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Global Expansion Challenges Literature Review

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 International Journal of Computer Science and Management Research
Global Expansion Challenges Literature Review
B. Charles Henry
Information Technology Department, University College of the Caribbean
17 Worthington Avenue, Kingston, Jamaica
henryb2000@gmail.com
Abstract— The contemporary environmental flux prevailing
within the global economic and political climate requires
substantial flexibility and responsiveness from organizations
wishing to survive its consequences for longevity. Enterprises
operating within the context of such rapid change and
instabilities must equip themselves to face both the risks and
rewards that may accrue from its prevailing uncertainties.
Therefore, organizational leaders have a serious challenge to
make themselves aware of both the emerging possibilities and
pitfalls that may await their businesses. Meandering through the
streams of opportunities may not come easy. It requires that
leaders understand the destructive nature of globalization to
include socio-cultural, technological, and location disparities and
to find ways to maximize these challenges for positive effects.
Leaders thus have a duty to be both strategic and operational in
their outlook on how they will endeavor to optimize the benefits
of globalization to their organizations’ advantage.
Keywords— leadership, change management, situational
leadership, contingency leadership, transactional leadership,
transformational leadership
I. INTRODUCTION
The prevailing challenges that come with global economic
realities within the contemporary environment demand
aggressive actions of enterprises to survive the existing
situation. Ardalan [2] reasoned that globalization is "natural,
inevitable, and irreversible" (p. 522). The existing
consequence of economic actions requires collaborating and
cooperating activities. Ardalan [2] noted that integration and
expansion will become the only survival guide for
organizations wanting to retain their businesses and existence.
To think global and act local is no longer just an overused
cliché. Instead, it is a call for action on the part of enterprises
"to grow their brands in a world that is at once becoming more
homogeneous and, in some way, increasingly disparate" [3, p.
20]. The rationale behind the cliché is urgency on the part of
organizations to recognize the existing realities and to act
appropriately in a timely manner. Notwithstanding, the road
to success in this arena is not an easy one paved with gold.
Instead, the challenges are likely to be humungous. Asher [3]
argued that taking on such global expansion initiatives will
not be ease because "global marketing is rife with
complexities and difficulties (p. 20). Nevertheless, it is not
likely to be a matter of avoidance if large organizations are to
maintain their presence and continued growth within the
existing marketplace.
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Vol 3 Issue 3 March 2014
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II. ISSUES OF SYSTEMS ARCHITECTURE, SECURITY, &
NETWORKING
The nature of businesses existing today cannot escape the
role that information technology (IT) plays in their ongoing
daily operations [18]. Pimchangthong et al. [18] posited that
IT is imperative to the competiveness of prevailing businesses
within the global climate. The authors reasoned that until
enterprises are capable of grasping the realities surrounding
change management and its relationship to the contemporary
realities of globalization, organizations are not likely to
manage key IT issues appropriately. Many problems arise
from the rapid rate of change of the technology. Therefore,
organizations managers must be in a position to identify these
transformations as quickly as possible so that they can
implement appropriate solutions. IT use, for example,
incorporates applications that may affect culture, law, politics,
economics, infrastructure, and skill-sets [18]. Pimchangthong
et al. [18] noted that these issues may vary between developed
and developing countries. Emerging economies may be
unable to keep abreast with the pace of technology
advancement and, therefore, may lack the requisite skills at
each stage of the developmental process [18].
The contemporary circumstances require service to be
available at all times. "Intelligence as a service has a great
significance for any country" [1]. Challenges of both
hardware and software, that is, both infrastructure and
applications play crucial roles in establishing systems capable
of providing the requisite service to sustain functionality on an
ongoing basis. Achkoski et al. [1] proffered that although
service-oriented architecture (SOA) provides abundant
opportunities for enterprises, it must be implemented in a way
that maximizes "efficient management of information" (p. 92).
If this is to be realized, properly thought out short, medium,
and long-term plans are necessary preludes to success.
Achkoski et al. [1] argued that SOA "is a logical solution, not
only for a temporary and short term usage but as a perspective
solution for general strategy in companies and governmental
institutions" (p. 92). SOA is also a partial solution to the
prevailing security challenges of global organizations and
governments [1].
