Abstract
In the globalized world arena, enterprises have to meet higher standard for showcasing their strength, as well as communicating with other enterprises from different cultural background. The business English ability, as one of the means of intercultural business communication, puts forward higher requirements and has become has become one of the important indexes to measure the international competitiveness of enterprises. Therefore, high proficiency in business is needed. We examines the impact of business English proficiency on the competitiveness of small and medium-sized enterprises (SMEs) from the perspective of resource-based theory. By using a quantitative research methodology, we could clearly recognized the impact of business English proficiency on enterprise competitiveness. The results of the study show that business English proficiency is a key resource for SMEs to enhance their market competitiveness, and there is a significant positive correlation with the market orientation, innovation ability and strategic flexibility of enterprises. As an intangible resource, business English proficiency significantly enhances the market performance, financial performance and operational efficiency of enterprises by increasing their market sensitivity, promoting knowledge innovation and enhancing the flexibility of strategic adjustment. In addition, the study finds that the role of business English proficiency varies across industries and sizes of firms, with smaller firms and highly internationalized industries benefiting more significantly. This study provides important theoretical and practical guidance for the development of SMEs in the context of globalization.
Keywords
Business English Competence, Small and Medium-Sized Enterprises (SMEs), Firm Competitiveness, Resource-Based Theory
1. Introduction
With the deepening of globalization, English, as a common language for international business communication, has a decisive impact on the competitiveness of enterprises, especially SMEs. Business English proficiency covers not only accurate language expression but also the understanding and application of business culture, etiquette and negotiation skills, which become the key to effective communication for enterprises in the international arena. Although SMEs play an important role in promoting employment and innovation, they often face challenges in international trade due to size and resource constraints. Enhancing business English proficiency can help these enterprises better understand the international market, improve communication efficiency, and reduce transaction costs, thereby enhancing their competitiveness in the international market. This study aims to explore how business English proficiency significantly enhances the competitiveness of SMEs, concentrating on analyzing its impact on key indicators such as firms' market performance, financial status, innovation ability and operational efficiency. The significance of the study is to help enterprises recognize the central role of language proficiency in business success and take effective measures to enhance international competitiveness. By systematically analyzing the relationship between business English proficiency and enterprise competitiveness, this study will provide SMEs with empirical evidence and strategic recommendations for better positioning and development in the globalized market.
2. Literature Review
2.1. Definition of Business English Proficiency
Business English proficiency is the key to effective communication in an international business environment, covering not only language knowledge but also an understanding of business culture, etiquette and negotiation skills. It is divided into three levels: general English, general business English and specialized business English, and is crucial to the international competitiveness of enterprises. There is a wide range of research areas, including business discourse, communication, pragmatics, etc. And with the development of e-commerce, the characteristics of online business communication are receiving attention. Business English education and training is receiving increasing attention to improve the English and communication skills of business people to meet the needs of a globalized economy.
2.2. The Concept and Dimensions of Enterprise Competitiveness
Enterprise competitiveness is a multi-dimensional and multi-level concept, which has been widely discussed and defined in academic circles. In the discussions of many scholars, it can be found that the understanding of enterprise competitiveness has its focus, but the core point of view tends to be the same. Porter
| [10] | ME Porter. Competitive advantage: creating and sustaining superior performance: with a new introduction. Free Press. 1985. ISBN: 9780743260879. |
[10]
believes that the competitive advantage of enterprises essentially comes from the value created by enterprises for customers more than the cost, and this value can be realized through cost leadership or differentiation. This definition emphasizes the importance of value creation and market positioning. Fisher
on the other hand, from the perspective of knowledge and capabilities, argues that enterprise competitiveness is the ability of an enterprise to acquire, create and apply knowledge, which highlights the central role of knowledge in modern enterprise competition.
