Examining the Relative Influence of Risk and Control on Intention to Adopt Risky Technologies
AbstractFor technologies such as electronic commerce, mobile payments, internet and mobile banking etc. customers are concerned about security issues that arise as a result of adoption of these technologies. However, in practice, we find that customers forgo their considerations of risk in the technology, if the benefits of using the technology overpower the risks involved in using the technology. Understanding their relative roles in technology adoption will help technology developers focus their efforts on either of them to improve technology adoption. Results of this study reveal that in adopting a technology, customers are guided more by the perception of control rather than by the perception of risk. Implications for theory and practice are discussed.
AJZEN, I. (1985). From intentions to actions: A theory of planned behaviourz. In: Kuril, J., Beckmann, J. (Eds.), Action control: From cognition to behaviour. Springer Verlag, New York. pp. 11 -39.
AJZEN, I. (1991). The Theory of Planned Behaviour. Organizational Behaviour and Human Decision Processes, 50(2), 179-211.
AJZEN, I., Madden, T.J. (1986). Prediction of Goal-Directed Behavior: Attitudes, Intentions, and Perceived Behavioral Control. Journal of Experimental Social Psychology, 22(5), 453-474.
ALDRIDGE, A., White, M., Forcht, K. (1997). Security considerations of doing business via the Internet: Cautions to be considered. Internet Research: Electronic Networking Applications and Policy, 7(1), 9-15.
ANDERSON, J.C., Gerbing, D.W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103 (3), 411-423.
BANDURA, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191-215.
BHIMANI, A. (1996). Securing the commercial Internet. Communications oftheACM, 39(6), 29-35.
BLACK, N.J., Lockett, A., Ennew, C, Winklhofer, H., McKechnie, S. (2002). Modeling consumer choice of distribution channels: an illustration from financial services. International Journal of Bank Marketing, 20(4), 161 -173.
BOUWMAN, H., Carlsson, C, Molina-Castillo, F.J., Walden, P. (2007). Barriers and drivers in the adoption of current and future mobile services in Finland. Telematics and Informatics, 24(2), 145-160.
BUDNITZ, M.E. (1998). Privacy protection for consumer transactions in electronic commerce: why self-regulation is inadequate. South Carolina Law Review, 49(1), 847-886.
BYRNE, M.B. (1998). Structural Equation Modeling with LISREL, PRELIS, and SIMPLIS: Basic Concepts, Applications, and Programming. Lawrence Erlbaum Associates, Mahwah, New Jersey.
CHEN, Y.H., Barnes, S. (2007). Initial trust and online buyer behaviour. Industrial Management and Data Systems, 107(1), 21-36.
CHILES, T.H., McMackin, J.F. (1996). Integrating variable risk preferences, trust, and transaction cost economics. Academy-of-Management-Review, 21(1), 73-99.
COHEN, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Lawrence Erlbaum Associates, Hillsdale, New Jersey.
COX, D.F. (1967). Risk Taking and Information Handling in Consumer Behavior. Harvard University Press, Boston.
DANIEL, E. (1999). Provision of Electronic Banking in the UK and the Republic of Ireland. International Journal of Bank Marketing, 17(2), 72-82.
DAVIS, F.D. (1989). Perceived Usefulness, Perceved Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, September, 319-340.
DAVIS, F.D., Bagozzi, R.P., Warshaw, P.R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35, 982-1003.
DIMAGGIO, R.J., Powell, W.W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147-160.
DINEV, T., Hart, P. (2006). An Extended Privacy Calculus Model for E-Commerce Transactions. Information Systems Research, 17(1), 61-80.
DODDS, W.B., Monroe, K.B., Grewal, D. (1991). The Effects of Price, Brand and Store Information on Buyers' Product Evaluations. Journal of Marketing Research, 28(3), 307-319.
FAUL, F., Erdfelder, E., Lang, A.G., Buchner, A. (2007). G* Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2), 175-191.
FEATHERMAN, M. S., Pavlou, P. A. (2003). Predicting e-services adoption: a perceived risk facets perspective. International Journal of Human-Computer Studies, 59(4), 451-474.
FISHBEIN, M., Ajzen, I. (1975). Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research. Addison-Wesley, Reading, Massachusetts.
