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MGMT6003 Global Business Dynamics

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Question:

To identify those practices and factors that differ between manufacturing industries and service industries, a set of logistic regression analyses is employed. This technique is a variety of the multiple regression procedure and is suitable whenever the dependent variable is dichotomous. Relative to discriminant function analyses and MANOVAs, logistic regression is less sensitive to heterogeneous variance-covariance matrices and departures from normality.

Several sets of variables are investigated. These sets include:

  • the benefits provided by the implementation of IT;
  • the extent to which IT is integrated within the organisation;
  • the impediments that detract from the success of the IT program; and
  • the factors that facilitate the implementation of IT.

This section determines whether or not IT programs have been more successful in manufacturing industries or service industries. A backward-selection logistic regression was implemented to compare these two classes of industries. Three sets of predictor variables were included. The first set of predictors related to whether or not IT has been successfully incorporated into various areas of the organisation. Six areas were examined:

  1. creation of barriers to entry for new players;
  2. closer links to customers;
  3. closer links to suppliers;
  4. add value to product;
  5. achieve product differentiation;
  6. IT as a product itself.
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