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

Kanika Duggal and Seunghwan Myeong ()
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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

Sustainability, 2024, vol. 16, issue 20, 1-21

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.

Keywords: information security management system (ISMS); ISO-27001; national culture; Indian culture; firm performance; SMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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