How Multinational Corporations Use Information Technology to Manage Global Operations

ABSTRACT

Despite a generally acknowledged importance of information technology (IT) in enabling global strategy and a broad understanding of the manner in which IT enhances coordination and reduces cost, few studies have focused precisely on how multinational corporations (MNCs) use IT to facilitate globalization. To address this gap in the literature, we conduct a case study across four large MNCs, and use primary data to develop predictive propositions on the characteristics of products, processes, and customers that impact the ways in which MNCs use IT to manage their global operations.

KEYWORDS:

• Multinational
• MNC
• international
• information technology
• global

Acknowledgment

We thank the executives of participating case study firms for sharing strategic insights and operational details.

Funding

Financial support was provided by the Handelsbanken Foundation and the University of Richmond Robins School of Business.

Notes

¹ A multi-domestic strategy is based on a portfolio of autonomous domestic companies with a focus on local responsiveness, an international strategy is based on home country expertise with a focus on control, a global strategy is based on scale economies with a focus on integration, and a transnational strategy is based on a headquarters-subsidiary network with a simultaneous focus on global integration and local responsiveness [3].

Additional information

Funding

Financial support was provided by the Handelsbanken Foundation and the University of Richmond Robins School of Business.