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

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.

Keywords:

• cross-cultural research
• Internet use
• Internet privacy
• Internet trust
• LISREL
• multigroup analysis

Additional information

Notes on contributors

Tamara Dinev

About the authors

Tamara Dinev is Assistant Professor in the Department of Information Technology and Operations Management, Florida Atlantic University, Boca Raton, Florida. Her research spans information privacy, harmful technologies prevention, and cross-cultural research in information systems. She recently published in International Journal of E-commerce, Behavior and Information Technology, and Communications of the ACM.

Massimo Bellotto

Massimo Bellotto is Full Professor and Coordinator of the Ph.D. program in the Department of Psychology of Work and Organizational Psychology at the University of Verona, Verona, Italy. He published several academic books and articles in journals including International Journal of cross-cultural Management, Innovation, Psicologia del Trabajo Y de las Organizaciones Risorsa Uomo.

Paul Hart

Paul Hart is Associate Professor and Chair of the Department of Information Technology and Operations Management, Florida Atlantic University, Boca Raton, Florida. His research spans computer networks in organizational boundaries, trust in online transactions, and information privacy. He has published in a number of journals including Organization Science, Journal of Management Information Systems, and International Journal of Electronic Commerce.

Vincenzo Russo

Vincenzo Russo is Assistant Professor of Work and Organizational Psychology and Consumer Psychology, University IULM, Milan, Italy. He is also Member of the Scientific Board of the Business School ISIDA, Palermo, Italy. His research and publications are related to the themes of the consumer behaviour, quality system for the telephone and online counselling.

Ilaria Serra

Ilaria Serra teaches at the Department of Italian Studies at Florida Atlantic University, Boca Raton, Florida. Her research interests include Italian cinema and literature, history of Italian immigration to the United States, and Internet use in Italy. She published several articles and books both in Italy and the U.S.

Christian Colautti

Christian Colautti teaches work and organizational psychology and consumer psychology at University IULM, Milan, Italy. His research includes quality system for the telephone and online counselling. He presented his research in several Italian and International conferences.