IT governance balancing global integration and local responsiveness for multinational companies

Abstract

Balancing global integration and local responsiveness (I–R) is becoming critical for multinational enterprises (MNEs). In considering information technology's (IT's) supporting role for I–R, an in-depth case study of a leading Taiwanese global network manufacturer was conducted. A virtuous cycle model with dual fit was developed to link the research in I–R and IT governance mechanisms to achieve the MNEs’ global strategy and respond agilely to the environmental change. Practical arrangements and critical mechanisms were derived to develop the dual fit model, which explores factors like structure redesign and value-creation modular design as structural arrangements. In addition, three critical mechanisms to achieve the dual fit model, including organisational configuration design, modular structure reconfiguration design, and adaptive IT co-management were suggested, consistent with total quality management key principles. Since few studies report the practices of achieving I–R and how IT governance should adjust simultaneously, this study made a contribution to knowledge in the subject area.