Madan, S, Savani, K and Katsikeas, CS orcid.org/0000-0002-8748-6829 (2022) Privacy please: Power distance and people’s responses to data breaches across countries. Journal of International Business Studies. ISSN 0047-2506
Abstract
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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022 Academy of International Business, corrected publication 2022. All rights reserved. This is an author produced version of an article published in Journal of International Business Studies. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | privacy; power distance; data breach; ownership; uncertainty avoidance; experiments |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Marketing Division (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 25 Feb 2022 12:05 |
Last Modified: | 19 May 2023 00:13 |
Status: | Published online |
Publisher: | Palgrave Macmillan |
Identification Number: | 10.1057/s41267-022-00519-5 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:184109 |