engleski

The Impact of Foreign Language Skills and Cultural Competencies on SMEs' Success in International Markets

The changing global economy and international settings demand high levels of foreign language skills, as well as cultural competencies to be taken into account while conducting business. In particular, top managers' and key personnel's foreign language and cultural skills emerge as being critical as a source of competitive advantage contributing to superior company performance in international markets. Based on a sample of 123 respondents employed in managerial and key personnel positions, our study examines the role and impact of foreign language skills and cultural competencies on the international performance and success of small and medium-sized enterprises (SMEs) from the Istrian County, Croatia. Our findings support the hypothesis that foreign language skills positively affect a company’s success ; however, contrary to our expectations, there was no statistically significant support for the positive effect of cultural awareness on a company’s success. The authors suggest that it is crucial for domestic SMEs that they adopt strategies for dealing with linguistic barriers upon entering a new foreign market, as this will inevitably lead to reduction in cultural barriers as well, and help domestic companies in achieving improved international performance.

internationalisation of SMEs, linguistic and cultural barriers, language skills and cultural competencies, language management strategies, cultural management strategies

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