Madhu T. Rao

Host Country Resource Availability and Information System Control Mechanisms in Multinational Corporations: An Empirical Test of Resource Dependence Theory

The management of the information systems (IS) function is a complex task, particularly in the case of multinational corporations (MNCs), where installations dispersed across distance, time, and cultures can lead to diverse and incompatible systems spreading among foreign subsidiaries. The need to globally control and coordinate the IS management function is often met with resistance from local IS managers, who may perceive corporate standards as intrusive. Resource dependence theory (RDT) argues that control is made easier when a subsidiary unit is dependent on corporate headquarters for critical resources. This study examined the IS management relationship and the use of various mechanisms of control (formal and informal) between 54 headquarters-subsidiary pairs spread across 19 countries of varying resource-richness. While RDT appears to be valid when subsidiaries are dependent on MNC headquarters for resources, the expected relationship between the mechanisms and host country IS resource availability was not observed. Although there was a significant relationship with the use of informal mechanisms and IS resources, it was in the opposite direction to what would be expected by RDT.

Trends, Implications, and Responses to Global IT Sourcing: A Field Study

Abstract Despite the furor surrounding the offshoring phenomenon, there is little empirical research examining global IT sourcing (GITS) and its potential impacts on the individual, the organization, and society. This article presents the results of a study of the perceived direction of GITS in the United States and its implications for business. Based on information collected from structured interviews with senior information systems executives at ten medium to large corporations in the region, the study specifically examines their perceptions of offshoring trend, its implications for the IT workforce, and steps that must be taken to remain competitive in the global marketplace. Nine of the ten company executives interviewed indicated a slow but steady growth in the level of such offshore engagements and an increasing commitment to strategic partnerships with global information service providers. The primary drivers of offshoring partnerships were cost, access to expertise, and domestic headcount stabilization. Significant concerns were expressed as to the nature of computer science education in the United States and a need to shift from technical skills to those that focused on business domain knowledge.

The Effects of Personality and Media Differences on the Performance of Dyads Addressing a Cognitive Conflict Task

Prior information systems research has found that numerous contextual factors, including individual differences, can influence which communication technologies are chosen for various situations. Because the adaptability of information and communication technologies to individual preferences and different environments is continuously improving, it has become increasingly feasible and important to investigate the relationships between individual characteristics (such as personality) and features of technology. In this study, the communication environment (face to face vs. synchronous computer mediated) and partners’ personality types (extraversion-introversion) in two-person groups were contrasted in a laboratory experiment. Dyads addressed a cognitive conflict task—allocation of limited funds to controversial social causes. Contrary to the hypotheses, introverts exerted influence over extraverts. As expected, extraverts were more satisfied with the process than introverts, and face-to-face dyads required less time, were more satisfied, and perceived less conflict than computer-mediated dyads. Given the ease with which some modern technologies can be melded to each individual’s preferences and that prior research has shown that individual differences influence the selection of technologies, these results have important implications for future information systems researchers and technology designers.

Key Issues for Global it Sourcing: Country and Individual Factors

Abstract On October 2, 1989, a deal was signed that would forever change the landscape of IT sourcing. In an agreement worth nearly

International Collaboration in Transorganizational Systems Development: The Challenges of Global Insourcing

250 million, Eastman Kodak deliberately and strategically handed over control of its data center operations to IBM. While not the first major outsourcing contract of its day, Kodaks move was a harbinger of a new IT sourcing trend. In the 15 years since the Kodak deal, “outsourcing” has moved past being a strategic business option to becoming the “pervasive paradigm” of businesses in the new millennium (Bendor-Samuels, 2000).

Formal and Informal IS Control Mechanisms in Multinational Corporations: A Test of Resource Dependence Theory

Abstract There are a number of compelling reasons for companies to look outside their own organizational and national boundaries for the skills and knowledge needed to compete in the global marketplace. Improving telecommunications infrastructures around the world and highly skilled talent pools in low cost nations are only a few of the drivers motivating companies to collaborate with partner firms located abroad. Such collaboration is, however, extremely difficult to control and coordinate. This paper examines a special case of global transorganizational insourcing in which two dispersed, semi-autonomous organizations within the same parent entity collaborate on a software development project. The project involves an American and Indian team working together to develop an enterprise-wide SAP application for Transangara Corporation, a large software publishing house headquartered in the United States. Using a transorganizational development (TOD) model, the study analyzes the reasons behind the failure of the collaborating teams to meet the scheduled release deadline for the project and presents the steps taken to address the challenges. The paper concludes with a set of lessons learned and best practices for companies dealing with similar projects.

Control and Coordination of Information Systems in Multinational Corporations: An Empirical Examination of Subsidiary and Host Country Factors

The management of the Information Systems (IS) function is a complex task, particularly in the case of multinational corporations (MNCs), where installations dispersed across distance, time, and cultures can lead to diverse and incompatible systems across foreign subsidiaries. The need to globally control and coordinate the IS management function is often met with resistance from local IS managers who may perceive corporate standards as intrusive. Resource Dependence Theory argues that control is made easier when a subsidiary unit is dependent on corporate headquarters for critical resources. This study examined the IS management relationship between 54 headquarters-subsidiary pairs spread across 19 countries. While the theory holds up well in the case of dependence, the expected relationship with IS resource availability was not observed. Though there was a significant relationship with the use of informal mechanisms of control and coordination, it was in the opposite direction to what was expected.

From Group Assignment to Class E-Business Project: A "Medical Rotation" Approach

Abstract In multinational corporations (MNCs), subsidiaries operate in environments separated, not only by geographical distances, but also by time, language, politics, and legal frameworks. Such heterogeneity of operating environments puts great demands on the management of information systems (IS) to control and coordinate the organizations worldwide IS operations. This study examines the factors influencing the integration of the IS function across subsidiaries in MNCs. Specifically, the impact of subsidiary strategic role, perceived environmental uncertainty (PEU), and host country IS resources on the use of formal and informal mechanisms of control and coordination is examined. Multiple regression models were run on matched sets of data collected from 54 headquarters-subsidiary pairs. The relationship between the strategic role of a subsidiary and the level of integration was found to be significant. Moderate support was also found for the hypothesized relationship between IS resources and integration, though not in the direction expected. There was no support for the predicted relationships involving perceived environmental uncertainty.