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Decoding Firm Preferences: The Politics of Data Sharing Support and Opposition

Authors: Matteo Nebbiai

A growing number of governments are adopting regulations to increase data sharing between organisations, users and governments. This is usually done to empower consumers vis-à-vis companies or reduce disparities in data availability among firms. This paper sheds light on the reasons why some businesses oppose such
regulation, while others support it. I show that firms’ position in the “Data Value Chain” predicts their preferences on data sharing regulation: firms that are data holders (producing and selling data to other companies) oppose such mandates, while data reusers (seeking access to data from other companies) support them. Particularly, the results hold regardless of the sector, size or nationality of firms, thus demonstrating that the position on the Data Value Chain is an independent variable driving firms’ political preferences. The study contributes to the understanding of how digital supply chains change firms’ behaviour and interests, potentially shaping new coalitions between firms, governments and citizens.

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