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  u/biblio/language-friction-and-partner-selection-cross-border-rd-alliance-formation01275nas a2200133   4500008004100000245009200041210006900133260000900202520074200211653003200953100001600985700002001001856012001021       2014                        eng d00aThe Power of Words: How, Why, and When Do Language Barriers Affect Alliance Formation?"0 aPower of Words How Why and When Do Language Barriers Affect Alli  c20143 aWe 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’ prior ties and technological distance.10aStrategy & Entrepreneurship1 aJoshi, Amol1 aLahiri, Nandini  u/biblio/power-words-how-why-and-when-do-language-barriers-affect-alliance-formation01465nas a2200133   4500008004100000245007500041210006900116260000900185520095700194653003201151100001601183700002001199856011201219       2012                        eng d00aInformation Asymmetry and Partner Selection in International Alliances0 aInformation Asymmetry and Partner Selection in International All  c20123 aWe 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’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'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.10aStrategy & Entrepreneurship1 aJoshi, Amol1 aLahiri, Nandini  u/biblio/information-asymmetry-and-partner-selection-international-alliances