Title

The moderating effect of local environment on a foreign affiliate's global is strategy-effectiveness relationship

Document Type

Journal article

Source Publication

IEEE Transactions on Engineering Management

Publication Date

1-1-2003

Volume

50

Issue

3

First Page

352

Last Page

361

Keywords

Foreign affiliates, Global information systems (GIS), Information systems strategy, Integration-responsiveness analysis, International information systems, Multinational corporations

Abstract

This study evaluates the moderating effects of local culture, local regulation, and local competition on a global information systems (GISs) strategy-effectiveness relationship. Cluster analyses and moderated regression analyses were used to test hypotheses in a sample of 312 foreign affiliates operating in Canada, Japan, the U.K. and the United States. Our findings suggested that GIS strategy was related to information systems (IS) effectiveness. This relationship was moderated by all three selected moderator variables. Our study also found that foreign affiliates that follow a globally integrative GIS strategy, but which operate in a more restrictive local environment, eventually achieve greater IS effectiveness. In addition, foreign affiliates that follow a locally responsive GIS strategy, but which operate in a more competitive and culturally different local environment, will also be able to run their IS more effectively.

DOI

10.1109/TEM.2003.817290

Print ISSN

00189391

Funding Information

This work was supported by the Chinese University of Hong Kong under Grant 2070177. {2070177}

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