The Emerging Role of IT in Multinational Enterprises - A multiple case study of how to manage internal IT innovation in multinational enterprises, a comparison between Company X and Microsoft Corporation

Abstract

We are living in a world that has never changed this fast and that will never change this slow again. It cannot be denied that the speed of globalization and technological development has and continues to accelerate, which not only has affected social contexts but also the conditions for organizations to survive within their industry. As a result of this, Multinational Enterprises face challenges to modify their innovation strategies to stay relevant within their market due to their international manner. Hence, IT and Innovation has become key drivers for Multinational Enterprises to leverage their resources to generate sustained competitive advantages. Despite the large amount of research within the field of Innovation and IT, researchers still know little of how to manage and foster IT Innovation within a Multinational Enterprise. The purpose of this study is therefore to develop both theoretical and practical knowledge of how managers of IT departments at Multinational Enterprises can implement and manage IT Innovations to generate sustained competitive advantages. This, in order to evaluate if their actions are coherent with existing academic literature and research. Based on our Theoretical Framework, which stems from the Resource-Based View and the Contingency Framework, a multiple case study with a qualitative method and an abductive research approach has been conducted. A total of ten respondents, interviewed at two different Multinational Enterprises, was chosen to gain insights and perspectives in order to answer our research questions. The result of this study exposed that the influence of an IT department within Multinational Enterprises has and continues to grow. Thus, it is recommended that Multinational Enterprises continuously work and develop knowledge capabilities, organizational culture and organizational structure as they are seen to constitute the foundation of information processing and strategic planning that in turn can enable and optimize IT innovations.