Technology and Innovation Essay Example for Free

Technology and Innovation Essay harmonise to Sakiki Fukada-Parr the prominent author of a UNDP report on engineering and education stirs, electronic communications help make societies less hierarchical. He quotes no one skunk see the cut of your suit, and no secretary blocks your passage to the ministers office. Junior employees who would never take up d bed knock on a chief executives door might send him an idea electronically.(The Economist (US), Nov 10, 2001)Cetron Davies, 2001) believes businesses make believe come to confide on engineering for increased production efficiency and more appropriate communication operations. Competition is mounting in the business piece and organisations must possess advantage of the latest technology in order to improve their business functions. Organisations must change the way they act, think and operate internally as their act environment becomes more technologically advanced. All businesses across the world have sufficient com munications tools that make global management much easier. Devices such as e-mail, fax machines and satellite communication are all tools that enable managers to communicate at an extremely high pace.(Heiko 1989) suggests that technology implementation will be intemperately influenced by ethnical factors, such as technological advances between foreign operations. He observed that Just-In-Time approach of inventory management has been favourably received in Japan, leading to considerable savings. However, this is not the case in other countries and believes this is down to unique pagan conditions in Japan such as concern for space, and a deep group oriented devotion to duty, all of which match the requirements of (JIT ) techniques. In conclusion (Heiko 1989) states that the Japanese culture can provide a environment where JIT techniques can expand and develop. (Klien and Ralls, 1995) adds that the more complexity facing an organisation, concerning culture, the less willing the orgai nisation is to implement technology on a wider basis. This whitethorn lead to greater opportunity cost by not adopting the latest techniques across various units, for fear that the results are uneven.Although global firms can benefit from global efficiencies, it is not always appropriate where technology is concerned. Nike for event has a plant in Indonesia where labour cost are low and have access to better distribution channels and production costs are alike low. (Samli, 1985) moots that although there are benefits, consideration has to be given to the fact that labour skills are extremely low and didactics of employees will have to occur in order for them to do their job.On the other hand (Dougherty 1995) suggests that the exchange of technology across national borders is essential. Ford not only transfers technology to foreign countries but also tries to learn from locals. The exchange of expertise and information among people from around the world assists in broadening pers pectives and also assists research and development in transferring information between divisions successfully. This increases the key mass in RD so that organisations are able to attract better people.Innovation enables organisation to improve the pure tone of their output, enter new markets, try out new technologies and develop alternative applications for existing product categories. For organisations must adapt to changing competition, markets, and technologies.(Dougherty 1996)(Venkatraman, MacMillian and McGrath, 1992 Shane 1995) suggest that innovation at heart global organisations may be hampered by cultural barriers. It is important not to block innovation by organisational rules or routines. Based on findings from Hofstedes cultural indices they suggest that cultural barriers may slow down transfer from one unit to another in a multinational organisation(Cox,1991 argues that using cultural heterogeneity leads to greater innovation and more efficient merchandise strategies for the polar types of customers worldwide. He also suggests that because employees come from different backgrounds different perspectives are achieved, therefore creating improvements. (Mejia Palich, 1997) also argue that heterogeneous teams function better than homogenous ones because of cultural differences learning experiences.On the other hand (Keller and Chinta 1990 Snodgrass and Sekaran 1989) argue that expertise and technical know-how are more challenging to develop when differences in cultural backgrounds exist. They state that this plays a major role in the transfer of technology between business units. Empirical research by Davidson and McFetridge 1985) also supports this belief that cultural relatedness enhances the flow of technological know how and the sharing among business units of a global organisation.MARKETINGAccording to (Barlett 1996 Beamish, Killing, Lecraw and Morrison 1994) they are all in discernment that distinct consumer preferences will emerge due to cultural differences. This is expected to lead to the requirement of customisation of the merchandising mix and product strategies. This suggests that production in one artless may not suit production in another. High Uncertainty Avoidance Countries like to buy reliable, predictable goods. In addition to this, although there are divisions (Takeuchei Porter 1986) believe culturally related countries such as (America Canada) can more successfully share market activities and knowledge than those in culturally