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Vendor selection in the wake of data breaches: A longitudinal study
Wang, Qian1; Jiang, Shenyang2,3; Ngai, Eric W.T.3; Huo, Baofeng4
2024
Source PublicationJournal of Operations Management
ISSN0272-6963
Volume70Issue:4Pages:568-599
Abstract

With the increasing digitization and networking of medical data and personal health information, information security has become a critical factor in vendor selection. However, limited understanding exists regarding how information security influences vendor selection. Drawing from the attention-based view (ABV), this study examines the potential impact of data breaches on hospitals' selection of electronic medical record system (EMRS) vendors. To test our hypotheses, we compile a unique dataset spanning 12 years of observations from US hospitals. Utilizing a coarsened exact matching (CEM) technique combined with a difference-in-differences (DiD) approach, our study shows that hospitals tend to replace their EMRS vendors after experiencing data breaches. Moreover, breached hospitals tend to prioritize information security in such a vendor replacement process by switching to star vendors and migrating towards a single-sourcing configuration. Further post-hoc analyses reveal that these impacts of data breaches are mitigated as the relationship between breached hospitals and vendors matures or when hospitals belong to large healthcare systems. Additionally, we find that the effects of data breaches are contingent on the scale of the breach and are short-term in nature. This research underscores the significance of information security as a crucial consideration in vendor selection for both academia and practitioners.

KeywordAttention-based View Data Breach Electronic Medical Record Systems Information Security Information Technology Outsourcing Vendor Selection
DOI10.1002/joom.1294
URLView the original
Indexed BySCIE ; SSCI
Language英語English
WOS Research AreaBusiness & Economics ; Operations Research & Management Science
WOS SubjectManagement ; Operations Research & Management Science
WOS IDWOS:001151745800001
PublisherWILEY111 RIVER ST, HOBOKEN 07030-5774, NJ Journal Impact Factor
Scopus ID2-s2.0-85183834884
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionFaculty of Business Administration
DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
Corresponding AuthorJiang, Shenyang
Affiliation1.Faculty of Business Administration, University of Macau, Taipa, Macao
2.Advanced Institute of Business, Tongji University, Shanghai, China
3.Department of Management and Marketing, The Hong Kong Polytechnic University, Kowloon, Hong Kong
4.School of Management, Zhejiang University, Hangzhou, Zhejiang, China
First Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Wang, Qian,Jiang, Shenyang,Ngai, Eric W.T.,et al. Vendor selection in the wake of data breaches: A longitudinal study[J]. Journal of Operations Management, 2024, 70(4), 568-599.
APA Wang, Qian., Jiang, Shenyang., Ngai, Eric W.T.., & Huo, Baofeng (2024). Vendor selection in the wake of data breaches: A longitudinal study. Journal of Operations Management, 70(4), 568-599.
MLA Wang, Qian,et al."Vendor selection in the wake of data breaches: A longitudinal study".Journal of Operations Management 70.4(2024):568-599.
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