Common system deployment is a global information systems strategy of a multi-national corporation for large-scale development that can provide economies of scale and optimal use of scarce technical expertise. When a multinational corporation takes this strategy, its central organization develops a common system and implements it at all of its overseas subsidiaries. But, while the same (headquarter) team implements the same information system(common system), the resulting efficiencies of those projects differ widely among the subsidiaries.
This paper focuses on the efficiency differences of these implementation projects. Twelve propositions about the factors causing the differences have been developed from the previous implementation research on the general information systems, packaged software, and information systems for small business. The factors can be grouped into environmental, H.Q.-subsidiary relationship, business process characteristics, and information systems of the subsidiary. These propositions are examined through case studies on the 12 overseas subsidiaries of a multinational electronic corporation headquartered in Korea.
Eight propositions seem to be validated by the case data. For the environmental factors, the subsidiaries located in more developed country are less efficient in their projects. Other factors(level of individualism, economic system, and account code regulation) have no impact. For the relationship between H.Q. and subsidiary, the level of H.Q delegation and local management's autonomy have negative impact on the efficiency. For the business process of the subsidiaries, the level of process complexity and formalization have all negative impact on the efficiency. For the old information systems, the level of functional fulfillment, year of experience, and number of experts have all negative impact on the efficiency. But project initiative of IS/user makes no difference.
