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ABSTRACT According to the silo mentality theory, companies are reluctant to share data between organizations. This study explores the reasons for this corporate behavior. To gain empirical insights, we conducted 42 semi‐structured interviews with the chief executive officers (CEOs) of German small‐ and medium‐sized enterprises (SMEs). Not only can the CEOs of SMEs control their private data, but they are also gatekeepers for business decisions, such as corporate data sharing. Following grounded theory, we identified four factors that influence data sharing. (1) Data characteristics —CEOs perceive social and financial data as sensitive in both private and corporate contexts. Furthermore, CEOs perceive additional types of corporate data as critical and are generally more skeptical of data sharing because of the complexity of data security. (2) Relationships via platforms— companies are often forced to participate in platforms, despite preferring long‐term personal relationships. (3) Competition —platforms enable easy and rapid product comparison. SMEs want to avoid transparency and fear that platform providers may compete for specific products. (4) Individual motivation —increased visibility among potential customers is an important incentive for participating in platforms, although CEOs perceive such participation to be time‐consuming. The findings extend the theory of silo mentality by indicating that the theory is not only relevant in the intra‐organizational context but also in the inter‐organizational context. Finally, we provide three propositions for future research.
Friedrich et al. (Thu,) studied this question.