industry became more concentrated with a number of the chains going out of busi-
ness.^12 The individual proprietors prospered.
28.3 THE INTERNATIONAL ENVIRONMENT FOR INFORMATION TECHNOLOGY.
The demands of the international environment differ significantly from those a tech-
nology manager would face when operating domestically.
(a) Demands of the International Environment. Four factors have been identified as
being important in an international environment: legal, environmental, political, and
cultural.Legalfactors include the legal tradition of a country and the extent to which
laws are applied equitably. This involves assessing the effectiveness of the legal sys-
tem. Patent, copyright, and trademark laws are particularly important as are those
laws that apply, specifically, to business. Environmental factors include the state of
the economy in the country, the level of economic development, per capita income
and literacy level. A technology manager needs to assess the availability of local
workers in the job categories that will be needed, and their wage levels. The nature
of competition in the host country needs also to be understood. The culturalenvi-
ronment includes the customs, norms, values, and beliefs held generally in the host
country. Language, and whether the language of the parent company will be under-
stood in the host country offices, how customers and staff are motivated, status sym-
bols, and religious beliefs must be considered when deciding on an office setting and
staff. Finally, the politicalsystem of the host country needs to be understood includ-
ing the form of government, its stability, the strength of opposition parties, and the
extent of social unrest. Particularly important is the government’s attitude toward
foreign firms.
While many of these factors are of concern when operating domestically, workers
tend to automatically take them into account in their home country due to consider-
able shared knowledge. In a foreign country, these issues need to be explictly con-
sidered. This requires considerable learning.
(b) Levels of Complexity in International Business. At least three levels of complex-
ity need to be considered when managing technology internationally. First, the do-
mestic environment in which the firm is based (the homecountry) places a set of con-
straints and considerations on operations. Second, each foreign, or hostcountry adds
a set of considerations which must be taken into account. Third is the international
dimension where issues are considered globally. For example, a policy to use certain
equipment in one country, may make no sense when the total foreign needs of the
company are considered.
28.4 CENTRAL CHALLENGES AND STRATEGIES. Global companies face challenges
and follow strategies that are different than those of firms operating within one country.
(a) Challenges. The challenges of global companies revolve around two basic
needs. First is the necessity of resolving differences in cultureand to manage effec-
tivelyheadquarters–region–subsidiary relations. Second is the need to coordinate
and control activities globally.
28.4 CENTRAL CHALLENGES AND STRATEGIES 28 • 9(^12) Clemmons and Row, 1988.