C. P., & Mosakowski, E. 2000. Creating hybrid team cultures: an empirical test of transnational team functioning. Academy of Management Journal, 43: 26–49.CrossRefGoogle Scholar
Edstrom, A., & Galbraith, J. 1977. Transfer of managers as a coordination and control strategy in multinational organizations. Administrative Science Quarterly, 22: 248–263.CrossRefGoogle Scholar
Eisenstein, M. 1983. Native reactions to non-native speech: a review of empirical research. Studies in Second Language Acquisition, 5: 160–176.CrossRefGoogle Scholar
Erez, M., & Earley, C. P. 1993. Culture, Self-identity and Work. Oxford University Press, New York.Google Scholar
Ferner, A., & Quintanilla, J. 1998. Multinationals, national business systems and HRM: the enduring influence of national identity or a process of ‘anglo-saxonization’ International Journal of Human Resource Management, 9: 710–731.CrossRefGoogle Scholar
Ghoshal, S., & BartlettC, A. C, A. 1988. Creation, adoption and diffusion of innovations by subsidiaries of multinational corporations. Journal of International Business Studies, 19: 365–388.Google Scholar
Ghoshal, S., Korine, H., & Szulanski, G. 1994. Interunit communication in multinational corporations. Management Science, 40: 111–122.Google Scholar
Govindarajan, V., & Gupta, A. K. 2001. Global Dominance: Transforming Global Presence into Global Competitive Advantage. Jossey-Bass, San Francisco, Calif.Google Scholar
Gudykunst, W. 1991. Bridging Differences: Effective Intergroup Communication. Sage, Newbury Park.Google Scholar
Gupta, A. K., & Govindarajan, V. 1991. Knowledge flows and the structure of control within multinational corporations. Academy of Management Review, 16: 768–792.Google Scholar
Gupta, A. K., & Govindarajan, V. 2000. Knowledge flows within multinational corporations. Strategic Management Journal, 21: 473–496.Google Scholar
Gupta, A. K., Govindarajan, V., & Malhotra, A. 1999. Feedback-seeking behavior within multinational corporations. Strategic Management Journal, 20: 205–222.Google Scholar
Hambrick, D. C., Davison, S. C., Snell, S. A., & Snow, C. C. 1998. When groups consist of multiple nationalities. Organization Studies, 19: 181–206.Google Scholar
Harzing, A.-W. K. 1999. Managing the Multinationals: an International Study of Control Mechanisms. Edgar Elgar, Cheltenham.Google Scholar
Haslam, S. A. 2001. Psychology in Organizations: the Social Identity Approach. Sage, London.Google Scholar
Hedlund, G. 1986. The hypermodern MNC: a heterarchy? Human Resource Management, 25: 9–35.Google Scholar
Hofstede, G., 1980. Culture's Consequences. Sage, Beverly Hills, Calif.Google Scholar
Janssens, M., Labert, J., & Steyaert, C. 2004. Developing language strategies for international companies: the contribution of translation studies. Journal of world Business, 39: 414–430.Google Scholar
Johanson, J., & Wiedersheim-Paul, F. 1975. The internationalisation of the firm - four Swedish cases. Journal of Management Studies, 12: 305–322.CrossRefGoogle Scholar
Kogut, B., & Singh, H. 1988. The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19: 411–423.Google Scholar
Kogut, B., & Zander, U. 1993. Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies, 24: 625–645.CrossRefGoogle Scholar
Kramer, R. M. 1993. Cooperation and organizational identification. In Murnigham, J. K. (Ed,), Social Psychology in Organizations: Frontiers of Theory and Research: 244–268. Prenctice Hall, Englewood Cliffs, NJ.Google Scholar
Kramer, R. M., & Tyler, T. R. 1996. Whither trust? In Kramer, R. M. & Tyler, T. R. (Eds.), Trust in Organizations: Frontiers of Theory and Research: 1–15. Sage, Thousand Oaks, Calif.Google Scholar
Lambert, W. E. 1967. A social psychology of bilingualism. Journal of Social Issues, 23: 91–109.Google Scholar
Lane, P., & Lubatkin, M., 1998. Relative absorptive capacity and interorganizational learning. Strategic Management Journal, 19: 461–477.Google Scholar
Luo, Y. 2002. Organizational dynamics and global integration. A perspective from subsidiary managers. Journal of International Management, 8: 189–215.Google Scholar
Luo, Y., & Zhao, H. 2004. Corporate link and competitive strategy in multinational enterprises: a perspective from subsidiaries seeking host market penetration. Journal of International Management, 10: 77–105.Google Scholar
Marschan, R., Welch, D. E., & Welch, L. S. 1997. Language: the forgotten factor in multinational management. European Management Journal, 15: 591–598.CrossRefGoogle Scholar
Marschan-Piekkari, R., Welch, D. E., & Welch, L. S. 1999a. In the shadow: the impact of language on structure, power and communication in the multinational. International Business Review, 8: 421–440.Google Scholar
Marschan-Piekkari, R., Welch, D. E., & Welch, L. S. 1999b. Adopting a common corporate language: IHRM implications. International Journal of Human Resource Management, 10: 377–390.Google Scholar
