ARCTIC: Assessing and Reviewing Cultural Transaction in International Companies
Lead Research Organisation:
University of Surrey
Department Name: Languages and Translation Studies
Abstract
The project is going to investigate how internationally operating small and medium size enterprises (SMEs) see linguistic and intercultural barriers affecting their ability to trade abroad or with international clients. The team of researchers, from the University of Surrey, the University of the West of England, Bristol and the University of Wales, Newport, will work in collaboration with the Surrey and Bristol and South Wales Chambers of Commerce and a sample of SMEs in southern England and South Wales. The project will also explore how businesses and universities can collaborate to apply academic research into practice and meet the needs of SMEs in relation to intercultural trade.
Previous investigations on language skills and intercultural competence for businesses have shown that businesses loose trade because they lack language expertise or do not have the necessary intercultural competence and awareness. This has a marked impact on economic growth: it has been estimated that as much as 21 billion pounds annually are lost annually because UK SMEs are unable to engage fully in foreign markets, and that adopting a corporate policy emphasizing these skills could result in businesses achieving 44.5% higher export sales.
A survey and interviews with SME managers will be carried out to explore in detail the barriers to international trade UK SMEs feel they face in relation to language and intercultural communication skills, what existing corporate strategies they have in place to deal with them and what support they need to meet training needs. Moreover, we will also attempt to differentiate markets in which English poses a barrier to trade from those in which it does not.
The findings of this research will be used to identify areas in which SMEs need support and ways in which universities can collaborate with SMEs. The research team with their empirical expertise in the study of intercultural communication and languages are uniquely suited to offer that support.
The results of this survey will be fed back to the public and the business community through a dedicated website, a twitter feed and a networking event that will bring together SMEs, business intermediaries (e.g. Chambers of Commerce etc.) and researchers in business studies, language and intercultural studies. They will also feed into the development of the Export Communications Review (ECR) and the training programme for language consultants working with UK export SMEs.
Moreover, we will engage with the media and with schools to ensure that the public is made aware of the personal, economic and societal value of intercultural awareness and language learning.
Previous investigations on language skills and intercultural competence for businesses have shown that businesses loose trade because they lack language expertise or do not have the necessary intercultural competence and awareness. This has a marked impact on economic growth: it has been estimated that as much as 21 billion pounds annually are lost annually because UK SMEs are unable to engage fully in foreign markets, and that adopting a corporate policy emphasizing these skills could result in businesses achieving 44.5% higher export sales.
A survey and interviews with SME managers will be carried out to explore in detail the barriers to international trade UK SMEs feel they face in relation to language and intercultural communication skills, what existing corporate strategies they have in place to deal with them and what support they need to meet training needs. Moreover, we will also attempt to differentiate markets in which English poses a barrier to trade from those in which it does not.
The findings of this research will be used to identify areas in which SMEs need support and ways in which universities can collaborate with SMEs. The research team with their empirical expertise in the study of intercultural communication and languages are uniquely suited to offer that support.
The results of this survey will be fed back to the public and the business community through a dedicated website, a twitter feed and a networking event that will bring together SMEs, business intermediaries (e.g. Chambers of Commerce etc.) and researchers in business studies, language and intercultural studies. They will also feed into the development of the Export Communications Review (ECR) and the training programme for language consultants working with UK export SMEs.
Moreover, we will engage with the media and with schools to ensure that the public is made aware of the personal, economic and societal value of intercultural awareness and language learning.
Planned Impact
A number of steps will be taken to ensure that potential beneficiaries have the opportunity to engage with the research. The project consortium consists of three higher education institutions and includes researchers from the fields of languages, linguistics and business. This cross-disciplinary approach ensures that the research facilitates cross-disciplinary collaboration in possible future projects. Moreover, the Surrey, Bristol and South Wales Chambers of Commerce as non-academic partners in the project will assist with the dissemination of results to the business community.
Impact will be achieved through the following measures and channels:
1. A website will be set up which will provide an outline of the topic and the proposed activities as well as links to existing resources and services. It will also serve as a dissemination outlet for the survey and all follow up publications. As we can use the channels of Surrey, Bristol and South Wales Chambers of Commerce to disseminate our website, a large number of businesses can be reached and impact will be maximised.
2. To allow for networking during and beyond the project, a Twitter feed will be set up to disseminate project aims, milestones, links to resources and results. This feed will reach busy professionals and, through the retweeting function, ensure a wide reach of the project.
