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Language policies and practices in wholly owned foreign subsidiaries: A recontextualization perspective

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Abstract

This study adopts a recontextualization perspective on language policies and practices in wholly owned foreign subsidiaries. Drawing on a field study of 101 subsidiaries in Japan, we develop a contingency model that distinguishes between four different types of recontextualization with characteristic language policies and practices: developing/locally adaptive, developing/globally integrated, established/locally adaptive, and established/globally integrated. Our analysis shows how each of these four types is accompanied by specific problems and challenges. In particular, it elucidates five important aspects of language implementation: (1) the emergence of language praxis from the interplay of headquarters strategies and local responses; (2) the hybridization of language practices; (3) the central role of key actors such as subsidiary presidents in recontextualization; (4) the pervasive power implications of language policies and practices; and (5) the multifaceted implications for strategic human resource management. By so doing, our analysis opens up new avenues for context-specific and practice-oriented studies of language in multinational companies.

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Notes

  1. We established inter-rater reliability by having one research assistant code 20 randomly selected transcripts independently on language policies and practices in subsidiaries, and the accompanied challenges. The coding was compared with the coding conducted by one interviewer based on the same sets of transcripts. The agreement coefficient (0.94) was above the suggested minimal threshold (0.70) (Cohen, 1960).

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Acknowledgements

We thank the very helpful anonymous reviewers and especially Deputy Editor Mary Yoko Brannen and Area Editor Paula Caligiuri for incisive comments on earlier drafts of this study. We also thank Fabian J. Froese for collaboration.

Author information

Authors and Affiliations

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

    Vesa Peltokorpi

  2. Hanken School of Economics, Helsinki, Finland

    Eero Vaara

  3. EM Lyon Business School, Ecully, 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 Paula Caligiuri, Area Editor, 24 August 2012. This paper has been with the authors for four 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 are in your company? 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?

  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 are in your company? 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?

  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. Language policies and practices in wholly owned foreign subsidiaries: A recontextualization perspective. J Int Bus Stud 43, 808–833 (2012). https://doi.org/10.1057/jibs.2012.28

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  • DOI: https://doi.org/10.1057/jibs.2012.28

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