The emergence of global business environments drives companies to become world-class. Executives within companies can play a crucial role in achieving a high level of effectiveness and world class efficiency. There are many academic studies that focus on the organizational and managerial factors that drive organizational competitiveness. Information technology is one such area that plays a critical role and is a strategic prerequisite for business success in today’s knowledge-based economy. In this article, I place a new emphasis on information technology, because of its ease of implementation by executives at all levels of the organizations. Executives can implement information technology to build effective learning companies that can create innovations timely as they operate and compete in global markets.
Information technology helps companies to gather data and information that is valuable to executives, and also develops and disseminates information throughout the organization which, in turn, is an important factor of sustainable competitive advantage. Executives can emphasize satisfying basic needs and meeting higher desires though inspiring employees to provide newer solutions and create a better workplace. Executives can, therefore, effectively implement information technology to disseminate protocols among employees and allow them to be knowledgeable of work progresses toward meeting determined milestones stated in the strategic plans. Ergo, executives can actually employ information technology to motivate subordinates to provide better solutions for organizational problems.
Executives also agree with Grant, who states that knowledge integration is one of the main reasons for the existence of companies. Executives shed light on the strategic role that employees have in the form of attitudes and values. Employees’ attitudes and values can be enhanced to accomplish higher degrees of effectiveness and change implementation. Executives can, therefore, integrate organizational knowledge though implementing information technology to coordinate intellectual capital within organizations. Information technology is used by executives to the vertically and horizontally exchanging knowledge between employees. Thus, information technology manifests itself as the synthesizers of ideas and knowledge acquired from multiple organizational members. Information technology encourages people to embark on technological facilities, such as shared electronic workspaces, to provide new ideas and possible solutions for solving organizational problems. Therefore, executives can play a critical role in integrating knowledge and is therefore aligned with information technology implementation.
Information technology also provides the ways to enhance interactions among members and departments within organizations. Information technology eliminates the barriers of communications while improving the extent of information sharing and access for all employees at various levels of the organization. Executives can improve relationships with employees and concentrate on identifying employee’s individual needs and empowering staff in order to build a learning climate. Therefore, executives can effectively implement information technology as communication mechanism manifestation and deployment and decision-aid technology. Information technology provides the ways to enhance interactions among members and departments within organizations. Information technology eliminates the barriers of organizational communications while improving the extent of knowledge sharing and access for all employees at various levels of the organization. Information technology also develops cohesive infrastructures to store and retrieve knowledge to enable followers in creating more innovative solutions to problems and managing operational risks. Ergo, executives can implement information technology to support knowledge by enabling interactions and providing more comprehensive and effective solutions to solve organizational problems.
In conclusion, this article can offer several implications for practice. First, this article develops a new and dynamic concept of information technology and offers novel insights into how executives can effectively implement information technology to build effective learning companies.
Grant, R 1996 ‘Prospering in dynamically competitive environments: Organizational capability as knowledge integration‘, Organization Science, vol. 7, pp. 375-387.