IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v36y2008i3p486-504.html
   My bibliography  Save this article

The development of global IT infrastructure

Author

Listed:
  • King, William R.
  • Flor, Paulo Roberto

Abstract

A research model of the impact of a multinational corporations' (MNC) global strategic orientation on global IT infrastructure was developed using global integration, or the degree to which a global strategy is actually implemented, as a mediator. A "matched pair" survey of 94 MNCs was conducted (two respondents per firm) in order to guard against common source bias. The results showed that the firms that pursue a globally oriented strategy actually enacted these strategies as indicated by a wide-variety of resource flows across national units. The role of the level of global integration as a mediator between global strategic orientation and global IT capabilities was empirically demonstrated. This confirms that a global strategy is not sufficient to ensure that an enabling IT infrastructure will be developed; rather it is the actual level of integration and interdependence that is achieved as a result of the strategy that drives IT infrastructure. The primary areas in which global integration was found to be closely linked to the global IT infrastructure were human resources, which significantly influenced the reach, range, support services and planning of the global IT infrastructure, and information resources which significantly influenced the planning dimension of the infrastructure. These results strongly suggest that the transfer of people among national units creates an information needs "pull" which leads to the development of better IT infrastructure and that the "push" of standardized information also contributes positively.

Suggested Citation

  • King, William R. & Flor, Paulo Roberto, 2008. "The development of global IT infrastructure," Omega, Elsevier, vol. 36(3), pages 486-504, June.
    • Handle: RePEc:eee:jomega:v:36:y:2008:i:3:p:486-504
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(06)00022-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Siew Meng Leong & Chin Tiong Tan, 1993. "Managing Across Borders: An Empirical Test of the Bartlett and Ghoshal [1989] Organizational Typology," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(3), pages 449-464, September.
    2. Harvey, Michael G. & Richey, R. Glenn, 2001. "Global supply chain management: The selection of globally competent managers," Journal of International Management, Elsevier, vol. 7(2), pages 105-128.
    3. Sumantra Ghoshal, 1987. "Global strategy: An organizing framework," Strategic Management Journal, Wiley Blackwell, vol. 8(5), pages 425-440, September.
    4. Noble, Charles H., 1999. "The Eclectic Roots of Strategy Implementation Research," Journal of Business Research, Elsevier, vol. 45(2), pages 119-134, June.
    5. Morgan, Robert E. & Strong, Carolyn A., 2003. "Business performance and dimensions of strategic orientation," Journal of Business Research, Elsevier, vol. 56(3), pages 163-176, March.
    6. Kedia, Ben L. & Mukherji, Ananda, 1999. "Global managers: developing a mindset for global competitiveness," Journal of World Business, Elsevier, vol. 34(3), pages 230-251, October.
    7. Rogers, Patrick R. & Bamford, Charles E., 2002. "Information planning process and strategic orientation: the importance of fit in high-performing organizations," Journal of Business Research, Elsevier, vol. 55(3), pages 205-215, March.
    8. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    9. Bruce Kogut & Nalin Kulatilaka, 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network," Management Science, INFORMS, vol. 40(1), pages 123-139, January.
    10. Julian Birkinshaw & Allen Morrison & John Hulland, 1995. "Structural and competitive determinants of a global integration strategy," Strategic Management Journal, Wiley Blackwell, vol. 16(8), pages 637-655.
    11. Somers, Toni M. & Nelson, Klara G., 2003. "The impact of strategy and integration mechanisms on enterprise system value: Empirical evidence from manufacturing firms," European Journal of Operational Research, Elsevier, vol. 146(2), pages 315-338, April.
    12. Bergeron, François & Raymond, Louis & Rivard, Suzanne, 2001. "Fit in strategic information technology management research: an empirical comparison of perspectives," Omega, Elsevier, vol. 29(2), pages 125-142, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Yi & Shi, Si & Nevo, Saggi & Li, Shaorui & Chen, Yang, 2015. "The interaction effect of IT assets and IT management on firm performance: A systems perspective," International Journal of Information Management, Elsevier, vol. 35(5), pages 580-593.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Belderbos, René & De Michiel, Federico & Sleuwaegen, Leo & Wu, Shubin, 2021. "Global market integration, efficiency orientation, and drivers of foreign subsidiary divestments," Journal of World Business, Elsevier, vol. 56(5).
