Understanding collaborative consumption in the technology-driven sharing economy: A cost-benefit analysis perspective

Driven by the extensive implementation of information communication technology, collaborative consumption has become more popular. Historically, people have always thought that the best way to get something is to obtain the ownership of it. However, collaborative consumption has recently seen a meteoric rise in popularity due to that obtaining the right to use rather than own. More research into this emerging phenomenon is necessary, notwithstanding the huge impact that collaborative consumption activities have had on companies and individuals. Existing research indicates a lack of knowledge on the factors that motivate or impede user engagement in collaborative consumption. Building on the cost and benefit framework, this research presents a model that examines the effects of perceived benefits (enjoyment and economic reward), perceived costs (privacy risk and security risk) and perceived platform quality (system quality, service quality and information quality) on the intention to engage in the collaborative economy. Using a structural equation modelling approach, 524 active users with experience in car sharing evaluated the research model.The results show that perceived benefits and platform quality positively influence CC participation, the perceived cost reveals a partial support relationship to participate in CC, where security risks are supported but privacy risks are not. This research results will contribute to the research and practice on sharing economy.