Strategic

The performance of Globalization in organization Globalization Globalization is defined as the process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations. There are two stages of globalization, Stage one appeared during the period after 1870, in the context of nation-state sovereignty and control sad by Bakan (2004). Second stage appeared during the post World War II period and is referred to as corporate globalization. Challenges and opportunity of globalization The globalizations numerous opportunities are such as large markets, access to modern technology worldwide, access to modern and superior goods or services, and fewer barriers to trade and capital flows. It is up to every performer to develop its capabilities so as to be able to exploit the opportunities emerging from globalization At the same time it also also comes with huge challenges such as liberalization of markets, intense competition, decline of domestic job opportunities and revenues, economic volatility of the integrated marketing, cyclical crises, and non-tariff barriers to trade, the spread of pandemics, and new security issues. This global proximity is thought to foster cooperation and to increase security. Performance of globalization The globalization phenomenon is being a driven and propelled by certain factors. These factors and how they contribute towards undermining organizational efficiency and performance. First is Economic Liberalization, is the process by which national economies free up, open up and deregulate their economies for higher economic gains and greater participation by, particularly private corporation. The idea is that the government will retreat from direct economic investments, participation and engagement with that of a regulator, partnering and a provider of ‘level playing ground’ for businesses to thrive. The opening up of national economic boundaries and the removal of restrictions, organizations are probably will increase their efficiency by acquiring necessary economic flows such as finance, technology and human resources. Without doubt, increased economic flows enable organizations to increase stocks of productive capital. Onwuka and Eguavoen (2007) discourse that the intangible assets of trans-national corporations such as knowledge, investment, skills, management know how the transferred across borders due to liberalization and market access. Serve as a catalyst for investment and enterprise competitiveness and further assert that with liberalization, most governments have removed barriers to trade and control on the movement of capital and services thereby allowing market forces to play themselves out. This has translated in the trans-national development of most organizations. The availability of foreign products and services in many countries of the world has dramatically increased since the 1990s and it is not uncommon to see stories such as a Carrefour in competition with superstores such as Wal-Mart stated by Hammond and Grosse, (2003). It is the homogenization of people’s tastes and demand patterns around the world, due to increased access to international communication of information about products and services as well as increased access to transportation of products and people across borders. However, with expansion comes the difficulty of employing people in more than one country, and the need for a structure-strategy on how the operations are to function in this foreign environment Following is technological innovations have played a crucial role in the creating of trans-world social spaces. Technological innovations and revolutions in transportation and especially, information and communications technology (ICT) are the backbone and infrastructure of globalization. Improved transportation as well as the emergence of containerization in land- and sea- based shipping has reduced both the handling requirement and transit time by more than two thirds (Onwuka and Eguavoen, 2007). Information and communications technology plays a tremendous role in all areas of today’s organizations. ICT is expected to drive organizations to greater and efficient performance. It provides the opportunity for organizations to be in any location on the globe, even the remotest of locality. Organizations are expected to take advantage of the ICT revolution to establish a virtual presence in the international economy as an e-business on the internet stated by Czenter, (2002:7). Onwuka and Eguavoen (2007) agree that advances in computer technology enable traders to meet demand for financial instruments such as swaps and futures with relative ease. Through ICT, organizations increase their performance by their virtual expansion through the internet, thus expanding their market reach and domination. An example is the online internet trade is giant, ebay.com, which serves customers in almost all the countries from their American location. When organizations globalize operations, they are faced with the question of how to integrate the new operation with the existing one. One concern is the relationship that will be maintained between the corporate center and its foreign-based subsidiaries (Kamoche, 1996). It has been stated that a central issue for management of Multi National Companies is the extent to which the operations will adapt to the foreign host’s environment versus maintaining parent company practices One obvious reason for this is when organizations find themselves operating in foreign countries, the subsidiaries will face pressures to both adapt locally and integrate globally This conflict of goals and practices leads to Multi National Companies having to adopt one of two strategies such as multi domestic or global orientation said by Porter (1990). This strategy, referred to as “global localization” approaches. This approaches meant to develop local responsiveness, knowledge and transfer or pursue it to global efficiency, Conclusion As a concluding performance in organizations especially, depends on critical technological innovations, good governance and responsible leadership and application of the germane supranational regulatory framework. The relationships between a firm’s capabilities, examples is innovation, learning, and internationalization and the mediating factor, institutional setup, will produce the effect that an organization's competitiveness will improve in the face of globalization. Though, this improved competitiveness of organizations will also be a function of how well they handle their networks of exchange relationships with some significant actors in the economy. Reference Andersson, S. and Wictor, I. (2003), “Innovative internationalisation in new firms – born globals the Swedish case”, Journal of International Entrepreneurship, Vol. 1 No. 3, pp. 249-76. Bakan, J. (2004), ‘The Corporation; The Pathological Pursuit of Profit and Power’, Constable, London. Henderson V. J. & Ono.Y. (2005). ‘Where do Manufacturing Firms Locate Their Headquaters’' mimeo. Kamoche, K. (1996), “The integration-differentiation puzzle: a resource-capability perspective in international human resource management”, International Journal of Human Resource Management, Vol. 7 No. 1, pp. 230-44. Onwuka, E.C and Eguavoen, A.. (2009).’ Globalization and Economic Development: The Nigerian Experience’ Journal of Social Science vol. 14 No1 pp45-51. Porter, M.E. (1990), ‘The Competitive Advantage of Nations’, Macmillan, Baingstoke. Cited in ‘Globalization of performance appraisals: theory and applications’, Management Decision Vol. 49 No. 4, 2011 pp. 570-585