Smart Homes, Smart Strategies? An Empirical Study on Organizational Trust Repair After Breaches of Privacy

Björn Konopka (), Kay Hönemann (), Ning Yang (), Jason Bennett Thatcher () and Manuel Wiesche ()
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Björn Konopka: TU Dortmund University, Chair of Digital Transformation
Kay Hönemann: TU Dortmund University, Chair of Digital Transformation
Ning Yang: Loyola University Chicago, Quinlan School of Business
Jason Bennett Thatcher: University of Colorado Boulder, Leeds School of Business
Manuel Wiesche: TU Dortmund University, Chair of Digital Transformation

A chapter in Digital Innovation and Organizational Transformation, 2026, pp 13-28 from Springer

Abstract: Abstract Previous research has identified customer trust and privacy concerns as key factors for predicting the adoption and continued use of technology, especially for emerging technologies like the smart home. However, there is only limited empirical data on how trust can be restored after privacy violations, which are known to be common in smart home contexts. This study uses a scenario-based policy-capturing design to collect data from long-term smart home users. We examine the effectiveness of verbal (apology, reticence, denial) and substantive (compensation, regulation, third-party involvement) trust repair strategies for two types of privacy violations. Our results indicate that the effectiveness of verbal strategies varies depending on the type of violation, while regulation is the most effective substantive strategy across violation types. Combining verbal and substantive strategies is found to be more successful than isolated approaches. The study concludes with implications and recommendations for future research.

Keywords: Trust; Trust repair; Privacy violations; Smart home; Internet of things (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnichp:978-3-032-08483-5_2

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DOI: 10.1007/978-3-032-08483-5_2

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