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Technological switchbacks: the transition to Western information systems in privatised firms of the former East Germany

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European Journal of Information Systems

Abstract

The work of this paper centres on a study of business organisations of the former German Democratic Republic (GDR), whose continued existence after the reunification of Germany was accomplished by management buyout (MBO), rather than through acquisition by Western firms. The goal was to investigate the circumstances surrounding the sudden and total upgrade of information technology and systems enabled (and necessitated) by the end of Eastern Block isolation from the West. The paper reports on 1992 contacts and site visits with four MBO privatised firms and 1999 follow-up contacts and site visits with the two surviving firms of that group. Analyses are presented, which draw on literature devoted to IT transitions and IS implementation. The notion of technological switchback is introduced to characterise the unique circumstances embodied by the situation under study. It involves a necessary and sudden advance in information technological capabilities, which comes at the expense of a significant and undesirable regression in information system effectiveness. Parallels are drawn to the plights of firms in other transitional economies and firms facing emerging ‘technological imperatives.’ Conclusions are elucidated, regarding effective short- and long-term adjustment to such situations.

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Authors and Affiliations

  1. College of Business Administration, Creighton University, 2500 California Plaza, Omaha, 68178, Nebraska, USA

    Robert P Marble

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  1. Robert P Marble
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Correspondence to Robert P Marble.

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In light of the story to be told in this paper, the editors are pleased to make an exception with regard to the length of this paper.

Appendix A: Key informant interview agenda topics

Appendix A: Key informant interview agenda topics

1992 Pilot interviews

  • Introduction to the project – its orientation and objectives

  • Historical context of the firm:

    • The firm's primary mission, size, sales, and notable achievements prior to reunification. The firm's experience with computer-based information systems prior to reunification: functional areas/management decision-making supported, hardware, software, internal IS staffing and control, outsourced services, planning, funding, training, growth, problems, assessments.

  • Privatisation experiences

    • Treuhandanstalt and general support, obstacles, conditions, results.

    • Information technology adjustments: continued life of existing systems, Western technology acquisition decisions – hardware & software, experience with vendors and consultants, workflow/process changes necessitated.

  • Since privatisation

    • Hardware/system software configurations, transitions, budgeting, assessments.

    • Applications/support for business functions and decision-making, stability, percentage of needs satisfied, transitions/growth, adjustment issues, general observations.

    • IS/IT planning – proactive vs reactive character, degree of risk entertained, outside help/advice, user participation/involvement, organisational IS responsibilities – for support, control, evaluation, planning.

  • Future plans/outlook/expectations

    • High-level decision support, integration, graphics, telecommunications

    • Organisational & business changes, budgeting for IS/IT

    • Has the upgrade to Western technology been a worthy expenditure?

1999 Follow-up interviews

  • Reintroduction to the project – summary of 1992 discussion for correction/elaboration

  • Progression/changes since 1992

    • Organisational & business-related developments.

    • Hardware/software configuration changes/growth.

      • New functions/levels of decision-making supported, improved performance experienced.

      • State of internal knowledge/control for support of systems.

      • Budgeting & spending.

  • Progress with specific adjustment issues (from 1992 interviews)

    • Plans/expectations from that time actually realised (or not).

    • Problems from that time solved (or not).

    • Uncertainties from that time clarified (or not).

  • Future plans/outlook/expectations

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Marble, R. Technological switchbacks: the transition to Western information systems in privatised firms of the former East Germany. Eur J Inf Syst 13, 115–132 (2004). https://doi.org/10.1057/palgrave.ejis.3000489

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