Professional Documents
Culture Documents
COMMUNICATION IN
MULTINATIONAL COMPANIES
Alignment With Strategic Orientation and Human
Resource Management Practices
This article focuses on the degree of alignment among multinational company (MNC) strategic ori-
entation, human resource management (HRM) practices, and language policies. On the one hand, the
authors propose that the coherent, tight alignment among the HRM practices, language policies, and
MNC strategic orientation, in terms of ethnocentricity, polycentricity, or geocentricity, is beneficial.
On the other hand, they use international business research on language in MNCs to illustrate that
what is good in theory is often more difficult in practice. For example, HRM practices and language
policies in foreign subsidiaries may not be tightly aligned with the corporate-level activities, and
some hybridization tends to occur, for example, because of contextual reasons in host countries.
Floor van den Born is a PhD candidate at HEC School of Management, Paris, France. Vesa Peltokorpi
is an assistant professor of human resource management at HEC School of Management, Paris,
France. His research interests include intercultural communication and cross-cultural adjustment.
An earlier version of this article was presented at the Academy of Management, August 7-11, 2009.
Correspondence concerning this article should be addressed to Floor van den Born, Department of
Management and Human Resources, HEC School of Management, 1, Rue de la Libération, Paris
78351, France; e-mail: floor.van-den-born@mailhec.net.
How can MNCs solve the language-related problems and facilitate inter-
unit and intraunit communication? To manage the tension between global
integration and local adaptation (Bartlett & Ghoshal, 1989), we start by
proposing that official language policies should be aligned with HRM prac-
tices and strategic orientations in terms of ethnocentricity, polycentricity, or
geocentricity. First, emphasizing global integration through common HRM
practices and corporate language, ethnocentric MNCs seek to extend best
practices to foreign subsidiaries through home country expatriates
(Perlmutter, 1969). Formal language policies are reinforced for control,
coordination, and communication purposes. Ethnocentric policies tend to
be found in cultures that are concerned with value homogeneity rather than
foreign language proficiency (e.g., in Japan and France; Luo & Shenkar,
2006). This explains why Japanese MNCs often use Japanese as informal
and formal language at the managerial level throughout globally dispersed
subsidiaries despite the scarcity of locals fluent in the language. In con-
trast, polycentric MNCs emphasize local adaptation and have differentiated
practices that reflect the local subsidiary environment with limited control
from the headquarters. Although the managerial-level employees need to
van den Born, Peltokorpi / LANGUAGE POLICIES AND COMMUNICATION 101
visible (e.g., gender) and underlying diversity (e.g., values) can influence
social categorization, there are social identity theory–based arguments in
sociolinguistics that argue that language is a more important and powerful
marker of an individual’s identity than age, gender, and race (e.g., Giles &
Johnson, 1981). As a consequence of language and cultural diversity, local
employees able to speak the company language may not be willing to speak
with expatriates in foreign subsidiaries (Von Glinow et al., 2004).
Expatriates with limited host country language skills are dependent on the
use of a business lingua franca for interactions with customers and local
stakeholders. Direct communication with outsiders is only possible if
expatriates possess sufficient language skills of the common second
language of the country in question and when local stakeholders’ language
skills are sufficiently elevated to maintain quality of communication
content (Du-Babcock & Babcock, 2007). Increasing knowledge about the
host country culture and language facilitates adaptation and expatriate
performance and is thus expected to be of key importance.
PERFORMANCE APPRAISAL
DISCUSSION
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