Based on a qualitative study of 14 knowledge intensive companies, this chapter suggests that multicultural and multilingual firms are faced with certain challenges in the attempt to fruitfully utilize the diverse background of their workforce. Firstly, through informal settings, the employees to create social boundaries within the firm use native languages strategically. Secondly, even though the introduction of English as cooperate language might solve some communication issues, it tends to render the communication less nuanced, thereby reducing the use of human resources within the firm. Thirdly, ICT does not necessarily solve communication problems within a given company. It can even be used as a social ‘tool’ to uphold social boundaries or social fragmentation. It is suggested that in order to address these challenges, the management should seek to reward not only individual employees, but also expand the notion of performance to include the collectivity of the workplace.
TopIntroduction
ICT, or Information Communication Technology, has come to play a larger role in contemporary business communities due to the increased internationalization of companies worldwide (Griffith, 2002; Palmer-Silveira, Ruiz-Garrido, & Fortanet-Gómes, 2006). Much like all other human interaction, communication is at the center of ICT. And communication is what seems to be one of the major managerial tasks that companies working in globalized markets are faced with. Therefore, managing interaction across national and linguistic boundaries has become a daily issue for a growing number of managers (Maznevski & Chudoba, 2000; Welch, Welch & Marschan-Piekkari, 2001).
In the management of multicultural groups, the varied nature of the group has often been described as a competitive advantage in the creation of information and other human resources (Adler, 1997; Miller, Fields, Kumar, & Ortiz, 2000; Paulus, 2000). Nonetheless, the success of the diverse groups is not given, and managerial challenges should not be taken lightly (Leonard & Swap, 1999). A number of studies indicate that communication management is especially important (Distefano & Maznevski, 2000; Loosemore & Lee, 2002; Maznevski, 1994). And since ICT is the basis of much internal and inter-unit communication in multicultural firms, the relation between diversity management, communication and ICT is an important topic in the understanding of international business.
Communication is central to management since, in one way or another, challenges to communication have an effect on all managerial processes (Cheney, Thøger, Zorn & Ganesh, 2004). Furthermore, communication is the basis of all employee collaboration. In a multinational context, linguistic and cultural differences make communication even more of a concern (Beamer & Varner, 2005; Loosemore et al., 2002). In relation to this, the main managerial challenge of the diverse group is that efficient communication actually occurs (McDonough, Kahn & Barczak, 2001). If group members do not communicate well, cultural and linguistic diversity will most likely become unfavorable (Distefano et al., 2000; Hambrick, Davison, Snell & Snow, 1998). Therefore, the arguments presented in this chapter rely on the fundamental premise that communication is necessary in all coordination and organization of human resources. Accordingly, fostering a rich communication flow within a multicultural organization is an important source of competitive advantage, thus nurturing social and cultural sustainability within the company and society as a whole.