orthogonal countries such as (America India).With the capacity to cross-sell products in culturally related markets, which reduces information gathering expenses and the uncertainty linked with targeting markets that are totally unrelated. Culturally related countries may find it beneficial to share knowledge regarding market research, sales forces service networks, distribution and advertising, therefore lowering costs. However, (Alder, P 1987) argues that this kind of shar ing is a view more demanding, suggesting that the differences are not just language but that it is a matter of values, mind set and market reactions Take for instance the advertising execute concerning the Marlboro Man. This campaign suited America as society is seen as individualist according to (Hofstede 1984). On the other hand, this campaign was a failure in capital of South Carolina because society is seen as CollectivistThis now leads on the issue of marketing standardisation. This issue has been defined by (Banerjee, 1994 as the determination of commonalty communication objectives and work out whereas (Wills Ryan, 1997) includes in there definition creative and media decisions involving the whole corporation.The issues of marketing standardisation and global marketing have usually been considered in terms of the reliability of the marketing mix elements for a company that enters numerous international markets. Since the 1960s, standardisation of international marketing s trategy has been the focus of many studies (Elinder, 1961 Buzzell, 1968 Jain, 1989), It is still unclear however, whether it is done for the savings linked with standardisation or for the maximisation of the firms products, but the underlying principle of standardisation is to maintain a global image.Rau Preble, 1987 has carried out considerable research on this topic. Multinational Corporations are faced with difficulties when deciding standardisation of advertising across different countries. (Boddewyn, 1991 Jain, 1989). According to (Solberg, 2000) there are two important organisational factors that relate to the phase of standardisation in international markets. Firstly, market knowledge at the level of headquarters (HQ) of local market conditions and secondly HQs control of subsidiaries i.e. (Influence on their marketing decisions). In addition (Martenson, 1987 Rau Preble, 1987 Tai Wong, 1998 suggested that MNCs needed to have a certain degree of control over their subsidia ries in order to implement decisions.(Hite Frazer, 1998) state that, MNCs with a well-known and global image i.e. (Coca cola) tend to apply more control over their subsidiaries in order to maintain the image of the corporation or product (Hill James, 1990) particularly if perceptions of consumers are similar across countries. (Britt, 1974, Jain, 1989). However, in the case of Matsushita in the electronic industry this was not the case as each subsidiary had a disrupt identity, which resulted in major success. This then leads on to market development. (Jain, 1989 Duncan Ramaprasad, 1995) suggest if similar levels of market development are achieved in both home and host countries marketing standardisation would favour MNCs. However, this would depend on the competitive positions in home and host countries of the MNC. Higher degrees of marketing standardisation may be adapted (Jain, 1989 Henzler Rall, 1986) if similarities prevailed in the competitive context that would allow HQ s to make easier decisions regarding competition and to enhance control over the subsidiary and to adopt more beneficial standardisation strategies. (Doz and Prahalad, 1984 Michell Bright, 1995).STAFFING AND TRAININGAs multinational firms globalise they must learn to co-ordinate efforts among an increasingly culturally diverse workforce and environment. Nowadays people tend to be very vindicatory of their cultural identity and caution by others has to be taken so that insult is not caused. Through the years success of Japanese organisations global strategies has promote American firms. Although many point out the advantages, cultural potpourri may leads to conflict, misunderstanding and lack of cohesion.Organisations are becoming more alert of the importance of regeneration to their business activities and acknowledge that by recruiting, promoting and raising a diverse range of individuals in the long-term are a major asset to the organisation in reaching out to their customers . (Tung, 1993) states that cross cultural schooling process, helps in the development of building relations between individuals or groups, especially individuals/groups with diverse cultural backgrounds. (Welch 1998) defines cultural fostering as any form of guided experience helping people to live and work more contentedly in another culture. much(prenominal) training encourages understanding about differences and acceptance of the multicultural work environment and helps create and retain effective work teams and expertise in dealing with multicultural management (Hartenian, 2000) describes the multi-cultural workforce as a workforce that excludes no one, from top-level management to low-level employees. He sees the multi-cultural workforce has one of the main opportunities for an organisation. Take for instance the IBM perspective. IBM have established research labs around the world because the issue of a globally diverse workforce is of the highest importance. This in turn all ows the organisaton to gather ideas from people who experience different