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An analysis on effects of information security investments: a BSC perspective

Author

Listed:
  • Hee-Kyung Kong

    (Electronics and Telecommunications Research Institute)

  • Tae-Sung Kim

    (Chungbuk National University)

  • Jungduk Kim

    (Chung-Ang University)

Abstract

With the growing importance of information security due to the arrival of information society and the spread of the internet, information security is emerging as a tool to guarantee competitive advantage and is at the same time an indispensable requirement for stable business execution for companies and organizations. Additionally, the value of tangible and intangible assets that need to be protected as components of corporate assets are on the rise, where the importance of efficient and effective information asset management and information security investment is increasing for the organizations and companies managing them. However, despite an increase in the information security investment of an organization, there is a lack of systematic methodology pertaining to performance appraisals, which makes decision-making activities and determining means of improvement difficult. The existing financially focused information security investment is inadequate for systematic analyses and understanding due to the opportunity cost type characteristics of information security investment and the difficulty involved in presenting future strategic direction. This paper, considering the characteristics of the effects of information security investment, analyzes from a balanced score card perspective information security investment strategies and performance relationships. In short, critical success factors and key performance indicators are initially obtained from previous research related to information security investment, and the data collected through surveys at related companies and organizations are empirically analyzed utilizing the structural equation model.

Suggested Citation

  • Hee-Kyung Kong & Tae-Sung Kim & Jungduk Kim, 2012. "An analysis on effects of information security investments: a BSC perspective," Journal of Intelligent Manufacturing, Springer, vol. 23(4), pages 941-953, August.
    • Handle: RePEc:spr:joinma:v:23:y:2012:i:4:d:10.1007_s10845-010-0402-7
    DOI: 10.1007/s10845-010-0402-7
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    References listed on IDEAS

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    1. Tanaka, Hideyuki & Matsuura, Kanta & Sudoh, Osamu, 2005. "Vulnerability and information security investment: An empirical analysis of e-local government in Japan," Journal of Accounting and Public Policy, Elsevier, vol. 24(1), pages 37-59.
    2. Sarv Devaraj & Ming Fan & Rajiv Kohli, 2002. "Antecedents of B2C Channel Satisfaction and Preference: Validating e-Commerce Metrics," Information Systems Research, INFORMS, vol. 13(3), pages 316-333, September.
    3. Bagozzi, Richard P & Yi, Youjae, 1991. "Multitrait-Multimethod Matrices in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 426-439, March.
    4. Kjell Hausken, 2006. "Returns to information security investment: The effect of alternative information security breach functions on optimal investment and sensitivity to vulnerability," Information Systems Frontiers, Springer, vol. 8(5), pages 338-349, December.
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    Citations

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    Cited by:

    1. Igor Bernik & Kaja Prislan, 2016. "Measuring Information Security Performance with 10 by 10 Model for Holistic State Evaluation," PLOS ONE, Public Library of Science, vol. 11(9), pages 1-33, September.
    2. Xing Gao & Weijun Zhong & Shue Mei, 2015. "Security investment and information sharing under an alternative security breach probability function," Information Systems Frontiers, Springer, vol. 17(2), pages 423-438, April.
    3. Berlilana & Tim Noparumpa & Athapol Ruangkanjanases & Taqwa Hariguna & Sarmini, 2021. "Organization Benefit as an Outcome of Organizational Security Adoption: The Role of Cyber Security Readiness and Technology Readiness," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    4. Xiaofei Qian & Xinbao Liu & Jun Pei & Panos M. Pardalos & Lin Liu, 2017. "A game-theoretic analysis of information security investment for multiple firms in a network," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1290-1305, October.
    5. Tejaswini C. Herath & Hemantha S. B. Herath & David Cullum, 2023. "An Information Security Performance Measurement Tool for Senior Managers: Balanced Scorecard Integration for Security Governance and Control Frameworks," Information Systems Frontiers, Springer, vol. 25(2), pages 681-721, April.
    6. Tahereh Hasani & Norman O’Reilly & Ali Dehghantanha & Davar Rezania & Nadège Levallet, 2023. "Evaluating the adoption of cybersecurity and its influence on organizational performance," SN Business & Economics, Springer, vol. 3(5), pages 1-38, May.
    7. Feng Xu & Xin (Robert) Luo & Hongyun Zhang & Shan Liu & Wei (Wayne) Huang, 2019. "Do Strategy and Timing in IT Security Investments Matter? An Empirical Investigation of the Alignment Effect," Information Systems Frontiers, Springer, vol. 21(5), pages 1069-1083, October.

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