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Smart Homes, Smart Strategies? An Empirical Study on Organizational Trust Repair After Breaches of Privacy

In: Digital Innovation and Organizational Transformation

Author

Listed:
  • Björn Konopka

    (TU Dortmund University, Chair of Digital Transformation)

  • Kay Hönemann

    (TU Dortmund University, Chair of Digital Transformation)

  • Ning Yang

    (Loyola University Chicago, Quinlan School of Business)

  • Jason Bennett Thatcher

    (University of Colorado Boulder, Leeds School of Business)

  • Manuel Wiesche

    (TU Dortmund University, Chair of Digital Transformation)

Abstract

Previous research has identified customer trust and privacy concerns as key factors for predicting the adoption and continued use of technology, especially for emerging technologies like the smart home. However, there is only limited empirical data on how trust can be restored after privacy violations, which are known to be common in smart home contexts. This study uses a scenario-based policy-capturing design to collect data from long-term smart home users. We examine the effectiveness of verbal (apology, reticence, denial) and substantive (compensation, regulation, third-party involvement) trust repair strategies for two types of privacy violations. Our results indicate that the effectiveness of verbal strategies varies depending on the type of violation, while regulation is the most effective substantive strategy across violation types. Combining verbal and substantive strategies is found to be more successful than isolated approaches. The study concludes with implications and recommendations for future research.

Suggested Citation

  • Björn Konopka & Kay Hönemann & Ning Yang & Jason Bennett Thatcher & Manuel Wiesche, 2026. "Smart Homes, Smart Strategies? An Empirical Study on Organizational Trust Repair After Breaches of Privacy," Lecture Notes in Information Systems and Organization, in: Christoph M. Flath & Gunther Gust & Frédéric Thiesse & Axel Winkelmann (ed.), Digital Innovation and Organizational Transformation, pages 13-28, Springer.
    • Handle: RePEc:spr:lnichp:978-3-032-08483-5_2
    DOI: 10.1007/978-3-032-08483-5_2
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