Martinez, J. I., & Jarillo, J. C. 1989. The evolution of research on coordination mechanisms in multinational corporations. Journal of International Business Studies, 20: 489–514.Google Scholar
Mayer, R. C., Davis, J. H., & Schoorman, F. D. 1995. An integrated model of organizational trust. Academy of Management Review, 20: 709–734.CrossRefGoogle Scholar
Meyerson, D., Weick, K. E., & Kramer, R. M. 1996. Swift trust and temporary groups. In Kramer, R. M. & Tyler, T. R. (Eds.) Trust in Organizations: Frontiers of Theory and Research: 166–195. Sage, Thousand Oaks, Calif.Google Scholar
Mueller-Jacquier, B., & Whitener, E. M. 2001. Effective global leadership: the role of linguistic analysis of intercultural communication situations. In Mendenhall, M., Kuehlmann, T. M. & Stahl, G. K. (Eds.), Developing Global Business Leaders: Policies, Processes, and Innovations: 225–241. Quorum Books, Westport, Conn.Google Scholar
Nahapiet, J., & Ghoshal, S. 1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23: 242–266.Google Scholar
Nohria, N., & Ghoshal, S. 1994. Differentiated fit and shared values. Strategic Management Journal, 15: 491–502.CrossRefGoogle Scholar
Ouchi, W. G. 1979. A conceptual framework for the design of organizational control mechanisms. Management Science, 25: 833–848.Google Scholar
O’Donnell, S. W. 2000. Managing foreign subsidiaries: agents of headquarters, or an interdependent network? Strategic Management Journal, 21: 525–548.3.0.CO;2-Q>CrossRefGoogle Scholar
OECD. 2003. http://www.oecdobserver.org/news/fullstory.php/aid/1037/China_ahead_in_foreign_direct_investment.html. [Cited 18 Aug 2006.]Google Scholar
Piekkari, R. 2006. Language effects in multinational corporations: a review from an international human resource management perspective. In Stahl, G. K. & Björkman, I. (Eds.), Handbook of Research in International, Human Resource Management: 536–550. Edward Elgar, Cheltenham.Google Scholar
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. 2003. Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88: 879–903.Google Scholar
Roth, K., Schweiger, D. M., & Morrison, A.J. 1991. Global strategy implementation at the business unit level: operational capabilities and administrative mechanisms. Journal of International Business Studies, 22: 369–402.Google Scholar
Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. 1998. Not so different after all: a cross-discipline view of trust. Academy of Management Review, 23: 394–404.Google Scholar
Schaubroeck, J., Lam, S. S. K., & Xie, J. L. 2000. Self-efficacy in coping responses to stressors and control: a cross-cultural study. Journal of Applied Psychology, 85: 512–525.Google Scholar
Simonin, B. L. 1999. Ambiguity and the process of knowledge transfer in strategic alliances. Strategic Management Journal, 20: 595–623.3.0.CO;2-5>CrossRefGoogle Scholar
Suzuki, S. 1998. In-group and out-group communication patterns in international organizations: implications for social identity theory. Communication Research, 25: 96–102.Google Scholar
Szulanski, G. 1996. Exploring internal stickiness: impediments to the transfer of best practice within the firm. Strategic Management Journal, 17: 27–43.Google Scholar
Tajfel, H. 1982. Social psychology of intergroup relations. Annual Review of Psychology, 33: 1–39.Google Scholar
Tajfel, H., & Turner, J. C. 1986. The social identity theory of intergroup behavior. In Worchcl, S. & Austin, W. G. (Eds.), Psychology of Intergroup Relations (2nd edn): 7–24. Nelson-Hall, Chicago, Ill.Google Scholar
Taylor, S., & Osland, J. S. 2003. The impact of intercultural communication on global organizational learning. In Easterby-Smith, M. & Lyles, M. A. (Eds.), Handbook of Organizational Learning and Knowledge: 212–232. Blackwell Publishing, Management Maiden.Google Scholar
Triandis, H. C. 1972. The Analysis of Subjective Culture. Wiley, New York.Google Scholar
Tsai, W., & Ghoshal, S. 1998. Social capital and value creation: the role of intrafirm networks. Academy of Management Journal, 41: 464–476.Google Scholar
UNCTAD. 2005. World Investment Report. United Nations, Geneva.Google Scholar
Van Maanen, J., & Schein, E. H. 1979. Toward a theory of organizational socialization. In Staw, B. M. (Ed.), Research in Organizational Behaviour (Vol. 1): 209–264. JAI Press, Greenwich, Conn.Google Scholar
Williams, M. 2001. In whom we trust: group membership as an affective context for trust development. Academy of Management Review, 26: 377–396.Google Scholar
Winter, S. 1987. Knowledge and competence as strategic assets. In Teece, D. (Ed.), The Competitive Challenge – Strategies for Industrial Innovation and Renewal: 159–184. Ballinger, Cambridge, Mass.Google Scholar
Yoshihara, H. 2000. Global Operations Managed by Japanese and in Japanese. Paper presented at 27th Annual Conference of the UK Chapter of Academy of International Business, University of Strathclyde, Glasgow.Google Scholar