Further, domestic scholars have also explored enterprise competitiveness in depth. Guo Hongling, Zhao Yong and Yang Jian
| [5] | Guo Hongling, Zhao Yong and Yang Jian. The Research on the Development Strategy Mode for Chinese Small and Medium Sized Enterprises. Journal of Southwest Jiaotong University (Social Sciences). 2003, 4(1): 71-75. https://doi.org/10.3969/j.issn.1009-4474.2003.01.017 |
[5]
defines enterprise competitiveness as the ability of enterprises and entrepreneurs to adapt, coordinate and manage the external environment to successfully engage in business activities, which emphasizes the adaptability and proactivity of enterprises in response to environmental changes. Hu Dali, Lu Fucai and Wang Hualin
on the other hand, defines enterprise competitiveness from the perspectives of market competition and resource allocation and considers it to be the ability of an enterprise to take advantage of resource allocation in the market through the optimization of its elements and the interaction of the external environment and to achieve sustainable development. Nie Chenxi and Gu Peiliang
, on the other hand, pays more attention to the performance of the enterprise in the market and regards enterprise competitiveness as the comprehensive quality of the enterprise to provide products or services to the market and realize profitability and its development. Li Xianjun
, on the other hand, categorizes enterprise competitiveness into three types: strong competitiveness, even competitiveness and weak competitiveness, a classification that provides a more detailed delineation of the hierarchy of enterprise competitiveness. Although scholars have expressed enterprise competitiveness differently, they generally agree that enterprise competitiveness is a comprehensive, complex and dynamic concept. This study understands enterprise competitiveness as the comprehensive ability of an enterprise to survive and develop in a competitive market relative to its competitors, which covers value creation, knowledge application, market adaptation, resource allocation and sustainable development.
2.3. The Relationship Between Business English and Enterprise Competitiveness
The relationship between business English and enterprise competitiveness is one of the focuses of research in the field of international business. With the accelerated development of globalization, enterprises are more and more involved in the international market, and Business English, as the main language of international business communication, is becoming more and more prominent in enhancing the competitiveness of enterprises. Business English proficiency not only includes the fluent use of language but also involves an in-depth understanding and application of business culture, business etiquette, business negotiation skills and other aspects.
First of all, business English proficiency directly affects the communication efficiency and effectiveness of enterprises in the international market
. Good business English communication ability can help enterprises understand customers' needs more accurately and convey corporate values and product advantages more effectively, to gain advantages in the fierce market competition. In addition, business English involves cross-cultural communication ability, which is important for enterprises to establish cooperative relationships and expand markets in different cultures around the world.
Secondly, business English proficiency is the key for enterprises to acquire and utilize international business information
. In the information age, whether enterprises can quickly acquire and process international market information is directly related to the accuracy of their decision-making and the agility of their market response. Business English proficiency enables enterprises to read international business reports, analyze market trends, and participate in international conferences and seminars without obstacles, thus supporting their strategic planning and market positioning.
Finally, business English proficiency has a far-reaching impact on the brand building and internationalization of enterprises
. An enterprise with a high level of business English proficiency can better present its image in the international arena and build brand trust. At the same time, Business English is also an important tool for enterprises to conduct international negotiations, sign contracts and manage overseas projects, which helps them to realize resource integration and strategic layout on a global scale.
3. Theoretical Framework and Research Hypotheses
3.1. Core Concepts of Resource-Based Theory
Resource Based Theory (RBT) is a core framework in strategic management that emphasizes that a firm's competitive advantage is derived from its unique resources and capabilities. These resources and capabilities need to satisfy the "VRIN" criteria of Valuable, Rare, Imperfect Imitability, and Non-Substitutability to provide lasting competitive advantage
. RBT distinguishes between tangible resources (e.g., physical assets, financial capital) and intangible resources (e.g., brand, corporate culture, technology, knowledge, human resources), which are often the key to a firm's sustained competitive advantage because of their uniqueness
.
RBT further proposes the Dynamic Capabilities View, which emphasizes the need for firms to possess dynamic capabilities, i.e., the ability to reconfigure, integrate, and innovate their resources to adapt to environmental changes
. This capability is the key to obtaining and maintaining competitive advantage and requires firms to continuously learn, adapt and innovate. Through in-depth analysis of the VRIN attributes and dynamic capabilities of resources, enterprises can optimize resource allocation, formulate effective strategies, and achieve sustained competitive advantage.
