Abstract
Interfirm cooperation between two or more firms is undertaken to create value jointly. However, interfirm cooperation also entails risks. We focus on cybersecurity risks of interfirm cooperation. Two prominent governance modes for interfirm cooperation are: (i) non-equity alliances and (ii) equity alliances such as joint ventures (JVs). We explain why non-equity alliances are likely to increase cybersecurity risks of collaborators whereas JVs are likely to reduce them. We test these ideas in the context of hospital–physician group collaborations in the U.S. Hospital Industry during 2009-2017. The results indicate that hospitals using non-equity alliances for physician group collaborations are more likely to experience cybersecurity breaches. Hospitals that use JVs to govern physician group collaborations are less likely to experience cybersecurity breaches. We discuss the implications of these findings for IS research and practice.
Recommended Citation
Tanriverdi, Hüseyin and Im, Ghiyoung, "Cybersecurity risk of interfirm cooperation: Alliance or joint venture?" (2022). WISP 2022 Proceedings. 4.
https://aisel.aisnet.org/wisp2022/4