Wilhelm Barner-Rasmussen

The Multinational Corporation as a Multilingual Organization: The Notion of a Common Corporate Language

– This paper seeks to explore the use of common corporate language(s) in multinational corporations (MNCs). These organizations are usually multilingual and characterized by high language diversity. Parallel streams of literature in international management and international business communications are built upon to problematize the notion of a common corporate language., – Information gathered from 36 personal interviews of the German‐based multinational Siemens is the primary source of data for this case study. The interviews were conducted in three different languages in three different organizational units of Siemens AG in Finland and Germany., – It was possible to identify powerful interplay between two languages – German and English – and to uncover discrepancies between company policy and employee practices with regard to language use. On the basis of these findings, the challenges of managing language in multinationals are discussed., – Argues that a common corporate language may not be as widely shared within the firm as the term suggests, given the multilingual nature of most multinationals, variation in the language proficiency of their employees, and the level of analysis used in previous research.

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

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.

Determinants of the feedback-seeking behaviour of subsidiary top managers in multinational corporations

The aim of this paper is to explore potential determinants of the feedback-seeking behaviour (FSB) of subsidiary top managers in multinational corporations (MNCs). The main contribution of the study is that the linkage between FSB and intra-MNC interaction traced in previous studies is complemented with several other determinants. Among these, trust and economic incentives stand out as particularly important. These findings, based on quantitative data from 89 Finnish subsidiaries of foreign MNCs, add to our understanding of individual managerial behaviour in MNCs and have important implications for both scholars and practitioners interested in issues of intra-MNC control, coordination, and knowledge sharing. At the same time, the findings clearly illustrate that FSB is a complex phenomenon with a broad range of determinants, something which should be taken into account in future studies of the topic.

What Difference Does the Location Make?: A Social Capital Perspective on Transfer of Knowledge from Multinational Corporation Subsidiaries Located in China and Finland

This article proposes that MNC subsidiaries located in economically highly developed countries will transfer more knowledge to other corporate units than will subsidiaries located in less developed countries. The direct effect of subsidiary location is tested, as well as the interaction effects of location and social capital, on outward knowledge transfer from subsidiaries to other MNC units. The analysis is based on a sample of 164 MNC subsidiaries located in Finland (an economically highly developed country) and China (a less developed country). Results indicate that subsidiaries located in Finland tend to engage more actively in outward knowledge transfer than do their peer units located in China. The conclusion is therefore that this negative ‘country-of-origin’ effect increases the need for promoting trust and shared vision among individuals and units in the MNC.

Mobility of headquarters in multinational corporations

In the present paper, we aim to explain the dynamic phenomenon of Headquarters (HQ) relocation. The relocation of sales, marketing and production activities has been widely studied, but the strategic decision to relocate a HQ unit across borders has attracted far less attention. Drawing on a multiple case study of Finnish multinationals we conceptualise HQ relocation as an outcome of six key drivers each involving pragmatic and symbolic dimensions. Moreover, we identify a diversity of relocation patterns such as direct, hidden, full, partial and virtual. Based on evidence of extreme mobility in terms of repeated relocations and virtual HQ, we argue that under particular circumstances HQ may be highly mobile.

Drivers of interpersonal and inter-unit trust in multinational corporations

Purpose – This chapter explores the determinants of trust, a manifestation of the relational dimension of social capital, between interaction partners in multinational corporations at interpersonal and inter-unit levels of analysis. Methodology – The study is based on two quantitative data sets from the Finnish subsidiaries of foreign MNCs, one at the individual level and another at the unit level (n= 265/102). Findings – Our results indicate that the drivers of trust exhibit similar patterns across both levels of analysis, but are stronger at the interpersonal level. Trust was significantly and positively related to the length of the relationship between the two individuals or units, and to the frequency of the communication between them whereas it was found to be unrelated with cultural distance. Limitations – The key limitations of the study were as follows. First, the samples at both levels were relatively small, a factor that may partly explain why some of the statistical relationships were relatively weak. Second, the study was carried out in one location only, and our findings need to be corroborated in other cultural settings. Third, we only examined the level of trust from one side of the relationship, as a dyadic analysis was not possible with the present data. Practical implications – For practicing managers, the main message from our research is that communication frequency and the length of the relationship matter for the relational social capital that exists within MNCs – both at the interpersonal and unit levels.