28 • 1

CHAPTER

28

INTERNATIONAL INFORMATION

SYSTEMS*

Jon A. Turner

New York University

CONTENTS

28.1 Introduction 2
(a) Intended Audience 2
(b) Role of Information
Technology (IT) in the
International Firm 2
(c) Differences between Domestic
and International Firms 3
(i) Factors Influencing
System Design 4
(ii) Factors Influencing
System Operation 4
(iii) Factors Influencing
Regulation 5
(d) Types of International
Business Activity 5
(e) Differences between Service
and Manufacturing 5
28.2 Factors Driving the Use of IT in
the Multinational Company 7
(a) Global Markets 7
(b) Timeliness 7
(c) Need for Organizational
Flexibility 8
(d) Quality 8
(e) Customer Focus 8
(f) Custom Products and Services 8
(g) Industry Transformations 8
28.3 International Environment
for IT 9
(a) Demands of the International
Environment 9
(b) Levels of Complexity in
International Business 9

28.4 Central Challenges and Strategies 9

(a) Challenges 9

(i) Global vs. Local Tensions 10

(ii) Cultural Differences 10

(iii) Headquarters–Region–

Subsidiary Relations 10

(iv) Alignment of Business

and IT Strategies 10

(b) Global Business Strategy

and IT 11

(i) Country Specific 11

(ii) Globally Integrated 11

(c) Global IT Strategies 11

(i) Independent Global

Operations 11

(ii) Headquarters Driven 12

(iii) Cooperative 12

(iv) Integrated 12

28.5 New Business Paradigms: Using

IT to Transform Organizations 12

(a) Changing External

Information Flows 12

(i) Interorganizational

Systems 12

(ii) Electronic Data

Interchange 13

(iii) Outsourcing 14

(iv) Internet 15

(b) Changing Internal Information

Flows 16

(i) Knowledge-Based

Organizations 16

*The author is grateful for the support provided by the American Academy in Rome in revising this
chapter.