The IT contribution in developing a transnational capability at Electrolux

• Published in: The journal of strategic information systems 2003-07, Vol.12 (2), p.111-128
• Main Authors: Manwani, Sharm, O'Keefe, Robert M.
• Format: Article
• Language: English
• Subjects: Applications (e.g. Digitizing,...); Case study; Electrolux; Exact sciences and technology; Framework; Information and communication sciences; Information and communication technologies; Information science. Documentation; Information technologies: storage media, equipment; Information technology; Management of change; Multinational companies; Organizational structures; Policy; Sciences and techniques of general use; Transnational
• ISSN: 0963-8687; 1873-1198
• DOI: 10.1016/S0963-8687(03)00019-2

Transnational companies combine global integration with local responsiveness, catering to national and even regional tastes while obtaining efficiencies through global operations. What is the role of IT in enabling an organisation to become transnational? What actions ensure that IT helps, rather than hinders, the transition? One major European company recognised as having a transnational disposition is Electrolux. Home Products Europe (HPE), the largest sector in Electrolux, has previously been investigated both by international business and IT researchers. This paper updates the longitudinal perspective of HPE, including an examination of the transnational change drivers. Using a tentative framework that combines previous research into multinational and transnational IT policy, it shows that all of HPE's IT strategies align with the framework. We identify a number of key obstacles in the HPE case that hindered the transition, most notably problems of data quality and integration, largely occurring due to acquisitions. We also note the slow changes in the working practices of distributed IT groups and suggest that future research and frameworks need to better address staff issues.