<p>Multinational enterprises (MNEs) are increasingly adopting a corporate language to support communication across global operations. However, debates continue over whether such adoption truly facilitates organizational goals, particularly knowledge transfer, which is broadly viewed as a critical issue in international Management. This study advances the conversation by examining corporate language and knowledge transfer in MNE subsidiaries through the lens of relevance theory. We argue that for knowledge transfer to be effective, the use of a corporate language must establish shared meaning and context, thereby enhancing the perceived relevance of the information to subsidiary employees. Drawing on data from 132 subsidiaries of foreign MNEs operating in China, a major recipient of foreign direct investment in the Asia Pacific, we employ a two-part research model that distinguishes between the formal adoption of a corporate language and its practical implementation by subsidiary employees. Our findings demonstrate that communication quality, socialization mechanisms, and corporate language proficiency interact to enhance the relevance of corporate communication, ultimately facilitating knowledge transfer. These insights offer practical guidance for MNEs seeking to overcome linguistic barriers and improve knowledge sharing within their international operations.</p>

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Corporate language and knowledge transfer in MNE subsidiaries: A relevance lens

  • Audra I. Mockaitis,
  • Jiahui Tan,
  • Jinwei Zhu,
  • Cherrie Jiuhua Zhu,
  • Ziran Chen

摘要

Multinational enterprises (MNEs) are increasingly adopting a corporate language to support communication across global operations. However, debates continue over whether such adoption truly facilitates organizational goals, particularly knowledge transfer, which is broadly viewed as a critical issue in international Management. This study advances the conversation by examining corporate language and knowledge transfer in MNE subsidiaries through the lens of relevance theory. We argue that for knowledge transfer to be effective, the use of a corporate language must establish shared meaning and context, thereby enhancing the perceived relevance of the information to subsidiary employees. Drawing on data from 132 subsidiaries of foreign MNEs operating in China, a major recipient of foreign direct investment in the Asia Pacific, we employ a two-part research model that distinguishes between the formal adoption of a corporate language and its practical implementation by subsidiary employees. Our findings demonstrate that communication quality, socialization mechanisms, and corporate language proficiency interact to enhance the relevance of corporate communication, ultimately facilitating knowledge transfer. These insights offer practical guidance for MNEs seeking to overcome linguistic barriers and improve knowledge sharing within their international operations.