    2. Julius H. Johnson, Jr. & Dinesh A. Mirchandani & Seng-Su Tsang, 2008. "Competitive Dynamics, Global Industry Cycles, Integration-Responsiveness, and Financial Performance in Emerging and Industrialized Country Markets," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 7(1), pages 61-88, April.
    3. Elango, B., 2010. "Influence of industry type on the relationship between international operations and risk," Journal of Business Research, Elsevier, vol. 63(3), pages 303-309, March.
    4. Mauri, Alfredo J. & Lin, Jing & Neiva De Figueiredo, João, 2013. "The influence of strategic patterns of internationalization on the accuracy and bias of earnings forecasts by financial analysts," International Business Review, Elsevier, vol. 22(4), pages 725-735.
    5. Blomstermo, Anders & Eriksson, Kent & Lindstrand, Angelika & Sharma, D. Deo, 2004. "The perceived usefulness of network experiential knowledge in the internationalizing firm," Journal of International Management, Elsevier, vol. 10(3), pages 355-373.
    6. Giannoccaro, Ilaria, 2015. "Adaptive supply chains in industrial districts: A complexity science approach focused on learning," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 576-589.
    7. Naoki Yasuda & Hitoshi Mitsuhashi, 2017. "Learning from Political Change and the Development of MNCs’ Political Capabilities: Evidence from the Global Mining Industry," Management International Review, Springer, vol. 57(5), pages 749-774, October.
    8. Dedy Dewanto, 2022. "The characteristic of leader innovativeness, a case in Indonesian’s construction industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 153-165, November.
    9. Breunig, Karl Joachim & Kvålshaugen, Ragnhild & Hydle, Katja Maria, 2014. "Knowing your boundaries: Integration opportunities in international professional service firms," Journal of World Business, Elsevier, vol. 49(4), pages 502-511.
    10. Purkayastha, Anish & Kumar, Vikas & Gupta, Vishal K., 2021. "Emerging market internationalizing firms: Learning through internationalization to achieve entrepreneurial orientation," Journal of World Business, Elsevier, vol. 56(5).
    11. José R. Torre & José Paulo Esperança & Jon I. Martínez, 2011. "Organizational Responses to Regional Integration Among MNEs in Latin America," Management International Review, Springer, vol. 51(2), pages 241-267, April.
    12. Dedy Dewanto Soeprapto, 2021. "Correlation between knowledge exchange & combination (KEC) and leader member exchange (LMX)," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 169-182, June.
    13. Liu, Ju, 2015. "A Case Study on Multinational Companies’ Global Innovation Networks and Global Production Networks: Toward a Theoretical Conceptualisation," Papers in Innovation Studies 2015/45, Lund University, CIRCLE - Centre for Innovation Research.
    14. Dedy Dewanto, 2022. "TOWS matrix as business strategy of BP. Tapera," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(7), pages 62-77, October.
    15. Yeniyurt, Sengun & Tamer Cavusgil, S. & Hult, G. Tomas M., 2005. "A global market advantage framework: the role of global market knowledge competencies," International Business Review, Elsevier, vol. 14(1), pages 1-19, February.
    16. Gao, Wenlian & Chou, Julia, 2015. "Innovation efficiency, global diversification, and firm value," Journal of Corporate Finance, Elsevier, vol. 30(C), pages 278-298.
    17. Gerald Yong Gao & Yigang Pan & Jiangyong Lu & Zhigang Tao, 2008. "Performance of Multinational Firms’ Subsidiaries: Influences of Cumulative Experience," Management International Review, Springer, vol. 48(6), pages 749-768, December.
    18. Mauri, Alfredo J. & Neiva de Figueiredo, João, 2012. "Strategic Patterns of Internationalization and Performance Variability: Effects of US-Based MNC Cross-Border Dispersion, Integration, and Outsourcing," Journal of International Management, Elsevier, vol. 18(1), pages 38-51.
    19. Timothy M. Devinney & David F. Midgley & Sunil Venaik, 2000. "The Optimal Performance of the Global Firm: Formalizing and Extending the Integration- Responsiveness Framework," Organization Science, INFORMS, vol. 11(6), pages 674-695, December.
    20. Luo, Yadong, 2002. "Organizational dynamics and global integration: A perspective from subsidiary managers," Journal of International Management, Elsevier, vol. 8(2), pages 189-215.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:36:y:2008:i:3:p:486-504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.