OULU BUSINESS SCHOOL

1 oulu BUSINESS SCHOOL Miina Ojanper EFFECTS OF USING english IN BUSINESS communication IN JAPANESE-BASED MULTINATIONAL CORPORATIONS Master s Thesis Department of International BUSINESS January 2014 ACKNOWLEDGEMENTS I would like to express my thanks to my supervisors, Professor Ayumu Sugawara, for the support and insightful advice at Tohoku University, and Professor Tuija Mainela, for the guidance to complete the project at the University of oulu . My deepest gratitude is given to my teacher at Tohoku University who provided me the invaluable chance to contact Japanese companies. I would like to thank the participants of the interviews and the questionnaire, for taking precious time to share their experiences.

2 I am grateful to my research assistant, Kaede Ono, for suggestions, ideas and inspiration. I would also like to thank my friends at Tohoku University with whom I had a great year in Japan and who provided their comments to improve my research. In addition, I would like to express many thanks to Tohoku University professors who introduced me to Japanese culture, language and BUSINESS practices. Without this knowledge, I would not have been able to understand what it means to live and work in Japan. Lastly, I would like to thank my friends and loved ones. I am grateful for their advice and for making this project more fun. Finally, I owe everything to my parents, for their love and support. UNIVERSITY OF oulu ABSTRACT OF THE MASTER'S THESIS oulu BUSINESS SCHOOL Unit Department of Management and International BUSINESS Author Ojanper Miina Supervisor Mainela, T.

3 Professor (University of oulu ), Sugawara, A. Associate Professor (Tohoku University) Title Effects of using english in BUSINESS communication in Japanese-based multinational corporations Subject International BUSINESS Type of the degree Master s Degree Time of publication January 2014 Number of pages 102 + 4 Abstract Japanese companies are internationalising and becoming increasingly involved in global BUSINESS . It has become more and more common in Japan to use english , the global language of BUSINESS . Recently, english has been introduced as the official language of a few Japanese corporations and discussions are going on in many other companies. english is not used for international operations solely but it is required in almost all functions.

4 english has an undeniable role as the lingua franca of global BUSINESS . Using english is no more a choice but inevitable for companies trying to compete in international markets. Yet, the effects of english in BUSINESS communication have not been studied much until recent years. The aim of this research is to examine the effects of using english in Japanese-based multinational corporations. Using qualitative research method, the empirical part of the study is comprised of a two-step research including three interviews and a questionnaire. Participants were selected from four Japanese-based multinational corporations. Three main topics are discussed in the study. Firstly, the role of language skills in cross-cultural BUSINESS communication is analysed.

5 Secondly, the effects of using english in Japanese companies are studied on two levels including individual and company levels. On individual level, it is discussed how using english affects job performance, and how english language skills affect career development in Japanese corporations. On company level, it is examined how the corporate strategy can support effective use of english in Japanese companies. There were two main findings in this study. Firstly, english language skills can contribute to better job performance and promotion in Japanese-based multinational corporations. Employees with english language skills seem to have better chances for promotion and overseas assignments, and have wider career choices.

6 On the other hand, using english can make communication slow, cause misunderstanding, create frustration and create barriers for employees with poor language skills. Secondly, it was found out that the company strategy has an essential role in supporting effective BUSINESS communication in english . Not only can the company choose the right language policy, but it can enhance effective use of english , by creating an encouraging atmosphere and offering its employees opportunities to use and practise english language skills. In summary, by presenting a qualitative study of Japanese-based multinational corporations, this research aims at contributing to better understanding of effective BUSINESS communication . The role of language cannot be left aside, since effective cross-cultural BUSINESS communication can define Japanese companies success in today s multicultural BUSINESS world.

7 This study was conducted in Tohoku University research programme during academic year 2012 2013, in Sendai, Japan. Keywords Cross-cultural communication , corporate language, internationalisation, language Additional information CONTENTS 1. INTRODUCTION .. 9 Background .. 9 Research questions and objectives ..11 Basic concepts ..12 Methodology ..13 Structure of the paper ..14 2. JAPAN IN THE global BUSINESS WORLD ..17 Internationalisation of Japanese companies ..17 Japan and english ..19 Japanese culture and BUSINESS communication ..21 Career development in Japan ..23 3. english IN CROSS-CULTURAL BUSINESS communication ..27 Cross-cultural communication ..27 Role of language in intercultural communication ..28 Language skills and career development.

8 30 Language and company strategy ..33 Language policies ..35 Implementing a language english as the lingua franca ..40 Theoretical framework ..43 4. EMPIRICAL RESEARCH METHODOLOGY ..46 Data collection methods ..46 Interviews ..47 Questionnaire ..49 Selection of the participants ..51 Data analysing methods ..53 Interviews ..53 Questionnaire ..54 5. english IN BUSINESS communication IN JAPANESE COMPANIES ..55 Interviews ..55 Interview A ..55 Reasons to use english in Japan ..55 Opportunities and challenges ..57 How to respond to the challenges ..58 Effects of Interview B ..60 Reasons to use english in Japan ..60 Opportunities and challenges ..61 How to respond to the challenges ..62 Effects of Interview C.

9 63 Reasons to use english in Japan ..63 Opportunities and challenges ..64 How to respond to Effects of Questionnaire ..66 Reasons to use english ..67 Benefits and challenges ..71 How to respond to Summary of the results ..77 Reasons to use english ..77 Job performance - benefits and difficulties ..80 Language skills and career development ..83 Company strategy to support effective use of english ..84 6. DISCUSSION ..88 Conclusions ..88 Managerial implications ..90 Evaluation of the study ..91 Limitations ..93 Suggestions for further research ..94 REFERENCES ..95 APPENDICES Appendix 1 Outline of the interviews .. 103 Appendix 2 Invitation for interviews in english .. 105 Appendix 3 Invitation for interviews in Japanese.

10 106 Appendix 4 Questionnaire form .. 107 FIGURES Figure 1. Internal labour markets in Japan and in other countries (modified from Ishida 1999:7) ..24 Figure 2. Language skills as one of the contributing factors to career development ..32 Figure 3. Cross-cultural BUSINESS communication skills ..43 Figure 4. Effects of language skills on job performance in MNCs ..44 Figure 5. Effective implementation of a language policy (modified from Neeley 2012:121 123)..45 Figure 6. Attitudes towards using Figure 7. Motivation to use english ..69 Figure 8. Company C current situation of using Figure 9. Company D current situation of using Figure 10. Benefits of english language skills..72 Figure 11. Difficulties related to communication in.