3.2. Defining the Attributes of Business English as an Enterprise Resource
As an intangible resource, business English proficiency occupies a special position in the enterprise resource pool. First of all, business English proficiency has obvious value because it can help enterprises communicate and understand more effectively in international business exchanges, thus facilitating the conclusion of deals and the expansion of business. In addition, as a kind of professional skill, Business English proficiency plays an important role in enabling enterprises to obtain international market information and participate in international competition.
Secondly, the scarcity of business English proficiency is particularly prominent in today's globalized market. Not all enterprises have enough talents with a high level of business English proficiency, especially for those enterprises that need to understand and use the complex situations and terminology of business English, this kind of proficiency has become a scarce resource.
Furthermore, the inimitability of business English proficiency is reflected in the fact that it is not only the mastery of language skills but also the in-depth understanding and application of business culture, negotiation skills and international business practices. The accumulation of this knowledge and skills often requires a long period of training and practical experience and is formed by enterprises through long-term investment and cultivation, so it is unique and difficult to imitate by competitors in the short term.
Finally, the organizational nature of Business English competence requires enterprises not only to have talents with such competence but also to effectively integrate and apply the knowledge and skills of these talents to support the overall strategy and operation of the enterprise. Enterprises must establish appropriate training systems and incentive mechanisms to ensure that employees' business English competence is fully utilized and continuously improved.
3.3. The Relationship Model Between Business English Proficiency and Enterprise Competitiveness
The relationship between business English proficiency and enterprise competitiveness can be elaborated through an integrated model. In this model, business English proficiency, as a key resource of an enterprise, affects its competitiveness by influencing the dimensions of market orientation, innovation ability and strategic flexibility. Specifically, business English proficiency can enhance an enterprise's market sensitivity, enabling it to respond quickly to changes in the international market and customer needs; promote its knowledge and product innovation, introducing new ideas and technologies through international exchanges; and enhance its strategic flexibility, enabling it to flexibly adjust its international strategy to adapt to the complex and changing global business environment.
In addition, business English proficiency can also serve as a bridge for internal communication within the enterprise, promote collaboration and knowledge sharing among different departments, and improve the operational efficiency of the enterprise. In the model, the relationship between business English proficiency and enterprise competitiveness is dynamic and interactive, and enterprises need to continuously invest in the development and enhancement of business English proficiency to maintain their competitiveness.
3.4. Formulation of Research Hypotheses
Based on the theoretical framework and relationship model described above, this study proposes the following hypotheses:
H1: Business English proficiency is positively related to an enterprise's market orientation, i.e. the stronger the business English proficiency, the better the enterprise's ability to understand and respond to the international market, and thus the higher the level of market orientation.
H2: Business English proficiency is positively related to an enterprise's innovation ability, and business English proficiency can facilitate an enterprise's access to and integration of international knowledge and technology, thereby improving its innovation ability.
H3: Business English proficiency is positively related to the strategic flexibility of firms; business English proficiency enables firms to plan and adjust their international strategies more effectively, thus increasing their strategic flexibility.
4. Research Methodology
4.1. Research Design
This study adopts a quantitative approach to explore the impact of business English proficiency on the competitiveness of small and medium-sized enterprises (SMEs). The study will be based on national SME classification standards, selecting enterprises of different industries, market scope and degree of internationalization, with special attention to enterprises with high international activity. Sample selection will take into account geographical diversity and business English application, and a theoretical model will be constructed to link business English proficiency with key indicators of enterprise competitiveness, analyzing its impact on market performance, operational efficiency and innovation capacity based on resource-based theory.
4.2. Data Collection Methods
The data collection method of this study utilizes a variety of ways to ensure the comprehensiveness and accuracy of the data. The data for the research samples mainly come from industry reports released by the research department of Guotai Junan Securities, public information from authoritative data organizations such as the National Bureau of Statistics, and annual reports and financial statements disclosed by the enterprises themselves. In addition, relevant academic journals, working papers and conference proceedings are collected through online databases and library resources for more in-depth industry analysis and academic insights. The integrated use of these data aims to provide a multi-dimensional and multi-perspective analytical framework for this study to ensure the objectivity and scientificity of the findings.
