Managing Information Technology in the Transnational Organization: The Potential of Multifactor Productivity

The paper sets out with considering increased decision interdependencies in the Transnational Organization due to autonomous IT deployment in national subsidiaries. It proceeds by proposing Multifactor Productivity as a controlling instrument for managing the increased level of decision interdependence in the area of IT deployment. It is demonstrated how Multifactor Productivity supports the twofold task of (1) capturing IT-induced decision interdependencies and (2) deriving IT policies to cope with them. Possible ways of using Multifactor Productivity are discussed as well a potential pitfalls in applying this concept. Finally, a proposal is made as to how this instrument could be implemented by IT Management in companies considering the transition to the Transnational Organization. 1 . The changing context for corporate