Why Will Global IT Strategies Not Work Everywhere?

Information technology sometimes

refers to the information systems (IS) organization that combines the

technologies, processes, people, and promotion mechanisms to improve

the performance and effectiveness of the organization. IT affects

nearly all aspects of human endeavor and assists in the management

and operations of various types of organizations.

Since the

1960s, managing and operating IT to improve organizational

performance and effectiveness has been a field of practice. First, it

was known as business data processing and later as management

information systems, and the field is currently refers to as

information technology. Ongoing innovations in IT and the growing

worldwide competition add difficulties and uncertainties to corporate

environments. Information systems in multinational corporations

(MNCs) attract attention from both practitioners and scholars as a

critical enabler for competitive advantage of these organizations.

In 1989, Bartlett and Ghoshal proposed the global integration-

local responsiveness model that was an influential framework dealing

with international business strategy, management relationships, and

control within MNCs. Bartlett and Ghoshal drew upon the global

integration-local responsiveness model to propose four forms of MNCs:

global corporations (GCs), international corporations (INCs), multi-

domestic corporations (MDCs), and transnational corporations (TNCs).

Global corporations (GCs) prefer to market a standardized

product worldwide for economic reasons while concentrating the

production, marketing, research, and development activities in a few

favorable locations. In contrast, international corporations (INCs)

centralize product development functions at their headquarters or a

few favorable locations, and localize their customization product

offering. Multi-domestic corporations (MDCs) achieve maximum local

responsiveness with the customization of their products and marketing

strategies to fit local conditions. Finally, in transnational

corporations (TNCs), the flow of skills and product offerings was

between the head office and foreign subsidiary, and between foreign

subsidiaries themselves. TNCs should develop core competencies and

valuable skills in the head office as well as in foreign

subsidiaries.

The nature and function of information systems

in an MNC should tally with the form of the organization. In order

words, IT strategies depend on the nature of an MNC and can be

categorized into global information strategies (GS), international

information strategies (INS), multi-domestic information strategies

(MDS), and transnational information strategies (TNS). The criterion

of this categorization was the need for multinational integration and

local responsiveness. The assumption is that the various forms of

multinational information strategic planning corresponds to the

different multinational IS organizational strategies.