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Impacts of organizational capabilities in information security

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Purpose ‐ This research aims to examine the relationship between information security strategy and organization performance, with organizational capabilities as important factors influencing successful implementation of information security strategy and organization performance. Design/methodology/approach ‐ Based on existing literature in strategic management and information security, a theoretical model was proposed and validated. A self-administered survey instrument was developed to collect empirical data. Structural equation modeling was used to test hypotheses and to fit the theoretical model. Findings ‐ Evidence suggests that organizational capabilities, encompassing the ability to develop high-quality situational awareness of the current and future threat environment, the ability to possess appropriate means, and the ability to orchestrate the means to respond to information security threats, are positively associated with effective implementation of information security strategy, which in turn positively affects organization performance. However, there is no significant relationship between decision making and information security strategy implementation success. Research limitations/implications ‐ The study provides a starting point for further research on the role of decision-making in information security. Practical implications ‐ Findings are expected to yield practical value for business leaders in understanding the viable predisposition of organizational capabilities in the context of information security, thus enabling firms to focus on acquiring the ones indispensable for improving organization performance. Originality/value ‐ This study provides the body of knowledge with an empirical analysis of organization's information security capabilities as an aggregation of sense making, decision-making, asset availability, and operations management constructs.
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Keywords: Information security; Organizational capabilities; Organizational performance; Strategic management; Strategy implementation success; Structural equation modeling

Document Type: Research Article

Publication date: 2011-07-19

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