Linking Information Technology to Global Business Strategy to Gain Competitive Advantage: An Integrative Model

1995 ◽  
Vol 10 (2) ◽  
pp. 115-124 ◽  
Author(s):  
Narender K. Ramarapu ◽  
Augustine A. Lado

While information technology has been recognized as critically important for supporting global business strategy, the contingent relationships between salient dimensions of an information technology and key sources of competitive advantage have not been systematically explicated and discussed in the literature. Instead, a universal view of the role of information technology in developing competitive advantage for a firm is often adopted. Taking a contingency perspective, this paper more systematically examines the links among global business strategies, global information technologies (GIT) and competitive advantage within an integrative framework. Additionally, the issue of sustainability of GIT-based competitive advantages is addressed using the conceptual tool kits of the I/O (industrial organization)-based and resource-based theories of strategic management. The proposed conceptual model provides an encompassing framework for future research on the increasingly important topic of global information technology and its potential to generate competitive advantage for firms.

2019 ◽  
pp. 51-62
Author(s):  
Enzo Silva ◽  
Patrícia Lopes

With the evolving market of various industries, business management specialists are creating a demand for information technology to gain competitive advantage. Within this context, technology management specialists seek to innovate by creating systems that offer results with differentials. In this paper, we seek to present the connection between the study of Business Administration and Information Systems, addressing a brief history of Market Intelligence, its evolution and the importance it has for most business sectors. We have strengthened the argument why information technology is an essential investment for the success and survival of any organization today. We intend to contribute with theoretical material for future research on the subject.


2014 ◽  
Vol 35 (5) ◽  
pp. 43-48 ◽  
Author(s):  
Conrad den Hertog

Purpose – The purpose of this paper is to present a new and comprehensive business strategy matrix which can be used to create competitive advantage for the value chain of every business unit of any firm. Design/methodology/approach – This paper reviews the key findings of several well-known papers within the value chain literature and then adds several new conceptual insights to step by step create a logically developed, business strategy matrix featuring four strategy choices. Findings – This paper presents the four business strategy choices of competitive value chains, based on the business strategies of innovative quality, lean cost, agile delivery and attentive service. Research limitations/implications – A future research implication of this paper is to empirically test the financial benefits for producers of custom products, of applying agile delivery as a key business strategy. Practical implications – This paper provides the senior management of each business unit of any firm, with a clear guide to defining an optimal business strategy. Social implications – This paper is intended to advance the practice of business strategy by senior management, to enhance customer value across all business units. Originality/value – This paper expands upon existing business strategy models by providing a comprehensive business strategy matrix, which can be applied to all possible business units. It does this by building upon current best practice to demonstrate that next to innovative quality, lean cost and attentive service strategies, an agile delivery strategy is required in the case of custom products.


2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.


2005 ◽  
pp. 206-235 ◽  
Author(s):  
Bernadette M. Watson ◽  
Gavin M. Schwarz ◽  
Elizabeth Jones

In this chapter, we consider the relationships between social identity and e-democracy in organizations that exist in the constantly changing global business and technological environment. We also consider the inevitability of organizational e-democracy in organizations undertaking information technology (IT) changes, the technology at the base of e-democracy. Through an examination of employees’ experiences of change, we investigate their perceptions of changes in effective communication during major organizational change implementation in a hospital context. While the changes were far reaching, we mainly focus on the introduction of information and communication technology (ICT). We use an empirical examination of an Australian public hospital’s IT change experience as the backdrop to assess the accuracy of the statement that there is an improvement in the autonomy within organizations as a result of IT changes. We discuss our findings in light of the implications that arise for HR practitioners.


Author(s):  
Norita Ahmad ◽  
Mahmood Monfaradi

This paper explores Information Technology (IT) adoption behavior in firms as fashion first and a means of leveraging competitive advantage second. In this paper, IT is treated as a product and compared to fashion apparel through a distinct set of characteristics that define the behavior and nature of the apparel market. The underlying questions that are posed by this paper is twofold: (1) Is IT in fashion? (2) If it is, then how does it affect the adoption of IT from a behavioral perspective and what are the results? Through an exploratory study of the topic, this paper seeks to provide further insight to firms on how to go about adopting new innovative technologies. Moreover, by enticing firms to pay special attention to detecting and predicting such fashions and the value they add, this paper sets the ground for future research in the field of emerging technologies and IT adoption.


2008 ◽  
pp. 1469-1488 ◽  
Author(s):  
Ron Thompson ◽  
Deborah Compeau ◽  
Chris Higgins

An integrative model explaining intentions to use an information technology is proposed. The primary objective is to obtain a clearer picture of how intentions are formed, and draws on previous research such as the Technology Acceptance Model (Davis, Bagozzi and Warshaw, 1989) and the Decomposed Theory of Planned Behavior (Taylor and Todd, 1995a). The conceptual model was tested using questionnaire responses from 189 subjects, measured at two time periods approximately two months apart. The results generally supported the hypothesized relationships, and revealed strong influences of both personal innovativeness and computer self-efficacy.


Author(s):  
Hans Lehmann

This case tells the story of a Food Products Co-op from “Australasia” and their attempt to create a global information system. The Co-op is among the 20 largest food enterprises in the world, and international information systems (IIS) have taken on increasing importance as the organization expanded rapidly during the 1980s and even more so as the enterprise refined their global operations in the last decade. Set in the six years since 1995, the story demonstrates the many pitfalls in the process of evolving an IIS as it follows the Co-op’s global business development. Two key findings stood out among the many lessons that can be drawn from the case: first, the notion of an “information system migration” following the development of the Global Business Strategy of the multi-national enterprise through various stages; second, the failure of the IIS to adapt to the organization’s strategy changes set up a field of antagonistic forces, in which business resistance summarily killed all attempts by the information technology department to install a standard global information system.


Author(s):  
Tamio Shimizu ◽  
Marley Monteiro de Carvalho ◽  
Fernando Jose Barbin

Digital computers came into being after the Second World War. After a period of use solely in scientific and military areas, business perceived that this technological innovation could be very useful. The large, expensive equipment was very limited in terms of the information it could process and store, in addition to the restricted number of users who could access them simultaneously or from remote locations. Both the training and vision of professionals in the area of what was then called “data processing” was eminently technical. Thus, the early applications were developed to resolve well-structured problems, i.e., those whose stages and sequences were well-defined, such as payroll, stock control, and accounts due and received. Technology evolved and by the end of the 1970s, there were a number of alternative uses for computers and basic applications had been installed in the large companies. At that point, specialists began discussing a way to use Information Technology (IT), a term that came into use in the 1980s, better to make businesses more competitive. From that time on, many theories, models, and techniques have been studied and developed so that information technology can be used in tune with business strategies and operations. IT progressively came to play an important role in the strategy of the leading companies in competitive markets. Presently there are great expectations that IT applications will make possible new strategy alternatives for business and new opportunities for companies; as in the case of e-commerce and e-business (Porter, 2001; Evans & Wurster, 1999). However, there is also an extensive debate about the real gains derived from investments in IT. Focusing solely on the efficiency of IT applications will not provide a response to such questions. To evaluate the impact of IT on business strategy and operations, a focus on its effectiveness is needed. One must examine the results of IT applications in relation to the objectives, goals, and needs of an organization. Effectiveness should be maintained in the long run, and for this to happen, the concept of Strategic Alignment between IT and the business is fundamental.


Author(s):  
David L. Bahn

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of IT’s role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technology’s role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


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