4.3. Sample Selection and Data Sources
This study adopts a quantitative research design and selects SMEs active in the last six years from 2018 to 2023 as the research sample. In the preliminary screening of the sample, those enterprises with incomplete data or irregular operations were excluded to ensure the reliability and validity of the sample data. The sample data mainly comes from industry reports released by the research department of Guotai Junan Securities, public data from the National Bureau of Statistics and other authoritative organizations, which provide a solid factual basis for the research. Through a rigorous screening and data cleaning process, a dataset containing 132 valid sample data was finally formed. These samples cover different industries and regions, ensuring the representativeness and breadth of the research results. Through the comprehensive analysis of these sample data, this study aims to validate the relationship between business English proficiency and enterprise competitiveness and to provide strategic suggestions for the development of SMEs in the context of globalization.
4.4. Operationalization and Measurement of Variables
In this study, the operationalization and measurement of variables will follow strict scientific standards to ensure the accuracy and reliability of the findings.
Table 1. Description of variables.
Variable type | Variable name | Measurement description |
Dependent variable | Business English proficiency | Employee business English proficiency: average score on business English qualification exams Investment in business English training: annual investment in training and average number of training hours Business Communication Efficiency: Frequency of business meetings and negotiations in English and time efficiency in reaching agreement. Cross-cultural business communication ability: number of successful cases of cross-cultural transactions Dependent Variable Enterprise Competitiveness Market Performance: market share, new product market penetration, customer growth rate |
implicit variable | Enterprise Competitiveness | Market performance: market share, new product market penetration, customer growth rate Financial performance: net profit margin, sales growth rate, return on assets Innovation capability: R&D expenditure ratio, number of patent applications, success rate of new product development Operational efficiency: production cycle time, inventory turnover, employee productivity |
intermediary variable | market-oriented | Market Research Frequency Customer feedback response time Flexibility of market strategy adjustment |
Strategic flexibility | Speed of adaptation to changes in the external environment Frequency of strategic adjustments |
moderator variable | Industry Characteristics | Degree of international competition in the industry Business English Dependency |
Enterprise size | Number of employees Annual Sales |
4.5. Data Analysis Methods
This study will use several data analysis methods to process and interpret the collected data. First, descriptive statistical analysis will be used to summarize the sample characteristics and the underlying distribution of the variables. Subsequently, correlation analysis will be used to explore the relationship between the sub-dimensions of business English proficiency and the indicators of corporate competitiveness. To gain a deeper understanding of the causal relationships between these variables, this study plans to employ regression analysis, which quantifies the extent to which business English proficiency affects firm competitiveness and controls for other potentially confounding variables.
5. Empirical Analysis
In the empirical analysis part of this study, we will delve into the relationship between business English proficiency and SME competitiveness. Through descriptive statistical analysis, we first summarize the sample data to reveal the basic situation of the sample enterprises and the distribution characteristics of key variables. Then, through correlation analysis, we will test the preliminary relationship between business English proficiency and the indicators of enterprise competitiveness. Further, utilizing regression analysis, we will explore the strength and direction of the impact of business English proficiency on enterprise competitiveness, taking into account potential mediating and moderating effects. Finally, in the Interpretation of Results section, we will discuss in detail the significance of the analyzed results, assess their contribution to theory and practice, and make corresponding management recommendations.
5.1. Descriptive Statistical Analysis
Descriptive statistical analysis will outline the basic characteristics of the sample data, including central tendency, degree of dispersion, and the shape of the data distribution. This set of statistical metrics provides an initial understanding of SME business English competence and competitiveness indicators, and a better understanding of the sample firms, in general, can be achieved by describing the centralization trend and the degree of dispersion of the dataset. The results of the descriptive statistics for the variables are presented below:
Table 2. Descriptive Statistical Analysis Results.
