Transborder Information Flow Problem

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 i

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shed and observed operating procedures and rules, and a well defined hierarchy of authority. Within such organizations, decision making was typically top-down in character. This type of internal organizational structure was termed mechanistic in character. 2. Organizations functioning within a dynamic external environment frequently were found to chaotic in character-- defined by Daft (1992, p. 71) as "much looser, free flowing, and adaptive. Rules and regulations were not written down, or if written down were ignored. People had to find their own way through the system to figure out what to do. The hierarchy of authority was not clear. Decision-making authority was decentralized." This type of internal organizational structure was termed organic in character. The major differences between mechanistic and organic structures of organizations are presented in Exhibit 1, which may be found below on this page. As the information presented in the exhibit indicate, the mechanistic organization tends to be formal and somewhat forbidding, while the organic organization tends to be highly informal and somewhat chaotic. Exhibit 1 Comparison of Major Characteristics of Mechanistic and Organic Organizational
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Approximate Word count = 1691
Approximate Pages = 7 (250 words per page)

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