The Influence of IoT Data Governance Quality and Data Privacy Policies on Information Security Risk Mitigation and Customer Trust in IoT-Based Startups in Bandung
DOI:
https://doi.org/10.58812/wsis.v4i01.2603Keywords:
Internet of Things (IoT), Data Governance Quality, Data Privacy Policy, Information Security Risk Mitigation, Customer TrustAbstract
The rapid adoption of Internet of Things (IoT) technologies by startups has intensified concerns related to data governance, privacy protection, and information security risks. This study investigates the effect of IoT data governance quality and data privacy policy on information security risk mitigation and customer trust in IoT-based startups in Bandung, Indonesia. Using a quantitative research approach, data were collected from 150 users of IoT-based startup services through a structured questionnaire measured on a Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results indicate that IoT data governance quality has a significant positive effect on information security risk mitigation. In addition, data privacy policy and information security risk mitigation both have significant positive effects on customer trust. Furthermore, information security risk mitigation partially mediates the relationship between IoT data governance quality and customer trust. These findings highlight the importance of strengthening data governance frameworks and implementing transparent privacy policies to reduce security risks and enhance customer trust. This study contributes to the growing body of literature on IoT governance and provides practical insights for startup managers and policymakers in fostering secure and trustworthy IoT-based business environments.
References
[1] C. Musanase, A. Vodacek, D. Hanyurwimfura, A. Uwitonze, and I. Kabandana, “Data-Driven Analysis and Machine Learning-Based Crop and Fertilizer Recommendation System for Revolutionizing Farming Practices,” Agriculture, vol. 13, no. 11, p. 2141, 2023, doi: 10.3390/agriculture13112141.
[2] M. Altalak, M. A. Uddin, A. Alajmi, and A. Rizg, “Smart Agriculture Applications Using Deep Learning Technologies: A Survey,” Appl. Sci., vol. 12, no. 12, 2022, doi: 10.3390/app12125919.
[3] I. W. K. Suwastika, “Pengaruh E-Learning sebagai Salah Satu Media Pembelajaran Berbasis Teknologi Informasi Terhadap Motivasi Belajar Mahasiswa,” J. Sist. dan Inform., vol. 13, no. 1, pp. 1–5, 2018.
[4] E. Hadjielias, M. Christofi, P. Christou, and ..., “Digitalization, agility, and customer value in tourism,” … Forecast. Soc. …, 2022.
[5] A. Sarfaraz and H. Hämmäinen, “5G transformation: How mobile network operators are preparing for transformation to 5G?,” 2017 Internet Things Bus. …, 2017.
[6] H. Jain, V. Chamola, and Y. Jain, “5G network slice for digital real-time healthcare system powered by network data analytics,” Internet of Things and Cyber-Physical …. Elsevier, 2021.
[7] D. Basu, R. Datta, and U. Ghosh, “Softwarized network function virtualization for 5g: Challenges and opportunities,” Internet Things Secur. Smart …, 2020.
[8] B. Wirajovi Aulia, M. Rizki, and P. Prindiyana, “Peran Krusial Jaringan Komputer dan Basis Data dalam Era Digital,” J. Sist. Inf. dan Teknol. Informasi), vol. 1, no. 1, pp. 9–20, 2023, doi: 10.33197/justinfo.vol1.iss1.2023.1253.
[9] A. Daif and A. Jalal, “The Contribution of Internal Audit to the Performance of the Internal Control System,” Eur. Sci. Journal, ESJ, vol. 18, no. 25 SE-ESJ Social Sciences, Aug. 2022, doi: 10.19044/esj.2022.v18n25p32.
[10] M. E. Whitman and H. J. Mattord, Principles of information security. Cengage learning, 2021.
[11] A. Wicaksono, M. Kartikasary, and N. Salma, “Analyze cloud accounting software implementation and security system for accounting in MSMEs and cloud accounting software developer,” in 2020 International Conference on Information Management and Technology (ICIMTech), IEEE, 2020, pp. 538–543.
[12] S. Akter, S. Ali, M. Fekete-Farkas, C. Fogarassy, and Z. Lakner, “Why Organic Food? Factors Influence the Organic Food Purchase Intension in an Emerging Country (Study from Northern Part of Bangladesh),” Resources, vol. 12, no. 1, 2023, doi: 10.3390/resources12010005.
[13] M. Q. Shabbir, A. A. Khan, and S. R. Khan, “Brand Loyalty Brand Image and Brand Equity: the Mediating Role of Brand Awareness,” Int. J. Innov. Appl. Stud., vol. 19, no. 2, pp. 416–423, 2017.
[14] Y. MAZ and B. S. GAZİOĞLU, “Mentoring As a Support Mechanism in Turkish Entrepreneurship Ecosystem,” İstanbul Ticaret Üniversitesi Girişimcilik Derg., vol. 7, no. 13, pp. 155–167, 2023, doi: 10.55830/tje.1255980.
