Moderating effects of perceived risk on the determinants–outcome nexus of e-money behaviour
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 22 October 2020
Issue publication date: 26 January 2022
Abstract
Purpose
In recent years, the usage rate of electronic money (e-money) has grown rapidly in many countries around the world and is becoming widely accepted in developing nations due to evolving market conditions and buying patterns. This study explores the determinants of customers' behavioural intention (BI) and actual usage behaviour (UB) of e-money service in a transition economic setting. Additionally, since there has been limited research on moderating influences, this study introduces perceived risk (PR) as a moderator, underpinned by relevant technology acceptance and behavioural theories.
Design/methodology/approach
The proposed model and hypothesised variable relationships are tested using partial least squares-structural equation modelling (PLS-SEM) with survey data from 337 e-money service users in Indonesia.
Findings
The empirical results revealed that facilitating conditions (FCs), hedonic motivation (HM), price value (PV), habit (HT) and PR are important determinants of customers’ BI towards e-money and most of these variables also affect actual UB of e-money services. Performance expectancy (PE), effort expectancy (EE) and social influence (SI) emerged to be insignificant determinants. The study also uncovered that PR negatively moderates the links between EE, SI, HM, PV and BI towards e-money services. Likewise, PR has an adverse effect on the BI–actual UB relationship.
Research limitations/implications
A large portion of the sample comprised young individuals with tertiary education. In essence, the sample represents the millennial generation and they are generally characterised as responsive, innovative and technology literate. Future studies could advance the present understanding by comparing different customer backgrounds and country.
Practical implications
The results shed light into the key factors that enhance e-money usage behaviours and have direct managerial implications with regard to brand strategy and market targeting. The findings imply that e-money service providers should take initiatives to retain users with effective and personalised marketing efforts, particularly via mobile media brand promotions.
Originality/value
While there has been considerable discussion on how PR may impact on initial preference and adoption of e-money, existing studies seem to fall short in conceptualising and empirically examining the moderating role of PR on the determinants and outcome of e-money BI.
Keywords
Acknowledgements
The authors are in-debt and grateful to Professor Dr. Ilan Alon, Professor Dr. Henrique Castro Martins, and esteemed reviewers for their valuable comments and suggestion in enhancing the quality of our paper.Funding: This study have received no direct funding.
Citation
Susanto, P., Hoque, M.E., Hashim, N.M.H.N., Shah, N.U. and Alam, M.N.A. (2022), "Moderating effects of perceived risk on the determinants–outcome nexus of e-money behaviour", International Journal of Emerging Markets, Vol. 17 No. 2, pp. 530-549. https://doi.org/10.1108/IJOEM-05-2019-0382
Publisher
:Emerald Publishing Limited
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