An Empirical Study of Platform Enterprises' Privacy Protection Behaviors Based on fsQCA

Abstract

Firms' privacy protection strategies are affected by multiple factors. This study adopted a configurational perspective to examine how regulation policy environment, market structure, and the heterogeneity among enterprises affect their privacy protection policies. Using a fuzzy set qualitative comparative analysis of Chinese listed platform enterprises, we found that three configuration conditions were associated with enterprises formulating a privacy policy with a high level of protection and two configuration conditions were associated with enterprises formulating a privacy policy with a low level of protection. The results showed that privacy protection laws were a necessary condition to ensure that enterprises actively exercised privacy protection. Coordinated regulation systems based on the Personal Information Protection Law and industry standards are recommended as the best practice to safeguard privacy protection in China. As lack of competition can result in two polarized privacy protection strategies, regulatory policies should emphasize the balance between data protection and encouraging necessary data sharing. Furthermore, the conjunctive effect between market structure and business models affected privacy policy formulation, which suggests that the positive effects of users' rational choices in a competitive market should be further reinforced.