Enhancing cybersecurity capability investments: Evidence from an experiment

Abstract

In recent years, investments in cybersecurity capabilities (CC) have emerged as an essential practice in reducing cyberattacks and optimizing the usage of technologies. Therefore, optimal investments in capabilities must be determined according to the cybersecurity scenario of firms. This experiment pursues an understanding of the effectiveness of the iterative learning process in investments in CC. Through a simulator game, experienced and inexperienced participants overcome challenges related to uncertainties of cyber incidents to decision-making in cybersecurity capability investments. The collected data were empirically tested from 119 participants analyzing 3,808 simulation runs. The findings demonstrated that there is a slight difference in the learning curve between the two groups even if they learn proactively and iteratively. However, experienced, and inexperienced groups did not demonstrate enough capacity to analyze the cybersecurity ecosystems designed in the simulator game to mitigate cyber incidents. Both groups exhibited similar results regarding gaps to invest in CC to address uncertainties associated with cyber threats. In this sense, this experiment highlights the relevance of learning about CC investments in any context to avoid resource losses and time to uncover the complexities related to incident responses. © 2023 Elsevier Ltd