Data Privacy in a Digital Economy: Challenges and Solutions for Businesses

Abstract

This study aims to explore the challenges businesses face regarding data privacy in the digital economy and identify potential solutions to safeguard sensitive information while adhering to regulatory requirements. A qualitative research design was employed, utilizing semi-structured interviews with 29 participants, including business leaders, data privacy officers, and digital economy experts. Participants were recruited through purposive sampling and interviewed online, with data collection continuing until theoretical saturation was reached. The interviews were transcribed verbatim and analyzed thematically using NVivo software, following Braun and Clarke's six-phase framework for thematic analysis. Four primary themes emerged from the analysis: regulatory challenges, organizational data management, consumer trust and expectations, and technological challenges. Regulatory challenges included ambiguity in legal standards, rapidly evolving laws, and enforcement issues. Organizational data management issues encompassed inadequate governance policies, employee training gaps, and limited resource allocation. Consumer trust was impacted by unclear data practices, cumbersome consent processes, and the tension between personalization and privacy. Technological challenges highlighted difficulties with encryption, emerging threats, scalability, and cloud storage security. Participants emphasized the critical need for robust data privacy measures and continuous updates to policies and practices. Data privacy in the digital economy presents complex challenges that demand a multidimensional approach involving regulatory compliance, organizational strategies, and technological advancements. Businesses must prioritize transparent data practices, invest in modern technologies, and foster a culture of data privacy to maintain consumer trust and competitive advantage. Future research should focus on exploring sector-specific privacy challenges and evaluating the effectiveness of emerging technologies in enhancing data security.