Denice Welch

In the shadow: the impact of language on structure, power and communication in the multinational

The principal aim of this paper is to explore the impact of language on communication within large and geographically dispersed multinationals. Much of the earlier research emphasizes the importance of horizontal communication and team building as control and coordination mechanism in such organizations: yet the role of language is often forgotten. Based on an in-depth case study of one Finnish multinational, Kone and its diverse subsidiaries, it is argued that language imposes its own structure on communication flows and personal networks. Subsidiary staff with confined language skills tend to build supporting personal relationships with language mediators, while those with superior language capabilities are able to build broad contact networks within the multinational. The investigation also reveals that language is often used as an informal source of expert power in multinationals.

Language: The Forgotten Factor in Multinational Management

This article argues that language needs to be considered as an important element in managing multinationals because it permeates virtually every aspect of their business activities. Due to the demands of operating in multiple foreign language environments, a shared company language does not necessarily ensure that meaningful communication occurs. The investigation of a Finnish multinational elevator company, Kone and its diverse subsidiaries, demonstrates the pervasive impact of language, and the range of individual responses to language constraints. An important implication of the analysis is that multinationals need to ensure that language does not become a peripheral, or forgotten, issue; rather, it should be viewed in more strategic terms.

Speaking in tongues: the importance of language in international management processes

This paper considers recent research on language effects in some international management situations, specifically, intraorganizational interactions, such as interunit communication and subsidiary autonomy, and in postmerger integration. Within the multinational corporation (MNC), the need for control and coordination has driven the move toward language standardization, in the form of a common corporate language, with widespread effects on management processes. Our analysis indicates that, while important, language issues have been relatively ignored but may offer a rewarding research avenue regarding the functioning of the MNC, with potentially important implications for management.

All pain, little gain? Reframing the value of international assignments

It has long been recognised that international assignments play an important strategic role in a companys portfolio of global staffing options. However, there has been limited work that demonstrates how companies measure their return on investment (ROI) from international assignments. In this article, we present the results of a two-country study of nine multinational companies that questions the use of measures such as return-on-investment (ROI). Rather, we reframe how international assignments are considered and contend that the concept of intellectual capital best captures the true worth – to organisations and individuals – of international assignments.

Creating Meaningful Switching Options in International Operations

Abstract By entering foreign markets through the use of local operators or intermediaries, such as licensees and distributors, companies can reduce their risk exposure and the resource demands of internationalisation. However, at a later stage, the entrant firms may want to shift to a higher control mode—perhaps a sales or production subsidiary. A difficult question, therefore, is how a company can create meaningful strategic options so as to facilitate a subsequent shift. In this article, issues surrounding the achievement of strategic flexibility in operation mode use are examined. A matrix is developed to illuminate the options of revealing or concealing future intentions regarding integration or the termination of a relationship with the foreign partner. A number of company cases are presented to illustrate the way in which these options may be created to facilitate a future shift from one operation mode to another within a foreign market.

Network development in international project marketing and the impact of external facilitation

This article reports on an experiment in external facilitation of international project marketing activity. The case involved a large, World Bank funded project in China aimed at upgrading grain storage and handling facilities. An organization was established in Australia to bring together and support efforts by Australian firms to win a share of this project. Network-building, at a number of levels both in China and Australia, emerged from the qualitative study as a critical factor in effective project marketing. External facilitation played a positive role in the network-building process.

Evolving strands of research on firm internationalization: An Australian-Nordic perspective

Peter W. Liesch is a professor at the Business School of the University of Queensland, Australia. Lawrence S. Welch and Denice E. Welch are professors at the Mt. Eliza Business School in Melbourne, Australia. Sara L. McGaughey is a senior lecturer at the School of International Business of the University of New South Wales, Australia. Bent Petersen is an associate professor in the Department of International Economics and Management of the Copenhagen Business School in Frederiksberg, Denmark. Peter Lamb is a lecturer at the School of Business of La Trobe University in Victoria, Australia.

Network analysis of a new export grouping scheme: The role of economic and non-economic relations

Abstract Export grouping schemes can be viewed as an attempt to manage network development. This article examines a new Australian export grouping scheme in terms of its role and impact on the industrial network of which it is a part. The role played by non-economic exchange relations as well as economic, buyer-seller, exchange relations are emphasised, including competitive and potential interfirm relations and the way informal interpersonal relations. Spawned initially by formal grouping processes, were found to play an important part in group functioning and in outcomes from group activities.

Cultural and Bureaucratic Control in MNEs: The Role of Expatriate Performance Management

This conceptual paper examines the role of performance management in the development and maintenance of cultural control in multinational enterprises. It employs a multilevel, multidisciplinary approach to synthesize the dimensions of the control mix, and examines their underlying assumptions.

Dancing to success: export groups as dance parties and the implications for network development

Export grouping schemes are a commonly used vehicle for promoting international competitiveness, but their success rate is patchy. A perennial problem is the value of continuing the formal group structure itself. In this paper we examine the nature and role of export groups using the results from two in‐depth Australian case studies. The focus of analysis is on export groups as structuring devices rather than structures. They are viewed as action learning exercises in which knowledge and resource creating and self‐organizing processes are nurtured, these processes in turn shaping the evolution of interfirm relations and networks. Building on earlier work by Wilkinson and Young the dance metaphor is extended to depict and analyze export groups as dance parties. Dance themes are used to illustrate and dramatize issues arising in the design, development and evaluation of export grouping schemes and are related to the real experience of the two case studies examined.