If one should examine the influence of software architecture
on business operations, one could not escape its effects and
consequence on issues of integrity, fault tolerance, disaster
recovery, recoverability, availability, volume capacity,
scalability and functional, expandability, response time,
portability, maintainability, and auditability [20]. These
problems are related to SOA directly. Bieberstein, Bose,
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 International Journal of Computer Science and Management Research
Walker, and Lynch [4] posited that SOA initiatives must be
accepted and adapted as a means to face 21st century
challenges. Bieberstein et al. [4] argued that enterprises will
only achieve the full potential of SOA if they have a
comprehensive perspective on how they should reconstruct or
alter their organizational layers. Vinte [20] noted that the
traditional modus operandi is out of place within the existing
times and, therefore, progressive enterprises must be willing
to embrace the new ways of operation if they are to stand the
slightest modicum of success.
Challenges are nothing new to IT and information systems
(IS) initiatives. However, their complexities have increased
many folds within recent decades. Kim, Peterson, and Kim
[13] stated that because IT has so many facets to consider for
its implementation, measuring its successful application may
be arduous. The authors opined that designers and developers
"have to define, interpret, and operationalize IS development
strategies and in so doing, they have to rely on their own
judgment, which is also influenced by how they view IS
success" [13, p. 90]. The danger in this approach is the
possible existence of misalignment with implementers' views
and organizational objectives [13]. Large organizations, for
example, are likely to require massive system-wide
applications, such as enterprise resource planning (ERP)
systems that can bring some level of cohesiveness to their
daily operations. Inconsistencies in business objectives and
IT or IS implementation may produce negative consequence.
Martin and Huq [15] reasoned that it is the responsibility of
the executives of an organization to establish and maintain
their enterprises critical success factors (CSF.) Too often,
however, top management place substantial reliance on IT or
IS personnel [15]. This overabundant dependence may lead to
an ERP rollout failure because of possible misinterpretation
and misunderstanding of requirements. Executives need to be
more involved in the IT process whereby they can be the
catalyst for "cultural and environmental contextual factors"
[15, p. 122]. Kouki, Poulin, and Pellerin [14] stated,
"Effective assimilation [of ERP systems] is achieved when the
employees' sense of the system's ownership is high, when it
becomes institutionalized in the organization's work
processes, and when it is efficiently deployed at the various
levels of managerial activities" (pp. 28-29). Consequently, it
behooves enterprise managers to lead IT initiatives from both
a cultural and an environmental perspectives to derive
success.
III. CULTURE AND TEAMS
Culture within the global context requires an appreciation
for the disparate and heterogeneous nature of mores and
norms from one country to another. Ardalan [2] noted, "Any
adequate analysis of globalization and culture necessarily
requires a fundamental understanding of the worldviews
underlying the views expressed with respect to the nature and
role of globalization and culture" (p. 513). Ardalan [2]
explained four such paradigms. First, the functionalist
perspective "assumes that society has a concrete existence and
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follows certain order" [2, p. 515]. This contextual outlook
seeks justification of existing social conditions. Therefore, if
management is to pursue this paradigm, it must have an
appreciation for the order in which society function. Second,
leaders may view their actions from an interpretive paradigm.
This point of view assumes that outcome is void of
objectivity. They are purely subjective [2]. That is, when
applying this modus of thought process, one accepts the world
as it presents itself. Explanation comes from "individual
consciousness and subjectivity" [2, p. 518]. The rationale for
this argument is that events and occurrences are taken at face
value. Third, the radical humanist paradigm seeks to critique
the existing status quo and endeavor to "articulate, from a
subjective standpoint, the sociology of radical change, modes
of domination, emancipation, deprivation, and potentiality" [2,
p. 520]. This outlook is tantamount to examining worldviews
as a single global perspective. Fourth, the radical structuralist
paradigm "assumes that reality is objective and concrete" [2,
p. 523]. This model assumes an independent social existence,
as is the case with the natural world. The particular
perspective of leadership will thus determine how leaders
steer their organizations within the given situations and
circumstances.
