IDEAS home Printed from https://ideas.repec.org/p/iez/wpaper/1803.html
   My bibliography  Save this paper

The Perceived Impact of Government Regulation in Reducing Online Privacy Concern

Author

Listed:
  • Bruno Skrinjaric

    (The Institute of Economics, Zagreb)

  • Jelena Budak

    (The Institute of Economics, Zagreb)

  • Edo Rajh

    (The Institute of Economics, Zagreb)

Abstract

This paper examines the impact of regulation as an antecedent of online privacy concern. The aim is to investigate if and how perceived effectiveness of government regulation affects internet users’ concern for their privacy in the online environment. Existing research shows that perceived effectiveness and enforcement of regulatory policies reduce online privacy concern; however, it does not explain what factors influence this relationship. This research fills the gap by analyzing different perceptions of the existing country legislation and government effort to protect online privacy in the context of socio-demographic characteristics of respondents, computer anxiety, individual desire to maintain control of personal information, as well as intensity and diversity of online activities. The empirical analysis is conducted on a large sample of internet users in Croatia. The dependent variable in the regression model is online privacy concern and the model is tested with OLS and ordered probit estimation. The results confirm that perceived effectiveness of government regulation reduces online privacy concern whereas computer anxiety has a major positive impact on online privacy concern. These findings might be useful for national policy-makers and for business strategies in the context of the GDPR regulation coming in force in 2018.

Suggested Citation

  • Bruno Skrinjaric & Jelena Budak & Edo Rajh, 2018. "The Perceived Impact of Government Regulation in Reducing Online Privacy Concern," Working Papers 1803, The Institute of Economics, Zagreb.
    • Handle: RePEc:iez:wpaper:1803
    as

