An integrated model for online transactions: illuminating the black box

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Abstract:

Purpose ‐ The purpose of this paper is to develop a model for online transactions, integrating the social influence approach, the trust-risk framework, and the theory of reasoned action, and to test it in a non US/UK context such as Greece. Design/methodology/approach ‐ Structural equation modeling was used to survey data from 376 household respondents from two residential departments of the city of Thessaloniki in Greece in order to examine causal inferences. Findings ‐ The results of the model, where the trust-risk-subjective norms framework mediated the impact of information privacy on actual transactions, indicated that the individual's attitude toward using technology, through the intention to submit individual information, resulted in positive actual transaction outcomes. Research limitations/implications ‐ Cross-section data were used for testing the model. However, for properly investigating causality time-series or longitudinal data should be employed. Practical implications ‐ For increasing online transactions, organizations should make their websites as simple and attractive as possible, develop their image that they do care about customers and are trustworthy, and develop privacy-friendly policies for gaining competitive advantage. Originality/value ‐ This study proposes and empirically validates an integrative framework for online transactions at the individual level by adapting information privacy concerns and trust-risk-subjective norm beliefs and relates them to attitudes of individuals. Thus, the proposed integrative framework is critically engaging and well established but with limited information models.
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