These two phenomena, growth of global economic activity and of information technology, are not unrelated (Nanus, 1978; Bankes, et. al., 1992). Near instantaneous cross-continental cash management activities (Rochester, 1991), for example, could not take place without quick, reliable, and affordable telecommunications technology.
The simultaneity of these two trends, growth in information technology and globalization of business, raises interesting theoretical questions regarding the direction of influences between these two forces. To what extent does the growing power of information technology enable globalization? To what extent does increased globalization create demand and markets for ever more refined information technology? Do the new technologies enable firms to consider new markets and new activities? Do the desires of firms for international activities create demand for new technologies? Are uses for information technology in a global setting merely the logical extension of domestic information technologies? Does operating internationally create new areas of decision making such as the structure for direct foreign investment (Iyer, 1988)?
While there has long been some interest in global IS (e.g. Buss, 1982; Selig, 1982a; Selig, 1982b), issues within the U.S. business context have dominated I.S. research to date. However, as economic competition among nations and global commerce have grown in importance and attracted more attention, I.S. researchers are beginning to ask how their field is affected by changing from a domestic to global context.
This growing interest among I.S. researchers is paralleled by a growing interest in global trends among organizational and management researchers. This is reflected in recent Academy of Management Review (April 1991) and Management Science (January 1994) special issues focusing on the internationalization of management theory. Researchers in global IS are confronted with some of the same problems and decisions as their counterparts in organizational and management research. Among these problems are: What do we really know with confidence about MIS domestically within particular countries? Is it sufficient to test what these concepts in cross-cultural settings? Do new issues emerge only in the global context? By studying MIS in a global context, can we universalize our understanding of what occurs domestically (or will the lessons learned be so diluted that they are of little value in any particular situation)?
Based on detailed interviews with IS executives charged with managing international IS, Ives and Jarvenpaa (1991) outline a global IS research agenda. They focus on four aspects of global IS: (1) matching global IS strategy to global business strategy; (2) issues involving the technical platform for global IS applications; (3) issues involved in international sharing of data; and (4) issues of IS projects spanning cultures. This framework serves well from the perspective of a particular firm and can be extended as a beginning point for consideration of other stakeholders. Developing countries, for example, can consider the role of IS in their domestic strategies in terms of (1) issues involving technical infrastructure, (2) issues involving control of data originating in their territory, and (3) issues of culture among their residents as well as coordinating with neighbors. Additionally, developing countries will consider policies regarding multinational firms including tradeoffs between job development and tax revenue generation, policies for encouraging the development of indigenous information technology industries, and distribution of computing power among different subsets of the population.
From the perspective of the individual firm, matching global IS to global business strategy involves organizing the cross-national IS function. Daniels, Pitts, and Tretter (1984) present empirical data relating multinational firms with differing attributes (such as size, amount of foreign investment, breadth of product line) to show how they tend to use differing management control strategies. Presumably these differing management control strategies will have implications for the type and intensity of information systems required by different firms. There is much room for studying the connection between different multinational control strategies and MIS strategies/implementations.
Also to be studied are ways firms might derive advantage from the availability of information originating from many countries. Knowledge of global trends may provide an advantage to multinational firms competing in specific domestic markets (just as knowledge from throughout the United States can help larger firms be more competitive in regional markets). Instances of such advantage include: (1) pooling various sources of financing to take advantage of shifting rates and currency values; (2) introduction in one global market of products invented or improved in other global markets; and (3) increased rationalization and specialization of production and assembly taking advantage of physical and transaction resources within different locations. A related topic is the differential impact of governmental policies (such as regards financial disclosure (Gray, Radebaugh, & Roberts, 1990)) or infrastructure on the relative cost of gathering and processing information.
The cross-cultural nature of information systems can be studied in terms of (1) the impact of constant information on people of different cultures; (2) the differences in information sought and used by people of different cultures (and the strategies and approaches to decision making and other task performance by people of different cultures); and (3) the mechanisms for developing information systems to be developed and/or used by people of different cultures.
Alternative perspectives derive from national attributes and industry views. For example to the extent that design methodologies used in France, Germany, Japan, or India account for specific cultural values, can lessons learned in these countries enrich design methodologies used in Canada or the U.S.?
Treatment of domestic (US) IS issues can be compared to their treatment in other countries. For example, Wolcott and Goodman (1988) provide an interesting description of Soviet design, production, and deployment of high-speed computers. Press (1991) explores approaches to developing and marketing software in different international regions.
Dr. Niederman is at the
Merrick School of Business
University of Baltimore
Baltimore, MD 20201
USA
410-837-5276
Last update: June 3, 1996 By Fred Niederman & Erran Carmel. Please send Comments to Dr. Niederman at fniederman@ubmail.ubalt.edu