Developing language performance standards in international small firms: An interplay between HR expectations and employee reactions

If language competence matters for international business success, we need to know against which standards firms assess this competence. Yet there is little research on how language performance standards are identified and established, especially in resource-constrained small firms. Adopting an inductive approach, this study addresses this gap by investigating the language performance standard development process in 22 Finland-based international small firms. A 5-year longitudinal study shows that HR decision-makers engage in what they view as a systematic process of identifying, experimenting with, evaluating, and selecting specific language performance standards for specific job positions. This process evolves in the interplay between HR decision-makers’ expectations on employees’ performance and employees’ reactions to these expectations. It culminates in the formal integration of language standards into regularly appraised performance goals. The study sheds light on a key aspect of HR management in international small firms, aiding their survival and success.