This article contributes to two recurring and very central debates in the international management literature: the convergence vs. divergence debate and the standardization vs. localization debate. Using a large‐scale sample of multinationals headquartered in the United States, Japan, and Germany, as well as subsidiaries of multinationals from these three countries in the two other respective countries, we test the extent to which HRM practices in subsidiaries are characterized by country‐of‐origin, localization, and dominance effects. Our results show that overall the dominance effect is most important (i.e., subsidiary practices appear to converge to the dominant U.S. practices). Hence, our results lead to the rather surprising conclusion for what might be considered to be the most localized of functions—HRM—that convergence to a worldwide best practices model is clearly present. The lack of country‐of‐origin effects for Japanese and German multinationals leads us to a conclusion that is of significant theoretical as well as practical relevance. Multinationals might limit the export of country‐of‐origin practices to their core competences and converge to best practices in other areas. © 2007 Wiley Periodicals, Inc.

AcknowledgementsWe thank Sebastian Reiche for his helpful comments on an earlier draft of this manuscript. We are very grateful for the constructive and thoughtful guidance by special issue editors Rebecca Piekkari and Mary Yoko Brannen, as well as three anonymous reviewers. MNTs in three German automotive corporations, we show how MNT members' cognitive and emotional reactions to language barriers influence their perceived trustworthiness and intention to trust, which in turn affect trust formation. We contribute to diversity research by distinguishing the exclusively negative language effects from the more ambivalent effects of other diversity dimensions. Our findings also illustrate how surface-level language diversity may create perceptions of deep-level diversity.Furthermore, our study advances MNT research by revealing the specific influences of language barriers on team trust, an important mediator between team inputs and performance outcomes. It thereby encourages the examination of other team processes through a language lens. Finally, our study suggests that multilingual settings necessitate a reexamination and modification of the seminal trust theories by Mayer, Schoorman (1995) andMcAllister (1995). In terms of practical implications, we outline how MNT leaders can manage their subordinates' problematic reactions to language barriers and how MNT members can enhance their perceived trustworthiness in multilingual settings.

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We scrutinize the explanatory power of one of the key concepts in International Business: the concept of (cultural) distance. Here we focus on its effect on entry mode choice, one of the most researched fields in international business strategy. Our findings might, however, be equally be relevant for the field of International Business as a whole. Our analysis is based on a review of 92 prior studies on entry mode choice, as well as an empirical investigation in over 800 subsidiaries of MNCs, covering nine host and fifteen home countries across the world. We conclude that the explanatory power of distance is highly limited once home and host country context are accounted for, and that any significant effects of cultural distance on entry mode choice might simply be caused by inadequate sampling. Entry mode studies in particular, and International Business research in general, would do well to reconsider its fascination with distance measures, and instead, focus first and foremost on differences in home and host country context. We argue that serious engagement with deep contextualization is necessary in International Business research to pose new and relevant questions and develop new and innovative theories that explain empirical phenomena.

We developed a model illuminating team knowledge exchange processes as a key link between organizational diversity climate and the effectiveness of multicultural teams (MCTs). Our analysis is based on 143 in-depth interviews and extensive observations of team interactions that occurred in 48 teams from 11 companies. Our findings revealed that teams that oscillated between assertive and cooperative knowledge exchange processes were more effective. We also found such dual processes were more prevalent in organizations that had an engagement-focused diversity climate characterized by utilization of diversity to inform and enhance work processes based on the assumption that cultural differences give rise to different knowledge, insights, and alternative views. Based on our findings we developed specific propositions about optimizing MCT knowledge-exchange processes to guide future research and practice. We would like to acknowledge the helpful advice of Aparna Joshi and our three anonymous reviewers. We also appreciate the guidance we received from Prof. Gerhard Fink on data collection and analysis at the very early stages of our project.

This article adopts a cognitive neuroscience perspective to develop theory about the consequences of foreign language use in organizational settings. In contrast to previous work that has focused on the interpersonal effects of foreign language use, we focus on intra-personal, cognitive processes that affect employee performance. Our model delineates how foreign language processing depletes cognitive resources, which can ultimately result in biased decisionmaking and reduced self-regulation. We discuss theoretical and practical implications of our model for international business research in the context of an increasing number of organizations that have adopted a common corporate language.

When conducting international research projects, scholars face a myriad of challenges that reach beyond those encountered in domestic research. In this paper, we explore the specific issues related to international survey research, focusing on the different stages of the research process that include defining the study population and gaining data access, survey development, data collection, data analysis, and finally publication of the results. For each stage, we review the pertinent literature, provide illustrations based on examples from our own research projects, and offer possible solutions to address the inherent challenges by formulating suggestions for improving the quality of international survey research.