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Privacy calculus model in e-commerce – a study of Italy and the United States

Author

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  • Tamara Dinev
  • Massimo Bellotto
  • Paul Hart
  • Vincenzo Russo
  • Ilaria Serra
  • Christian Colautti

Abstract

This study examines cross-cultural differences beliefs related to e-commerce use for Italy and the United States. We argue that for both cultures, the user's decision to make an online purchase is simultaneously influenced by a set of contrary factors. These include decision facilitators such as propensity to trust and institutional trust, and decision inhibitors such as perceived risk and privacy concerns. We argue that substantial cultural differences exist that affect the above factors and the relationships among them. We use Hofstede's cultural theory and Fukuyama's theory of trust and social capital, along with emic factors important for the Italian society, to develop the study's propositions. The hypotheses were empirically tested using LISREL structural equation modeling and multigroup analysis. The results revealed that the Italian society exhibited lower propensity to trust, institutional trust, privacy concerns, and higher perceived risk. The relationships between institutional trust and e-commerce use, privacy concerns and e-commerce use, and perceived risk and institutional trust are all weaker for Italy. The relationship between perceived risk and privacy concerns is stronger for Italy. The paper's major contribution is in validating an important model of e-commerce use across two cultures and showing the moderating effects of culture.

Suggested Citation

  • Tamara Dinev & Massimo Bellotto & Paul Hart & Vincenzo Russo & Ilaria Serra & Christian Colautti, 2006. "Privacy calculus model in e-commerce – a study of Italy and the United States," European Journal of Information Systems, Taylor & Francis Journals, vol. 15(4), pages 389-402, August.
    • Handle: RePEc:taf:tjisxx:v:15:y:2006:i:4:p:389-402
    DOI: 10.1057/palgrave.ejis.3000590
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    Citations

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    Cited by:

    1. Eunji Lee & Jin-young Kim & Junchul Kim & Chulmo Koo, 2023. "Information Privacy Behaviors during the COVID-19 Pandemic: Focusing on the Restaurant Context," Information Systems Frontiers, Springer, vol. 25(5), pages 1829-1845, October.
    2. Selcuk Kiran, 2020. "Impact of Social Network Use in Turkey on E-commerce Based on Facebook Case," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(3), pages 160-167, March.
    3. Kim, Yeolib & Kim, Seung Hyun & Peterson, Robert A. & Choi, Jeonghye, 2023. "Privacy concern and its consequences: A meta-analysis," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    4. Ben Krishna & Satish Krishnan & M. P. Sebastian, 2023. "Examining the Relationship between National Cybersecurity Commitment, Culture, and Digital Payment Usage: An Institutional Trust Theory Perspective," Information Systems Frontiers, Springer, vol. 25(5), pages 1713-1741, October.
    5. Shilpa Madan & Krishna Savani & Constantine S. Katsikeas, 2023. "Privacy please: Power distance and people’s responses to data breaches across countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 731-754, June.
    6. Ying, Shiyi & Huang, Youlin & Qian, Lixian & Song, Jinzhu, 2023. "Privacy paradox for location tracking in mobile social networking apps: The perspectives of behavioral reasoning and regulatory focus," Technological Forecasting and Social Change, Elsevier, vol. 190(C).

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