The effect of international corporate strategies and information and communication technologies on competitive advantage and firm performance: An exploratory study of the International Engineering, Procurement and Construction (IEPC) industry

Global information and communication technologies, especially the Internet, have changed the way that firms expand internationally. Many scholars have proposed that firms can enhance competitive advantage by ensuring that their global information and communication technology strategies are congruent with their international corporate strategies. In addition, scholars have begun to integrate research from strategic management, international business and information technology to explore the management of global information technology. The primary goal of this study is to measure the effects of international corporate strategies and global information and communication technologies on competitive advantage and firm performance in the International Engineering, Procurement and Construction (IEPC) Industry.; Despite the limitations of the study the following four conclusions can be proposed: (1) international corporate strategy does indirectly affect firm performance but it depends on global information technology and the type of performance measures used in the analysis; (2) Increases in global information technology will increase the Efficient, Functional and Sustainable forms of competitive advantage provided by information technology applications (CAPITA); (3) global information technology has a positive significant relationship with the international expansion of IEPC firms with a multifocal strategy type; and (4) IEPC firms with a Multifocal strategy and a global information technology focus have a stronger effect on firm performance than firms with any other international corporate strategy.; Managerial implications include project and value chain management, procurement efficiencies, client responsiveness, corporate entrepreneurship and strategic alliances. In addition, this exploratory study provides direction for more global information technology research. Suggestions for future research include replications in other globalizing service industries, refinement of the GI/LR framework, exploration of global information technology strategy alignment, extensions involving other predictor variables and path analysis of different views of the research model. Finally, this study calls for more interdisciplinary research integrating insight from strategic management, international business and information technology.