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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Main Authors: YANG, Xu, LIANG, Peng, HU, Nan, XUE, Fujing
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2023
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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
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spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic data breach
cost stickiness
supply chain
managerial expectations
data breach notification laws
Databases and Information Systems
Information Security
spellingShingle 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
description 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.
format text
author 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
publisher 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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