Nevertheless, throughout all the aforementioned challenges,
humans may be the most critical to enterprises existence.
Therefore, the various theories and outlook may bear heavy
burdens for decision makers. One such challenge is the
difference in behavior and actions that may emerge from face-
to-face, virtual teams, and individuals. Nicholson, Sarker,
Sarker, and Valacich [17] argued that traditional teams are
typically "individuals who frequently meet face-to-face, are
interdependent in their tasks, who share responsibility for
outcomes, and who see themselves and are seen by others as
an intact social entity embedded in a larger social system" (p.
41). On the contrary, virtual teams may be constituted from
heterogeneous parts. Although there are no essential different
from their face-to-face counterparts, their fundamental
dissimilarity or departure exist in their distributed
configuration across multiple geographic locations [17]. This
brings to the fore five important cultural characteristics that
leaders should scrutinize properly to achieve effective
management. Among these cultural divergences are power
distance, individualism-collectivism, uncertainty avoidance,
masculinity-femininity, and confucian-dynamism [17].
By recognizing the differences that exist within both the
virtual and face-to-face groups, leaders can appropriate
relevant responses to improve productive outcome. Schmidt,
Montaya-Weiss, and Massey [19] opined that whereas face-to-
face teams may be successful at new product development
(NPD,) they do not have the same effectiveness at reviewing
such products. The authors noted, "Individuals have cognitive
limitations that prevent them from performing optimally in
face-to-face decision situations" [19, p. 579]. Second, face-to-
face discussions are highly subjected to influence that may
emerge from the existing social setting [19].
Although both communication mediums may have their
unique sets of challenges, computer mediated technology
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 International Journal of Computer Science and Management Research
communication may be of substantial benefits under certain
conditions. Schmidt et al. [19] posited, "Computer-mediated
communication systems are sociotechnical systems that
support and enhance discussion-related activities of groups
engaged in collaborative and cooperative work" (p. 581). This
technique of communication is increasingly becoming useful
because of its ability to transcend temporal and spatial rigors.
Schmidt et al. [19] proffered, "Dispersed, asynchronous teams
generated more diverse perspectives, conducted more in-depth
analyses, and produced higher quality decisions than face-to-
face groups" (p. 581). Notwithstanding, other issues remain
between the groups. Jarvenpaa and Leidner [10] reasoned that
virtual teams are both permeable and dynamic. However, the
rate of change within the global sphere makes it a requirement
for organizations to embrace global teams because of their
"flexibility, responsiveness, lower costs, and improved
resource utilization necessary to meet the ever-changing task
requirements occurring in highly turbulent and dynamic
global business environments" [10, p. 791]. Jarvenpaa and
Leidner [10] recognize the need for trust within a virtual space
but argued that trust is possible in three circumstances. First,
members act in good faith. Second, members act honestly.
Third, members do not act in disadvantageous ways toward
each other. Crisp and Javenpaa [5] would tend to agree.
According to the authors, swift trust in particular, a temporary
and transitory trust, may emerge to build "capability,
reliability, and dependability" [5, p. 45]. The more leaders
and managers are made aware of these abilities, the more
likely they will be at capitalizing on their effectiveness.
IV. INTELLECTUAL PROPERTY AND HUMAN
RESOURCES
Notwithstanding the role of trust, rules and protocols are
imperative to organizational success. Therefore, enterprises
usually institute an entire department of skilled personnel
dedicated to human resources issues and the inherent rights of
each worker. Knowledge management on the prevailing
practices of each employee, for example, is essential to
organizations’ global expansion. Godbout [8] argued that the
numerous challenges facing enterprise managers within the
prevailing circumstances to increase productive efficiencies
and to maximize organizational competitiveness require
appropriate knowledge management practices from a human
resource perspective. Godbout [8] opined that organizational
success relies heavily on “innovative creativity, knowledge
resources and expertise” (p. 77). Therefore, how
organizations organize their internal operations including their
processes and company structures will determine the level of
enterprises skill-sets utilization [8].
