Customer cybersecurity and supplier cost management strategy

• Main Authors: YANG, Xu, LIANG, Peng, HU, Nan, XUE, Fujing
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: data breach; cost stickiness; supply chain; managerial expectations; data breach notification laws; Databases and Information Systems; Information Security
• Online Access: https://ink.library.smu.edu.sg/sis_research/9321; https://ink.library.smu.edu.sg/context/sis_research/article/10321/viewcontent/ssrn_4463396.pdf
• Institution: Singapore Management University

In this paper, we explore the spillover effect of customer firms’ data breaches on their upstream supplier firms’ cost management strategies, proxied by cost stickiness. Our primary analyses suggest that data breaches suffered by customer firms are associated with a decrease in cost stickiness among...