Global Integration and Local Flexibility: Managing Contradictions in a Global Company - A Case Study of a Multi-National Service-Oriented Manufacturing Company

This dissertation addresses strategic change from the viewpoint of managing strategic dualities in the growth and internationalization of a company. The theoretical framework builds on theories of international business, organizational capabilities, and managing contradictions in organizations. The overarching theme of this research is the management of strategic dualities. Based on a cross-theory review, I frame a qualitative single case study, which produces a research narrative of a long-term strategic change, introducing various perspectives to provide a description of the research phenomenon in its context: a multinational service-oriented manufacturing company going through a strategic change. The data for the single case study were drawn primarily from a set of documentary data. The documentary data consisted of in-house employee magazines, company internal presentations and memos, annual reports, and articles and books on the company. This monograph starts with a review of existing literature. The literature review draws a line from traditional internationalization theories and managing the liability of foreignness to globalization and the needs to balance between global integration and local flexibility. A historical single case study follows the Finland-based multinational service-oriented manufacturing company and its growth and change. The research interest lies in the company’s attempts to harmonize its ways of working globally across the company. The results describe the various harmonization efforts and their impact on the growth and productivity of the company. The results shed light on how the company has managed tensions arising from the conflicting demands between global integration and local flexibility, between productivity and innovation, and between company internal and external views. These contradictions are addressed from three different aspects: structures and processes and adaptation thereof: technologies and products and innovation thereof: and short-term and long-term view and renewal thereof. The findings of this study explicate how the case company has developed its global operating model, the “company way” and what choices the company has made in managing tensions it has faced in the integration efforts. The key findings of this case study are the following. First, involving geographical business areas in global decision making has been helping the prioritization and allocation of scarce global resources across the network of local companies. Involving these businesses has also supported the global strategy – and the global mindset – of the company. Second, technological innovations have had a key role in developing global products and have thus supported the renewal from local to global business, differentiating the case company from many of its competitors. Third, harmonized ways of working are seen as key for agility and renewal, because the harmonized baseline enables faster changes. Fourth, the case company have chosen different approaches to manage the conflicting demands between global and local requirements. In many cases, the question has been about choices between global and local, and therefore about accepting possible trade-offs. However, in the case of an exceptional market situation in the emerging China market, local demands and pressure led to conflicts that in turn led to transformation and creation of even better ways of working by combining the global and local views. Finally, the results indicate how the drivers for harmonization have changed over time. The focus appears to have shifted from ensuring operational efficiency and economies of scale, towards making it possible for the company to integrate with external networks, especially as technological development has accelerated, and the locus of innovation has been moving outside companies. The main theoretical contribution of this dissertation is to examine international management theories with a historical long-term case study, where the need for harmonization remains but the drivers for a global strategy change. Through an empirical case study, this dissertation demonstrates the role of harmonization in a global company. It applies the existing theories to practice and illustrates how the case company has been managing the tensions that it has faced during the harmonization programs. This research complements existing international business research with a real-life case study on the global integration process of one company operating in a traditional industry

A Modular Systems Perspective of IT Infrastructure Configurations and Productivity

Research on IT infrastructure investments and organizational productivity has been marked with ambiguity, evidenced by the much debated productivity paradox. Part of the ambiguity arises from a paradigmatic aggregated treatment of IT infrastructure and productivity constructs along with a disregard for contingencies and time lags. The focus in this paper is to extend the component based view to understand IT infrastructure productivity. Using a modular systems perspective, revisiting the constructs in an attempt to disaggregate them for a more detailed examination is proposed. This study adds to the body of knowledge through a holistic examination of the relationship between IT infrastructure configurations, contingencies, and organizational productivity

An Updated ERP Systems Annotated Bibliography: 2001-2005

The goal of this study is to provide an updated annotated bibliography of ERP publications published in the main IS conferences and journals during the period 2001-2005, categorizing them through an ERP lifecycle based framework that is structured in phases. The first version of this bibliography was published in 2001 (Esteves and Pastor, 2001c). However, so far, we have extended the bibliography with a significant number of new publications in all the categories used in this paper. We also reviewed the categories and some incongruities were eliminated. Furthermore, we present topics for further research in each phase

Identity ambiguity and the promises and practices of hybrid e-HRM project teams

The role of IS project team identity work in the enactment of day-to-day relationships with their internal clients is under-researched. We address this gap by examining the identity work undertaken by an electronic human resource management (e-HRM) 'hybrid' project team engaged in an enterprise-wide IS implementation for their multi-national organisation. Utilising social identity theory, we identify three distinctive, interrelated dimensions of project team identity work (project team management, team 'value propositions' (promises) and the team's 'knowledge practice'). We reveal how dissonance between two perspectives of e-HRM project identity work (clients' expected norms of project team's service and project team's expected norms of themselves) results in identity ambiguity. Our research contributions are to identity studies in the IS project management, HR and hybrid literatures and to managerial practice by challenging the assumption that hybrid experts are the panacea for problems associated with IS projects

