International business and MIS approaches to multinational

organizational research:

The cases of knowledge transfer and MIS workforce outsourcing.

Fred NiedermanSaint Louis University

March 2004

Purpose

For topics of common interest, MIS researchers do not reference IB research IB researchers do not reference MIS research

But they could and should

Two Cases

Knowledge transferMIS personnel off-shoring

Knowledge Transfer – IB Perspective

Lord and Ranff (2000)Marketing knowledge among subsidiariesImplicit and explicit knowledge

Making transfer of knowledge easier

Less-tacit knowledgeMore attention from corporate headquartersMore centralized organization structureMore incentives linked to such transfer of knowledge

Variables with no influence

Relatedness of the host and local countriesCorporate sizeDivision experienceSpecific countries studied (e.g. Russia, China, and India)

* Corporate experience showed marginal influence

Ciborra and Andreu (2000)

Three loops A routinization learning loop

whereby external resources are transformed by learned work practices

A capability learning loopwhere work practices are transformed

into organizational capabilities A strategic loop

where the mission of the firm and the competitive environment screen capabilities in or out of the core capability circle.

Alavi and Leidner (2001)

Knowledge can be viewed from a number of distinct perspectives A state of mind An object A process Access to information Capabilities for influencing actions Results of processed data and/or

information

Enriching Both Areas

A broader framework for multilevel theory in IB – the how as well as the how muchDetailed sets of influences and potential covariates for MIS effectiveness studiesNew questions How do tacit and explicit knowledge interact during

transfer? How do formal (e.g. database/digital libraries/web

conferences) interact with informal (e.g. classroom, transfers, tutorials)

When are the various strategies, alone and in combination, most effective?

Outsourcing -- IB Perspective

Dunning’s Eclectic Paradigm (1977, 1981, 1988, 1993) of ownership, internalization, and location factorsLocation factors will cause an organization to locate in multiple nations

Teece (2000)

Under what conditions is it best to develop new products… from internal development joint venture strategic alliance long term purchase agreement simply buying it on the market?

Lacity and Willcocks line of research

A database of casesOutsourcing projects requires outsourcing laborOutsourced labor can be in the form of Domestic org to foreign org Domestic org to domestic org Domestic org to domestic org with foreign

division Internal to domestic org with foreign division

MIS Personnel and Workforce Research

Descriptive study – Carmel and distributed development teamsLabor markets – Ang and Slaughter and Ferratt and Agarwal different organizational strategiesNational preparation – Trauth and the Ireland case study

Conclusions

In Knowledge Transfer, MIS and IB contribute to deeper understanding of an important business phenomenon

In Personnel Outsourcing, MIS and IB each have the opportunity to raise and address influential business issues

Research in MIS is often “operational” asking how firms can/should do something; IB is often “strategic” asking how what influences have led to particular firm actions in the marketplace

The blending of these concerns lead to opportunities to strengthen both lines of research and to the posing of new questions of interest to practice and research

Questions?