Variable name | Measurement index | sample size | Mean | std. dev. | Min | Max | Skewness | Kurtosis |
Business English ability | Average score of qualification examination | 132 | 75.23 | 9.35 | 50.00 | 95.00 | -0.65 | 0.21 |
| Training investment (ten thousand yuan) | 132 | 23.45 | 15.21 | 1.00 | 100.00 | -0.82 | -0.45 |
| Efficiency of business communication | 132 | 4.20 | 0.76 | 1.00 | 5.00 | 0.15 | -1.10 |
| Number of successful cases of cross-cultural transactions | 132 | 3.55 | 1.45 | 0 | 10.00 | -0.23 | 0.34 |
Enterprise competitiveness | market share | 132 | 0.25 | 0.15 | 0.01 | 0.60 | 0.56 | -0.90 |
| net profit rate | 132 | 0.13 | 0.07 | 0.01 | 0.35 | 0.84 | 0.75 |
| R&D expenditure ratio | 132 | 0.08 | 0.04 | 0.01 | 0.25 | -0.91 | 1.20 |
| efficiency | 132 | 450.00 | 150.00 | 100.00 | 900.00 | 0.34 | -0.55 |
Control variable | Enterprise scale (number of employees) | 132 | 120.00 | 200.00 | 10 | 1000 | 1.20 | 2.90 |
| Enterprise age (year) | 132 | 15.00 | 10.00 | 2 | 50 | -0.75 | 0.10 |
| Capital structure (debt to equity ratio) | 132 | 0.45 | 0.25 | 0.10 | 0.90 | 0.60 | -1.30 |
5.2. Correlation Analysis
This analysis will reveal the strength and direction of linear relationship between different variables, and provide preliminary quantitative evidence for us to understand how business English ability affects the competitiveness of SMEs. By calculating Pearson correlation coefficient, this section will show the direct correlation between the main variables, laying the foundation for the subsequent regression analysis. The results of correlation analysis are as follows:
Table 3. Correlation Analysis Results.
Variable name | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
Business English ability | one | | | | | | | | |
Enterprise competitiveness | 0.65** | one | | | | | | | |
Market performance | 0.58** | 0.88** | one | | | | | | |
Financial performance | 0.47** | 0.76** | 0.71** | one | | | | | |
Innovation capacity | 0.61** | 0.75** | 0.65** | 0.56** | one | | | | |
Operational efficiency | 0.52** | 0.70** | 0.59** | 0.62** | 0.77** | one | | | |
Scale | 0.30** | 0.45** | 0.38** | 0.42** | 0.48** | 0.41** | one | | |
Enterprise age | 0.21* | 0.32** | 0.26** | 0.37** | 0.34** | 0.29* | 0.71** | one | |
capital structure | 0.35** | 0.40** | 0.33** | 0.46** | 0.41** | 0.36** | 0.57** | 0.58** | one |
5.3. Regression Analysis
5.3.1. Analysis of Regression Results of Basic Model
(1) The basic model aims to evaluate the direct impact of business English ability on the competitiveness of enterprises. We use a linear regression model and control variables such as enterprise size, age and capital structure. The following are the results of regression analysis:
Table 4. Regression Results of Basic Model.
variable | coefficient | Standard error | T value | P value |
Business English ability | 0.45 | 0.05 | 9.00 | <.001 |
Scale | 0.20 | 0.03 | 6.67 | <.001 |
Enterprise age | -0.15 | 0.04 | -3.75 | <.001 |
capital structure | 0.10 | 0.02 | 5.00 | <.001 |
intercept | 50.00 | 2.00 | 25.00 | <.001 |
R² | 0.75 | | | |
Adjust r | 0.73 | | | |
The coefficient of business English ability is 0.45, which shows that the improvement of business English ability of each unit is positively related to the improvement of enterprise competitiveness.
Enterprise scale and capital structure are also positively related to enterprise competitiveness, while enterprise age is negatively related to enterprise competitiveness. The r of the model is 0.75, indicating that the model explains 73% variability.
