Examining the Influence of Perceived Risk on Technology Usage: Exploring the Moderating Role of Trust

Sharma, Dheeraj, European Journal of Management

ABSTRACT

This study conducts a comprehensive review of literature pertaining TAM model and explores how trust could play an important role in understanding technology usage. Specifically, this research explored the influence of perceived risk on technology usagee. Furthermore, the moderating role trust in the relationship between perceived risk and technology uage is investigated. The author found that trust mitigates the effect of perceived risk on technology usage. Consequently, this research may provide assistance to managers for developing appropriate strategies for enhancing technology usage.

Key Words: Technology Acceptance, Technology Usage, Trust, and Perceived Risk

1. INTRODUCTION

Technology has played a vital role in developing and shaping the lives we lead today. The influence technology has reflects how society accepts and implements it. For example, nanotechnology is used in modern fabric manufacturing to help produce stain and wrinkle resistant clothes (Geisller and Edison, 2005). Genetically engineered food can be found in grocery stores across the country (Geisller and Edison, 2005). RFID tags are in library books, clothes, packaging, automated toll tags, and numerous other products in our daily lives. Each of these technologies has not enjoyed immediate widespread adoption. Yet, our society depends on technology in our homes, cars, entertainment venues, and work places.

The technology acceptance model (TAM) has been widely used to examine why technology is accepted or rejected by users (Davis, 1989). Davis (1989) used two key variables, namely, used perceived usefulness and perceived ease of use as key antecedents to technology usage. Past research recognizes the importance of many other attitudes that influence technology usage (Burkhardt and Brass, 1990; Davis, 1989). Specifically, risk has been a focal point of research in examining technology usage. Despite the plethora of research on risk and its influence on consumption behavior, there is scant literature examining the direct influence of perceived risk on technology usage. Furthermore, past researchers contend that trust may augment technology acceptance (Im, Kim, and Han, 2008). Trust acts as a catalyst in risk laden situations (Koller, 1988). Thus, it may be interesting to examine the role of trust in understanding the relationship between perceived risk and technology usage. Consequently, this study investigates both direct and indirect linkage between perceived risk and technology usage.

This study has three main purposes. First, this paper conducts a comprehensive review of literature pertaining TAM model. Second, the direct influence of perceived risk relationships can be measured against a continuum ranging from negative inequality to equity to positive on technology usage is explored. Third, moderating effect of trust on the relationship between perceived risk and technology usage is examined. Fourth, prescriptive and descriptive insights are offered to industry and academe with reference to technology usage.

2. LITERATURE REVIEW

The Technology Acceptance Model (TAM) is one of the most widely used models in research to identify the determinants of technology and information systems acceptance (Chau, 1996). TAM's purpose is "to provide an explanation of the determinants of computer acceptance that is general, capable of explaining user behavior across a broad range of end-user computing technologies and user populations, while at the same time being both …

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Publication information: Article title: Examining the Influence of Perceived Risk on Technology Usage: Exploring the Moderating Role of Trust. Contributors: Sharma, Dheeraj - Author. Journal title: European Journal of Management. Volume: 8. Issue: 3 Publication date: Fall 2008. Page number: 153+. © 2008 International Academy of Business and Economics. COPYRIGHT 2008 Gale Group.

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