Leveraging geographic and information technology scope for superior performance: an exploratory study in international banking

Abstract

Here we investigate the relationship between the use of geographic and information technology (IT) scope as complementary factors to affect the value of products, the cost of operations and the overall performance of firms. We introduce the IT/Geographic Scope Matrix (IGSM) as a framework with which to study and understand the relationship in order to better manage the firm. We develop expectations that the consistent use of either high or low levels of IT and geographic scope may result in better firm performance than inconsistent use, where high levels of one are matched with low levels of the other. We apply the IGSM in a study of eleven firms, all of which provide financial services, specifically international cash management and trade finance, to firms in Hong Kong. The results of our study suggest that the IGSM may be a useful tool for IS planning and research and have implications for the co-ordination of business and IT planning.