Strategic Decision-Making in a Global Context: The Comprehension Effect of Foreign Language Use on Cooperation

Diemo Urbig, Katrin Muehlfeld, Vivien Procher and Arjen Witteloostuijn
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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: 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)
Date: 2020
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11575-020-00412-z

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