@article {1972091,
	title = {Language friction and partner selection in cross-border R\&D alliance formation},
	journal = {Journal of International Business Studies},
	volume = {46},
	year = {2014},
	month = {2014},
	pages = {123-152},
	abstract = {How does language friction affect alliance formation? Language friction is a form of cultural friction arising from structural differences in the respective languages used by potential partners to reason and solve problems together. A little language friction may prompt partners to rethink solutions, thereby enhancing collaboration, but excessive friction may impede collaboration. We develop a Language Friction Index (LFI) to quantify relative differences in linguistic structure for any language pair. Utilizing a unique data set of semiconductor design activities (1988{\textendash}2001), our empirical analysis finds an inverted U-shaped relationship between partners{\textquoteright} LFI and the likelihood of cross-border research and development (R\&D) alliance formation. This relationship is further moderated by prior ties and technological distance. Our findings have several important implications, including: (1) language differences are a measurable and discernible source of cultural friction; (2) the effects of language friction are economically significant and strategically consequential; (3) certain aspects of language friction occur independent of language proficiency and persist despite the use of lingua franca to reduce language barriers; (4) linguistic diversity is an indirect marker of cognitive diversity, which is useful in boosting creativity, especially in first-time collaborations; (5) beyond R\&D alliances, language friction may also influence other types of strategic interactions and organizational processes.},
	keywords = {Strategy \& Entrepreneurship},
	author = {Joshi,Amol and Lahiri,Nandini}
}
@conference {1972081,
	title = {The Power of Words: How, Why, and When Do Language Barriers Affect Alliance Formation?"},
	booktitle = {Academy of Management Proceedings},
	year = {2014},
	month = {2014},
	abstract = {We extend previous research on language issues within firms by examining the strategic consequences of language barriers between firms. We elaborate underlying mechanisms of how, why, and when language differences matter in the selection of cross- border R\&D partners. We develop a language distance construct which captures relative differences in linguistic structure for any language pair. We hypothesize and find situations in which language differences help, rather than hinder alliance formation. Our empirical results suggest an inverted U-shaped relationship between language distance and the likelihood of alliance formation. This relationship is further moderated by potential partners{\textquoteright} prior ties and technological distance.},
	keywords = {Strategy \& Entrepreneurship},
	author = {Joshi,Amol and Lahiri,Nandini}
}
@conference {1972101,
	title = {Information Asymmetry and Partner Selection in International Alliances},
	booktitle = {Academy of Management Proceedings},
	year = {2012},
	month = {2012},
	abstract = {We extend prior research on intra-firm language barriers by investigating inter-firm language barriers in cross-border alliances. Integrating concepts from sociolinguistics and information economics, we posit that language barriers between potential partners exacerbate information asymmetries, while market signals of the commercial value of a partner{\textquoteright}s knowledge counteract these asymmetries. To test these ideas, we quantify language barriers using a distance measure of linguistic differences and we analyze data on semiconductor alliances during 1988-2001. Controlling for cultural, geographical, and technological distances, our empirical results suggest that firms overcome large language distances by relying on market signals of a prospective partner{\textquoteright}s level of disclosure, stock of knowledge, and degree of specialization. Stronger signals significantly dampen the negative impact of language distance on the chances of forming an alliance.},
	keywords = {Strategy \& Entrepreneurship},
	author = {Joshi,Amol and Lahiri,Nandini}
}
