Policy Frameworks for Governing Digital Transformation in Multinational Enterprises

Abstract

This study aims to identify and analyze the key policy frameworks used by multinational enterprises (MNEs) to govern digital transformation initiatives and provide insights into how these frameworks are developed, implemented, and adapted across diverse organizational contexts. This qualitative research employed semi-structured interviews to collect data from 22 participants across various MNEs. Participants were selected through purposive sampling, representing a variety of roles including senior management, IT professionals, and consultants involved in digital transformation. Interviews were conducted online, transcribed, and analyzed using NVivo software to identify key themes and concepts related to digital transformation governance. Thematic analysis was used to identify patterns and derive insights until theoretical saturation was reached. The study identified four main themes in digital transformation governance: governance structures, policy development, strategic alignment, and legal and ethical considerations. MNEs balance centralized oversight with decentralized decision-making to facilitate flexibility and responsiveness. Clear organizational hierarchies, cross-departmental coordination, and regular policy adaptations were crucial for successful transformation. Legal compliance, especially in data privacy and cybersecurity, emerged as a significant concern, with MNEs highlighting the need for policies that align with global regulations such as the GDPR. Ethical considerations regarding AI and big data were also highlighted as important governance components. Effective governance of digital transformation in MNEs requires a balanced policy framework that aligns digital strategies with organizational goals, addresses legal and ethical concerns, and adapts to technological changes. MNEs that involve multiple stakeholders in policy development and ensure flexibility in policy adaptation are better positioned to manage the complexities of digital transformation.