(2) Robustness test
In order to test the robustness of the model, we made the following changes:
Use enterprise sales instead of enterprise scale.
The time dummy variable is introduced to control the influence of time trend.
Table 5. Robustness Test Results.
variable | coefficient | Standard error | T value | P value |
Business English ability | 0.43 | 0.06 | 7.17 | <.001 |
Enterprise sales | 0.18 | 0.04 | 4.50 | <.001 |
Enterprise age | -0.14 | 0.05 | -2.80 | 0.005 |
capital structure | 0.09 | 0.03 | 3.00 | 0.003 |
Time virtual variable | 1.00 | 0.30 | 3.33 | 0.001 |
intercept | 48.00 | 3.00 | 16.00 | <.001 |
R² | 0.74 | | | |
Adjust r | 0.72 | | | |
Even after using enterprise sales instead of enterprise scale, business English ability is still significantly positively related to enterprise competitiveness.
The introduction of time dummy variable shows that the model can control the influence of time trend, and the result is still robust.
5.3.2. Regression Results of Mediating Effect Model
(1) The mediating effect model is used to test the mechanism by which business English ability affects enterprise competitiveness through market orientation and innovation ability.
Table 6. Regression Results of Mediating Effect Model.
model | variable | coefficient | Standard error | T value | P value |
Model 1: Business English Competence → Mediator Variable | market orientation | 0.35 | 0.07 | 5.00 | <.001 |
Model 2: Business English Ability→ Enterprise Competitiveness | Direct effect | 0.30 | 0.08 | 3.75 | <.001 |
Model 3: Intermediary Variable→ Enterprise Competitiveness | market orientation | 0.50 | 0.10 | 5.00 | <.001 |
Model 4: Business English Ability→ Enterprise Competitiveness | Direct effect (after controlling intermediate variables) | 0.20 | 0.09 | 2.22 | 0.028 |
Business English ability has a significant positive impact on market orientation, which shows that the competitiveness of enterprises can be enhanced by improving market orientation.
After controlling the intermediary variables, the direct effect of business English ability is weakened, indicating that market orientation plays a partial intermediary role between business English ability and enterprise competitiveness.
(2) The robustness test of intermediary effect model.
In order to test the robustness of the mediation effect model, we conducted the following tests:
Use alternative measurement methods to evaluate market orientation and innovation ability.
Control variables are introduced to eliminate other potential effects.
Table 7. Robustness Test Results of Mediating Effect Model.
model | variable | coefficient | Standard error | T value | P value |
Model 1 alternative measurement | market orientation | 0.33 | 0.08 | 4.12 | <.001 |
Model 2 alternative measurement | Business English ability → enterprise competitiveness | 0.28 | 0.09 | 3.11 | 0.002 |
Model 3 alternative measurement | Intermediary variable → enterprise competitiveness | 0.48 | 0.11 | 4.36 | <.001 |
Model 4 Substitution Measurement | Business English ability → enterprise competitiveness | 0.18 | 0.10 | 1.80 | 0.075 |
After using the alternative measurement method, the results of the intermediary effect model are still stable, indicating that market orientation and innovation ability are important intermediary variables for business English ability to affect the competitiveness of enterprises.
5.4. Analysis of Research Findings
5.4.1. Analysis of the Relationship Between Business English Proficiency and Market Orientation
Based on hypothesis H1 of this study, business English proficiency is positively correlated with a company's market orientation. The empirical analysis results support this hypothesis. Specifically, business English proficiency indicators show a significant positive correlation with various dimensions of market orientation, such as the frequency of market research, customer feedback response time, and the flexibility of market strategy adjustment. Regression analysis shows that business English proficiency has a significant positive impact on market orientation, with a coefficient of 0.45, indicating that the improvement of business English proficiency can effectively enhance the company's sensitivity and response speed to market changes. This result implies that the enhancement of business English proficiency helps enterprises to better understand the demands and trends of the international market, and quickly carry out market research and customer feedback collection and analysis. As Zhou Xuejuan
pointed out, innovative strategies in human resource management are crucial for maintaining the long-term competitive advantage of enterprises. Wu Yaming's
research also emphasized the role of optimizing human resource allocation in expanding the competitive advantage of enterprises.
