Principal Investigators: Prof. (FH) Mag. (FH) Martin Samek; DI Peter Weiss

Collaborators: Fulcrum Consulting; Diploma Students 2006
Duration of the project: 6 months
Contact: [email protected]

Point of departure
The focus of this research project was to draw a clear picture of the application of Information Technology and Enterprise Resource Planning (ERP) Systems in corporations expanding into new markets. At the onset of the project, we asked whether such systems have been implemented, adapted and changed in a proactive or in a reactive way, and if such behavior had an influence on the success of the expansion process. The development and adaption of an IT- and ERP system as a reaction to challenges experienced when entering new markets and the anticipatory design of such systems were compared in order to devise solutions for the evaluation of the status-quo of expansion processes. Further suggestions on the preparation for such market entries will be based on the assessment described above.

Research methods
Structured telephone interviews with 70 decision-makers and process managers of corporations, whose headquarters are located in Austria, and which expanded in new geographical markets in the past five years (2004-2009) build the empirical foundation of this research project. The definition chosen for the expansion into new markets encompasses market development with the means of own subsidiaries or joint ventures. The extension of business with the help of distribution partners has, however, not been taken into consideration in this study, as the responsibility for and control over IT- and ERP systems is mostly associated with the distribution partners.
In our study, the sample was drawn by means of a stratified random method to ensure the whole band of size of corporation and branch/industry has been covered. Computer-assisted telephone interviews have been conducted, whereat the sequence and wording of the questions could not be altered or modified by the interviewers. The majority of the questions were assigned pre-determined answer categories. Supplementary questions, among others intended to clarify the challenges encountered in different departments within the corporation, were designed as open ended questions. The analysis, which had a special focus on regression and cluster analysis, produced the survey results listed below.

Results and findings
First, three types of expansion could be identified, based on similar characteristics and behavior displayed by the corporations during the research process:

E1) Planning or Implementation/Roll Out /// Own subsidiary in the respective market /// High employment of resources in the area of finance, marketing, logistics and human-resource management

E2) Operative phase /// Own subsidiary in the respective market /// High employment of resources in the area of procurement, logistics, marketing, production and controlling

E3) Operative phase respectively consolidation /// Joint Venture /// High employment of resources in the area of procurement, controlling, marketing, logistics and production

Second, these problem areas as well as related solutions and recommendations in the departments/areas listed below were analyzed:

P1 Procurement

P2 ERP-systems and other IT-systems

P3 Finance

P4 Research and Development

P5 Logistics

P6 Marketing

P7 Human Resource Management

P8 Production

P9 Sales

P10 Controlling

In the end, 22 scenarios had been developed that were subsequently tested for their influence on the overall result of the expansion project.

An example of such a scenario would be:
Expansion type E2
Problem area P5 Logistics
Explicit problem “Compatibility Supplier – Company”
Potential solution “Adaption of Interfaces, Redesign of Systems)
Effect of the problem on the overall success (moderately negative)

Eventually, the approach to the expansion initiative regarding the adaption of the IT- and ERP systems was examined. Particular emphasis was placed on the employment of resources, sustainability and adaption input in these expansion processes. Moreover, the contribution of investments in IT- and ERP-systems has also been assessed.



Address: Hofzeile 18-20, 1190 Vienna
Email: [email protected]
Admissions: [email protected]
Phone:+43 1 369 1818
TERMTIME OFFICE HOURS
Academic Coordination
Monday through Thursday:
9.00 - 15.00

Resident Permit Services:
Monday, Tuesday, Thursday:
9.30 - 17.00
Friday:
9.30 – 13.30
About Admission
LATEST NEWS

Congratulations to the Class of 2019

On June 28 we were pleased to welcome numerous families and friends to the Lauder Business School campus for a graduation celebration. In his welcome address our Executive Director Alexander Zirkler congratulated the graduates and introduced our Guest of Honor, the US Ambassador to Austria – his Excellency Trevor D. Traina.

Fireplace Talk with the CEO of Austrian Airlines

On June 19 we were delighted to host the CEO of Austrian Airlines, Dr. Alexis von Hoensbroech, in the Lauder Business School ball room. He delivered an inspiring fireplace talk about his career path, the aviation industry in general, and the Austrian Airlines company structure and strategy.

Cooperation Agreement with the City of Vienna

Lauder Business School signed a cooperation agreement with the City of Vienna together with 22 other Universities and Universities of Applied Sciences located in Vienna. On May 14, 2019, Mayor Michael Ludwig signed a cooperation agreement with the Viennese higher education institutions in the City Hall, together with rectors, directors and board members of 23 universities, colleges and universities of applied sciences.

Researching Innovation in Austria

Christian Reiner, senior researcher at LBS, has co-authored the “Austrian Research and Technology Report 2019”. This annual report has been published by three Austrian ministries and written by external experts from applied research institutes and universities. Given the importance of the report for the wider public, it is an honour to contribute to this official publication.

QUICK LINKS