Positive impact of the internet on internationalisation components
The research strives to examine internationalisation components where the internet would have a positive impact in An Australian engineering firm attempts to internationalise their product into India. The paper establishes information availability, transactional efficiencies and knowledge learning, are the internationalization components to be positively impacted by the internet. As regards information availability, the internet shall enable the firm market its products to a diverse set of clientele, within a short time span with reduced operational costs, hence increasing profits.
With transactional efficiencies, the firm shall be able to synchronize its operations, and automate its managerial operations, hence reducing unnecessary overhead, hence benefiting from efficient and lean transactions for quick and efficient decision making, therefore increasing profits. Knowledge learning is impacted by utilising the internet to develop, and equip the human resource with skills while fostering knowledge exchange, hence having informed workforce.
Internet therefore can assist the firm to generate profits. Literature Review Several researches have endeavoured to establish the impacts of the internet performance of firms with regard to internationalisation of organizations, Moen (2003). In context, the impacts of the internet on firms has been paradoxical, opening greater prospects of expanded customer base, which is beneficial to the firm while at the same time providing gateway to other firms to raid on the organizations customer base.
The internet transcends conventional geographical market boundaries and has in essence impacted on the dynamics of international business environments; of great importance has been the internet such that there is a paradigm shift into counting on the internet in internalization process of organizations by internetalization Petersen, et al (2002), argues that the internet has affirmative impacts on foreign market expansion in terms of information availability, transactional efficiencies and knowledge learning.
In terms of information availability, Dann & Dann (2001) argues that the internets competence and potential is not constrained to information dissemination within and outside the firm but includes market research analysis as well as information, in this case therefore, the internet is the core component of availing information to all stakeholders Chaffey,(2006), this is in agreement with Warkentin, Bapna & Sugumaran(2001), who argue that effectual and successful global market requires vast information so as to achieve correct market prediction.
Palumba & Herbig (1998) argues that the internet facilitates organizations to achive global recognition, with reduced costs. With growing users’ base as well as internet activities such as email, instant messaging, electronic business, electronic commerce and social activities, firms can utilize such client activities when internationalizing. The internet has been touted as the most important driver of international trade, Mathews (2008), he further argues that the internet reconcile information availability and information usage in international perspective.
The internet influences the marketing of the Australian engineering firm in India; a positive influence is in terms of achieving market growth objectives. This is where the firm benefits from increased market share, enhanced return on investment and as such the firm can strategically benefit from market development, product development, and diversification due to information availability.
In market development, the Australian firm shall exploit and explore by the use of the internet on new market opportunities not constrained to the current markets. As concerns product development, the Australian firm shall be influenced by the internet to differentiate its engineering products from those of other competitors in the market, where the firm can utilize the internet for market research so as to strategically develop a product suited for the Indian market, hence increasing sales, therefore achieving profits.
According to Rayport & Sviokla, (1994) internet is the omnipresent elucidation for global trade, and has diverse impacts on augmenting and organizations ability to exploit foreign market expansion. An important benefit for the firm is utilizing the internet for marketing, where the firm exploits new market offerings in a setup new to the firms’ knowledge and experience, effective marketing results to customer acquaintance with the products, hence profits.
The internet can also have a positive impact to the Australian firm’s internationalization component of transactional efficiencies. Kotha et all (2001) argues that the internet enables the creation international trade not limited by geographical borders. Murphy & Bruce (2003) further elaborates on transactional benefits of the internet on firms, where the organization and the client benefits due to decreased need for physical contacts.
Moreover, the organization benefits in terms of automated operations, where Enterprise Resource Planning can be implemented in the distant geographical locations, to consolidate processes, hence synchronizing the operations of the firm Head, (2005), moreover, Clemons & Kimborough (1996) argues that with internet, organizations benefit from reduced costs associated with inefficiencies, while attaining strategic objectives on increasing profits. The other internationalisation components that the Internet would positively impact are knowledge based learning.
Luostarinen &Welch (1990) argues that the conception of knowledge in terms of internationalization is crucial, this is supported by Petersen et al(2002), further presents objective knowledge and empirical knowledge as the requisite recipes of internalization. According to Koh & Maguire (2004), firms stand to benefit from knowledge dissemination, storage and data mining, organizations can utilize the internet to offer employee empowerment in terms of training and development, Lever-Duffy,(2008),Turban et al (2008), further argues that the internet is the base technology housing and transferring organizational tacit and implicit resources.
Challenges There are various challenges of the internet in the Indian market. Oviatt (1995) and Raisinghani(2001) identifies regulation and laws as a challenge, Since Australia and India have different laws governing the use of the internet, the Australian based firms offerings may not be in harmony with the expectations of the Indian regulations.
Locale settings is also a challenge where Clients and servers exhibit different locale settings, with the implementation of internet based Enterprise Resource Program, to be benefit the transactional efficiencies, there are instances where business methods are locale-sensitive in nature, such as in monetary transactions may be a challenge, furthermore the different time zones may display challenges, when clients make orders based on their time zone, while some server systems may not support dedicated time zone support.
Evaluation The main constructs that influence internationalization process the most are information availability and knowledge learning. In terms of information availability, the Australian firm stands to greatly benefit from strategic availability of information, as and when needed, where the Australian firm can opt to utilize online-marketing, e-Marketing, i-marketing also called web-marketing market its products to the Indian populace.
The Australian firm can be propelled to prosperity by utilizing a host of internet based marketing techniques with Geo-targeting and geo marketing to specifically address the Indian marketing, these includes Display advertising, Social media optimization, Search engine optimization, Search analytics, Search engine marketing, Web analytics mobile and interactive advertising as well as contextual advertising, where the Australian firms ensures that their Indian customers can access any information pertaining to the offered products.
Knowledge learning also has a construct influences internationalisation process, the Australian firm shall benefit from internet driven knowledge empowerment to the firm as well as to benefit employees, where the organization can implement web based learning, collaboration systems and information exchange portal. The Australian firm can collaborative environment models are virtual workplaces which involve several components for information exchange, communication and working by different members or teams of the organization.
The environment utilises and coalesce technological advances in videoconferencing, internet based conferencing and collaboration, online chats, archived and real time streaming, and instant messaging to a user friendly workspace where staff can be stationed in Australia but offer their services to the Indian clients through the internet, These shall enable the firm to achieve effective communication in order to attain strategic competitive advantage by enhancing organizational knowledge availability and informed decision making, by the staff and the customers, hence reducing operational costs, and as such achieving better profits.
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