Academic journal article Journal of International Technology and Information Management

Effects of Exchange Benefits, Security Concerns and Situational Privacy Concerns on Mobile Commerce Adoption

Academic journal article Journal of International Technology and Information Management

Effects of Exchange Benefits, Security Concerns and Situational Privacy Concerns on Mobile Commerce Adoption

Article excerpt

ABSTRACT

Few empirical studies have examined both privacy and security concerns in the context of mobile commerce (m-commerce) while accounting for the effects of situational privacy concerns specific to the context of m-commerce. This research fills this gap in research by exploring users' exchange perceptions specific to the context of m-commerce in China and by examining the inhibitors and drives of m-commerce adoption in China from the perspectives of social exchange. Particularly, this research develops an integrated research model in which users' perceptions on value added of and usefulness of m-commerce, and users' privacy concerns and security concerns of m-commerce are examined. The research model is empirically tested by using the survey data collected in a large city in China. Our findings confirmed the conceptualization of the research model and indicated that users' perceived exchange benefits are the drivers of m-commerce use. Users' security concerns hinder their intention to conduct m-commerce. Surprisingly, users' privacy concerns seem not to have a significant impact on users' favorable attitude toward m-commerce, but situational privacy concerns including location tracking and personalized use of user information significantly impact users' general privacy concerns.

Keywords: Security, Privacy, Mobile commerce, China, USA

INTRODUCTION

Smartphone and tablet shipments worldwide were projected to reach 1.95 billion units and 320 million units respectively in 2015 (Gartner, 2014). As smartphone and other mobile devices are rapidly penetrating the world population and companies are increasing their effort to sell products and services via mobile markets, both the academia and the industry have projected a boom in mobile commerce (m-commerce) in the near future (e.g. Forrester, 2011). China, as a new engine of the world economy, has started experiencing such boom: in 2013, m-commerce reached [yen]167.6 billion ($27.5 billion) and was expected to hit a trillion Yuan with an annual growth rate of 39.4% in 2017 (ChinaInternetWatch, 2014). In spite of this great penetration of mobile devices and seemingly great potential in m-commerce worldwide, m-commerce was projected to account for only 7% of Internet sales by 2016 (Forrester, 2011). It seems that users still very hesitate to engage in m-commerce. Surveys indicate that along with other barriers, privacy and security concerns may be two major hurdles to prevent users from engaging in m-commerce.

Unlike traditional e-commerce via PCs and wired Internet, m-commerce is conducted via mobile devices and the wireless Internet. Research has found that mobile computing in general is more subject to security and privacy risks (Ghosh and Swaminatha, 2001). Mobile computing tends to and is able to collect more personal data from users. For example, it is very easy to track a user's current location via his/her mobile devices, which is not a case in traditional e-commerce. Thus, the unique features of mobile computing cause different and situational privacy concerns in addition to general privacy concerns among users. A great deal of research has investigated the role of general privacy concerns in various information systems (IS) and services adoption intentions and behaviors (Dinev et al., 2013; Malhotra et al., 2002; Smith et al., 1996; Stewart & Segars, 2002). However, little research has studied situational privacy concerns with a contextual emphasis while exceptions exist (e.g. Li et al., 2003; Yun et al., 2013). Situational privacy concerns pertain to situations or domains and may have different impact on users' general privacy perception and adoption behaviors (Li et al., 2010). Past literature has identified two m-commerce specific privacy concerns including concerns about location tracking and personalized use of information and such situational privacy concerns may impact users' general privacy concerns which in turn impact users' intention to adopt and conduct m-commerce (Dai et al. …

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