    Download full text from publisher

    File URL: https://hrcak.srce.hr/file/296219
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kathy A. Stewart & Albert H. Segars, 2002. "An Empirical Examination of the Concern for Information Privacy Instrument," Information Systems Research, INFORMS, vol. 13(1), pages 36-49, March.
    2. Stjepan Srhoj & Bruno Škrinjarić & Sonja Radas, 0. "Bidding against the odds? The impact evaluation of grants for young micro and small firms during the recession," Small Business Economics, Springer, vol. 0, pages 1-21.
    3. Tamara Dinev & Paul Hart, 2006. "An Extended Privacy Calculus Model for E-Commerce Transactions," Information Systems Research, INFORMS, vol. 17(1), pages 61-80, March.
    4. Naresh K. Malhotra & Sung S. Kim & James Agarwal, 2004. "Internet Users' Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model," Information Systems Research, INFORMS, vol. 15(4), pages 336-355, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Corey Angst, 2009. "Protect My Privacy or Support the Common-Good? Ethical Questions About Electronic Health Information Exchanges," Journal of Business Ethics, Springer, vol. 90(2), pages 169-178, November.
    2. Zhenhui (Jack) Jiang & Cheng Suang Heng & Ben C. F. Choi, 2013. "Research Note —Privacy Concerns and Privacy-Protective Behavior in Synchronous Online Social Interactions," Information Systems Research, INFORMS, vol. 24(3), pages 579-595, September.
    3. David Harborth & Sebastian Pape, 2020. "Empirically Investigating Extraneous Influences on the “APCO” Model—Childhood Brand Nostalgia and the Positivity Bias," Future Internet, MDPI, vol. 12(12), pages 1-16, December.
    4. Tajvidi, Mina & Richard, Marie-Odile & Wang, YiChuan & Hajli, Nick, 2020. "Brand co-creation through social commerce information sharing: The role of social media," Journal of Business Research, Elsevier, vol. 121(C), pages 476-486.
    5. 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).
    6. Weiyin Hong & Frank K. Y. Chan & James Y. L. Thong, 2021. "Drivers and Inhibitors of Internet Privacy Concern: A Multidimensional Development Theory Perspective," Journal of Business Ethics, Springer, vol. 168(3), pages 539-564, January.
    7. Morlok, Tina & Matt, Christian & Hess, Thomas, 2017. "Privatheitsforschung in den Wirtschaftswissenschaften: Entwicklung, Stand und Perspektiven," Working Papers 1/2017, University of Munich, Munich School of Management, Institute for Information Systems and New Media.
    8. Tabitha L. James & Quinton Nottingham & Stephane E. Collignon & Merrill Warkentin & Jennifer L. Ziegelmayer, 2016. "The interpersonal privacy identity (IPI): development of a privacy as control model," Information Technology and Management, Springer, vol. 17(4), pages 341-360, December.
    9. Pagani, Margherita & Malacarne, Giovanni, 2017. "Experiential Engagement and Active vs. Passive Behavior in Mobile Location-based Social Networks: The Moderating Role of Privacy," Journal of Interactive Marketing, Elsevier, vol. 37(C), pages 133-148.
    10. Darrell Carpenter & Alexander McLeod & Chelsea Hicks & Michele Maasberg, 2018. "Privacy and biometrics: An empirical examination of employee concerns," Information Systems Frontiers, Springer, vol. 20(1), pages 91-110, February.
    11. Grace Fox & Tabitha L. James, 2021. "Toward an Understanding of the Antecedents to Health Information Privacy Concern: A Mixed Methods Study," Information Systems Frontiers, Springer, vol. 23(6), pages 1537-1562, December.
    12. Rouven-B. Wiegard & Michael H. Breitner, 2019. "Smart services in healthcare: A risk-benefit-analysis of pay-as-you-live services from customer perspective in Germany," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(1), pages 107-123, March.
    13. Verhagen, T., 2008. "Investigating the impact of C2C electronic marketplace quality on trust," Serie Research Memoranda 0008, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    14. Liang, Sai & Li, Hui & Liu, Xianwei & Schuckert, Markus, 2019. "Motivators behind information disclosure: Evidence from Airbnb hosts," Annals of Tourism Research, Elsevier, vol. 76(C), pages 305-319.
    15. Darrell Carpenter & Alexander McLeod & Chelsea Hicks & Michele Maasberg, 0. "Privacy and biometrics: An empirical examination of employee concerns," Information Systems Frontiers, Springer, vol. 0, pages 1-20.
    16. Carpenter, Darrell & Maasberg, Michele & Hicks, Chelsea & Chen, Xiaogang, 2016. "A multicultural study of biometric privacy concerns in a fire ground accountability crisis response system," International Journal of Information Management, Elsevier, vol. 36(5), pages 735-747.
    17. Heng Xu & Hock-Hai Teo & Bernard C. Y. Tan & Ritu Agarwal, 2012. "Research Note ---Effects of Individual Self-Protection, Industry Self-Regulation, and Government Regulation on Privacy Concerns: A Study of Location-Based Services," Information Systems Research, INFORMS, vol. 23(4), pages 1342-1363, December.
    18. Janice Y. Tsai & Serge Egelman & Lorrie Cranor & Alessandro Acquisti, 2011. "The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study," Information Systems Research, INFORMS, vol. 22(2), pages 254-268, June.
    19. Yi Sun & Shihui Li & Lingling Yu, 2022. "The dark sides of AI personal assistant: effects of service failure on user continuance intention," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 17-39, March.
    20. Grace Fox & Lisa van der Werff & Pierangelo Rosati & Patricia Takako Endo & Theo Lynn, 2022. "Examining the determinants of acceptance and use of mobile contact tracing applications in Brazil: An extended privacy calculus perspective," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 73(7), pages 944-967, July.

    More about this item

    Keywords

    regulation; data protection; online privacy concern; Croatia;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • K2 - Law and Economics - - Regulation and Business Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iez:wpaper:1803. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Doris Banicevic (email available below). General contact details of provider: https://edirc.repec.org/data/eizgghr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.