| Brent B. Allred
K. Scott Swan
The
College of William & Mary
The Mediating Role of Innovation Strategy
on the Influence of Industry Structure
and National Context on Firm Performance
ABSTRACT: In this study, a model of industry
structure and national context is developed
and
tested to better understand their influence
on firm innovation strategy and performance.
Archival financial data from 730 companies
in thirty countries and ten industries,
along with industry and national level
data, was collected to test the mediation
model and hypotheses. The results of
the analyses provide support that both
industry structure and national context
play an important role in influencing
firm innovation strategy and performance.
In particular, industry dynamism and
a country’s patent protection were
found to be positively related to firm
performance. These relationships were
mediated by the firm’s innovation
strategy. The findings of this study
support the need to include both industry
and national effects in international
strategy research. Additionally, the
role that information technology (IT)
has on these variables through the globalization
issues of coordination, communication,
and competition is explored.
Key Words: Industry Structure, National
Context, Innovation Strategy
Nir Kshetri
Bryan
School of Economics
University of North Carolina at Greensboro
Towards an Understanding of Global Heterogeneity
in Internet Advertising Patterns
ABSTRACT: With respect to the advertising
function, the Internet’s position
in the media landscape differs widely across
the globe. Drilling deeper than obvious
economic factors; this paper examines
the sources of global heterogeneity in
Internet advertising. The analysis indicates
that global variation in the Internet
advertising is a function of a complex
interaction of: a) advertiser specific
factors such as firm size, business sector,
advertising goals and top management
support; b) advertising suppliers specific
factors such as availability and CPM
rates; c) audience specific factors such
as experience with the Internet, width
and depth of adoption, and skills; and
d) characteristics of the environment
such as governments’ orientation
towards authoritarianism versus democracy,
legal factors, cultural factors such
as linguistic homogeneity; and modes
of Internet access such as dial up, broadband
or mobile device. Managerial implications
are discussed and directions for future
research have been suggested.
Keywords: Global, Internet, advertising,
heterogeneity, adoption
Hans Lehmann
University of Auckland, New Zealand
Brent Gallupe
Queen’s University, Kingston Ontario
Information Systems for Multinational Enterprises
- Some Factors at Work in their Design and
Implementation
ABSTRACT: Information systems for multinational
companies (MNCs), referred to as international
information systems (IIS), have been
a problem area for many years, yet have
failed to attract more than token attention
from the academic information systems
research community. This study applies
a grounded theory method to establish
a first theoretical framework dealing
with the structure of IIS and the dynamics
of their development and implementation.
The substantive theory is based on extensive,
long-term work with three MNCs and covers
four key areas: (a)The dealings between
the actors concerned with an IIS take
place in a Force-Field; ( b)The Force-Field
is reflected in a generic two-dimensional
architecture an IIS, which always has
a ‘Core’ of systems used
by all (or many) of the regions and ‘Local’ systems,
different at every regional site; (c)The
balance of functionality between the ‘Core’ and
the ‘Local’ parts of an IIS
follows the degree to which the operations
of the MNC require synchronous access
to data and processing within the IIS.
(d)The interactions of IT and users in
the Force-Field follow a cyclical, self-reinforcing
dialectic such that an enforced consensus
process is required in order to boost
Acceptance and to limit the probability
that continuing Rejection leads to catastrophic
failure. The limitations of the theory
are discussed and directions for future
research are given.
Lars Mathiassen
ArunRai
Detmar Straub
Jonathan Wareham
Georgia State University The Business Value of Digital Supply Networks:
A Program of Research
on the Impacts of Globalization
ABSTRACT: The “Networked
Economy” describes alliances of firms
that manage globally distributed supply
networks. These networks exchange information
to coordinate the production and distribution
of goods and services. In the best of all
possible worlds, this interactive flow
of information among member firms will
result in efficient and effective balance
of supply and demand. The business value
of this exchange is so important that the
prosperity of member firms and national
economies is fundamentally bound to it.
Unfortunately, supply networks suffer from
poor and inexact information, and, in the
worst case, information is unavailable
where and when it is needed. Such constrained
information sharing patterns create errors
and limit responsiveness of processes leading
to situations where there is too much or
too little inventory at a given stage in
a supply network. To deal with this serious
problem, our research proposes to develop
insights into the best practices of digital
supply networks. High level questions addressed
include: What are the defining characteristics
of high performing digital supply networks?
How does information sharing impact the
error and responsiveness of supply network
processes and, consequently, supply network
performance? How do global outsourcing
practices affect network outcomes? The
theoretical literature on organizational
partnerships and global outsourcing is
suggestive, but not conclusive. It indicates
that symmetric information sharing of strategic
information among organizations can lead
to increased network responsiveness to
shocks external to the supply network.