[15] Dr.Geeta J, “Green Intiatives of Indian Startups To Achieve Sustainability – a Step Forward,” Int. J. Eng. Technol. Manag. Sci., vol. 7, no. 2, pp. 884–888, 2023, doi: 10.46647/ijetms.2023.v07i02.099.
[16] T. Graziano, “Rural entrepreneurship, innovation, and technology: narratives from the italian agrifood startup ecosystem,” in Handbook of Research on Agricultural Policy, Rural Development, and Entrepreneurship in Contemporary Economies, IGI Global, 2020, pp. 334–353.
[17] R. Verma, J. Verma, and R. Kumari, “Role of Technology Business Incubator (TBI) in Sustaining Start-Ups: The Case of Startup Incubation and Business Innovation Lab (SIBIL),” Manag. Disruptions Bus. Causes, Conflicts, Control, pp. 421–432, 2022.
[18] D. Fitriani, “Navigating dual logics: A framework for integrating financial performance and social impacts in Indonesian village-owned enterprises (BUMDES),” Int. J. Innov. Res. Sci. Stud., vol. 8, no. 3, pp. 3492–3500, 2025, doi: 10.53894/ijirss.v8i3.7279.
[19] G. Makridou, M. Doumpos, and C. Lemonakis, “Relationship between ESG and corporate financial performance in the energy sector: empirical evidence from European companies,” Int. J. Energy Sect. Manag., vol. ahead-of-p, no. ahead-of-print, Jan. 2023, doi: 10.1108/IJESM-01-2023-0012.
[20] J. D. Kellerer, M. Rohringer, and D. Deufert, “Factors influencing nursing competence of registered nurses in the European Union: A scoping review,” J. Nurs. Educ. Pract., vol. 13, no. 1, p. 6, 2022, doi: 10.5430/jnep.v13n1p6.
[21] H. A. Al-Jaifi, A. H. Al-Rassas, and A. Al-Qadasi, “Institutional investor preferences: do internal auditing function and audit committee effectiveness matter in Malaysia?,” Manag. Res. …, 2019, doi: 10.1108/MRR-11-2016-0258.
[22] A. Beduschi, “Rethinking digital identity for post-COVID-19 societies: Data privacy and human rights considerations,” Data Policy, vol. 3, p. e15, 2021.
[23] S. S. Duri, J. G. Elliott, X. Liu, P. A. Moskowitz, and ..., “Method, system, and apparatus for dynamic data-driven privacy policy protection and data sharing,” US Pat. …, 2008.
[24] G. D’Anna, “Law, Policy, Cybersecurity, and Data Privacy Issues by Simon Hartley,” 2019.
[25] A. Derossi, B. Bhandari, K. van Bommel, M. Noort, and C. Severini, “Could 3D food printing help to improve the food supply chain resilience against disruptions such as caused by pandemic crises?,” Int. J. Food Sci. Technol., vol. 56, no. 9, pp. 4338–4355, 2021, doi: 10.1111/ijfs.15258.
[26] S. M. Rîndașu, “Emerging information technologies in accounting and related security risks–what is the impact on the Romanian accounting profession,” … Account. Manag. Inf. Syst., 2017.
[27] L. V Astakhova, “Transformation of strategic models for managing human risks of information security of an enterprise as an imperative of the digital industry,” Scientific and Technical Information Processing. Springer, 2021. doi: 10.3103/S0147688221020027.
[28] S.-M. Rîndașu, “Emerging information technologies in accounting and related security risks–what is the impact on the Romanian accounting profession,” J. Account. Manag. Inf. Syst., vol. 16, no. 4, pp. 581–609, 2017.
[29] Q. A. Al-Fatlawi, D. S. Al Farttoosi, and A. H. Almagtome, “Accounting information security and it governance under cobit 5 framework: A case study,” Webology. webology.org, 2021.
[30] M. S. Sembiring and S. M. R. Sembiring, “Do customer knowledge and customer trust in IDIC affect bank customer retention? Evidence from Indonesia,” J. Enterp. Dev., vol. 5, no. 3, pp. 535–552, 2023.
[31] L. Grassi, N. Figini, and L. Fedeli, “How does a data strategy enable customer value? The case of FinTechs and traditional banks under the open finance framework,” Financial Innovation. jfin-swufe.springeropen.com, 2022. doi: 10.1186/s40854-022-00378-x.
[32] R. Verma, V. Arya, A. Thomas, E. Bolognesi, and J. Mueller, “Does startup culture in the emerging country grow around societal sustainability? An empirical study through the lens of co-creational capital and green intellect,” J. Intellect. Cap., vol. 24, no. 4, pp. 1047–1074, 2023, doi: 10.1108/JIC-07-2022-0162.
[33] D. P. Lazirkha, J. Hom, and V. Melinda, “Quality Analysis Of Digital Business Services In Improving Customer Satisfaction,” Startupreneur Bus. Digit. (SABDA Journal), vol. 1, no. 2, pp. 156–166, 2022.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Ajub Ajulian ZM, Enda Wista Sinuraya, Bambang Winardi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com