Achieving a Balance Between Privacy Protection and Data Collection: A Field Experimental Examination of a Theory-Driven Information Technology Solution
Authors: Liu, Bailing; Pavlou, Paul A.; Cheng, Xiufeng
Journal: Information Systems Research (2022)
<jats:p> Companies face a trade-off between creating stronger privacy protection policies for consumers and employing more sophisticated data collection methods. Justice-driven privacy protection outlines a method to manage this trade-off. We built on the theoretical lens of justice theory to integrate justice provision with two key privacy protection features, negotiation and active-recommendation, and proposed an information technology (IT) solution to balance the trade-off between privacy protection and consumer data collection. In the context of mobile banking applications, we prototyped a theory-driven IT solution, referred to as negotiation, active-recommendation privacy policy application, which enables customer service agents to interact with and actively recommend personalized privacy policies to consumers. We benchmarked our solution through a field experiment relative to two conventional applications: an online privacy statement and a privacy policy with only a simple negotiation feature. The results showed that the proposed IT solution improved consumers’ perceived procedural justice, interactive justice, and distributive justice and increased their psychological comfo…