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The Influence of Information Security Management System Implementation on the Financial Performance of Indian Companies: Examining the Moderating Effect of National Culture

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Listed:
  • Kanika Duggal

    (Department of Public Administration, Inha University, Incheon 22212, Republic of Korea)

  • Seunghwan Myeong

    (Department of Public Administration, Inha University, Incheon 22212, Republic of Korea)

Abstract

The extensive focus on information technology (IT) within organizations, along with the substantial significance of information security issues, has made information security a top priority for executives. The International Organization for Standardization 27001 (ISO-27001) policy outlines the requirements for an effective Information Security Management System (ISMS). Implementing an ISMS not only enhances the overall profitability of a firm, but it also has a significant impact in various scenarios. In this study, we examined how ISMS implementation can assist corporations financially, with a specific focus on the moderating effect of Indian national culture. We analyzed financial performance following ISMS and ISO-27001 implementation using sample data from 420 Indian small and medium-sized enterprises (SMEs). By analyzing 256 survey questionnaires from 420 SMEs, we found that national culture amplifies the strong interaction between ISMS implementation and SME performance in India. We found that ISMS implementation increased the profitability of recognized Indian firms, supporting study hypotheses. The findings provide valuable insights for SMEs seeking to enhance financial performance through ISMS implementation, emphasizing the moderating role of national culture in shaping these outcomes.

Suggested Citation

  • Kanika Duggal & Seunghwan Myeong, 2024. "The Influence of Information Security Management System Implementation on the Financial Performance of Indian Companies: Examining the Moderating Effect of National Culture," Sustainability, MDPI, vol. 16(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:9058-:d:1502193
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    References listed on IDEAS

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    1. He, Wenlong & Liu, Chong & Lu, Jiangyong & Cao, Jing, 2015. "Impacts of ISO 14001 adoption on firm performance: Evidence from China," China Economic Review, Elsevier, vol. 32(C), pages 43-56.
    2. Fotis Kitsios & Elpiniki Chatzidimitriou & Maria Kamariotou, 2023. "The ISO/IEC 27001 Information Security Management Standard: How to Extract Value from Data in the IT Sector," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    3. Geert Hofstede & Cheryl A Van Deusen & Carolyn B Mueller & Thomas A Charles, 2002. "What Goals Do Business Leaders Pursue? A Study in Fifteen Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 785-803, December.
    4. Kaja Prislan & Anže Mihelič & Igor Bernik, 2020. "A real-world information security performance assessment using a multidimensional socio-technical approach," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-28, September.
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