Information technology and global competition

Despite current concerns about the international dimensions of business, the strategic potential of information technology in enabling a firm to compete internationally has been ignored. This paper addresses the topic by proposing a framework for considering the strategic role of information technology in global competition. Three key issues face multinational companies: configuration, coordination and responsiveness. Information technology helps multinational companies resolve these issues by providing them with effective means to support their foreign subsidiaries, integrate their worldwide operations more efficiently, respond to local market needs more flexibly, and serve their customers innovatively. Several implementation problems are also discussed, including lack of a strategic vision, lack of infrastructure and expertise, host government intervention, and difficulty in transferring applications.