02096nas a2200157   4500008004100000245008300041210006900124260000900193300001200202490000700214520153000221653003201751100001601783700002001799856011901819       2014                        eng d00aLanguage friction and partner selection in cross-border R&D alliance formation0 aLanguage friction and partner selection in crossborder RD allian  c2014  a123-1520 v463 aHow 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 (1988–2001), our empirical analysis finds an inverted U-shaped relationship between partners’ 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.10aStrategy & Entrepreneurship1 aJoshi, Amol1 aLahiri, Nandini  uhttps://business.oregonstate.edu/biblio/language-friction-and-partner-selection-cross-border-rd-alliance-formation