FORNELL, C.R., Larcker, D.F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
FURNELL, S.M., Karweni, T. (1999). Security implications of electronic commerce: A survey of consumers and businesses. Internet Research: Electronic Networking Applications and Policy, 9(5), 372-382.
GANESAN, S. (1994). Determinants of Long-Term Orientation in Buyer-Seller Relationships. Journal of Marketing, 58(2), 1-19.
GARFIELD, M.J., McKeown, P.G. (1997). Planning for Internet security. Information Systems Management, 14(1), 41-46.
GEFEN, D. (2000). Electronic commerce: The role of familiarity and trust, Omega: The International Journal of Marketing Science, 28(6), 725-737.
GEFEN, D., Straub, D., Boudreau, M. (2000). Structural Equation Modeling Techniques and Regression: Guidelines for Research Practice. Communications ofAIS, 4(7), 2-76.
HAIR, J.F., Jr., Anderson, R.E., Tatham, R.L., Black, W.C. (1998). Multivariate Data Analysis with Readings (5th ed.). Prentice Hall, Englewood Cliffs, New Jersey.
HAMLET, C, Strube, M. (2000). Community Banks Go Online. ABA Banking Journal's 2000 White Paper, 61 -65.
HAVLENA, W.J., DeSarbo, W.S. (1991). On the Measurement of Perceived Consumer Risk. Decision Sciences, 22(5), 927-939.
HERES, J., Mante-Meijer, E., Pires, D. (2004). Factors influencing the adoption of Broadband Mobile Internet. In: Mante-Meijer, E., Klamer, L. (Eds.), ICY Capabilities in Action: What People Do. Cost Action, 269 Brussels.
HERNANDEZ, J.M.C, Mazzon, J.A. (2007). Adoption of internet banking: proposition and implementation of an integrated methodology approach. International Journal of Bank Marketing, 25(2), 72-88.
HOWCROFT, B., Hamilton, R., Hewer, P. (2002). Consumer attitude and the usage and adoption of home-based banking in the United Kingdom. International Journal of Bank Marketing, 20(3), 111 -121.
JARVENPAA, S. L, Leidner, D. E. (1999). Communication and trust in global virtual teams. Organization Science, 10(6), 791-815.
JARVENPAA, S.L., Tractinsky, N., Vitale, M. (2000). Consumer Trust in an Internet Store. Information Technology and Management, 1(12), 45-71.
KAHNEMAN, D., Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-292.
KLEIJNEN, M., de Ruyter, K., Wetzels, M. (2004). Consumer Adoption of wireless services: discovering the rules while playing the game. Journal of Interactive Marketing, 18(2), 51-61.
KOLLER, M. (1988). Risk as a determinant of trust. Basic-and-Applied-Social-Psychology, 9(4), 265-276.
LEE, M.S.Y., McGoldrick, P.F., Keeling, K.A.,Doherty, J. (2003). Using ZMET to explore barriers to the adoption of 3G mobile baking services. International Journal of Retail and Distribution Management, 31 (6), 340-348.
LIAO, Z., Cheung, M.T. (2002). Internet-based e-banking and Consumer Attitudes: An Empirical Study. Information and Management, 39(4), 283-295.
MALLAT, N. (2007). Exploring consumer adoption of mobile payments: A qualitative study. Journal of Strategic Information Systems, 16(4), 41 3-432.
MARGULIS, ST. (2003). Privacy as a Social Issue and Behavioral Concept. Journal of Social Issues, 59(2), 243-261.
MASSOUD, S., Gupta, O.K. (2003). Consumer perception and attitude toward mobile communication. International Journal of Mobile Communications, 1 (4), 390-408.
MOWEN. J.C. (1992). The Time and Outcome Valuation Model: Implications for Understanding Reactance and Risky Choices in Consumer Decision-Making, In: Thomas, C.K. (Ed.), Advances in Consumer Research, Association for Consumer Research, Chicago, pp. 182-189.
NORBERG, P.A., Home, D.R., Home, D.A. (2007). The privacy paradox: Personal information disclosure intentions versus behaviors. Journal of Consumer Affairs, 41(1), 100-126.
PAGANI, M. (2004). Determinants of adoption of third generation mobile multimedia services. Journal of Interactive Marketing, 18(3), 46-59.
