Creativity and Performance in MNCs: The Power of Inclusive Language Use

Abstract

Few studies have dealt with inclusive language use in multicultural organizations. This is unfortunate because it has been hypothesized that such organizations will be more creative and will perform better than mono-cultural organizations if communication issues have been dealt with correctly by managers. In this study, we test the general hypothesis that inclusive language use by managers and employees in formal and informal situations will increase the creativity and performance in multicultural organizations. By use of responses from 676 individuals employed in privately owned multicultural companies we found that common language management communication was strongly associated with performance but only weakly associated with creativity. Openness to language diversity among employees, however, had strong relations with both creativity and performance. This indicates that management communication may provide information and a shared identity that can increase the performance of an organization but in order to increase creativity there is a need to also facilitate inclusive group processes. Such findings provide new insights into the theoretical idea that diversity leads to creativity and performance if communication is managed correctly.