As globalization has driven and has also been driven by innovation in information technology (IT), an effective utilization of IT has become critical in improving global…
Abstract
As globalization has driven and has also been driven by innovation in information technology (IT), an effective utilization of IT has become critical in improving global operations. In this paper, we report an exploratory inquiry into what factors influence the effectiveness of IT on coordinating international operations as perceived by managers at global firms. As an initial study, our research focuses on a specific set of variables which we propose are fundamental elements for determining the IT effectiveness in the global context, i.e. firm’s globalization level, IT application, and IT department dedication. We put forth two propositions: first, a global firm can enhance its IT effectiveness by advancing the IT application level; second, as its globalization level expands, the global firm must put in place a comparable amount of organizational support (measured by IT department dedication) for the global IT system if it wants to heighten IT performance by raising the IT application level. In order to verify the propositions, we collected survey data from 35 Korean firms, each of which operates on a global scale, doing operations in foreign countries through subsidiaries. Our analysis result led us to reach conclusions upholding the propositions.
Details
Keywords
IThe purpose of this paper is to focus on manufacturers and suppliers who engage in strategic relationships for quality improvement and new product development. Depending on the…
Abstract
Purpose
IThe purpose of this paper is to focus on manufacturers and suppliers who engage in strategic relationships for quality improvement and new product development. Depending on the balance of bargaining power in the relationship, each partner's resource commitment to the activities such as quality improvement and new product development may vary. This has implications for both manufacturer and supplier profitability. Therefore the paper aims to investigate how variations in the structure of the decision‐making process (i.e. manufacturer dominated, supplier dominated, or balanced) affect the performance of each partner in strategic collaborative relationship.
Design/methodology/approach
In order to answer the research question, the paper uses real data from a telecommunications company to develop a simulation model and conduct a what‐if analysis.
Findings
The analysis shows that sharing the decision‐making process has indeed a significant impact on the collaboration performance: an optimal outcome would have been achieved should the objective function have taken into account both partners' profit maximization at the same time. Although the outcome may be bound by the specific context of the case, the paper puts forth that the supply chain partners could expect better performance from their collaboration when both of their perspectives are accommodated equally.
Originality/value
In conducting the research, unlike most of the previous studies using qualitative methods, this paper employed the system dynamics simulation to develop an analysis model by calibrating the real data. Therefore, the paper's conclusions are more analytical and generalizable than others based only on qualitative reasoning.