Strategic Decision-Making in a Global Context: The Comprehension Effect of Foreign Language Use on Cooperation
Vivien Procher and
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Katrin Muehlfeld: Trier University
Vivien Procher: Grenoble Ecole de Management, Univ Grenoble Alpes ComUE
Arjen Witteloostuijn: Vrije Universiteit Amsterdam
Management International Review, 2020, vol. 60, issue 3, No 2, 385 pages
Abstract With increasing globalization comes an increasing number of people communicating in foreign languages when making strategic decisions. We develop a theoretical model in which comprehension constitutes an essential mediator for the effects of using a foreign language on cooperation in global business contexts. To resolve conceptual ambiguities, we separate information processing leading to comprehension from decision-making employing the previously comprehended information. For the first step, we demonstrate how using a foreign language can, depending on individuals’ foreign language proficiencies, trigger both lower and higher comprehension. Variation in comprehension is, as a second step and independent of its cause, negatively associated with individuals’ tendencies to cooperate. Our experimental results support our theorizing. This study provides new micro-foundations for strategic decision-making and discusses unreliable cooperation as a potentially destructive managerial group dynamic within foreign language contexts.
Keywords: Foreign language use; Information comprehension; Judgment and decision-making; Strategic decision-making; International management (search for similar items in EconPapers)
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