The Integral Role of Information Technology in Achieving Business Strategy Success: Managing the Information Resources of Global Competitors

Abstract

This chapter examines the impact of culture on the organizational and information technology infrastructures of global competitors while considering the role business strategy plays on both infrastructures. Information technology is increasingly becoming a focal point of the firm’s business strategy for internally derived competitive advantage, as well as a means for linking to the firm’s supply chain partners. Prior research has suggested that when managers consider how culture impacts the information flow and structure of the organization and its supply chain partners, a more effective “fit” between business strategies and performance results. A conceptual framework is proposed comparing national cultures and two important organizational factors—components of organizational structures and components of information systems. Specifically, the framework helps explain how organizational structures and information technology will vary based on national culture within the confines of the firm’s chosen competitive strategy. Examples from three cultures are used to demonstrate how international managers and researchers may better understand the impact of cultural differences on the operations of firms choosing to compete in international markets. Finally, propositions are offered for future empirical testing by information management researchers.