Every online search, purchase, social media post and click generates data. Individually, those interactions may seem insignificant. Collectively, they have become one of the world's most valuable business assets, reshaping how multinational companies compete, innovate and influence markets around the world.
That transformation is the focus of research by FIU Business professors Ronaldo Parente and William Newburry, who examine how multinational technology companies are using data to reshape international business — and why governments, businesses and consumers are increasingly pushing back.
The paper was published in the Journal of International Business Studies.
Although multinational companies have always relied on information to make decisions, today's largest technology firms operate at an unprecedented scale, continuously collecting, analyzing and applying data across borders. The study suggests this capability has become a new source of competitive advantage and global influence.
Parente, Newburry and their research colleagues reviewed existing research and developed a framework to guide future studies on how multinational companies generate and use data-based power.
"This is what we call a perspective paper," said Newburry, professor of international business and Ryder Eminent Scholar of Global Business. "We looked at a phenomenon that is becoming increasingly important in international business, reviewed the literature and company examples and developed a framework to guide future research."
Parente, professor of international business and Knight Ridder Eminent Scholar Chair in International Management, explained the goal was to better understand how data is changing international business.
"The whole idea was to explain how Big Tech multinationals were reshaping global power using data,” he added.
Operating across multiple countries gives multinational companies access to diverse streams of consumer data, allowing them to identify patterns and develop products for different markets.
"All multinational companies have access to more data than before," Newburry said. "But these Big Tech companies have such astounding access to data because they operate in multiple countries and are so data intensive."
Because they collect data from consumers on an unprecedented scale, they can analyze it almost immediately, develop a deeper understanding of global markets and create products and services tailored to different countries. For business leaders, the framework underscores that data strategy is no longer simply a technology issue — it has become a driver of innovation, competitive advantage and global growth.
Their framework describes this process as a global data value chain built on three stages: accessing data, analyzing it and applying those insights to products, services and business decisions. Unlike traditional supply chains that move physical products, global data value chains create value by moving, analyzing and applying information across borders.
Newburry pointed to Nike as an example. By embedding sensors in certain shoes, the company can collect data on how customers use their products, analyze that information and apply those insights to improve future designs.
At the same time, the study emphasizes that the ability to collect, analyze and apply data has produced enormous economic value, even as it raises new questions about privacy, regulation and corporate influence.
But data-driven power is only one side of the equation. As companies gain more influence through data, governments, businesses and consumers are increasingly responding with measures designed to counterbalance that power — a concept the paper describes as power mutuality.
"Yes, companies gain access to data, control, influence and value," Parente said. "But it also creates vulnerabilities."
Those vulnerabilities are already reshaping the global business landscape as consumers demand greater privacy protections, businesses explore alternative platforms and cloud services, and governments adopt regulations aimed at limiting how companies collect, transfer and use data.
"Different countries have different perspectives," said Newburry. "The power of Big Tech multinationals can't go around unchecked."
Those different approaches are already evident around the world. The European Union, for example, has enacted regulations that give users greater control over how companies collect and use personal data. Russia restricts certain data from being transferred across national borders, while the United States has taken a less comprehensive regulatory approach.
Newburry said the framework can also help policymakers determine where safeguards may be needed as multinational companies continue expanding their use of data.
Ultimately, Parente noted, organizations must think strategically about both sides of the equation.
"We have to get power," he said, "but we also have to look at the consequences."
When the researchers began developing the paper, artificial intelligence was still in its early stages. Since then, AI has accelerated so rapidly that the conversation has fundamentally changed.
"We could write another paper because AI changed everything," Parente said.