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Privacy please: Power distance and people's responses to data breaches across countries.

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.

Supplementary information

The online version contains supplementary material available at 10.1057/s41267-022-00519-5.

SUBMITTER: Madan S

PROVIDER: S-EPMC9118180 | biostudies-literature | 2022 May

REPOSITORIES: biostudies-literature

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Privacy please: Power distance and people's responses to data breaches across countries.

Madan Shilpa S Savani Krishna K Katsikeas Constantine S CS

Journal of international business studies 20220519 4

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 <i>power distance</i> as an antecedent of people's divergent reactions to data breaches. Eight studies using archival, correlational, and experimental m ...[more]

PMID: 35607320

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Project description:BackgroundAs the COVID-19 pandemic became a major global health crisis, many COVID-19 control measures that use individual-level georeferenced data (e.g., the locations of people's residences and activities) have been used in different countries around the world. Because these measures involve some disclosure risk and have the potential for privacy violations, people's concerns for geoprivacy (locational privacy) have recently heightened as a result, leading to an urgent need to understand and address the geoprivacy issues associated with COVID-19 control measures that use data on people's private locations.MethodsWe conducted an international cross-sectional survey in six study areas (n = 4260) to examine how people's political views, perceived social norms, and individualism shape their privacy concerns, perceived social benefits, and acceptance of ten COVID-19 control measures that use individual-level georeferenced data. Multilevel linear regression models were used to examine these effects. We also applied multilevel structure equation models (SEMs) to explore the direct, indirect, and mediating effects among the variables.ResultsWe observed a tradeoff relationship between people's privacy concerns and the acceptance (and perceived social benefits) of the control measures. People's perceived social tightness and vertical individualism are positively associated with their acceptance and perceived social benefits of the control measures, while horizontal individualism has a negative association. Further, people with conservative political views and high levels of individualism (both vertical and horizontal) have high levels of privacy concerns.ConclusionsOur results first suggest that people's privacy concerns significantly affect their perceived social benefits and acceptance of the COVID-19 control measures. Besides, our results also imply that strengthening social norms may increase people's acceptance and perceived social benefits of the control measures but may not reduce people's privacy concerns, which could be an obstacle to the implementation of similar control measures during future pandemics. Lastly, people's privacy concerns tend to increase with their conservatism and individualism.

Dataset Information

Privacy please: Power distance and people's responses to data breaches across countries.

Supplementary information

Publications

Privacy please: Power distance and people's responses to data breaches across countries.

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