Exploring the language choice dilemma of international small firms: A social exchange perspective on English-only versus multilingualism

Sazzad Talukder and Wilhelm Barner-Rasmussen

International Business Review, 2024, vol. 33, issue 3

Abstract: In international business, firm-level language choices are important questions that require scarce organizational resources to deal with external stakeholders’ diverse preferences. While language choices have a major impact on the success and survival of SMEs, current knowledge of these choices is mainly based on data from MNEs, which constitutes a research gap. We help address this gap by exploring from a social exchange perspective why and how decision-makers in international small firms choose between “English-only” and “multilingual” approaches to language. We find that when evaluating the cost and benefits of these alternatives, decision-makers aim for high levels of both external and internal resource sharing. However, external language diversity and limited internal availability of relevant language competencies force them into difficult trade-offs.

Keywords: International business; SME; Language; Language choice; Decision makers; Social exchange; Resource sharing; Firm success; Firm survival (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.ibusrev.2024.102257

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