3. Tailored feedback will be provided to all companies taking part in the project to allow them to maximise their potential for international trade.
4. A professionally oriented article on the results of the survey and interviews and the recommendations arising from it will be written and published in a suitable outlet of project partners and disseminated through the ECR (Export Communications Review) scheme. Preliminary conversations have already taken place between Stephen Hagen and Robin Godfrey, ECR manager.
5. At the end of the project, a networking event will bring together all key stakeholders, e.g. business leaders, academics, business intermediaries, language consultants etc. This will allow for networking between the beneficiary communities and for exploration of possible future collaborative projects. In order to achieve the widest possible reach, we are hoping to organise the networking event at the premises of one of our collaborating partners and/or with the help of a major business intermediary.
6. The results of the survey will be fed into the training programme for intercultural/language consultants with UK export SMEs involved with the language/communication audit processes, and disseminated to the EU business platform specialising in business language. This allows for widest possible dissemination of the results and for impact beyond the lifetime of the project.
7. We will work with our universities' press offices to ensure that the results of the project achieve dissemination via mainstream and specialised media outlets.
Impact will be achieved through the following measures and channels:
1. A website will be set up which will provide an outline of the topic and the proposed activities as well as links to existing resources and services. It will also serve as a dissemination outlet for the survey and all follow up publications. As we can use the channels of Surrey, Bristol and South Wales Chambers of Commerce to disseminate our website, a large number of businesses can be reached and impact will be maximised.
2. To allow for networking during and beyond the project, a Twitter feed will be set up to disseminate project aims, milestones, links to resources and results. This feed will reach busy professionals and, through the retweeting function, ensure a wide reach of the project.
3. Tailored feedback will be provided to all companies taking part in the project to allow them to maximise their potential for international trade.
4. A professionally oriented article on the results of the survey and interviews and the recommendations arising from it will be written and published in a suitable outlet of project partners and disseminated through the ECR (Export Communications Review) scheme. Preliminary conversations have already taken place between Stephen Hagen and Robin Godfrey, ECR manager.
5. At the end of the project, a networking event will bring together all key stakeholders, e.g. business leaders, academics, business intermediaries, language consultants etc. This will allow for networking between the beneficiary communities and for exploration of possible future collaborative projects. In order to achieve the widest possible reach, we are hoping to organise the networking event at the premises of one of our collaborating partners and/or with the help of a major business intermediary.
6. The results of the survey will be fed into the training programme for intercultural/language consultants with UK export SMEs involved with the language/communication audit processes, and disseminated to the EU business platform specialising in business language. This allows for widest possible dissemination of the results and for impact beyond the lifetime of the project.
7. We will work with our universities' press offices to ensure that the results of the project achieve dissemination via mainstream and specialised media outlets.
| Description | The use of the methodology from the ELAN survey (Hagen 2006) allowed for comparison and the identification of new trends in terms of the language management strategies adopted by UK SMEs. The comparison of ARCTIC and ELAN results indicate that SMEs have made progress in adopting successful language management strategies, defined here as "the planned adoption of a range of techniques to facilitate effective communication with clients and suppliers abroad" (Hagen, 2006) The survey data show that more SMEs than in ELAN suggested that they may have missed an export contract due to lack of language or cultural skills. This does not necessarily imply a rise in the amount of actual business lost, but suggests that businesses' awareness of the impact of language and cultural skills has increased. However, pinning down the exact causes of lost businesses was challenging. As one Managing Director observed, "it is always difficult to know exactly why it is that you've lost a piece of business when it goes". English is undoubtedly one of the linguae francae of international trade and our findings corroborate other research in the area. While a number of companies, as the survey data indicate, heavily rely on English, this also depends on the business of each company and its target markets. An English only strategy practically means, for our participants, access to a wide enough network, given that English is a very popular foreign language. Also the analysis of our interview data indicated that using a common language was perceived as a way to control the information that is communicated to local suppliers and partners. At the same time however an English only strategy also means dependency on local partners and agents for localisation of the products/services SMEs offer. Conversely companies who use a range of local languages (term used to refer to the