What drives self-disclosure in mobile payment applications? The effect of privacy assurance approaches, network externality, and technology complementarity

Xiang Gong*, Kem Z.K. Zhang, Chongyang Chen, Christy M K CHEUNG, Matthew K.O. Lee

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

Purpose: Drawing on the control agency theory and the network effect theory, the purpose of this paper is to examine the effect of privacy assurance approaches, network externality and technology complementarity on consumers’ self-disclosure in mobile payment (MP) applications. The authors identify four types of privacy assurance approaches: perceived effectiveness of privacy setting, perceived effectiveness of privacy policy, perceived effectiveness of industry self-regulation and perceived effectiveness of government legislation. The research model considers how these privacy assurance approaches influence privacy concerns and consumers’ self-disclosure in MP applications under boundary conditions of network externality and technology complementarity. Design/methodology/approach: An online survey with 647 sample users was conducted to empirically validate the model. The target respondents were current consumers of a popular MP application. The empirical data were analyzed by a structural equation modeling approach. Findings: The empirical results reveal several major findings. First, privacy assurance approaches can effectively decrease privacy concerns, which ultimately formulates consumers’ self-disclosure in MP applications. Second, network externality and technology complementarity weaken the effect of perceived effectiveness of privacy setting on privacy concerns. Third, network externality and technology complementarity strengthen the relationship between perceived effectiveness of government legislation and privacy concerns, while they have non-significant interaction effect with perceived effectiveness of privacy policy and industry self-regulation on privacy concerns. Practical implications: MP providers and stakeholders can harness the efficacy of privacy assurance approaches in alleviating privacy concerns and promoting consumers’ self-disclosure in MP applications. Originality/value: The authors’ work contributes to the information privacy literature by identifying effective privacy assurance approaches in promoting consumers’ self-disclosure in MP applications, and by highlighting boundary conditions of these privacy assurance approaches.

Original languageEnglish
Pages (from-to)1174-1213
Number of pages40
JournalInformation Technology and People
Volume33
Issue number4
DOIs
Publication statusPublished - 5 Nov 2019

Scopus Subject Areas

  • Information Systems
  • Computer Science Applications
  • Library and Information Sciences

User-Defined Keywords

  • Consumer behaviour
  • Control agency theory
  • Mobile payment applications
  • Network effect theory
  • Privacy assurance approaches
  • Privacy concerns
  • Self-disclosure
  • Structural equation modelling
  • Survey

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