Linguistic theory, linguistic diversity and Whorfian economics

Languages vary greatly in their words, sounds and sentence structures. Linguistic theory has shown that many aspects of variation are superficial and may not reflect underlying formal similarities between languages, which are relevant to how humans learn and process language. In this chapter, I show both how languages can vary and how the surface variations can be manifestations of underlying similarities. Economists have sometimes adopted a ‘Whorfian’ view that differences in languages can cause differences in how their speakers think and behave. Psychological experiments have shown both support for this hypothesis and evidence against it. Specific arguments that language causes thought, which have been made in recent economics papers, are examined in the light of what linguistics tells us about superficial and underlying variatio

Language in international business: a review and agenda for future research

A fast growing number of studies demonstrates that language diversity influences almost all management decisions in modern multinational corporations. Whereas no doubt remains about the practical importance of language, the empirical investigation and theoretical conceptualization of its complex and multifaceted effects still presents a substantial challenge. To summarize and evaluate the current state of the literature in a coherent picture informing future research, we systematically review 264 articles on language in international business. We scrutinize the geographic distributions of data, evaluate the field’s achievements to date in terms of theories and methodologies, and summarize core findings by individual, group, firm, and country levels of analysis. For each of these dimensions, we then put forward a future research agenda. We encourage scholars to transcend disciplinary boundaries and to draw on, integrate, and test a variety of theories from disciplines such as psychology, linguistics, and neuroscience to gain a more profound understanding of language in international business. We advocate more multi-level studies and cross-national research collaborations and suggest greater attention to potential new data sources and means of analysis