Leading on Privacy: How Firms Can Build Trust and Enhance Performance Across Authenticity Indicators – MSI

Working Paper

Leading on Privacy: How Firms Can Build Trust and Enhance Performance Across Authenticity Indicators

Jordan Moffett

University of Kentucky

Kelly Martin

Robert W. Palmatier

University of Washington - Seattle

Natalie Chisam

University of Washington

Feb 13, 2023

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Uses an event study of US-based companies in 41 industries and a series of online experiments to determine how different data privacy policies affect customers and investors and the mechanisms that account for these outcomes.

Topics

research recap

How Should Companies Implement “Privacy as Strategy”?

Data privacy regulations can impose risks and costs on companies and even harm consumers by reducing personalization or creating market concentration. However, companies that proactively adopt data protection to demonstrate competence and benevolence can use “privacy as strategy” to positively influence both customers and investors.

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