Recently the globalization of competition has caused
many firms in the financial services industry to integrate their
information systems. Based on a selective review of literature
from strategic and information management disciplines, a model
is developed to study the firms' strategic response to Europe
1992 and Canada-U.S. Free Trade Agreements. According to a survey
of 213 managers, this study finds that competitive strategy, information
technology (IT) maturity and size influence firms' perceived increase
in IT investment. Further, this study finds that the degree of
IT integration within firms is a primary determinant of firms'
willingness to use IT as part of their strategic response to globalization.
It suggests that the new competitive strategies will be increasingly
technology-based global initiatives that are affected by the firms'
IT maturity. Key
words and phrases:
, Canada-U.S. Free Trade
Agreements
, competitive strategy
, Europe 1992
, firms' strategic response to
globalization
globalization
, information technology
investment
, information technology
maturity
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