Privacy please: Power distance and people’s responses to data breaches across countries

Information security and data breaches are perhaps the biggest challenges that global businesses face in the digital economy. Although data breaches can cause significant harm to users, businesses, and society, there is significant individual and national variation in people’s responses to data brea...

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Main Authors: MADAN, Shilpa, SAVANI, Krishna, KATSIKEAS, Constantine S.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2022
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7248
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8247/viewcontent/s41267_022_00519_5.pdf
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spelling sg-smu-ink.lkcsb_research-82472023-08-11T05:47:00Z Privacy please: Power distance and people’s responses to data breaches across countries MADAN, Shilpa SAVANI, Krishna KATSIKEAS, Constantine S. Information security and data breaches are perhaps the biggest challenges that global businesses face in the digital economy. Although data breaches can cause significant harm to users, businesses, and society, there is significant individual and national variation in people’s responses to data breaches across markets. This research investigates power distance as an antecedent of people’s divergent reactions to data breaches. Eight studies using archival, correlational, and experimental methods find that high power distance makes users more willing to continue patronizing a business after a data breach (Studies 1–3). This is because they are more likely to believe that the business, not they themselves, owns the compromised data (Studies 4–5A) and, hence, do not reduce their transactions with the business. Making people believe that they (not the business) own the shared data attenuates this effect (Study 5B). Study 6 provides additional evidence for the underlying mechanism. Finally, Study 7 shows that high uncertainty avoidance acts as a moderator that mitigates the effect of power distance on willingness to continue patronizing a business after a data breach. Theoretical contributions to the international business literature and practitioner and policy insights are discussed. 2022-05-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7248 info:doi/10.1057/s41267-022-00519-5 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8247/viewcontent/s41267_022_00519_5.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University privacy power distance data breach ownership uncertainty avoidance experiments Marketing
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic privacy
power distance
data breach
ownership
uncertainty avoidance
experiments
Marketing
spellingShingle privacy
power distance
data breach
ownership
uncertainty avoidance
experiments
Marketing
MADAN, Shilpa
SAVANI, Krishna
KATSIKEAS, Constantine S.
Privacy please: Power distance and people’s responses to data breaches across countries
description Information security and data breaches are perhaps the biggest challenges that global businesses face in the digital economy. Although data breaches can cause significant harm to users, businesses, and society, there is significant individual and national variation in people’s responses to data breaches across markets. This research investigates power distance as an antecedent of people’s divergent reactions to data breaches. Eight studies using archival, correlational, and experimental methods find that high power distance makes users more willing to continue patronizing a business after a data breach (Studies 1–3). This is because they are more likely to believe that the business, not they themselves, owns the compromised data (Studies 4–5A) and, hence, do not reduce their transactions with the business. Making people believe that they (not the business) own the shared data attenuates this effect (Study 5B). Study 6 provides additional evidence for the underlying mechanism. Finally, Study 7 shows that high uncertainty avoidance acts as a moderator that mitigates the effect of power distance on willingness to continue patronizing a business after a data breach. Theoretical contributions to the international business literature and practitioner and policy insights are discussed.
format text
author MADAN, Shilpa
SAVANI, Krishna
KATSIKEAS, Constantine S.
author_facet MADAN, Shilpa
SAVANI, Krishna
KATSIKEAS, Constantine S.
author_sort MADAN, Shilpa
title Privacy please: Power distance and people’s responses to data breaches across countries
title_short Privacy please: Power distance and people’s responses to data breaches across countries
title_full Privacy please: Power distance and people’s responses to data breaches across countries
title_fullStr Privacy please: Power distance and people’s responses to data breaches across countries
title_full_unstemmed Privacy please: Power distance and people’s responses to data breaches across countries
title_sort privacy please: power distance and people’s responses to data breaches across countries
publisher Institutional Knowledge at Singapore Management University
publishDate 2022
url https://ink.library.smu.edu.sg/lkcsb_research/7248
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8247/viewcontent/s41267_022_00519_5.pdf
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