Information Technologies in Accounting Education

Advances in information technologies have transformed the accounting function in business and the role of accountants. Recognizing the importance, several employer bodies and professional associations have called for sound information technology skills to accountants. Whether it is auditing, financial accounting or management accounting, information technology tools that are relevant, appropriate and at industry standard level need to be embedded in the accounting context and taught with the help of modern pedagogy. Instead of adding additional content in separate information systems/technology based units in the already crowded curriculum, it is necessary to embed relevant IT tools and concepts into the existing accounting units by ensuring deep learning, contextual understanding and appreciation of the IT/IS issues in accounting context. At present, it appears the level of deployment of these technologies into accounting units is limited and many aspects employers expect the accounting graduates to posses are missing. Accounting schools must embed frameworks such as REA, concepts such as network security, accounting forensics, IT controls, business intelligence and software/applications such as SAP, MyoB and enterprise performance management, into their units in order to prepare accounting graduates of the future

ERP System Implementation At A Small Engineering Company: Size Does Matter

This case regards a company pseudonymously referred to as Johnson Precision Instruments, Inc, that, faced with Y2K compliance, decided to deal with it by adopting Oracle’s ERP solution, Oracle Applications. As recently as the mid to late nineteen eighties, traditional business applications comprising an organization's information infrastructure used data that either resided in proprietary file structures or was easily represented by the relational database model, in either event resulting in an ever proliferating set of non-integrated, heterogeneous systems.  In today’s business climate, access to information is key to competitive advantage, but both data and IT architectures have become increasingly complex, so a single system model is currently deemed desirable to reduce or eliminate the deleterious effects associated with the proliferation phenomenon.  This single system model (that would serendipitously solve as Johnson Precision Instruments,  Inc.'s  (JPII) Y2K problem as well) is typically embodied in the implementation of the Enterprise Resource Planning (ERP) process, but this solution carries it's own costs and risks as this case makes clear

Baan Company’s Corporate Web Strategy – An Effort To Reach Main Street

During the 1990s Baan Company became a market leader in the enterprise applications industry. Its mission was to become an independent software manufacturer, serving a global market. To speed up growth, Baan developed its Baan Web strategy which implied a far-reaching renewal of its corporate strategy. Burgelman and Grove (1996) define the moment of choosing a new strategy as a strategic inflection point. Their framework named “Dynamic Forces in Firm Evolution†explains that ssuccessful development and implementation of a new corporate strategy is a process of aligning five dynamic forces. The focus of this study is on the vital role of the internal selection environment. This force regulates the allocation of the company’s scarce resources – cash, competences/capabilities and senior management attention – to strategic action. It is the crucial force in the continuing alignment processes that have to take place. Every company has a unique combination of distinctive competences (Burgelman) or dynamic capabilities (Teece). The study explains that to execute a new strategy successfully new competences/capabilities have to be developed based on existent ones. The development of Baan’s corporate strategy is analyzed and discussed with reference to the Technology Adoption Life Cycle (Moore). The study concludes with the management implications of a strategic inflection point.globalization;growth;dynamic capabilities;ERP;software;business web;corporate strategy;distinctive competences;strategic inflection point

An Updated ERP Systems Annotated Bibliography: 2001-2005

This study provides an updated annotated bibliography of ERP publications published in the main IS conferences and journals during the period 2001-2005, categorizing them through an ERP lifecycle-based framework that is structured in phases. The first version of this bibliography was published in 2001 (Esteves and Pastor, 2001c). However, so far, we have extended the bibliography with a significant number of new publications in all the categories used in this paper. We also reviewed the categories and some incongruities were eliminated.ERP

Toward a Process Theory of Making Sustainability Strategies Legitimate in Action

We draw on a three-year qualitative study of the processual dynamics of implementing a sustainability strategy alongside an existing mainstream competitive strategy. We show that despite the legitimacy of the sustainability strategy at the organizational level, actors experience tensions with its implementation at the action level vis-à-vis the mainstream strategy, thus creating the potential for decoupling. Our findings show that working through these tensions on specific tasks, enables actors to legitimate the sustainability strategy in action and to co-enact it with the mainstream strategy within those tasks. Cumulatively, multiple instances of such co-enactment at the action level reinforce the organizational-level legitimacy of the sustainability strategy and its integration with the mainstream strategy. We draw these findings together into a dynamic process model that contributes to the literature on integration of dual strategies at the action and organizational levels as a process of legitimacy making

Managing Complexity in Implementing ERP Projects

Many IS projects still fail, fall short of their objectives or have difficulty in justifying their investment through improved performance. This paper focuses on Enterprise Resource Planning (ERP) systems implementations which, it is argued, are inherently complex, and when taken together with contextual influences can create novel combinations of variables, which challenge established project management prescriptions. This research takes a case study approach, exploring contradictory findings to help build a more developed understanding of how project management effectiveness is influenced by project complexity in determining the degree of success in ERP projects