native language of customers, suppliers or partners in the target market) benefit from being able to adapt and localise their business, gain access to the local knowledge and by extension benefit from a range of opportunities open to them. Although having access to expertise (through for e.g. translation services) is perceived by some senior leaders to be expensive, companies employ native speakers and have devised sophisticated ways to be able to meet their needs internally. The survey data indicate that more than 60% of SMEs plan to begin trading in a new foreign country during the next three years, with around 40% suggesting that they will need to acquire additional expertise in languages and cultures for that purpose. The frontrunners in SMEs' expansion plans are the BRIC-countries (Brazil, Russia, India and China) as well as South America. The specific business activities of each company influence its target markets and language needs. |
| Exploitation Route | The ARCTIC research adds to the evidence base for the widespread concerns that the lack of language and cultural skills is holding back UK businesses (see BCC report "Exporting is good for Britain but lack of language skills holds back exporters", available at "http://www.ucml.ac.uk/sites/default/files/shapingthefuture/101/BCC%202013%20Survey%20Factsheet%20SKILLS.pdf) The results of the report support the following recommendations: o Universities to work more closely with local businesses and business support organisations (Chambers of Commerce, UKTI) to provide access to placement students with specific skills and competences in language and Intercultural Communication o The development of courses and consultancy targeted to SMEs' specific needs, in particular in BRIC countries o Universities to ensure that language provision is integrated in the curriculum (e.g. though joint degrees) in order to fulfil the SMEs' needs for staff with skills in both specific subjects and foreign languages The results of the project can be used to support policies and initiatives in the fields of education (i.e. to lobby for the re-introduction of a foreign language requirement to at least GCSE level) and continuing professional development for staff and leaders of SMEs. |
| Sectors | Manufacturing, including Industrial Biotechology,Security and Diplomacy |
| URL | http://www.surrey.ac.uk/arctic |
| Description | The findings have been used to inform training conducted by the consultants of the UKTI's Export Communications Review. They have helped strengthen their business case by providing consultants with quotable figures on why it "pays" to internationalise the business, and what the opportunity costs of not doing so may be. Professor Hagen was invited to discuss his research findings on languages in UK business over the previous ten years at meetings of the House of Lords Select Committee on Small and Medium sized business and exports on two occasions between June 2012 and November 2012, when he included some of the early outcomes from research on foreign language use in southern England and South Wales in 2012. The House of Lords Select Committee then produced a report in 2013 which made recommendations to government on how to improve the use, and implementation, of foreign languages to assist the UK's business activities and specifically to increase UK exports. |
| First Year Of Impact | 2012 |
| Sector | Manufacturing, including Industrial Biotechology |
| Impact Types | Economic |
| Description | Training for SMEs |
| Geographic Reach | Local/Municipal/Regional |
| Policy Influence Type | Influenced training of practitioners or researchers |
| Description | ARCTIC Industry Collaboration |
| Organisation | Department for International Trade |
| Country | United Kingdom |
| Sector | Public |
| PI Contribution | We provided data from the ARCTIC project in order to further Surrey Chambers' and UKTIs' purpose to encourage SMEs to think about exporting abroad. |
| Collaborator Contribution | Surrey Chambers and UKTI contributed to a dissemination seminar organised to report on the outcomes of the ARCTIC project. Surrey Chambers assisted in finding a room. Both organisations put the event on their events list in order to attract more SMEs. |
| Impact | ARCTIC dissemination seminar, 17th January 2013 |
| Start Year | 2012 |
| Description | ARCTIC Industry Collaboration |
| Organisation | Surrey Chambers of Commerce |
| Country | United Kingdom |
| Sector | Public |
| PI Contribution | We provided data from the ARCTIC project in order to further Surrey Chambers' and UKTIs' purpose to encourage SMEs to think about exporting abroad. |
| Collaborator Contribution | Surrey Chambers and UKTI contributed to a dissemination seminar organised to report on the outcomes of the ARCTIC project. Surrey Chambers assisted in finding a room. Both organisations put the event on their events list in order to attract more SMEs. |
| Impact | ARCTIC dissemination seminar, 17th January 2013 |
| Start Year | 2012 |
| Description | ARCTIC Presentation at Policy Event |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Doris Dippold was invited to speak on behalf of the ARCTIC team at the policy-led briefing event on the future of Commonwealth high growth and emerging markets entitled 'Exporting within the Commonwealth and BRICS - A Road Map to Business Success' (14th March 2013). The event was organised by Policy Knowledge/Government Knowledge, a leading event provider specialising in events on public policy and public sector issues. The event was attended by delegates from SMEs and local and central government involved in the regeneration and economic growth agendas. I am not aware of any direct impacts from thisa ctivity |
| Year(s) Of Engagement Activity | 2013 |