Abstract
Computer abuse (CA) by employees is a critical concern for managers. Misuse of an organization’s information assets leads to costly damage to an organization’s reputation, decreases in sales, and impositions of fines. We use this opportunity to introduce and expand the theoretic framework proffered by Thong and Yap (1998) to better understand the factors that lead individuals to commit CA in organizations. The study uses a survey of 449 respondents from the banking, financial, and insurance industries. Our results indicate that individuals who adhere to a formalist ethical perspective are significantly less likely to engage in CA activities than those following a utilitarian ethical framework. In addition, the results provide evidence that employees with individualistic natures are linked to increased CA incidents, whereas collectivist tendencies are associated with decreases in CA behaviors. Our results also show that collectivism acts as a strong moderator that further decreases the relationships between formalism and CA, and utilitarianism and CA. Finally, we offer detailed suggestions on how organizations and researchers can leverage our findings to decrease CA occurrences.
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Notes
Moral hazard occurs when there is “an incentive to act in one’s self-interest in conflict with the organization’s overall goals while being able to hide those actions through privately held information” (Tuttle et al. 1997, p. 7).
Culture is “a system of implicit and explicit beliefs, values, norms, preferences, and behaviors that are stable over time” (Zhang and Lowry 2008, p. 64).
Traditionally, on a national level, individualism describes cultures “in which the ties between individuals are loose,” and collectivism describes cultures “in which people are integrated into strong, cohesive groups that protect individuals in exchange for unquestioning loyalty” (Hofstede 1991; Zhang and Lowry 2008, p. 65).
Convergent validity is the basic idea that measurement items that should be related are related. It is established “when items thought to reflect a construct converge, or show significant, high correlations with one another, particularly when compared to the convergence of items relevant to other constructs, irrespective of method” (Straub et al. 2004, p. 391).
Discriminant validity is the idea that items that should not be related are in fact not related. It can be established when items thought to diverge show insignificant, low correlations with one another, particularly when compared to items in other constructs (Straub et al. 2004).
To do this in PLS, constructs of the theoretic model and their relationships are modeled as is normally conducted with two major additions: (1) A single-indicator construct is created for each indicator in the measurement model. Each subconstruct is then linked to each of the single-indicator constructs that comprise the subconstruct. This effectively makes each subconstruct in the model a second-order reflective construct. (2) A construct representing the method is created, reflectively composed of all indicators of the instrument. The method construct (the latent method factor) is then linked to each single-item construct.
Reliability refers to the degree to which a scale yields consistent and stable measures over time (Straub 1989). Because of the nature of formative measures, reliability checks cannot be reasonably made for formative measures (Diamantopoulos and Winklhofer 2001). However, reliabilities of first-order reflective constructs that make up second-order constructs can be established individually.
Per Chin et al. (2003), the pseudo F-test is obtained by first calculating the effect size using the following formula: (path a − path b)/(1 − path a). The pseudo F-statistic was then calculated by multiplying the effect size by (n – k − 1), where n is the sample size (449) and k is the number of independent variables (in this case 2, because we are comparing two paths only).
Abbreviations
- CA:
-
Computer abuse
- CMD:
-
Cognitive moral development theory
- IS:
-
Information systems
- IT:
-
Information technology
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Lowry, P.B., Posey, C., Roberts, T.L. et al. Is Your Banker Leaking Your Personal Information? The Roles of Ethics and Individual-Level Cultural Characteristics in Predicting Organizational Computer Abuse. J Bus Ethics 121, 385–401 (2014). https://doi.org/10.1007/s10551-013-1705-3
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DOI: https://doi.org/10.1007/s10551-013-1705-3