Journal
INTERNATIONAL BUSINESS REVIEW
Volume 26, Issue 1, Pages 119-129Publisher
ELSEVIER
DOI: 10.1016/j.ibusrev.2016.05.010
Keywords
Absorptive capacity; Knowledge transfer; Language-sensitive recruitment; Language training; Japan
Categories
Funding
- Grants-in-Aid for Scientific Research [25285114] Funding Source: KAKEN
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Are multinational corporations able to enhance the development of absorptive capacity in foreign subsidiaries through language-oriented human resource management (HRM) practices? Taking into account that a shared language enhances absorptive capacity and that many multinational corporations are multilingual entities, this question is relevant but given little focused attention in international business research. In this paper, we hypothesize that two language-oriented HRM practices - language-sensitive recruitment and language training - enhance absorptive capacity in foreign subsidiaries. In addition, we hypothesize that interunit knowledge transfer partially mediates the positive relationship between these language-oriented HRM practices and absorptive capacity. Analyses of survey data derived at three points in time from 574 foreign subsidiary units in Japan provide support for these hypotheses. (C) 2016 Elsevier Ltd. All rights reserved.
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