Customer cybersecurity and supplier cost management strategy
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...
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2023
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sg-smu-ink.sis_research-103212024-09-26T07:53:26Z Customer cybersecurity and supplier cost management strategy YANG, Xu LIANG, Peng HU, Nan XUE, Fujing 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 supplier firms. Furthermore, the reductions in supplier cost stickiness are stronger if suppliers are managed by CEOs from national cultural groups with high uncertainty avoidance, low long-term orientations, and/or low individualism. In sum, the findings contribute to both Information Systems (IS) and Operations Management (OM) disciplines in terms of data breach, cost management strategy, and the role of national culture in OM. In particular, the findings can facilitate the management and regulation of data breaches for managers and regulators. 2023-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/9321 https://ink.library.smu.edu.sg/context/sis_research/article/10321/viewcontent/ssrn_4463396.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University data breach cost stickiness supply chain managerial expectations data breach notification laws Databases and Information Systems Information Security |
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data breach cost stickiness supply chain managerial expectations data breach notification laws Databases and Information Systems Information Security YANG, Xu LIANG, Peng HU, Nan XUE, Fujing Customer cybersecurity and supplier cost management strategy |
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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 supplier firms. Furthermore, the reductions in supplier cost stickiness are stronger if suppliers are managed by CEOs from national cultural groups with high uncertainty avoidance, low long-term orientations, and/or low individualism. In sum, the findings contribute to both Information Systems (IS) and Operations Management (OM) disciplines in terms of data breach, cost management strategy, and the role of national culture in OM. In particular, the findings can facilitate the management and regulation of data breaches for managers and regulators. |
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text |
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YANG, Xu LIANG, Peng HU, Nan XUE, Fujing |
author_facet |
YANG, Xu LIANG, Peng HU, Nan XUE, Fujing |
author_sort |
YANG, Xu |
title |
Customer cybersecurity and supplier cost management strategy |
title_short |
Customer cybersecurity and supplier cost management strategy |
title_full |
Customer cybersecurity and supplier cost management strategy |
title_fullStr |
Customer cybersecurity and supplier cost management strategy |
title_full_unstemmed |
Customer cybersecurity and supplier cost management strategy |
title_sort |
customer cybersecurity and supplier cost management strategy |
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Institutional Knowledge at Singapore Management University |
publishDate |
2023 |
url |
https://ink.library.smu.edu.sg/sis_research/9321 https://ink.library.smu.edu.sg/context/sis_research/article/10321/viewcontent/ssrn_4463396.pdf |
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