Impact of Culture on E-Commerce Purchase Intention with the Mediatory Role of Environmental and Cultural Trust and Moderation of Perceived Security Risk

38 Pages Posted: 29 Aug 2019 Last revised: 10 May 2023

See all articles by Fawad Alam

Fawad Alam

Karachi University Business School, Students

Danish Ahmed Siddiqui

University of Karachi - Karachi University Business School

Date Written: August 28, 2019

Abstract

The paper investigated the impact of culture on e-commerce purchase intention while keeping Perceived Security Risk as a moderating variable in E-Commerce Activities. We proposed a theoretical framework whereby perceived security risk was considered to be a moderating variable and the e-commerce purchase intention was regarded as dependent variable. In the same case, the independent variables were institutional trust, vendor trust and system trust and the impact of perceived security risk was analysed on the aforementioned three dependent variables separately. We also proposed a mediating role of cultural and environmental trust factor in perceived risk nexus. To measure cultural trust, we modified Hoorn (2015) model measuring people’s radius of trust (i.e., the intensity with which people trust other people). These included In-group trust, Out Group Trust, and Trust in Most People. Furthermore, E-commerce Environmental trust framework was adopted from Joubert & Belle (2013) model of Perceived trust worthiness in M-commerce activities that included the perceived trustworthiness of the vendor, technology and the institutional framework. Individuals with higher levels of collectivism would positively affect the trust level within communities, outside communities and general public. This higher trust level among people would positively affect ecommerce environmental trust factors which ultimately persuade the e-commerce purchase intention of e-commerce consumers. Moreover, the moderating effect of perceived security risk was found to be insignificant in relation to e-commerce and purchase intention. The validity of this framework was empirically established by testing it to a sample of 431 respondents belonging to different accredited institutions of Pakistan by means of close end Likert scale type questionnaire. The data was subsequently analysed using structural Equation Modelling and Confirmatory factor analysis. The results suggested that collectivism have a positive and significant effect on culture of trust among people. Furthermore, these had a significant influence on e-commerce trust which and eventually inspires to participate in the utilisation e-commerce platform.

Keywords: Perceived Security Risk, e-commerce, Culture, collectivism, In-group trust, Out Group Trust, and Trust in Most People, vendor trust, technology trust, institutional trust , Pakistan

Suggested Citation

Alam, Fawad and Siddiqui, Danish Ahmed, Impact of Culture on E-Commerce Purchase Intention with the Mediatory Role of Environmental and Cultural Trust and Moderation of Perceived Security Risk (August 28, 2019). Available at SSRN: https://ssrn.com/abstract=3444120 or http://dx.doi.org/10.2139/ssrn.3444120

Fawad Alam

Karachi University Business School, Students ( email )

Karachi
Pakistan

Danish Ahmed Siddiqui (Contact Author)

University of Karachi - Karachi University Business School ( email )

University Road
Karachi, Sindh 75270
Pakistan
3333485884 (Phone)

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