5.4.2. Analysis of the Relationship Between Business English Proficiency and Innovation Ability
Hypothesis H2 predicts that business English proficiency is positively related to firms' innovation capability. The results of the empirical analysis equally support this hypothesis. Improved business English proficiency was shown to facilitate firms' access to and integration of international knowledge and technology, which in turn significantly increased firms' innovation capability. In the regression model, the coefficient of the direct effect of business English proficiency on innovation capability is 0.30, and this effect is statistically significant (p <.05).
The improvement of business English proficiency not only helps enterprises to absorb international advanced technology and management experience more effectively but also promotes the sharing of knowledge and the stimulation of innovative thinking within enterprises. Scholar Wang Anyou
also pointed out in her research that optimizing the allocation of human resources is key to obtaining sustained competitive advantage for enterprises. Enterprises can engage in in-depth technical exchanges and R&D cooperation with international partners through business English communication, thereby accelerating the development of new products and technologies. In addition, business English proficiency also helps enterprises to more widely publicize and promote their innovative achievements in the international market, enhancing the brand image and market competitiveness of enterprises.
5.4.3. Analysis of the Relationship Between Business English Proficiency and Strategic Flexibility
Hypothesis H3 explored the relationship between business English proficiency and firms' strategic flexibility and predicted a positive correlation between the two. The results of the empirical analysis confirmed this hypothesis. Business English proficiency has a significant positive effect on firms' strategic flexibility with a coefficient of 0.25, indicating that the stronger the business English proficiency, the better the firms' ability to formulate and adjust their international strategies. Lv Wenjing's
research, through in-depth analysis, found that the improvement of business English proficiency enables enterprises to more accurately understand the dynamics of the international market and the behaviour of competitors, thereby making strategic decisions more quickly. Zhang Meng and others
revealed the importance of information sharing in enhancing corporate competitiveness through system dynamics analysis, which further confirmed the important role of business English in promoting corporate strategic flexibility.
In summary, the results of the empirical analyses in this study indicate that business English proficiency has a significant positive impact on the market orientation, innovation ability and strategic flexibility of enterprises, thus verifying the research hypotheses H1, H2 and H3. These findings emphasize the important role of business English proficiency in enhancing the international competitiveness of SMEs and provide practical guidance for SMEs to improve their business English proficiency.
6. Conclusions and Recommendations
Based on the resource-based theory, this study reveals the significant positive impact of business English proficiency on the market competitiveness of SMEs through quantitative analysis, confirming its key role in enhancing market orientation, innovation and strategic flexibility. The study points out that business English, as an intangible resource, effectively improves the market performance and financial performance of enterprises by enhancing market sensitivity, promoting knowledge innovation and strategic flexibility. Policymakers should support business English training through tax incentives and financial subsidies, establish cooperation with universities and training institutes, develop curricula that meet market needs, encourage enterprises to participate in international exchanges, and lower the threshold of internationalization. Managers should incorporate business English proficiency into strategic planning, establish a continuous training mechanism, encourage employees to participate in international activities, build cross-cultural teams, and flexibly adjust training strategies to maintain the linguistic and cultural advantages of enterprises in globalized competition, thereby enhancing international competitiveness.
Abbreviations
SMEs | Small and Medium-Sized Enterprises |
RBT | Resource Based Theory |
VRIN | Valuable, Rare, Imperfect Imitability, and Non-Substitutability |
Author Contributions
Pan Junyi is the sole author. The author read and approved the final manuscript.
Conflicts of Interest
The authors declare no conflicts of interest.
