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Information technology and the internationalization of the firm
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Mol, Michael J. and Koppius, Otto R.. (2002) Information technology and the internationalization of the firm. Journal of Global Information Management, Vol.10 (No.4). pp. 44-60. ISSN 1062-7375
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Official URL: http://dx.doi.org/10.4018/jgim.2002100103
Abstract
A key concern for all multinationals is where to find a suitable location for their business activities, bearing in mind that they must find the right balance between global integration and local responsiveness. This article contributes to the internationalization debate by asking: in what sense will information technology enable globalization? We focus on the sourcing process, an area where globalization is often claimed to be the case. Re-examination of empirical evidence shows that global sourcing is not as generally predominant as is claimed. Consequently inhibitors to global integration exist and we classify these inhibitors into three categories: geographical, relational and environmental inhibitors. We then analyze the role information technology plays in reducing these inhibitors and formulate propositions that are then illustrated in two case studies. Information technology is proposed to reduce the geographical and relational inhibitors, but it will have no effect on environmental inhibitors. However, the latter category of inhibitors will become more prominent in the future. Information technology thus shifts the balance towards global integration, but simultaneously creates new problems in managing internationalization.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
| Divisions: | Faculty of Social Sciences > Warwick Business School |
| Library of Congress Subject Headings (LCSH): | Information technology -- Economic aspects, International business enterprises, Business enterprises, Globalization |
| Journal or Publication Title: | Journal of Global Information Management |
| Publisher: | I G I Global |
| ISSN: | 1062-7375 |
| Date: | 2002 |
| Volume: | Vol.10 |
| Number: | No.4 |
| Number of Pages: | 16 |
| Page Range: | pp. 44-60 |
| Identification Number: | 10.4018/jgim.2002100103 |
| Status: | Peer Reviewed |
| Access rights to Published version: | Restricted or Subscription Access |
| URI: | http://wrap.warwick.ac.uk/id/eprint/36474 |
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