As we enter the 21st century, the world is
changing politically and technologically in ways that have significant
impact on firm operations, both domestically and internationally. As we
look back to 1900, we can see the major political and technical changes
that have shaped our world of today. Apart from wars, most developments
have been favorable: better health and longer lives; a better standard
of living with more and cheaper products from the creation of mass production,
and new and improved products from firms' research and innovation; and
a generally more peaceful world.
They say that those who don't study history
are doomed to repeat it. We don't want to repeat it because the future
should be brighter. However, we do learn from history that firms must continually
adapt to survive and prosper. I would suggest two areas of research that
offer many challenges and opportunities. One is the changing political-economic
structure of the world in the age of globalization. Another is the dramatic
technical innovation that is occurring as the world is getting "on line."
Looking at the wars and political divisions
of the last century, we can see we're living in a "new" world, but it is
not one world. Terms like: "East vs. West" or "First, Second, Third World"
have changing meanings and implications for the firm. A divided Europe
now has a Union of 25 countries and peaceful dialog with Russia. Regional
economic alliances of varying degrees exist on every continent. What opportunities
and threats do these bring the firm? What adjustments are needed for survival
and growth? (My dissertation forty years ago analyzed American firms' adaptation
to the formation of the original Common Market.) Both macro and micro studies
are useful. One can look at individual regional alliances and/or firm or
industry adjustments to these developing realities. As in medical diagnosis,
the greater the number of observations, the better our response to the
problem.
Technology change is another dramatic challenge
to the firm when the world is increasingly "on line". How are firms' international
operations to be adapted to meet the threats and opportunities of the evolving
technologies? The answer could be different for product firms than for
service firms, and it could differ by geographic region. The rise of China
and India technologically poses a related question. For existing multinationals,
does this mean open economic war or some kind of alliance, or outsourcing,
or acquisition? The answer again could vary by firm or industry or differ
between China and India. Studies could look at individual technology developments,
e.g., the Internet and/or the response and adjustment of individual firms
or industries to these developments.
Whether it be geo-political changes in the
world economy or technology developments, eternal vigilance by the firm
is the price of survival and growth. Academic research can help to analyze
these developments and help firms (and students) to respond intelligently
and, hopefully, successfully. |