Increased network responsiveness leads
to greater market performance. This holds
on an operational level as well, where
symmetric sharing of operational information
reduces error propagation and leads to
greater operational performance.
The research method is a broad based
field study of high performing supply
networks,
like those of Johnson Controls, Inc.
The supply networks of such focal companies
extend both upstream and downstream from
raw materials to delivered goods and
services.
After a rigorous process for developing
the instrumentation through semi-structured
interviews, we expect to gather information
about over 300 network configurations.
A snowballing technique will be used
to contact and gain entrance to firms
who
have supplier-customer relationships
with our focal companies. In the process
of
working with this relatively large number
of network configurations, the determinants
of supply network success should predictably
emerge.
The major scientific impact from this
study will be new theoretical and empirical
insights
into the pathologies and metabolism of
global digital supply networks. We will
develop, test and measure novel constructs
such as network performance and error
amplification, as well as create systematic
knowledge
about the relationships between these
factors. MNCs like Johnson Controls,
Dell, Eli Lilly,
IBM, and GE can use the results to fine-tune
their production and distribution networks.
Supply chain management solution vendors,
such as United Parcel Service and SAP,
can use the results to adjust their product
and marketing strategies, leading to
a better alignment of their offerings
to
market demands. Based on our findings,
firms whose supply networks are not particularly
effective can redesign them and attempt
to realize major improvements in performance.
Susan Mudambi
Temple University
Micahel Graf
Vienna University of Economics and Business
Administration
International Outsourcing of IT-Enabled
Business Processes: A Conceptual Framework
ABSTRACT: Three aspects of the business
environment have captured public attention
for
several decades: information technology,
the
service economy, and globalization.
Yet it is unclear
how these powerful trends interact,
and whether they will truly result in
the
high tech, high touch, global village
envisioned
by some (see Naisbitt 1982). This paper
seeks to develop and apply theory to
the international outsourcing of IT-enabled
business processes. Business process
outsourcing
practices are becoming increasingly
widespread, with the market estimated
to be $241
billion in 2004, with 9 percent growth
expected
through 2006 (EDS 2003). We introduce
a conceptual framework and series of
research
hypotheses to describe and explain
three decisions related to business process
outsourcing: how to outsource; where
to outsource; and
the role of information technology.
The
strategic framework incorporates firm-specific,
location-specific and industry-specific
factors that are expected to affect
the mode of outsourcing decision, the
location
decision, and the degree of IT infusion.
Moderators include the outsourcing
objectives and customer expectations.
We conclude
with the managerial and research implications
of the research.
Fred Niederman
Saint Louis University International Business and MIS Approaches
to Multinational Organizational Research:
The Cases of Knowledge Transfer and Workforce
Consulting
ABSTRACT: This paper argues that international
business and MIS scholars often address
the same
or similar business topics, yet they
rarely refer to one another's research
findings. As examples, it presents the
cases of two business topics, knowledge
transfer and IT workforce outsourcing,
that are addressed by both MIS and international
business scholars. In both cases it is
rare for MIS scholars to reference international
business theory or empirical findings
and for IB scholars to reference MIS
theory or empirical findings. In the
area of knowledge transfer fairly detailed
models developed by MIS scholars can
be applied by IB scholars. Similarly,
IB findings can be used to enrich MIS
understanding in the area. In the second
area, IT workforce outsourcing, much
work remains to be done and can be informed
by both IB and MIS theory and empirical
research.
Daria Panina
Texas A&M University
John R. Aiello
Rutgers University
Acceptance of Electronic Monitoring and
its Consequences in Different Cultural
Contexts: A Conceptual Model
ABSTRACT: Electronic Performance Monitoring
(EPM) is widely used in the U.S. and other
industrialized countries. The trend towards
globalization recently has been further
strengthened by the attempts of Multinational
corporations (MNCs) to outsource technology-based
jobs to developing countries. These developments
raise the question of quality control
by MNCs. The current paper proposes that
EPM may be an effective tool in ensuring
that foreign subsidiaries and subcontractors
of MNCs meet their production quality
standards. However, the use of EPM on
a global scale may lead to an array of
questions regarding appropriateness and
effectiveness of this procedure in different
cultural contexts. We propose a model
that describes the interaction of major
EPM characteristics and national culture
dimensions, and suggests possible effects
of this interaction on creating culture-sensitive
job designs for monitored individuals
in different countries. The effects of
this interaction on perceptions of EPM
fairness, performance and stress of monitored
individuals are discussed. The paper
reviews the existing empirical evidence
on the effects of different aspects of
national culture on the attitudes and
behaviors of electronically monitored
individuals in different cultural contexts,
identifies critical gaps in the literature,
and provides recommendations on the use
of EPM in cross-cultural contexts.
