INFORMATION-SYSTEMS SOLUTIONS FOR TRANSBORDER DATA FLOW PROBLEMS FOR MULTINATIONAL COMPANIES
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 machine-readable 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 decision-making and control functions, to satisfy shareholder requirements, and to comply with governmental directives (Main, 1989, pp. 70-76). The function of data flow becomes more complicated, however, when a company is required to transmit data across national borders (Wang, 1993, pp. 29-40). The factors complicating the data flow process for multinational companies include privacy concerns, economic considerations, sovereignty, and cultural differences (Wang, 1993, pp. 29-40).
In the early-1990s, an information system within an organization is considered to be a computer-based system that processes data into a meaningful form, so that it may be used by managers and administrators in the organizational decision-making
process, and for other organizational functions (Senn, 1990, p. 401). The information environment in which organizations must function is changing. In turn, these changes demand changes in organizational structure and relationships. Thomas Malone and John Rockart (1991, pp. 128-136) argued that the advent of intensive computer networking in the corporate business setting...