When Cyber Crises Strike: Dynamic Capabilities and their Effect on Firm Performance
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2025-06-30
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en
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As digital interconnectivity increases, cyber crises pose a growing threat to firms. This research investigates how dynamic capabilities, operationalized as knowledge accumulation capabilities through Research & Development expenditures and Information Technology investments, influence firm performance during cyber crises. Drawing on dynamic capabilities theory, this research aims to fill theoretical gaps by empirically testing four hypotheses using an event study design on S&P 500 firms affected by cyber crises between 2004 and 2023. The results reveal non-significant effects of knowledge accumulation capabilities on cumulative abnormal returns (CARs). A plausible explanation for these non-significant findings could be that the value of such investments is not reflected in short-term market reactions or depends on strategic and contextual fit. These findings challenge prior research on dynamic capabilities during crisis periods and invite future research to explore the long-term effects of dynamic capabilities and the influence of strategic and contextual fit.
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Faculteit der Managementwetenschappen