IT CAPABILITIES IN GLOBAL ENTERPRISES

Organizations are globalizing rapidly for growth. However, with globalization they constantly struggle with the often competing objectives of global scale and responsiveness to local conditions and global trends. Prior research suggests that IT capabilities are critical to achieving organizational goals; however there has been relatively little research that explicitly examines IT capabilities in the MNC context. This paper examines in-depth the IT capabilities in a global organization. Drawing on recent research that suggests a goal-oriented approach to IT capabilities, we identify MNC capabilities of Global Scale, Global-Local Responsiveness and Global Coordination. The paper also notes the distinction between resources and processes in the conceptualization of capabilities, and provides empirical support for the resources and associated processes that comprise each of the global IT capabilities

Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector

The emergence of a "second wave" of developing-country multinational enterprises (MNEs) in a variety of industries is one of the characterizing features of globalization. These new MNEs did not delay their internationalisation until they were large, as did most of their predecessors, and often become global as a result of direct firm-to-firm contracting. Many grow large as they internationalise conversely, they internationalise in order to grow large. This is a striking pattern which, if confirmed, indicates that enterprises from developing countries have pursued distinctive approaches to internationalisation. It is a further interesting hypothesis to investigate to what extent such firms, born as suppliers of established incumbents, have leveraged on their "latecomer" status to accelerate their internationalisation. This paper documents how emerging MNEs may follow quite different patterns to reach, or at least approach, global competitiveness. In particular, it investigates how three latecomer MNEs pursued global growth through accelerated internationalisation combined with strategic and organizational innovation. Haier (China), Mabe (Mexico) and Arcelik (Turkey) emerged as Dragon Multinationals in the large home appliances (so-called "white goods") industry. This is a producer-driven global value chain, characterized by mature technology and rapid delocalization to developing countries, where not only input costs are lower, but demand growth rates are higher - giving a decided latecomer advantage to these MNEs. Haier, Mabe and Arçelik leveraged their strategic partnership with established MNEs to upgrade their operations, evolving from the production of simple goods, into new product lines developed through their own design, branding and marketing capabilities. The recipe of their success has been the ability to treat global competition as an opportunity to build capabilities, move into more profitable industry segments, and adopt strategies that turn latecomer status into a source of competitive advantage. At the same time, their experiences show that there are many strategies and trajectories for going global.Internationalisation; latecomer; MNEs; white goods; Haier; Arcelik; Mabe

Enterprise capability and its competitiveness

Competitiveness is a key determinant for success of countries, industries and enterprises. Enterprises are the entities that create national wealth and so their productivity, efficiency, and dynamism are central to country competitiveness. An economy cannot be competitive unless enterprises operating within it are competitive and productive. Competitiveness enhancement and sustain enterprise development in a market economy and increased competition are important and practically significant. Moreover, competitiveness provides a chain between an acquisition of market share, greater profitability and long-term stability and growth of these indicators thereby improving the welfare and living standards of people. Putting it in perspective, enterprises and industries must be well competitive in domestic and international markets in order to survive. With respect to recent competitive and dynamic environment if enterprises want to be successful in competition arena, they must have competitive advantage which means creating and sustaining superior performance. Besides, the enterprises should assess the capabilities in order to operate the business by examining the financial and strategic impact. All capabilities are not created equal. Some contribute more to enterprise competitiveness and its value than others. Therefore, the linkage between the enterprise competitiveness and the enterprise capability through examining the competitiveness types and competitiveness of enterprise capability has been explained. The brand value and the enterprise value of ten best global brands have been analyzed

Enterprise capability and its competitiveness

Competitiveness is a key determinant for success of countries, industries and enterprises. Enterprises are the entities that create national wealth and so their productivity, efficiency, and dynamism are central to country competitiveness. An economy cannot be competitive unless enterprises operating within it are competitive and productive. Competitiveness enhancement and sustain enterprise development in a market economy and increased competition are important and practically significant. Moreover, competitiveness provides a chain between an acquisition of market share, greater profitability and long-term stability and growth of these indicators thereby improving the welfare and living standards of people. Putting it in perspective, enterprises and industries must be well competitive in domestic and international markets in order to survive. With respect to recent competitive and dynamic environment if enterprises want to be successful in competition arena, they must have competitive advantage which means creating and sustaining superior performance. Besides, the enterprises should assess the capabilities in order to operate the business by examining the financial and strategic impact. All capabilities are not created equal. Some contribute more to enterprise competitiveness and its value than others. Therefore, the linkage between the enterprise competitiveness and the enterprise capability through examining the competitiveness types and competitiveness of enterprise capability has been explained. The brand value and the enterprise value of ten best global brands have been analyzed