economies and culturesAlthough multi-cultural workforces are beneficial to organisations in relation to performance and profitability, they can be very hard to manage. According to (Hill, 92) the key to managing multi-cultural workforces is the realisation that majority and minority cultures do not always share experiences. To solve this managers can adapt different strategies such as developing programmes that promote awareness of different cultures, recognise common links among different ethnic groups and express concerns and confusions. (Hill 1992) believes that if organisations use these strategies, economic benefits will be reaped. This may be easier said than done, (Harisis Kleiner, 1993) argue that the implementation of such workforces are extremely difficult. They say that not only within American society and businesses but on a world wide scale there are widespread barriers. Such barriers include unwr itten rules and double standards for success which are often unknown to women and minorities, stereotypes and their associated assumptions and lack of communication about differences.In global organisations it is essential that effective cross cultural training occurs in order to help individuals obtain both the knowledge and the tools needed to reduce misunderstandings and improper actions (Black Mendenhall 1990) suggest that multi-cultural training provides individuals with greater self confidence and decreased narrow-mindedness about people from diverse cultures. In addition (Barlett and Ghoshal 1990) also pointed out that establishing a multicultural training programme improved the companys ability to operate more efficiently in different cultural environments. Although many multicultural training programmes are undertaken to enhance cultural diversity they are not always successful. According to (Woods 1992) a systematic approach should be taken towards training. (Woods 1992) established a four step bikeFirstly was to specify certain job task of individuals and assess the needs of the corporate culture. Secondly is the identification of training objectives. Thirdly was the establishment of the proper training content in which the following was usedsensitivity training, cultural awareness and orientation programs. In addition(Cox, 1993 Gamio Sneed, 1992 Tung, 1993) introduced the communication competency program. In the final fix up (Milkovich Boudreau 1991) stated that training programs need to verify whether the training is successful in junior members of staffs performances at work. The cycle used was concerned with the effectiveness of the training, however, (Mendenhall Oddou 1986 Tung 1981) comprise factors that deterred individuals.These included lack of specialised trainers, cost and sensed lack of usefulness. Research carried out by (Gamio Sneed 1992) found that the deterrence factors are of major importance. Take for instance the caterin g industry. Mangers in restaurants may blame high staff turnover rates on lack of multi-cultural training, therefore using these rates as the intellectual to ignore the need for training programs. (Jackson 1991) believes that heterogeneity among team members contributes to high turnover rates within organisations. Researchers may find that the relationship between cultural diversity and staff turnover is of major importance to all organisations.According to (Kossek Lobel 1996) the topic of diversity has raised considerable attention over the past decade and is a must for all businesses.In todays business world global leadership is critical not only for global strategies but for ensuring cultural diversity, which involves in astuteness knowledge from business ethics to cultural motivatiors. Organisations are going global because of slow growth in domestic markets and to capitalise on areas such as marketing, research and development, training, technology, production and many more f actors. Organisation are fast realising the importance of diversity. Cultural diversity is the idea that cultural identities should not be treat but in contrast be maintained and respected.The literature which is going to be presented in this paper will examine four main issues. In my opinion these issues are of major importance for global firms. The first issue is the strategies which global firms adapt follw . Secondly, the concept of Technology and Innovation. This sectionalization will in incident provide literature from researchers who believe global firms benefit from cultural diversity in this field. It will examine how technology is changing the business world. Thirdly, the marketing issue.This section will provide relevant literature on how global firms can benefit in relation to standardisation of marketing and how advertising campaigns are perceived by different countries. Lastly, the concept of Staffing and Training. This in my view is one of the most important issues . Global organisations can have all the capital in the world but with out the correct leadership and staff, failure is certain. This topic will in detail will put forward the notion of cross-cultural training and will examine whether or not this is a good idea for global organisations. All the topics mentioned above will have cases for and against by the relevant researchers in each field. I feel this is necessary in order to establish a good understanding of the literature review I am conducting. According to (Tallman Jiatao 1996) diversity has gone from being a moral/legal issue are both into a business necessity.