Global human resources management in particular must
consider the effects of worker diversity [12]. Globalization
tackles issues, such as “race, color, religion, sex, age,
disabilities, or national origin” [12, p. 230]. Kapoor and
Sherif [12] posited that these characteristics will arise and be
dealt with because of the innate human abilities to “evolve,
explore, and exude” (p. 230). Human resources may also
B. Charles Henry
Vol 3 Issue 3 March 2014
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incorporate both ethical and legal concerns governing matters,
such as privacy, security, access to information, risks
associated with the disclosure of information, employee
access to records, liability risks, and intellectual property [9].
Often, there seem to be a conflict between human rights and
intellectual property rights (IPRs) [7]. This conflict may arise
from the varying interpretation of the many global
establishments seeking to monitor these two important human
factors, such as the Universal Declaration of Human Rights,
the International Convention on Economics, Social and
Cultural Rights, and the Agreement on Trade-related Aspects
of Intellectual Property Rights [7]. Nevertheless, equitable
economic activities are not likely without the requisite regard
for both sets of rights. Dumi, Sinaj, and Nuhiu [6] proffered
that in pursuing economic ambitions, enterprises must be
mindful of their responsibilities not to abuse such rights. The
authors noted that whenever organizations observe intellectual
property rights, they tend to have positive contributions
toward economic development [6]. In quoting World Bank
publications, Dumi et al. [6] reiterated, “Across the range of
income levels, IPRs are associated with greater trade and
foreign direct investments (FDI) flows, which in turn translate
into faster rates of economic growth” [as city in 6, p. 323].
May [16] argue that recognition of these factors is important
to knowledge structure and how organizations pursue
intellectual property rights.
V. CONCLUSION
Organizations that initiate broad international expansion
initiatives are effectively advancing globalization ambitions.
That is, such enterprises pursue “a process of capital flows
consisting of: (1) human capital, (2) financial capital, (3)
resource capital, and (4) power capital” [11, p. 105].
Enterprises should pursue these ambitions and strategies
carefully because of the plethora of problems and challenges
that may arise. Junarsin [11] reasoned that two major issues
likely to occur include socio-cultural characteristics that may
incorporate concerns, such as “information, cultures, ideas,
trends, and fads (p. 106) and technological competence that
may comprise information technology and logistics connected
with transportation.
In addition to the foregoing challenges, location plays a
crucial role in business strategy expansion. Location has a
multiplicity of factors to include resource availability,
prevailing local cultures, educational competence of the local
population, the association between religion and state, the
economic abilities of markets being pursued, and the
infrastructural conditions of the foreign environments [11].
Other contending realities or concerns that may affect the
decision-making process include intellectual property rights,
barriers to new entrants, subsidies, security, and the prevailing
rules of governance for each jurisdiction [11]. Junarsin [11]
opined, “The government plays an important role in
maintaining a stable and secure environment, including by
protecting property rights” (p. 107). All these factors should
be duly ventilated and carefully considered prior to any
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 International Journal of Computer Science and Management Research Vol 3 Issue 3 March 2014
ISSN 2278-733X
concrete actions because of their inescapable link to global [17] D. B. Nicholson, S. Sarker, S. Sarker and J. S. Valacich,
“Determinants of effective leadership in information systems
expansion initiatives. development teams: An exploratory study of face-to-face and
virtual contexts” Journal of Information Technology Theory and
ACKNOWLEDGMENT Application, vol. 8, no. 4, pp. 39-56, 2007.
Causal Productions wishes to acknowledge Michael Shell [18] D. Pimchangthong, M. Plaisent and P. Bernard, “Key issues in
information systems management: A comparative study of
and other contributors for developing and maintaining the academics and practitioners in Thailand,” Journal of Global
IEEE LaTeX style files which have been used in the Information Technology Management, vol. 6, no. 4, pp. 27-44,
preparation of this template. To see the list of contributors, 2003.
please refer to the top of file IEEETran.cls in the IEEE LaTeX [19] J. B. Schmidt, M. M. Montaya-Weiss and A. P. Massey, “New
product development decision-making effectiveness: Com paring
distribution. individuals, face-to-face teams, and virtual teams,” Decision
Sciences, vol. 32, no. 4, pp. 575-600, 2001.
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