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Abstract

This study aims to fill a significant gap in the existing literature by thoroughly examining the relationship between privacy and customer welfare across different market types at the macrolevel, with a specific emphasis on the B2B (Business-to-Business) and B2C (Business-to-Consumer) sectors. While prior research has often assumed a uniform positive impact of privacy at the individual and micro levels, this study seeks to uncover potential disparities in this relationship. Using an expansive panel dataset from FactSet comprising 620 listed firms globally during the 2022 research period and employing the comprehensive welfare and privacy metrics developed by the Sustainability Accounting Standards Board (SASB), this study conducts cross-sectional analyses through regression-based modeling, revealing that privacy positively influences B2B customer welfare but lacks a notable effect on the B2C sector. While establishing the critical moderating role of market types on the relationship between privacy and welfare contributes significantly to research, this analysis underscores the pressing necessity for tailored regulatory frameworks in both sectors. It advocates for flexible policymaking and collaboration with stakeholders to effectively promote customer welfare while striking a balance between privacy protection and welfare promotion.

Keywords

customer welfare privacy SASB standards B2B B2C cross-sectional stud

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Exploring Macrolevel Dynamics: Unraveling the Impact of Privacy on Customer Welfare and the Moderating Role of Market Type (B2B vs. B2C)

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