The Use of Technology in Organizations

The Use of Technology in Organizations

Jorge Ramirez
DOI: 10.4018/978-1-7998-2448-0.ch003
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Multinational Corporations (MNC) face the challenge of compete in the new interconnected business environment. In particular technology is recognized as a factor that boost productivity and competitiveness and drives the business connectivity which in turn involves cross-borders goods, services and financial flows. MNC is recognized as being possessed of high-tech assets, and also, resources including capital, management skills and R&D capabilities and subsidiaries can get them, from its holding company, and they transfer technology to local businesses. A knowledge transfer, running parallel to the technology transfer take place benefiting to the local economy. Foreign Direct Investment (FDI) is considered as the primary vehicle to facilitate technology transfer (and underlying knowledge flows) toward emerging countries. The ultimate goal of the MNC is related to leverage technology and knowledge transfer in order to maintain a competitive edge and move toward even higher value-added activities.
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An Interconnected World

The rapid advances in technology and infrastructure (nowadays mainly cloud-based), coupled with the pervasiveness of the Internet have brought unexpected growth in ICT access and connectivity to the enterprises around the world, causing major changes in global business scenario. According to the Telecommunication Development Bureau, a business division belonging to International Telecommunication Union (2015), between 2000-2015 global Internet penetration grew 7 fold from 6.5% to 43%, meaning that globally 3.2 billion people are using the Internet and from those about 2 billion come from developing countries. Even though the rate of Internet penetration in emerging countries is increasing quickly (25% per year over 5% in developed countries), this is due to the still low Internet penetration in emerging countries (35% in most of the emerging countries against 70% on average in developed countries) (Nottebohm, et al., 2012).

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