Keywords: computer monitoring, job design,
national culture, monitoring fairness performance,
stress, multinational corporations, globalization
Elisabeth Rossen
Department of Informatics
University of Oslo
E-engagement in the Cross-Cultural
Context of Collaborative Technologies
in 21st Century Global Business
ABSTRACT: This paper addresses, “online
scale vs. offline sensitivity” (Kotabe
and Mandviwalla, 2003), which the conference
organizers cite as the most recent of the
two binary forces underpinning the nature
of contemporary international business
operations and research. I explore the
role of the cross cultural dimensions,
particularly context (Hall, 1969, 1983).
This paper focuses on specific instances
in multinationals where collaborative technologies
have been valuable in work and learning
that is geographically dispersed throughout
the world. Despite the frequently cited
usefulness of the collaborative technologies
in global reach and the management of time
and cost associated with business travel,
the findings from my qualitative case studies
are mixed concerning “online scale
versus offline sensitivity” in the
IT cross cultural context and, although
exploratory, appear to differ among cultures
both nationally and organizationally. In
terms of virtual work collaboration, only
one case [Utopia] provided sufficient data
to support the conference organizers’ statement “Forward
looking proactive firms have the ability
and willingness to accomplish both tasks
[online scale and offline sensitivity]
simultaneously” (Kotabe and Mandviwalla,
2003) in a congruent manner. However, one
other multinational [SI] in the context
of global virtual learning met Kotabe and
Mandviwalla’s criteria of progressive
firms that have been able to achieve online
scale and offline sensitivity simultaneously
in an computer mediated environment that
is globally distributed.
Rakesh B. Sambharya
Arun Kumaraswamy
Snehamy Banerjee
School of Business
Rutgers University - Camden
The Internet and the Future of the Multinational
Enterprise
ABSTRACT: This paper highlights
the changing nature of the multinational
enterprise
(MNE) due
to the twin and interrelated forces of
globalization and advances in informational
technology primarily in the form of the
Internet. The traditional control and
command style of management that worked
before
the mid-1980s clearly was rendered obsolete.
In the paper we explore and the impact
of the Internet on various aspects of
the MNE strategy and operations before
late
1990s and the new millennium. We discuss
the business drivers of globalization
in the context of democratization of information
and technology and consequent reduction
of transaction costs for MNEs. The shift
in strategic focus of MNEs from global
dispersion of the value-chain activities
in the early 1990s to the dis-aggregation
of the value chain currently. The primary
sources of competitive advantage fro
the
MNEs due to changes induced by the advent
of the Internet are discussed. The changes
in industry structure and how it will
affect the MNE are in terms of lower barriers
to global entry with potential advantages
due to first-mover advantages due to
network
externalities are explored. We then look
at the implication for organizational
structures for MNEs bought about the Internet.
Finally
we deal with the challenges faced by
the MNEs in the new millennium in terms
of
managing a network alliances and partnerships
whilst promoting an atmosphere of trust,
openness, and transparency and also confronting
with issues of security and reliability.
Richard T. Watson
Marie-Claude Boudreau
Martina Greiner
Donald Wynn
Paul York
Rusen Gul
Department of MIS
University of Georgia
Governance and Global Communities
ABSTRACT: Communities are a new form
of organization in which volunteers, primarily,
contribute
to the creation of economic value. Building
upon transaction cost economics, communities
are investigated as a fourth form of
governance structure. The concept of
transaction benefits
is introduced to the governance structure
equation, and some key variables (individual
characteristics and needs, information
technology, and national culture and
policy) influencing transaction benefits
are identified.
Within communities, four major forms
(restrictive, diffusive, inventive,
and adaptive) are
identified based upon dimensions of responsiveness
and transaction benefits. We conclude
with a discussion of the relationship
between
communities and other governance structures.
Hongxin Zhao
Taewon Suh
Seung H. Kim
Saint Louis University
Jianjun Du
University of Houston - Victoria
On the Determinants of Global Internet
Diffusion: A Cross-Country Analysis
ABSTRACT: Using the reliable indicators
of Internet host density and explanatory
factors
across 40 nations, this study addresses
two main
empirical questions central to the growing
concern of digital divide:
1. What are the major determinants of
Internet diffusion?
2. What explains the differences in Internet
diffusion between developed and less
developed countries?
The findings suggest that there is a
set of conditions which is required to
ensure
a high rate of Internet diffusion, and
that the thrust of policies within the
developing countries should be particularly
focused on building infrastructure and
creating a national environment that
promotes innovation. Firms intending
to invest and
operate in developed, as well as less
developed countries, may identify and
evaluate these
determining factors which can assist
them in making informed investment decisions.
Key Words: Internet Diffusion; FDI; Cross-Country
Analysis; Digital Divide
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