Publication Type

Conference Proceeding Article

Version

acceptedVersion

Publication Date

12-2023

Abstract

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.

Keywords

data breach, cost stickiness, supply chain, managerial expectations, data breach notification laws

Discipline

Databases and Information Systems | Information Security

Research Areas

Data Science and Engineering

Publication

ICIS 2023: Hyderabad, December 10-13: Proceedings

First Page

1

Last Page

41

Publisher

AIS

City or Country

Atlanta

Copyright Owner and License

Authors

Additional URL

https://aisel.aisnet.org/icis2023/cyber_security/cyber_security/9

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