PAVLOU, P.A., Liang, H.G., Xue, Y.J. (2007). Understanding and Mitigating Uncertainty in Online Exchange Relationships: A Principal-Agent Perspective. MIS Quarterly, 31(1), 105-136.
PAVLOU, P.A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), pp. 101 -1 34).
PAVLOU, P.A., Gefen, D. (2004). Building Effective Online Marketplaces with Institution-Based Trust. Information Systems Research, 15(1), 37-59.
PETER, J.P., Tarpey, L.X. (1975). A Comparative Analysis of Three Consumer Decision Strategies. Journal of Consumer Research, 2(1), 29-37.
POLATOGLU, V.N., Ekin, S. (2001). An empirical Investigation of the Turkish consumers. Acceptance of internet banking services. International Journal of Bank Marketing 19(4), 156-165.
RATNASINGHAM, P. (1998). The importance of trust in electronic commerce. Internet Research: Electronic Networking Applications and Policy, 8(4), 31 3-321.
ROBOFF, G., Charles, C. (1998). Privacy of financial information in cyberspace: Banks addressing what consumers want. Journal of Retail Banking Services, 20(3), 51 -56.
ROGERS, E.M. (1991). The 'Critical Mass' in the diffusion of interactive technologies in organizations. In: Kraemer, K.L. (Ed.), The Information Systems Research Challenge: Survey Research Methods. Vol. 3, Harvard Business School Research Colloquium, Boston, pp. 245-271.
ROUSSEAU, D. M., Sitkin, S.B., Burt, R.S., Camerer, C. (1998). Not So Different After All: A Cross-Discipline View of Trust. Academy of Management Review, 23(3), 393-404.
SALISBURY, W., Pearson, R., Pearson, A., Miller, D. (2001). Identifying Barriers That Keep Shoppers off the World Wide Web: Developing a Scale of Perceived Web Security. Industrial Management and Data Systems, 101(4), 165-176.
SATHYE, M. (1999). Adoption of internet banking by Australian consumers: an empirical investigation. International Journal of Bank Marketing, 17(7), 324-334.
SUH, B., Han, I. (2003). The impact of customer trust and perception of security control on the acceptance of electronic commerce. International Journal of Electronic Commerce, 7(3), 135-161.
SWEENEY, J.C., Soutar, G.N., Johnson, LW. (1999). The Role of Perceived Risk in the Quality-Value Relationship: A Study in a Retail Environment. Journal of Retailing, 75(1), 77-105.
TAN, M., Teo, T.S.H. (2000). Factors Influencing the Adoption of Internet Banking. Journal of the AIS, 1(5), 1-42.
TAYLOR, S., Todd, P.A. (1995a). Assessing IT Usage: The Role of Prior Experience. MIS Quarterly, 19(4), 561 -570.
TAYLOR, S., Todd, P.A. (1995b). Understanding information technology usage: A test of competing models, Information Systems Research. 6(4), 144-177.
VRECHOUPOULOS, A., Constantiou, I., Sideris, I., Doukidis, G.,Mylonopoulos, N. (2003). The critical role of consumer behaviour research in mobile commerce. International Journal of Mobile Communications, 1 (3), 329-340.
WANG, Y.S., Lin, H.H., Luarn, P. (2006). Predicting consumer intention to use mobile service. Information Systems Journal, 16(2), 157-179.
XU, H. (2007a). The Effects of Self-Construal and Perceived Control on Privacy Concerns. Paper presented at the Proceedings of the 28th Annual International Conference on Information Systems (ICIS 2007), Montreal, Canada.
XU, H. (2007b). Privacy Considerations in the Adoption of Location-Based Services: A Psychological Control Perspective. Paper presented at the 67th Annual Meeting of the Academy of Management, Philadelphia, PA.
YANG, Z, Jun, M. (2002). Consumer Perception of e-Service Quality: From Internet Purchaser and Non-Purchaser Perspectives. Journal of Business Strategies, 19(1), 19-41.
YATESJ.F., Stone, E.R. (1992). Risk appraisal. In: Yates, J.F. (Ed.), Risk-taking behaviour. John Wiley and Sons, Chichester, England, pp. 49-85.
Accepted November 30, 2010
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).