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

Vincent S. LAI, Bo K. WONG

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

10 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)352-361
Number of pages10
JournalIEEE Transactions on Engineering Management
Volume50
Issue number3
DOIs
Publication statusPublished - 1 Jan 2003

Fingerprint

Information systems
Moderators
Foreign affiliates
Moderating effect
Information systems strategy

Keywords

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

Cite this

@article{c47c76e8f5f246dd956e9cd96c7cd238,
title = "The moderating effect of local environment on a foreign affiliate's global is strategy-effectiveness relationship",
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.",
keywords = "Foreign affiliates, Global information systems (GIS), Information systems strategy, Integration-responsiveness analysis, International information systems, Multinational corporations",
author = "LAI, {Vincent S.} and WONG, {Bo K.}",
year = "2003",
month = "1",
day = "1",
doi = "10.1109/TEM.2003.817290",
language = "English",
volume = "50",
pages = "352--361",
journal = "IEEE Transactions on Engineering Management",
issn = "0018-9391",
publisher = "Institute of Electrical and Electronics Engineers Inc.",
number = "3",

}

The moderating effect of local environment on a foreign affiliate's global is strategy-effectiveness relationship. / LAI, Vincent S.; WONG, Bo K.

In: IEEE Transactions on Engineering Management, Vol. 50, No. 3, 01.01.2003, p. 352-361.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

TY - JOUR

T1 - The moderating effect of local environment on a foreign affiliate's global is strategy-effectiveness relationship

AU - LAI, Vincent S.

AU - WONG, Bo K.

PY - 2003/1/1

Y1 - 2003/1/1

N2 - 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.

AB - 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.

KW - Foreign affiliates

KW - Global information systems (GIS)

KW - Information systems strategy

KW - Integration-responsiveness analysis

KW - International information systems

KW - Multinational corporations

UR - http://commons.ln.edu.hk/sw_master/6827

U2 - 10.1109/TEM.2003.817290

DO - 10.1109/TEM.2003.817290

M3 - Journal Article (refereed)

VL - 50

SP - 352

EP - 361

JO - IEEE Transactions on Engineering Management

JF - IEEE Transactions on Engineering Management

SN - 0018-9391

IS - 3

ER -