Asia Pacific Journal of Information Systems (APJIS)

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Past Issue

Date	March 2014
Vol. No.	Vol. 24 No. 1
DOI	http://dx.doi.org/10.14329/apjis.2014.24.1.095
Page	95~114
Title	The Impact of CPO Characteristics on Organizational Privacy Performance
Author	Jiyoung Wee, Jaeyoung Jang, Beomsoo Kim
Keyword	Chief Privacy Officer(CPO), Personal Information, Personal Data/Information Protection, CPO Characteristics, Organizational Privacy Performance
Abstract	As personal data breach reared up as a problem domestically and globally, organizations appointing chief privacy officers (CPOs) are increasing. Related Korean laws, Personal Data Protection Act’ and the Act on Promotion of Information and Communication Network Utilization and Information Protection, etc.’ require personal data processing organizations to appoint CPOs.Research on the characteristics and role of CPO is called for because of the importance of CPO being emphasized. There are many researches on top management’s role and their impact on organizational per-formance using the Upper Echelon theory. This study investigates what influence the characteristics of CPO gives on the organizational privacy performance. CPO’s definition varies depending on industry, organization size, required responsibility and power. This study defines CPO as a person who takes responsibility for all the duties on handling the organization’s privacy,’ This research assumes that CPO characteristics such as role, personality and background knowledge have an influence on the organizational privacy performance. This study applies the part relevant to the upper echelon’s characteristics and performance of the utives (CEOs, CIOs etc.) for CPO.First, following Mintzberg and other managerial role classification, information, strategic, and diplomacy roles are defined as the role of CPO. Second, the "Big Five" taxonomy on individual’s personality was suggested in 1990. Among these five personalities, extraversion and conscientiousness are drawn as the personality char-acteristics of CPO. Third, advance study suggests complex knowledge of technology, law and business is necessary for CPO. Technical, legal, and business background knowledge are drawn as the background knowledge of CPO. To test this model empirically, 120 samples of data collected from CPOs of domestic organizations are used. Factor analysis is carried out and convergent validity and discriminant validity were verified using SPSS and Smart PLS, and the causal relationships between the CPO’s role, personality, background knowledge and the organizational privacy performance are analyzed as well. The result of the analysis shows that CPO’s diplomacy role and strategic role have significant impacts on organizational privacy performance. This reveals that CPO’s active communication with other organizations is needed. Differentiated privacy policy or strategy of organizations is also important. Legal background knowl-edge and technical background knowledge were also found to be significant determinants to organizational privacy performance. In addition, CPOs conscientiousness has a positive impact on organizational privacy performance.The practical implication of this study is as follows: First, the research can be a yardstick for judgment when companies select CPOs and vest authority in them. Second, not only companies but also CPOs can judge what ability they should concentrate on for development of their career relevant to their job through results of this research.Cultural social value, citizen’s consensus on the right to privacy, expected CPO’s role will change in process of time. In future study, long-term time-series analysis based research can reveal these changes and can also offer practical implications for government and private organization’s policy making on information privacy.

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