W hile privacy is a highly cherished value, few would argue with the notion that absolute privacy is unattainable. Individuals make choices in which they surrender a certain degree of privacy in exchange for outcomes that are perceived to be worth the risk of information disclosure. This research attempts to better understand the delicate balance between privacy risk beliefs and confidence and enticement beliefs that influence the intention to provide personal information necessary to conduct transactions on the Internet. A theoretical model that incorporated contrary factors representing elements of a privacy calculus was tested using data gathered from 369 respondents. Structural equations modeling (SEM) using LISREL validated the instrument and the proposed model. The results suggest that although Internet privacy concerns inhibit e-commerce transactions, the cumulative influence of Internet trust and personal Internet interest are important factors that can outweigh privacy risk perceptions in the decision to disclose personal information when an individual uses the Internet. These findings provide empirical support for an extended privacy calculus model.

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Computer networks are an increasingly important technology for improving the efficiency of information processing and providing shared access to information resources. Because computer networks are increasingly being used to support the flow of information between and within organizations, their use both influences and has consequences for interorganizational relationships. An important and widespread application of interorganizational computer networks is Electronic Data Interchange (EDI), which refers to the computer-based exchange of standardized business-related information between buyer and supplier firms. The following theoretical framework addresses the role that power and trust play in EDI adoption and use. Firms with greater power can influence their trading partners to adopt EDI. But power can be exercised in different ways. Because computer networks provide a way for certain information to be more accessible to outside parties, their use makes organizational boundaries more permeable. When firms use coercive power to force trading partners to adopt EDI, less powerful partners may be left more vulnerable. And, over time this perceived vulnerability becomes a constraint in interorganizational relationships that prevents improvements in coordination through expanded use of EDI. On the other hand, when the event of EDI adoption is viewed as an opportunity to build and reinforce trust between firms, the relationship is able to support organizational changes (e.g., restructuring operational processes or new modes of distribution) related to EDI use which contribute to improving interorganizational coordination. The role of power and trust in EDI adoption has important implications for interorganizational theory. Their role may be especially helpful in understanding how technology, and, in particular, electronic media support strategic alliances that firms create to advance mutual goals.

We develop an individual behavioral model that integrates the role of top management and organizational culture into the theory of planned behavior in an attempt to better understand how top management can influence security compliance behavior of employees. Using survey data and structural equation modeling, we test hypotheses on the relationships among top management participation, organizational culture, and key determinants of employee compliance with information security policies. We find that top management participation in information security initiatives has significant direct and indirect influences on employees' attitudes towards, subjective norm of, and perceived behavioral control over compliance with information security policies. We also find that the top management participation strongly influences organizational culture which in turn impacts employees' attitudes towards and perceived behavioral control over compliance with information security policies. Furthermore, we find that the effects of top management participation and organizational culture on employee behavioral intentions are fully mediated by employee cognitive beliefs about compliance with information security policies. Our findings extend information security research literature by showing how top management can play a proactive role in shaping employee compliance behavior in addition to the deterrence oriented remedies advocated in the extant literature. Our findings also refine the theories about the role of organizational culture in shaping employee compliance behavior. Significant theoretical and practical implications of * This project was partially funded by a grant to the authors from the Defense Information Systems Agency (DISA) of the Department of Defense (DoD). The authors express their thanks to the editor, senior editor, associate editor, and two anonymous reviewers for their detailed and constructive comments and suggestions throughout the review process. † Corresponding author. 615 616 Managing Employee Compliance with Information Security Policies these findings are discussed. has served as a special issue associate editor for MIS Quarterly and European Journal of Information Systems. Tamara Dinev is an associate professor and Chair of the Department of Information Technology and Operations Management (ITOM), College of Business, Florida Atlantic University, Boca Raton, Florida. She received her PhD in theoretical physics in 1997. Following several senior positions in information technology companies, her interests migrated to management information systems research and she joined the Florida Atlantic University ITOM faculty in 2000. Her researchinterests include information privacy, trust in online vendors, multicultural aspects of information technology usage, and information security. She has published in and Behavior and Information Technology. She has received numerous best paper awards and nominations at major information system conferences. PaulHart is a professor of information technology and operations managem...

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