Transborder Data Flow Problems

The purpose of this research is to examine the problem encountered by multinational corporations in relation to transborder information flow. The findings of this research are presented in (1) a background information discussion related to information systems and (2) an analysis of the transnational information systems operations of a multinational company headquartered in the United States.

Transborder data flow is the movement of machinereadable information across national boundaries through the use of electronic technologies for the purpose of storage or processing (Waples and Norris, 1992, p. 29). Within any organization, information must be collected and processed on a timely basis to support the firm's decisionmaking and control functions, to satisfy shareholder requirements, and to comply with governmental directives (Main, 1989, pp. 7076). The function of data flow becomes more complicated, however, when a company is required to transmit data across national borders (Wang, 1993, pp. 2940). The factors complicating the data flow process for multinational companies include privacy concerns, economic considerations, sovereignty, and cultural differences (Wang, 1993, pp. 2940).

In the early1990s, an information system within an organization is considered to be a computerbased system that processes data into a meaningful form, so

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c organizational concepts. This ambidextrous organizational structure would permit a shifting emphasis as required by a changing situation. While Bartlett and Ghoshal (1992, pp. 523524) accept the contention that an organic structure is required for a multinational firm to function effectively within a transnational environment, they contend further that an integrated network organizational structure within the organic framework is demanded to facilitate the information systems function. This contention is supported by Bovasso (1992, pp. 86106). For multinational companies such as Federal Express, the network organizational structure is essential to the success of the firm's globally integrated communications structure (Hauss, 1993, pp. 2226). Federal Express requires the construction and maintenance of a database that includes detailed information on clients (both shippers and recipients), detailed information on transportation and communications facilities within all countries where the firm operates, detailed information on the character of the items being shipped, and instant access to the database by all Federal Express offices and terminals wherever in the world they may be located (Runyan, 1989, pp. 7178). The des
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Approximate Word count = 1880
Approximate Pages = 8 (250 words per page)

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