Developing a sustainable IT capability: lessons from Intel's journey

Intel Corporation set itself a goal to reduce its global-warming greenhouse gas footprint by 20% by 2012 from 2007 levels. Through the use of sustainable IT, the Intel IT organization is recognized as a significant contributor to the company’s sustainability strategy by transforming its IT operations and overall Intel operations. This article describes how Intel has achieved IT sustainability benefits thus far by developing four key capabilities. These capabilities have been incorporated into the Sustainable ICT Capability Maturity Framework (SICT-CMF), a model developed by an industry consortium in which the authors were key participants. The article ends with lessons learned from Intel’s experiences that can be applied by business and IT executives in other enterprises

Developing a sustainable IT capability: lessons from Intel's journey

Intel Corporation set itself a goal to reduce its global-warming greenhouse gas footprint by 20% by 2012 from 2007 levels. Through the use of sustainable IT, the Intel IT organization is recognized as a significant contributor to the company’s sustainability strategy by transforming its IT operations and overall Intel operations. This article describes how Intel has achieved IT sustainability benefits thus far by developing four key capabilities. These capabilities have been incorporated into the Sustainable ICT Capability Maturity Framework (SICT-CMF), a model developed by an industry consortium in which the authors were key participants. The article ends with lessons learned from Intel’s experiences that can be applied by business and IT executives in other enterprises

Review of International Production and Global Value Chain Studies: The Case of Turkish Regional Networks

This study focuses on how Turkey’s small and medium-sized enterprises (SMEs) can participate in global markets. In fact, developing countries provide a means for accelerating the development of enterprises and countries, providing openings that developing country enterprises can exploit to upgrade their capabilities. For such enterprises, or local clusters of enterprises, the task is to insert themselves into the wider networks. This may be regarded as the main achievement for sustaining competitiveness, in similarities with the re-structuring of regional networks in developing countries that often compete by participating in extensive inter-firm networks. As another dimension in our study, we will investigate and argue whether if it is possible to increase and improve the participation of Turkish’s SMEs in the global economy, which is explicitly the baseline hypothesis of this study. The literature on regional networks and global value chain (GVC) will provide us some new insights to show the international linkages of Turkish SMEs, which often lack the capabilities to participate effectively in global markets

Review of supply chain partnership process in joint ventures: example as Chinese automotive industry

Under the environment of economic globalization, there has seen a global transfer of manufacturing into China and China’s automotive industry engage in global trade. China faces unprecedented opportunities for development, although there are many challenges it must face. It has become a strategic choice for all automotive enterprises to implement supply chain management in order to achieve competitive advantages. At present, most researches on supply chain partnerships have been carried out based on enterprises in developed countries. Very few theoretical and empirical studies have been based on developing countries, and in particular, only a few scholars have examined supply chain partnerships in China. Based on the joint ventures, this paper is a review of partner theories and process of partner relationship. With respect to the supply chain partnership strategy and process and partners’ capability literature, there is limited research on the special background such as joint ventures or Chinese automotive industry. Some literature on partners’ capabilities is based in favor of the operational aspects

Technological Entrepreneurship And Dynamic Entrepreneurial Capabilities In Indian It Industry

Entrepreneurship acts as a pillar for the economic prosperity of a nation as it leads to generation of employment contribution in national income, rural development, industrialization, technological development, export promotion etc. Technological Entrepreneurship (TE) is an important way to commercialize technological innovations and offers unique development opportunities for societies to educate and grow. Technology development and entrepreneurial capabilities spirit fuels growth of the nation. Dynamicentrepreneurialcapabilityis to examine how a small entrepreneurial firm can achieve successful product innovation and technology change by substituting the traditional drivers for innovation, such as patenting capabilities, in-house research and development and expert human capital with a new type of higher order capabilities, peculiar to entrepreneurial and small and medium-sized enterprises settings, which we state as dynamic entrepreneurial capabilities. The dynamic entrepreneurial capabilities of Indian IT industry has built valuable brand equity for itself in the global markets. The IT industry achieved a major breakthrough in the 1990s and is now one of the important industries of India. Its vast reservoir of dynamic technological entrepreneurial capabilities transformed India into a super power. The main purpose of this paper is to study about Technological Entrepreneurship in India and dynamic entrepreneurial capabilities in Indian IT industry

The mediating effect of reconfiguring capabilities on the relationship between entrepreneurial orientation and export performance of small and medium enterprises

The aim of this paper was to test the mediating effect of reconfiguring capabilities coupled with entrepreneurial strategic orientation on the export performance of SMEs. This is imperative due to weak recovery, and slows down in global economic growth; it becomes pertinent to employ fundamentals that can drive growth and employment creation in the short to medium term in uncertain environment. Building on prior researches which suggested that continuous improvement and regenerative dynamic capabilities of a firm would enhance firm performance, this study explored this objective through survey data from 201 manufacturing exporting SMEs in Nigeria. Our findings indicate that firm’s reconfiguring capabilities mediate the relationship between entrepreneurial orientation and export performance and entrepreneurial strategic orientation also have positive and significant effect on export performance of SMEs. This re-established the fact that potential source of competitive advantage could always be achieved when reconfiguring capabilities are combined with entrepreneurship. Keywords: reconfiguring capabilities, entrepreneurial orientation, Small and Medium enterprises, export performance