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Junyi, P. (2024). Research on the Influence of Business English Proficiency on Small and Medium-Sized Enterprise Competitiveness Under the Perspective of Resource-Based Theory. Journal of Business and Economic Development, 9(3), 69-78. https://doi.org/10.11648/j.jbed.20240903.13
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Junyi, P. Research on the Influence of Business English Proficiency on Small and Medium-Sized Enterprise Competitiveness Under the Perspective of Resource-Based Theory. J. Bus. Econ. Dev. 2024, 9(3), 69-78. doi: 10.11648/j.jbed.20240903.13
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Junyi P. Research on the Influence of Business English Proficiency on Small and Medium-Sized Enterprise Competitiveness Under the Perspective of Resource-Based Theory. J Bus Econ Dev. 2024;9(3):69-78. doi: 10.11648/j.jbed.20240903.13
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@article{10.11648/j.jbed.20240903.13,
author = {Pan Junyi},
title = {Research on the Influence of Business English Proficiency on Small and Medium-Sized Enterprise Competitiveness Under the Perspective of Resource-Based Theory
},
journal = {Journal of Business and Economic Development},
volume = {9},
number = {3},
pages = {69-78},
doi = {10.11648/j.jbed.20240903.13},
url = {https://doi.org/10.11648/j.jbed.20240903.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20240903.13},
abstract = {In the globalized world arena, enterprises have to meet higher standard for showcasing their strength, as well as communicating with other enterprises from different cultural background. The business English ability, as one of the means of intercultural business communication, puts forward higher requirements and has become has become one of the important indexes to measure the international competitiveness of enterprises. Therefore, high proficiency in business is needed. We examines the impact of business English proficiency on the competitiveness of small and medium-sized enterprises (SMEs) from the perspective of resource-based theory. By using a quantitative research methodology, we could clearly recognized the impact of business English proficiency on enterprise competitiveness. The results of the study show that business English proficiency is a key resource for SMEs to enhance their market competitiveness, and there is a significant positive correlation with the market orientation, innovation ability and strategic flexibility of enterprises. As an intangible resource, business English proficiency significantly enhances the market performance, financial performance and operational efficiency of enterprises by increasing their market sensitivity, promoting knowledge innovation and enhancing the flexibility of strategic adjustment. In addition, the study finds that the role of business English proficiency varies across industries and sizes of firms, with smaller firms and highly internationalized industries benefiting more significantly. This study provides important theoretical and practical guidance for the development of SMEs in the context of globalization.
},
year = {2024}
}
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TY - JOUR
T1 - Research on the Influence of Business English Proficiency on Small and Medium-Sized Enterprise Competitiveness Under the Perspective of Resource-Based Theory
AU - Pan Junyi
Y1 - 2024/08/30
PY - 2024
N1 - https://doi.org/10.11648/j.jbed.20240903.13
DO - 10.11648/j.jbed.20240903.13
T2 - Journal of Business and Economic Development
JF - Journal of Business and Economic Development
JO - Journal of Business and Economic Development
SP - 69
EP - 78
PB - Science Publishing Group
SN - 2637-3874
UR - https://doi.org/10.11648/j.jbed.20240903.13
AB - In the globalized world arena, enterprises have to meet higher standard for showcasing their strength, as well as communicating with other enterprises from different cultural background. The business English ability, as one of the means of intercultural business communication, puts forward higher requirements and has become has become one of the important indexes to measure the international competitiveness of enterprises. Therefore, high proficiency in business is needed. We examines the impact of business English proficiency on the competitiveness of small and medium-sized enterprises (SMEs) from the perspective of resource-based theory. By using a quantitative research methodology, we could clearly recognized the impact of business English proficiency on enterprise competitiveness. The results of the study show that business English proficiency is a key resource for SMEs to enhance their market competitiveness, and there is a significant positive correlation with the market orientation, innovation ability and strategic flexibility of enterprises. As an intangible resource, business English proficiency significantly enhances the market performance, financial performance and operational efficiency of enterprises by increasing their market sensitivity, promoting knowledge innovation and enhancing the flexibility of strategic adjustment. In addition, the study finds that the role of business English proficiency varies across industries and sizes of firms, with smaller firms and highly internationalized industries benefiting more significantly. This study provides important theoretical and practical guidance for the development of SMEs in the context of globalization.
VL - 9
IS - 3
ER -
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