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Effects of data breaches from user-generated content: A corporate reputation analysis

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  • Confente, Ilenia
  • Siciliano, Giorgia Giusi
  • Gaudenzi, Barbara
  • Eickhoff, Matthias

Abstract

A threat for a growing number of firms in various industries is the occurrence of different breaches of sensitive corporate data. These critical events represent vulnerability for firms' corporate reputations, whose multiple dimensions are affected by customers negative perceptions in various ways. Further, in the Industry 4.0 era, the redundancy of scandals on social media can exacerbate negative effects. This paper reports an investigation into the effects of data breaches on corporate reputation dimensions. In this context, the study conducted latent Dirichlet allocation analysis on social media user-generated content (UGC) for a sample of 35 firms in nine industries that suffered a data breach incident between 2013 and 2016. Incidents have been categorized into three categories: “intentional and internal,” “unintentional and internal,” and “intentional and external” data breaches. The aim of the study was to discover how reputational dimensions changed after these critical events and to identify the differences among the types of data breaches.

Suggested Citation

  • Confente, Ilenia & Siciliano, Giorgia Giusi & Gaudenzi, Barbara & Eickhoff, Matthias, 2019. "Effects of data breaches from user-generated content: A corporate reputation analysis," European Management Journal, Elsevier, vol. 37(4), pages 492-504.
    • Handle: RePEc:eee:eurman:v:37:y:2019:i:4:p:492-504
    DOI: 10.1016/j.emj.2019.01.007
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    2. Luis Manuel Cerdá Suárez & Jesús Perán López & Belén Cambronero Saiz, 2020. "The Influence of Heuristic judgments in Social Media on Corporate Reputation: A Study in Spanish Leader Companies," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    3. Narendra Sharma & Ebere A. Oriaku & Ngozi Oriaku, 2020. "Cost and Effects of Data Breaches, Precautions, and Disclosure Laws," International Journal of Emerging Trends in Social Sciences, Scientific Publishing Institute, vol. 8(1), pages 33-41.
    4. Uddin, Mohammad Rajib & Akter, Shahriar & Lee, Wai Jin Thomas, 2024. "Developing a data breach protection capability framework in retailing," International Journal of Production Economics, Elsevier, vol. 271(C).
    5. Ramon Saura, Jose & Reyes-Menendez, Ana & Palos-Sanchez, Pedro & Filipe, Ferrão, 2019. "Discovering Ugc Communities To Drive Marketing Strategies: Leveraging Data Visualization," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 7(3), pages 261-272.
    6. Xiaoqian Zhu & Yinghui Wang & Jianping Li, 2022. "What drives reputational risk? Evidence from textual risk disclosures in financial statements," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-15, December.
    7. Ryan, Camille D. & Schaul, Andrew J. & Butner, Ryan & Swarthout, John T., 2020. "Monetizing disinformation in the attention economy: The case of genetically modified organisms (GMOs)," European Management Journal, Elsevier, vol. 38(1), pages 7-18.

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