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Knowledge transfer in multinational corporations: Productive and counterproductive effects of language-sensitive recruitment

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Abstract

This paper focuses on the multifaceted role of language and language-sensitive recruitment in knowledge transfer in multinational corporations (MNCs). In particular, we develop a framework that helps to better understand how language-sensitive recruitment is related to competence, networks, identity, and power. We started by conducting a qualitative interview-based study of 101 MNC subsidiaries. This analysis elucidates the productive and counterproductive effects of language-sensitive recruitment on knowledge transfer related to communication competence, networks, identity, and power. To further understand the productive and counterproductive effects, we conducted a quantitative study in 285 MNC subsidiaries. We found an inverted U-shaped relationship between language-sensitive recruitment and knowledge transfer. Together, these two studies provide a better understanding of the multifaceted and at times counterintuitive implications of language-sensitive recruitment on knowledge transfer in MNCs. By elucidating these effects, this paper contributes to the stream of research examining the role of language in MNCs and international business more generally. It further adds to research on MNC knowledge transfer that to date has focused little attention on language. By elaborating on the potential unintended consequences of language-sensitive recruitment, this paper also has implications for international human resource management research.

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Acknowledgements

We thank three very helpful anonymous reviewers and especially Deputy Editor Mary Yoko Brannen for incisive comments on earlier drafts of this study. We also thank Aarti Ramaswami and Paulina Junni for their comments on an earlier version of this study and Fabian Froese for collaboration.

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Authors and Affiliations

  1. Japan Advanced Institute of Science and Technology, Ishikawa, Japan

    Vesa Peltokorpi

  2. Hanken School of Economics, Helsinki, Finland

    Eero Vaara

  3. EMLYON Business School, France

    Eero Vaara

Authors
  1. Vesa Peltokorpi
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  2. Eero Vaara
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Corresponding author

Correspondence to Vesa Peltokorpi.

Additional information

Accepted by Mary Yoko Brannen, Deputy Editor, 2 January 2014. This paper has been with the authors for three revisions.

Appendices

APPENDIX A

Guiding Questions in Interview Protocols for PCNs

  1. 1

    May I have your name and position in this subsidiary? How many people are working in this subsidiary? How many expatriates are working in this subsidiary? How many years has this subsidiary been operating in Japan?

  2. 2

    Does your company have any language policies and requirements? What kinds of language policies and requirements does your company have? If your company does not have any language policies or requirements, how does your company seek to cope with language barriers? How are these language policies and requirements implemented and reinforced in your company? Are these language policies and requirements extended to all employees? What kinds of challenges, if any, are related to language requirements in your company?

  3. 3

    What kind of external factors, if any, influence language policies and requirements in your company?

  4. 4

    What kind of internal factors, if any, influence language policies and requirements in your company?

APPENDIX B

Guiding Questions in Interview Protocols for HCNs

  1. 1

    May I have your name and position in this subsidiary? How many people are working in this subsidiary? How many expatriates are working in this subsidiary? How many years has this subsidiary been operating in Japan?

  2. 2

    Does your company have any language policies and requirements? What kinds of language policies and requirements does your company have? If your company does not have any language policies or requirements, how does your company seek to cope with language barriers? How are these language policies and requirements implemented and reinforced in your company? Are these language policies and requirements extended to all employees? What kinds of challenges, if any, are related to language requirements in your company?

  3. 3

    What kind of external factors, if any, influence language policies and requirements in your company?

  4. 4

    What kind of internal factors, if any, influence language policies and requirements in your company?

APPENDIX C

Guiding Questions in Interview Protocols for Consultants

  1. 1

    May I have your name, industry sector covered, and position in this company?

  2. 2

    What language requirements do foreign companies have for job candidates? What kind of differences, if any, have you experienced in language requirements within and among foreign companies?

  3. 3

    What kinds of challenges, if any, are related to language requirements in foreign companies in Japan?

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Peltokorpi, V., Vaara, E. Knowledge transfer in multinational corporations: Productive and counterproductive effects of language-sensitive recruitment. J Int Bus Stud 45, 600–622 (2014). https://doi.org/10.1057/jibs.2014.1

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