Strategic implications of the information age

Abstract

The continued enhancements of information technologies facilitate and increase knowl-edge intensity in organizations. As such, knowledge and information technologies play critical roles in the development of competitive advantage by firms. For example, IT facilitates organizational learning and helps firms move into international markets by making it easier to coordinate geographically dispersed units and operations. Even entrepreneurial new venture firms are moving into international markets earlier in their life cycle (Oviatt and MacDougall, 1977; Zahra et al., 2000). IT has become especially important to smaller, entrepreneurial firms to facilitate their networking and coopera-tive ventures with other firms in order to compete more effectively with much larger firms for major projects. Furthermore, information technologies facilitate these firms’ technological learning, a critical element to their survival and long-term success (Zahra et al., 2000). IT has also helped firms from emerging markets (e.g., Korea, Mexico) compete more effectively against firms from developed markets that have more resources. Thus, IT has helped facilitate the increasing globalization of businesses.