The Power of Words in Multinational Contexts: The Impact of Language on Power in Multinational Teams

Abstract

This study explores the impact of language diversity, specifically of unequal language proficiency, on power relations in multinational teams (MNTs). Based on qualitative investigations of 15 MNTs in three German automotive multinational corporations (MNCs) we show that the degree of disparity in MNT members’ proficiency in their team’s working language and the degree to which superior language proficiency coincides with other sources of power determine whether language diversity increases or reduces power differentials in a team. We also demonstrate that MNT members perceive changes in power structures based on high disparity in language proficiency as illegitimate, whereas they welcome reduced power differentials as a consequence of homogenous proficiency levels. These effects suggest that high proficiency disparity ultimately reduces MNT functionality. Our study extends research on power in multinational organizations and suggests contextual modifications to extant power theories. It also contributes to the literature on language issues in MNCs by showing that the negative effects of language diversity on power relations are mostly due to differences in relative language proficiency, rather than MNC employees’ absolute skill levels. Finally, we contribute to MNT research by outlining how the language-induced power effects in MNTs differ from those in HQ-subsidiary relations.