The Impact of Language Competencies of International Business Performance: Small and Medium Enterprise Perspective

The purpose of this research is to draw attention to the role of language competencies in international marketing and business performance. The project aims to quantify the impact of linguistic competency on international marketing and business management in a Small and Medium Enterprises (SMEs) context and also integrates research in linguistic, marketing and international business stream of research. The value of Language and/or linguistic competency is explored for international business performances at a firm level through a development of a new concept, “Language operating climate” (LO-C).
A two-stage scale development process is employed to conceptualise and measure Language operating climate (LO-C). In first stage which represents the focus of this paper, we draw on in-depth literature review and a set of eight interviews with SME owners/manager to conceptualise the new construct, develop/ generate items and conduct item refinement through consultation with academician and practitioners. The next step is to validate and purify measurement using quantitative survey among SMEs. The paper concludes with the conceptual framework for the drivers that highlights necessary conditions for the LO- C and its consequences/impact on international marketing and international business performance for SMEs.