The advent of 21st century, the global economy has dramatically undergone changes. Developed and emerging economies are converging to one gigantic global economy; this has directly impacted the businesses compelling organisations around the world to competitive at the international level. The protection shield enjoyed by the organisations behind a closed economy earlier under the cloak of the government restricting entry for foreign players are getting slimmer each year. Consequently, organisations have to compete in their home country against MNC with vast resources, and search for opportunities elsewhere.

However, there are numerous other factors which have influenced organisation world – wide to reconsider their strategies in the wake of the changing global business dynamics. Free trade area agreements, creation of trading blocs such as the European Union, South East Asian countries (ASEAN) and other similar existing and ones which are still under consideration have immensely pressurized companies, and exposed them to the competition. The competitive and comparative advantages enjoyed by these organisations earlier are now threatened by the new foreign entrants. As a result to survive and grow in the 21st century most organisations either adapted or withered away to the changing conditions. The ones which survived the strong wave of forced adaption have learned their lessons that change is a constant factor in the global business environment, and being reflexive and adaptive is the only way out.

Technological innovation is another aspect that has influenced change in the organisation. Technology is evolving at a rapid pace warranting organisation to absorb the changes at the same speed. Other influential factors : Intensity of international competition; presence of key competitors in all key international markets; internationalization of product standards; stronger push by international bodies such as the world Trade Organization (WTO), International Monetary Fund (IMF) increasing level of international trade between countries ; increase in Intra-firm trade ; Technological intensity. At the organizational level, there is continuous pressure to perform in the new business economy; factors suc