 Anchored by reliability, swayed by institutional forces: Cybersecurity risk deviance from industry norms and its contingencies on risk and volatilityPankaj C. Patel Journal of Business Research, 2025, vol. 199, issue C Abstract: Drawing on institutional theory and high reliability theory we address the critical yet underexplored research question: How does a firm’s deviation from industry norms in cybersecurity risk influence its future cybersecurity risk exposure, and to what extent is this relationship moderated by non-political risk, political risk, and implied volatility? Using fixed-effects regressions, results show that (i) there is a negative relationship between cybersecurity risk deviance and future cyber risk scores; (ii) a firm’s exposure to higher political risk or lower implied volatility enhances the negative effect of deviance on future cyber risk; and (iii) however, the higher nonpolitical risk does not exhibit a significant moderating effect on the relationship between deviance and future cyber risk scores. The robustness of these findings is substantiated through various checks, including corrections for potential endogeneity.This study contributes to the current body of knowledge on cybersecurity and/or strategic management. Keywords: Cyber risk score deviance; Non-political risk; Political risk; Implied volatility; Cybersecurity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:199:y:2025:i:c:s0148296325003662 DOI: 10.1016/j.jbusres.2025.115543 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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