This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility: For many business leaders, digitalization is associated with promises of greater efficiency and productivity. However, a new study by professor of accounting Jukka Sihvonen from the University of Vaasa, Finland, suggests that increasing digitalization may also raise a company's risk of falling victim to a successful cyberattack.
The study has been published in the journal British Journal of Management. In his research, Sihvonen measured firms' levels of digitalization and examined whether being more digitally advanced than industry peers predicts future cyberattacks. The findings show that companies that are ahead of their competitors in digitalization are up to 10 percentage points more likely to experience a successful cyberattack.
"Many executives see digitalization as a way to strengthen cyber resilience, a view often reinforced by technology providers. However, our findings suggest that the relationship is not quite that straightforward. Digitalization also introduces new vulnerabilities that organizations may find difficult to identify and manage," says Sihvonen.
The study analyzed more than 9,600 observations from publicly listed U.S. companies between 2006 and 2023. The dataset included 543 documented data breaches and other cyber incidents. A key finding of the study is that the increased risk is not primarily driven by the technologies themselves.
Instead, what matters is how digital technologies are implemented within organizations and integrated into business models and processes. According to the findings, traditional monitoring and control mechanisms, such as external auditing, are not sufficient on their own to protect highly digitalized firms from cyber threats. "The results suggest that cybersecurity management should increasingly be viewed as a strategic issue.
The more digitalized a company becomes, the more important it is to ensure that cybersecurity expertise is represented in top management and on the board of directors," Sihvonen explains. The study challenges the assumption that digitalization automatically strengthens companies' cybersecurity. At the same time, it offers practical insights for business leaders at a time when organizations are investing heavily in artificial intelligence and new digital technologies.
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