It Capabilities in Global Enterprises

Organizations are globalizing rapidly for growth. However, with globalization they constantly struggle with the often competing objectives of global scale and responsiveness to local conditions and global trends. Prior research suggests that IT capabilities are critical to achieving organizational goals; however there has been relatively little research that explicitly examines IT capabilities in the MNC context. This paper examines in-depth the IT capabilities in a global organization. Drawing on recent research that suggests a goal-oriented approach to IT capabilities, we identify MNC capabilities of Global Scale, Global-Local Responsiveness and Global Coordination. The paper also notes the distinction between resources and processes in the conceptualization of capabilities, and provides empirical support for the resources and associated processes that comprise each of the global IT capabilities.